Question

Briefly identify the reasons why developing countries so often use a technology with an excessively high capital labor ratio.

Answer 1

The reasons why developing countries so often use technology with excess capital-labor ratio is that these developing countries are working on a development phase where the industrialization is a new challenge and to cover up the competition with the Global competitors and on the Global market platform it is necessary to produce goods as per the latest technology with minimum cost.
This is the only reason why developing countries of a user technology with an excessively high capital-labor ratio. The technology used by these countries on no doubt influence the capital efficiency but it is more influence with the labor intensive technology. It is so because labor intensive technology means the use of more reliable than the capital and the developing countries have the benefit of cheap labor so the labor ratio in these countries are very good in comparison to the capital technology and the developed nations are always looking for up gradation in this type of economies.
This is the only reason why these countries are often using the technologies even when there is the existence of labor-power the labor-intensive technologies are used in various types of development activities. It is very helpful for the promotion and the development of new industrial project although it is maintained and managed and organized by the developed nation the ultimate profit and the investment interest lies in the developing economies.