Economical and Social Implications of Technological Development
Technological development increases the quality and quantity of output. This results in the lowering of unit cost of production which may be passed on to consumers in the form of lower prices. When goods and services become more affordable the standard of living of citizens will rise.
Developing countries employ both labour and capital intensive methods of production. Labour intensive industries include banana and craft and capital intensive industries include petroleum and bauxite.
There are three methods of production:
Labour Intensive Production
This method of production utilizes mainly manual labour along with a limited amount of machinery
Capital Intensive Production
This method of production utilizes mainly machinery along with a limited number of workers.
Automation is the further stage of mechanization. This production process is carried out automatically with little or no human involvement. For example, the automated teller machine (ATM).
Computer Aided Design (CAD)
Computer aided design is a computer software used in the product design process to produce designs with greater accuracy, speed and flexibility. Its powerful computer graphics allow product designers to produce 3-dimensional objects, which can be fully examined and tested before they are implemented.
- it is easier to make adjustments since changes are made on the computer
-reduces cost of the design process
Mechanization and automation results in increased output but reduces the amount of labour required in the production process. This creates unemployment in Caribbean countries. Workers must be retrained for new developing industries such as information technology. New industries will absorb the fall out of workers from other industries.