Firms in _______ countries tend to have more labor-intensive production processes, while firms in _______ countries tend to have more capital-intensive production processes.

Question

Quizplus · Accepted Answer

Firms in poor countries often rely on labor-intensive production due to the abundance of labor and lack of capital, whereas firms in rich countries tend to use capital-intensive processes due to higher capital availability and labor costs.

Firms in _______ Countries Tend to Have More Labor-Intensive Production