Essay: Economics

The number of potential investors joining the business industry is highly increasing because of the increment of technology and the consequent globalization.

This has resulted to a more stiff competition among business operators as evidenced by collapsing of large industries, which fail to stand the competition such as the American International Group Inc. among others. However, there are also positive move of small businesses becoming mega despite the competition. According to Cipd, Scarbrough, & Elias (pg.8), having an outstanding human capital is the cornerstone of ensuring business success. In this regard, this paper will expound on human capital by focusing on its effect on labor productivity and economic growth.

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