Question

Give an example of a firm or industry that has exhibited dramatic technological progress in the recent past. Was this technological progress an example of neutral technical change or was it a capital saving or labor saving technical change?

How would you describe the change brought about by retail sales over the Internet? Think about Amazon as an example. Is this a case of process or organizational innovation? Explain your reasoning please list a source

Answer 1

• Give an example of a firm or industry that has exhibited dramatic technological progress in the recent past. Was this technological progress an example of neutral technical change or was it a capital saving or labor saving technical change?

  ·        Auto industry has exhibited dramatic technological progress in the recent past. Everything is being done through the automation. Automation in auto industry has led to the fall in the demand of labor for auto sector. Such technological change is an example of labor saving technology. It is causing rise in unemployment rate.

  How would you describe the change brought about by retail sales over the Internet? Think about Amazon as an example. Is this a case of process or organizational innovation? Explain your reasoning please list a source

• This is supreme example of process of innovation. Amazon has revolutionized the way people used to purchase. Amazon business over internet is relatively convenient and easy. It is projected that by next year, sale of books on retail would be reduced by 10 %. Rise of Amazon has led to the mass movement of customers from retail shopping to online shopping.

• References

  https://www.engadget.com/2018/01/22/amazon-go-convenience-store-of-the-future-makes-me-nervous/