What type of production relies heavily on the workforce rather than machinery?

Prepare for the SQA Higher Business Exam with our comprehensive quiz! Utilize flashcards and multiple-choice questions, each complete with hints and explanations, to ensure you’re ready to ace your exam.

Labour-intensive production refers to a type of production process that relies significantly on human labor rather than machinery or automated processes. This approach is typically characterized by a higher proportion of workers in the production process compared to the amount of capital invested in machinery or technology. Industries such as agriculture, textiles, and some handcrafted goods often exemplify labour-intensive production, where skilled workers are essential for tasks that require dexterity, creativity, or specialized knowledge.

This method can be advantageous when labor costs are lower than capital costs, making it economically feasible to employ more workers. Additionally, labour-intensive production can be more flexible, allowing for quick adjustments based on changes in demand or design.

Understanding this concept is crucial because it helps illustrate the varying strategies businesses can adopt in their production processes based on their resources, the nature of the product, and market needs. In contrast, techniques like batch or flow production typically involve machinery and automation to increase efficiency and reduce the amount of manual labor required. Capital-intensive production, on the other hand, focuses on maximizing investments in technology and machinery rather than human workforce.

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