a labor-intensive production process is one that This is a topic that many people are looking for. thetruthaboutdow.org is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, thetruthaboutdow.org would like to introduce to you Chapter 2: Capital and labor intensive. Following along are instructions in the video below:
“This video. We will talk about how american to produce before i started i wo won t ask you a question. Dear sumitra still remember the four factors of production in chapter. One.
I give you three seconds to think about it yeah. I think most of you have ranked at it so the four factors are label land capital and entrepreneurship. So in order to answer this question for specific effect before the united states. When to consider how a country produced depending on what the resources include available for the nation.
The key among the resources input input is capital the human capital the knowledge and skills processed by the workforce. The physical capital. The facilities tours equipment and in france available to the workforce. So think about if you want to produce the iphone.
What do you want you definitely need the factory right and you need to have a different machine to help you to make the iphone. Obviously there are people need to be talented enough to create and try to update give the mode of the iphone from the iphone 3 4 s. C. 5 5.
S. 5c so all those creation needed a human capital..
So remember. The key resources input is capital. The capital include both human capital and physical capital. And so.
Since the captor is so important we need to understand the investment in capital. So it heavily in the human capital of massive amount of the physical capital. The higher productivity higher educated worker with high technology equipment in capital. Intensive production process.
An american household are able to consume so much because american workers produce too much so it s a really very interesting statement american household are able to consume so much because american workers produce so much and at the same time because american consul consume so much. The american worker have incentive to produce much right actually for most country. They are considered do we have more capital or more labor in our production. Actually for the rich countries they tend to be capital intensive while the poorer country tend to be labor intensive.
So actually are not you are not unfamiliar with the capital intensive and then they were intensive. But how economies define them. So. The capital intensive is capital is abandoned and the relatively low cost and the labor is costly.
So for those country. They will adopt a capital intensive economy..
So for those country capital is unavailable or very expensive. But the labor is cheap they will adopt the labor intensive for intensive. So can t think about some example. Some some simple example countries.
Which have capital intensive and which contrast. The labor intensive yes obviously. The united states are capital intensive country because the human the technologists are so advanced. So that is come can be konya.
The human capital and also the equipment are very advanced. Those are physical capital. But the labor is very costly care imagine if you just go to see the doctor for fifteen minutes. It ll charge a huge money right so in the united states.
The labor is very costly and how both of the labor intensive country such as the vietnam. So the v. Announced labor is super cheap now you can find manning international that s the big companies they were opened up manufacturing in bed. Now why because the labor.
There is so expensive cheap people can use it to produce a cheap product. So like the vietnam..
We re going to approach country. The adopted labor intensive production how about other factors. Which will affect how american produced. The first is the technology for advancement.
So what does that mean the technology called advancement means you can find new and better way to produce products. So for instance like people produce the iphone look. I believe the nowadays how people produce the iphone should be totally different from people many years ago to produce the iphone and that s why it kind of dropped down the price of the iphone. So when technology are the best the economy can produce more output with existing resources.
So can you imagine how fast the people can produce iphone within one day compared with the ten years ago. So it s really a big change all these change is because the technology advanced. So if we have the technology advanced. What it will be the consequence on the production.
Possibility curve yes. I don t need to say you must be understand so. Since the technology called advanced it increased the output. Waiting the certain resources.
So that means the production possibility curve will shift outward so that is important when we have technological advance the production possibility curve shifts outward how about abductors which will affect the helmer country the next one is effector mobility. So the roughly the rather allocation resources from declining industry to expand the industries..
So can t think about how the economy changing earing so many years ago. Erie surrounded by the city produced the crude oil. But people don t pay more attention on reserve. It and at nowadays people realize they don t really have enough recruiter order to support the hell economy so what they are doing now is trying to explore the renewable energy such as a wind farm and the offshore wind farm which it should look at it in that eerily and also the solar panel.
If you have time to travel around campers you will find that the fancier solar panel next to the exercise dune so that fancy the effective mobility when the fence when when the effective mobility. Happened the economy should increase and also the next one is outsourcing in the trade. So people taking advantage of the lower opportunity cars around the world and exploiting technology for advanced advancement to use resources from around the world. So that is outer sourcing and the trains.
So for the united states us work to have a comparative advantage in higher skill capital intensive jobs. If you have time to visit. The china you can find a lot of american expert work in china trying to help china to develop their technology. And also workers in other countries have the comparative advantage in lower skilled labor intensive jobs such as of mexico and china china.
They do satisfy this criteria so all the sourcing flows both ways. Some jobs in the united states and the other jobs coming to the united states so you can see how many talented scientists expert moved to china to help china india and mexican on their technology development at the same time china india. And the mexican they import a lot of cheap labor to help to build it to help to make the us economy being increase got improved. So the next video will talk.
Thank you for watching all the articles on the topic Chapter 2: Capital and labor intensive. All shares of thetruthaboutdow.org are very good. We hope you are satisfied with the article. For any questions, please leave a comment below. Hopefully you guys support our website even more.