The Economics of the Doll and Car Industry in the USA and in China Term Paper

The Economics of the Doll and Car Industry in the USA and in china - Term Paper ExampleDoll take Doll mathematical product does not involve a great deal heavy equipment to slaver out its industrial work according to the movie. Considering the fact that hiss making could be very convoluted and intricate at some point, it requires more labor force than machines since most machines do not chip in the capability to perform extremely complicated tasks with high levels of precision. Also, annulus production takes in a lot of workers to work on the quality checking, dressing, perimeter phase, and assembling. Looking at the conditions, doll manufacturers have lower production as compared to other industries such as the railcar industry in that doll industry implements labor intensity rather than capital intensity. This is the reason why the doll industry employs several(prenominal) hundreds to thousands of workers to look its production quota. Its vivid from the movie that doll p roduction goes through several phases. These phases includes, molding body parts, assembling of the body parts, varying doll colors, doll dressing, quality check and packaging. Most of the china dolls are manufactured by low fired ceramic. The doll heads are labeled easily wooly stickers inside the heads. Certainly, each phase calls for a lot of workers to perform each type of operation. Consequently, the current doll production process entails not just lower production but also higher production cost as doll manufacturers have to remunerate a considerable number of workers. Car Production In car production employs capital intensity in the manufacture of the cars. Car manufacturers use a large part of its capital to purchase and install extremely heavy and costly machines and robots rather than workers to carry out its production. (Economy Watch, expectant Intensive Industry). One fine example is the recently constructed Honda group lay down in Wuhan, Central China. This new Ho nda facility poses a capability to produce thousands of cars annually. As a study of fact, as stated on the video, DFAC Honda has produced 164,200 units in 2008 al iodin and this is calm down way short to the facilitys maximum production capacity of 240,000 cars. Honda also underwent a joint venture, which combined Guangzhou Honda and DFAC Honda. This merger has resulted into Honda being one of the top five selling car brands, 470,000 units sold annually, and two independent channels of sales. Also, 95% of this production was sold in China, and 70% of the simple machine parts were supplied locally. Hondas high production can be attributed to its implementation of capital intensity. It uses heavy equipment and high-priced machines to work as substitute for the labor force. In general, car manufacturers prefer this strategy in their production because it entails high production but lesser production cost. In the video, Honda installs hundreds of robots and heavy machines to build c ars. These robots and machines work simultaneously and coordinately for a faster and more precise assembly of cars. Capital-intensive industries such as Honda do not necessarily discount the importance of labor force. Car manufactures still employ labor force to perform very important functions in the installation of small auto parts and for checking the quality of the car although, car production requires smaller number of workers. struggle Intensity Labor intensity involves a large number of employees or longer hours of work from its employees in order to meet certain production quota. The production cost can be measured by taking the proportion between the labor cost and the capital cost. In the case of doll production, a lot of human beings labor is implicated since. This is because it involves a lot of complicated tasks and high levels of precision in the making impertinent the car industry whereby human labor is minimal. This makes the doll industry is labor intensive. Cap ital Intensity Capital intensity entails an investment of the capital to heavy and expensive machines to act as substitute for a