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Capital intensity is the amount of fixed or real capital present in relation to other factors of production, especially labor.At the level of either a production process or the aggregate economy, it may be estimated by the capital to labor ratio, such as from the points along a capital/labor isoquant.
In 1971 Robert Baldwin showed that U.S. imports were 27% more capital-intensive than U.S. exports in the 1962 trade data, using a measure similar to Leontief's. [2] [3]In 1980 Edward Leamer questioned Leontief's original methodology for comparing factor contents of an equal dollar value of imports and exports (i.e. on real exchange rate grounds).
The format of a business plan depends on its presentation context. It is common for businesses, especially start-ups, to have three or four formats for the same business plan. An "elevator pitch" is a short summary of the plan's executive summary. This is often used as a teaser to awaken the interest of potential investors, customers, or ...
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Labor-capital ratio: the relationship between employment and capital stock. [clarification needed] This ratio indicates the relative use of factors in an activity and the extent to which it is labor-intensive compared to capital-intensive. [5] The ratio between employment and value added, which indicates the labor intensity of production.
Habakkuk proposed that America ended up choosing a more capital-intensive technique of manufacturing in order to conserve labor. To further his argument he points out that increased demand for labor in the early 19th century raised the wages of unskilled labor more than that of skilled labor.