What are capital-intensive techniques?
Capital intensive technique refers to that technique in which larger amount of capital is comparatively used. In such a technique the amount of capital used per unit of output is larger than what it is in case of labour intensive technique.
What is meant by capital-intensive?
The term “capital intensive” refers to business processes or industries that require large amounts of investment to produce a good or service and thus have a high percentage of fixed assets, such as property, plant, and equipment (PP&E).
What is intensive technique?
Labour-intensive technique is one which uses large amount of labour and smaller amount of capital Page 4 Definition परिभाषा • According to Prof. Reddaway “labour- intensive technique is one in which larger amount of labour is combined with a smaller amount of capital.”
What are the benefits in using capital-intensive technique?
Capital intensive
| Advantages | Disadvantages |
|---|---|
| Less employee wages and costs | More difficult to customise orders |
| Quality can be standardised, the same every time | Breakdowns in production can be costly |
| Machines can work continuously, 24/7 | Initial set up costs of machinery are high |
What is labour and capital intensive technique?
Capital intensive refers to the amount of capital invested so as to increase the revenue and profit whereas labour intensive refers to amount spent on training to labour so as to increase the efficiency of labour which will ultimately result in the increased production.
What is the difference between labor and capital intensive?
Capital intensive production requires more equipment and machinery to produce goods; therefore, require a larger financial investment. Labor intensive refers to production that requires a higher labor input to carry out production activities in comparison to the amount of capital required.
Which are capital intensive rely on?
| Q. | Firms which are capital intensive rely on _________. |
|---|---|
| B. | short term debt |
| C. | debt |
| D. | retained earnings |
| Answer» c. debt |
What is an example of a capital intensive industry?
What Is an Example of a Capital Intensive Industry? Capital-intensive industries include automotive, airline, oil and gas, mining, manufacturing, and real estate. These companies all have to spend money on assets that are expensive, such as a factory or an airplane.
Why is capital intensive technology used in developing countries?
Labour productivity. Increased investment in capital can help to increase labour productivity (output per worker). This capital intensity and labour productivity play an important role in determining long-run economic growth. More capital intensive methods enable increased output and higher living standards.
Is India a capital intensive country?
India’s growth success has been driven by service-producing industries that mostly employ relatively skilled labor . Even within the manufacturing sector, India tends to specialize in relatively skill- and capital-intensive activities.