Question

Evaluate the view that the best way to achieve economic growth is through improvement of technology. (Need figures, ib economics)

Answer 1

Answer: Technology has great impact on various economic aspects.

Main impact of technology are discussed under following heads.

1.Reduction in cost of production : improved production process,large scale manufacturing,automation has resulted in lower unit cost of production.now by products can also be used in an effective manner which too has favourable impact on cost.

2.Imrovment in quality: Technological advancement has resulted in better quality produts,Now big Manufacturing units follow strict quality control system to eliminate efects in the products have better features,quality,designs,style shape etc.

3.Shorter product life cycle: Because of fast changing technology, new products are invented very quickly, It makes the existing products obsolete.Now products have shorter life cycle than in the past.

4.Explanation business boundaries: Because of improved transportation,communication,Growth of E commerce, E Business,etc.the boudaries of business has expanded.Companies having technological edge over thier competing products sell their products worlwide;

5.Increase in research and development expenditure : Technological advancement dependent on R & D.Now companies spending more in R & D activities than in the past.

6.Flexible manufacturing system: Technological advancement has made the manufacturing system more flexible.Now machines are equipped through adjustable parts and by changing the set up of these adjustable parts,the same machine can be use fore manufacturing different products Like,Computer can be used for typing, as music system ,for storing data, as tv, for mailing , for collecting information,etc.

7.Need of more capital: Machines based on advance technology are very costly.sometimes thier cost runs in lakhs or crores.it has increased in capital requirements of business units.

8. Increase in Risk: Technology changes very fast.New technology renders the existing technology obsolete.Similary it is possible that new product/Process innovated by a unit may be copied by other units.All these increases the risk of business unit.

9.Resistence by employees: Becausee of technological complexities,it has become very difficult too manage the business unit.some emploees may become surplus because of automation, some employees many become redundunt as they may not have enough celibre to operate the new tehchnology.

10.Need more expertise: Beacause of technological complexities,it has become very difficult to manage business units. now business units need services of many professionals, technocrafts,specialist, etc.Now professional having degree in engineering and MBA are required for managing production,activities,these professionals demand huge salary which small business unit cannot afford.