In the United States, where Internet services are cheap, the ratio of capital to labor used is
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In the United States, where Internet services are cheap, the ratio of capital to labor used is higher than that of capital used in accounting services. But in other countries, where Internet services are expensive and labor is cheap, it is common to use less capital and more labor than in the United States. Can we still say that Internet services are capital intensive compared to accounting services? Why or why not?
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Comparing the capital intensity of Internet services to accounting services solely based on the ratio of capital to labor may not provide a complete p...View the full answer
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Related Book For
International Economics Theory And Policy
ISBN: 9781292409719
12th Edition
Authors: Paul Krugman , Maurice Obstfeld, Marc Melitz
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