Toyota makes cars in China, and in the US as well. Do you think it uses...
Toyota makes cars in China, and in the US as well. Do you think it uses the same mix of factors of production in both places?
Homework Answers
The country China is the most labour abundant country in the world so Toyota uses more labour and less capital in the production of the cars, it is called as the labour intensive technology. In the U.S the labour is scarce and costly, that is wage rate is much higher than the other countries so Toyota will be using more capital and less labour in their production mix. The Toyota company changes the level of production mix relative to the country they produce.
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Toyota makes cars in China, and in the US as well. Do you think
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