What is a key factor leading to de-industrialisation?

The correct answer highlights the significant influence of both the exhaustion of raw materials and international competition on de-industrialisation. When local industries face a depletion of essential resources, they struggle to maintain production levels, leading to a decline in industrial activity. Diminishing raw materials can make it economically unfeasible for companies to operate, prompting them to either scale down or close entirely.

Moreover, international competition plays a crucial role as countries with abundant resources and lower production costs can outcompete domestic industries. This often results in a shift of manufacturing jobs and production to countries where operational expenses are lower, further contributing to the decline of industries in higher-cost nations.

While other factors such as increasing labor costs, strict environmental regulations, and technological advancements may impact industrial operations, they are not as central to the phenomenon of de-industrialisation compared to resource availability and the competitive landscape of the global market.