Germany is regarded as a capital-intensive economy, whereas Indonesia is regarded as a labour-intensive economy. What is the meaning of this for the economies of Germany and Indonesia?
- ACapital is relatively cheaper than labour in Germany while labour is relatively cheaper than capital in Indonesia.
- BGermany has many primary sector workers while Indonesia has many tertiary sector workers.
- CIndonesia has a higher growth in its population size than Germany.
- DRelatively more low-cost labour is available in Germany while capital is more efficient than labour in Indonesia.