capital intensity
[/ˈkæpɪtəl ɪnˈtensɪti/]
noun
intensidade de capital
1. The ratio of capital assets to labor or output; the amount of capital required to produce one unit of output or to employ one worker
The manufacturing sector has high capital intensity due to expensive machinery and equipment.
O setor de manufatura tem alta intensidade de capital devido às máquinas e equipamentos caros.
2. A measure of how much capital investment is needed relative to other factors of production in an economic process
Capital intensity varies significantly between industries; steel production requires more capital than service industries.
A intensidade de capital varia significativamente entre setores; a produção de aço requer mais capital do que os setores de serviços.
This is a technical economic term widely used in both Brazilian and American business contexts. In Brazil, it's particularly relevant in discussions about industrial policy and manufacturing competitiveness. The concept is crucial for understanding economic development strategies and investment decisions in both countries.
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