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 Production Doll drudgery does not involve much heavy equipment to simple machinery out its industrial production according to the movie. Considering the fact that doll making could be very convoluted and intricate at some point, it requires more mash force than machines since virtually machines do not have the capability to get along extremely complicated tasks with high levels of precision. Also, doll production takes in a kitty of workers to work on the quality checking, dressing, molding phase, and assembling. Looking at the conditions, doll manufacturers have lower production as compared to other industries such as the car industry in that doll industry implements labor intensity quite an than detonating device intensity. This is the reason why the doll industry employs several hundreds to thousands of workers to meet its production quota. Its in writing(p) from the movie that dol l production goes through several phases. These phases includes, molding body parts, assembling of the body parts, varying doll colors, doll dressing, quality check and packaging. roughly of the China dolls are manufactured by low fired ceramic. The doll heads are labeled easily lost 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 high production hail 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, Capital Intensive Industry). One fine example is the recently constructed Honda assembly plant in Wuhan, Central China. This new Hon da adroitness poses a capability to produce thousands of cars annually. As a matter of fact, as stated on the video, DFAC Honda has produced 164,200 units in 2008 alone and this is still way short to the rapidnesss 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 auto parts were supplied locally. Hondas high production coffin nail 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 cars. T hese robots and machines work simultaneously and coordinately for a faster and more on the button 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. Labor chroma 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 labor is implicated since. This is because it involves a lot of complicated tasks and high levels of precision in the making unlike the car industry whereby human labor is minimal. This makes the doll industry is labor intensive. Capital Intensity Capit al intensity entails an investment of the capital to heavy and expensive machines to act as substitute for a