Deep Pockets of Human Capital

The video discusses the role of skilled labor in the integration of German and Austrian industries, highlighting the benefits of outsourcing to Central and Eastern Europe. It examines the human capital available during economic transitions and the development of university systems. The video also explores the integration of supply chains, particularly in the automotive industry, and the associated vulnerabilities and adaptations required to absorb shocks. Emerging Europe is identified as having significant growth potential in these integrated networks.

What was a key difference between the outsourcing trends in the United States and Germany during the integration period?

• The US outsourced mainly unskilled labor, while Germany outsourced skilled labor.

• Both countries outsourced mainly skilled labor.

• Germany outsourced mainly unskilled labor, while the US outsourced skilled labor.

• Both countries outsourced mainly unskilled labor.

Which countries were noted for having significant human capital that benefited German industries?

• Mexico and China

• India and Brazil

• Slovakia and Poland

• Italy and France

What was a notable development in Central Europe after the transition period began?

• Reduction in skilled labor

• Development of university systems

• Growth in agricultural sectors

• Decline in university systems

How do some commentators view the elaborate supply chains in Europe?

• As a highly delicate machine

• As an unimportant aspect of the economy

• As a simple and outdated system

• As a robust and integrated force

What is a potential vulnerability of modern supply chains?

• Excessive inventory levels

• Optimization at each phase creating fragility

• Dependence on a single market

• Lack of skilled labor