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capital-intensive production

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capital-intensive production

Form of production where a relatively high amount of capital is used in relation to labour or other factors of production. Production in primary and secondary industrial sectors is becoming increasingly capital-intensive. As more and more capital is used, labour productivity increases but at the same time employment in these industries falls.


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Accordingly, the Company has set out to leverage its resources into the development of new products, and the building of distribution channels, rather than being absorbed by capital-intensive production processes.
The final two chapters examine the patterns to be found among the Asian NIEs as firms seek to develop strategies for moving from labour-intensive manufacturing to more skill-intensive and capital-intensive production processes.
These arrangements will permit maximum diversification of geographical reach, while allowing the Company to leverage its resources into the development of new products, rather than being absorbed by the capital-intensive production process in Shanghai, which had resulted in accumulated losses in excess of US $5 million.
 
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