Principles of Macro. (Looseleaf)-With Access (Custom)
Principles of Macro. (Looseleaf)-With Access (Custom)
11th Edition
ISBN: 9781269334082
Author: CASE
Publisher: PEARSON
Question
Chapter 17, Problem 1P
To determine

Role of new technology in a developing country.

Expert Solution & Answer
Check Mark

Explanation of Solution

Majority of developing countries are labor intensive. Therefore, to achieve a rapid economic growth, developing countries try to import new technologies from developed nations, because the new technology will help to increase the productivity of an economy. This concept is explained using an example, suppose, searching few things in internet without a search engine is too difficult. The role of internet, email, online banking etc. is the examples of technology up gradation. Therefore, they upgraded and changed most of the systems in the country for the Y2K bug. But on the contrary, increasing role of machines will reduce the labor force needed for a production process and also more skilled and trained labor force is needed to operate the newly imported technology.

Economics Concept Introduction

Concept introduction:

Labor intensive production: Labor intensive means a proportion of labor is used for the production of goods, and services are greater than proportion of capital used for the production, which means that labor is substituted for the capital.

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