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Capital labour substitution at FoxConn

Geoff Riley

2nd August 2011

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A hat tip to Pete Davies for spotting this excellent example of capital replacing labour in FoxConn factories in China. With strong pressure for wages to rise further in Chinese manufacturing, FoxConn justify the decision on the grounds that their workers are better placed being shifted to jobs higher up the value chain.

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Geoff Riley

Geoff Riley FRSA has been teaching Economics for nearly forty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD and Revision conferences in the UK and overseas.

@tutor2uGeoff

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