Advantages of capital intensive techniques
- It is associated with high levels of output.
- High quality products are expected with this production technique.
- It maximizes the use of capital per worker.
- Employment opportunities could be generated in the longrun because of the high profits, which can reinvested to create more jobs.
- It leads to exploitation and efficient utilization of the existing idle resources.
- It enables technological development and transfer to LDCs.
- It leads to the development of skills among the workers.
- It is a labour saving technique where labour is expensive.
- Labour unrest is minimized with use of this technique.
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Entrepreneurship is promoted through high savings
among a few.
In LDCs, use of capital intensive may stimulate foreign investors. - Less supervision may be required.