One of the stages of economic growth is capital intensive, where wealth is created through the efficient use of money and industrial manufacturing occurs. What latin american country fits into this stage & why?
To determine which Latin American country fits into the capital intensive stage of economic growth, we need to examine several factors such as levels of investment in infrastructure and industrial sector, availability of technological advancements, and the dominance of the manufacturing sector.
One Latin American country that fits into the capital intensive stage is Mexico. Here are the reasons why:
1. Industrialization: Mexico has experienced significant industrialization, which has led to the growth of its manufacturing sector. This sector contributes a significant portion to the country's GDP and employs a large number of workers.
2. Investment in infrastructure: Mexico has made substantial investments in infrastructure development. This includes transportation networks, energy sector, and telecommunication systems. Strong infrastructure is essential for capital-intensive industries to thrive.
3. Technological advancements: Mexico has taken steps to embrace technological advancements in manufacturing and industrial sectors. The country has implemented automation and digitalization in many industries to enhance productivity and efficiency.
4. Foreign direct investment (FDI): Mexico has been successful in attracting foreign direct investment, particularly in its manufacturing sector. This influx of capital has further fueled the growth of industries and promoted efficiency.
5. Skill development: The Mexican government has focused on improving the skill set of its workforce, particularly in the manufacturing and industrial sectors. This has helped in meeting the requirements of capital-intensive industries.
It's important to note that while Mexico fits into the capital-intensive stage, it also has other sectors such as agriculture and services that contribute to its overall economy. The classification of a country into a particular stage of economic growth is not absolute, and there may be variations and overlaps based on different industries and regions within the country.