Under what circumstance may capital intensive techniques of production be employed despite the existence of surplus labour

Answer

Note: this calls for advantages of capital intensive and disadvantages of labour intensive techniques of production

• Machines are easier to control the labour. Labour tends to ask for continual increments in wages and other incentives which increases marginal cost of production
• If large quantities of identical goods are required then a company will be more likely to use capital intensive methods of production.
• Capital intensive can easily be automated.
• Machines can carry our dangerous tasks which will reduce accidents.
• Machines can carry out repetitive tasks that humans would find boring.
• Machines can work continuously, 24/7
• Labour is expensive in terms of training, supervision and retrenchment.
• There are some industries where labor-intensive techniques are not applicable e.g. in heavy manufacturing.
• It encourages training of skilled labour to use machines e.g. workers using computers and tractors
• It produces standard commodities which compete on world market in quality and price
• In agriculture, it encourages the use of modern methods of farming e.g. use of fertilizers leading to more output.
• It encourages scientific research that leads to development of new production techniques.
• Since LDCs rely on foreign investment from MDCs, which use capital intensive technology, it suits LDCs more than labour intensive technology.
• Capital intensive techniques of production require smaller working spaces compared to labour intensive techniques.
• It helps in provision of social and economic overheads such infrastructure.
• Labour intensive techniques of production do not encourage full utilization of resources that would of resources that would have been done by machines