Capital v labour intensive

Question 1

Capital intensive

Answer 1

BMW

More machinery and few workers

Advantages
- cheaper long term
- more precise (consistent quality levels)
- able to work 24/7
- easier to manage

Disadvantages
- high initial costs
- only suited to 1 task
- if they break down, long delays in process
- employees fear of being replaced

Question 2

Labour intensive

Answer 2

NHS, countries with cheap labour

More workers and less machinery

Advantages
- people are flexible (can be retrained)
- cheaper for small scale production or where low-cost labour is available
- workers can solve problems/ suggest ways to improve production

Disadvantages
- harder to manage
- can be unreliable (sick, etc)
- wages increase
- labour turnover is expensive