a company that is capital intensive: a. has an altered fiscal strategy for overseas operations. b. makes better use of benchmarking than other types of business. c. spends more on equipment than on labor. d. must engage in countertrading due to restrictive foreign legislature. e. creates employment monopolies.

A business process or industry is referred to as "capital intensive" if it requires significant investment to produce a good or service and has a high proportion of fixed assets, such as property, plant, and equipment (PP&E).

Automobile manufacturing, oil extraction and refining, steel production, telecommunications, and transportation sectors are a few examples of capital-intensive industries (e.g., railways and airlines).
Labor-intensive refers to the amount spent on training labor to increase the efficiency of labor, which will ultimately lead to increased production, as opposed to capital-intensive, which refers to the amount of capital invested so as to increase revenue and profit.

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tutorconsortium127 tutorconsortium127 · Answer 2 · 2022-11-08T05:52:50+01:00

The ratio of fixed or real capital to other production elements, particularly labor, is known as capital intensity. Capital intensive spends more on equipment than on labor.

What is meant by capital intensive?

The ratio of fixed or real capital to other production elements, particularly labor, is known as capital intensity. It can be calculated using the capital to labor ratio, for example from the points along a capital/labor isoquant, at the level of either a production process or the overall economy.

If a business process or industry has a large proportion of fixed assets, such as property, plant, and equipment, and requires significant investment to provide a good or service, it is referred to as being "capital intensive" (PP&E).

Some examples of capital-intensive businesses are the production of automobiles, oil extraction and refining, steel production, telecommunications, and the transportation industry (e.g., railways and airlines).

Contrary to capital-intensive, which refers to the amount of capital invested in order to raise revenue and profit, labor-intensive refers to the amount spent on training labor in order to increase labor efficiency, which will ultimately lead to greater production.

Therefore, the correct answer is option c. spends more on equipment than on labor.

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