--- title: "Meaning & Key Takeaway of: De-industrialization also has a negative…" description: "\"“De-industrialization also has a negative effect on a country’s balance of payments because services are inherently more difficult to export than manuf..." image: "https://sms4smile.com/quotes/i/1c7/ha-joon-chang-3497_effect-country_de-industrialization-also-has-a-negative_2204583.jpg" --- # De-industrialization also has a negative effect on a… ![“De-industrialization also has a negative effect on a country’s balance of payments because services are inherently more difficult to export than manufactured goods. A balance of payments deficit means that the country cannot ‘pay its way’ in the world. Of course, a country can plug the hole…” quote by Ha-Joon Chang](https://sms4smile.com/quotes/i/1c7/ha-joon-chang-3497_effect-country_de-industrialization-also-has-a-negative_2204583.jpg) [Download](https://sms4smile.com/quotes/i/1c7/ha-joon-chang-3497_effect-country_de-industrialization-also-has-a-negative_2204583.jpg) [Open image](https://sms4smile.com/quotes/i/1c7/ha-joon-chang-3497_effect-country_de-industrialization-also-has-a-negative_2204583.jpg) > ““De-industrialization also has a negative effect on a country’s balance of payments because services are inherently more difficult to export than manufactured goods. A balance of payments deficit means that the country cannot ‘pay its way’ in the world. Of course, a country can plug the hole through foreign borrowing for a while, but eventually it will have to lower the value of its currency, thereby reducing its ability to import and thus its living standard.”” [Ha-Joon Chang](https://sms4smile.com/quotes/author/ha-joon-chang/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. De‑industrialization hurts a nation’s trade balance because services are harder to sell abroad than goods, leading to deficits that eventually force currency devaluation and lower living standards. **In simple terms:** Losing manufacturing hurts trade and living standards. Key Takeaway Diversify exports and support manufacturing. Themes economics trade development currency living standards Mood concerned analytical Type policy economic analytical When to use this quote - government policy - business strategy - education - infrastructure investment Key Concepts industrial policy balance of payments exchange rates structural change Questions to Reflect On - How can a country transition from manufacturing to service dominance? - What policies protect living standards during de‑industrialization? A Different Perspective Relying on borrowing alone cannot sustain deficits. ★ ★ ★ ★ ★ No ratings yet ## Related quotes > [I think Trump has had a very strong and disturbing effect on the country already. 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