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Capital-Intensive

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Capital-intensive
Used to describe industries that require large investments in capital assets to produce their goods, such as the automobile industry. These firms require large profit margins and/or low costs of borrowing to survive.

Capital-Intensive
Describing a company or industry requiring a great deal of capital to maintain operations. For example, the automobile industry is capital-intensive because, in order to make cars, it requires many workers and expensive equipment that must be properly maintained. Another, smaller scale example is a dentist office, which requires expensive equipment and materials. In order to stay afloat, capital-intensive companies need either consistently large profits or inexpensive credit.


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Drawing on the "flying geese" model of development, he indicates that Japanese direct foreign investment into China has and should build upon Japan's comparative advantage in research and development (R and D) as well as in capital-intensive production; China's own comparative advantage is in labour-intensive production.
One of the goals of the group is to create reliability-focused programs at the PIMA International Management Conference each summer Our name expresses the contribution the critical support function of maintenance contributes to the bottom line of our capital-intensive industry, first, through reducing costs, second, through increasing plant capacity, and finally, through extending the life of our working assets.
``The company is focusing its energies on the Internet play,'' said DeMattos, ``and divesting away from the capital-intensive side of the business.
 
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