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Why might a country like China decide to produce labor intensive goods while a country like the US would decide to produce capital intensive goods?
Wiki User
∙ 13y ago
Simple answer: the Hecksler-Ohlin model of trade describes that countries, as they specialise in goods in which they possess comparative advantage, devote labour/capital to that good. In this case, other goods are pushed out of the market as the dominant input (labour or capital) in the advantaged good rises in price.
I.e.) China specialises in manufacturing; manfacturing is labour-intensive. Labour and capital shift to manufacturing. The price of the two rises, pushing other goods out of the market, especially capital-heavy goods (since labour is needed in manufacturing).
In general, many countries specialise in a good because they possess plentiful inputs needed for that good.
I.e.) The U.S. has a lot of capital. Therefore, capital has more competition and is cheaper to access. Capital-intensive goods are cheaper to produce, and so more capital-intensive goods are produced with higher profit-margins.
Wiki User
∙ 13y ago
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WHAT IS production decision in managerial economics?
Production decision:A firm needs to answer four basic questions - what to produce, how to produce and how much to produce and for whom to produce.What to produce?A firm will produce according to its perception of the customer demand. It can either produce consumer goods like food, clothing etc. (which are for consumption purpose) or it can produce capital goods like machinery etc. (which are for investment purposes).How to produce?Goods can be produced by certain techniques. Firms have the option of producing goods by labour intensive technique and capital intensive technique. Labour intensive technique is the one in which manual labour is used to produce goods. Capital intensive technique is the one in which machinery like forklift, assembly belts etc. are used to produce goods.How much to produce?A firm has to decide its production capacity and also how much of their good a consumer needs and produce accordingly.For whom to produce?A firm has to decide its target population (i.e. to whom they will serve products and/or services). Example, it will not be viable to produce luxurious goods or middle income or low income group if they can't afford it and produce basic necessity goods for rich class if they don't need it. Therefore, a firm needs to match its produce according to the target population it is serving.
Once a firm knows what is it should produce what must it then decide?
Once a firm knows what is it should produce what must it then decide
How do the resources that a country has affect how it decides what to produce?
A country will decide on what to produce based on what type of climate they are located in and what type of technology they have access to. Without these factors in place it is impossible to produce products that will not thrive in the area.
Which type of economy does the government decide what to produce how to produce and for whom to produce?
Controlled.
When a country has a market economy which of these statements correctly defines this system?
Companies produce goods of their choice and consumers decide whether to buy the goods
WHAT IS production decision in managerial economics?
Production decision:A firm needs to answer four basic questions - what to produce, how to produce and how much to produce and for whom to produce.What to produce?A firm will produce according to its perception of the customer demand. It can either produce consumer goods like food, clothing etc. (which are for consumption purpose) or it can produce capital goods like machinery etc. (which are for investment purposes).How to produce?Goods can be produced by certain techniques. Firms have the option of producing goods by labour intensive technique and capital intensive technique. Labour intensive technique is the one in which manual labour is used to produce goods. Capital intensive technique is the one in which machinery like forklift, assembly belts etc. are used to produce goods.How much to produce?A firm has to decide its production capacity and also how much of their good a consumer needs and produce accordingly.For whom to produce?A firm has to decide its target population (i.e. to whom they will serve products and/or services). Example, it will not be viable to produce luxurious goods or middle income or low income group if they can't afford it and produce basic necessity goods for rich class if they don't need it. Therefore, a firm needs to match its produce according to the target population it is serving.
Once a firm knows what is it should produce what must it then decide?
Once a firm knows what is it should produce what must it then decide
How do the resources that a country has affect how it decides what to produce?
A country will decide on what to produce based on what type of climate they are located in and what type of technology they have access to. Without these factors in place it is impossible to produce products that will not thrive in the area.
Decide whether the sentence below is reflexive or intensive?
The sentence "I myself will cook dinner tonight" is intensive, as the pronoun "myself" is used to emphasize the subject "I" rather than to indicate that the subject is performing an action on itself.
What did Holliday decide to focus on as a DuPont executive?
double-digit earnings growth, a standard that had been set by his predecessor. He would focus on creating a leaner, faster, and less capital-intensive company
What type of economy does the government decide what to produce and how to produce and for whom to produce?
Controlled.
Which type of economy does the government decide what to produce how to produce and for whom to produce?
Controlled.
What type of economy does the government decide what to produce how to produce and for whom to produce?
Controlled.
When a country has a market economy which of these statements correctly defines this system?
Companies produce goods of their choice and consumers decide whether to buy the goods
When trying to decide what to produce businesses will look at the demand for their goods.?
When trying to decide what to produce, businesses will look at the demand for their goods.
When trying to decide what to produce business will look at the demand for their goods.?
When trying to decide what to produce, businesses will look at the demand for their goods.
Once a firm knows how to best use the land to which it had access what must it then decide?
how to set the ratio of labor to capital in the production process
