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Answer» Answer: >Physical capital - Physical Capital, is used to mean, the COMPANY’s non-human assets like plant and MACHINERY, building, computers, office supplies etc. that assist in the production of goods and services.
- Physical capital is tangible in nature, i.e. it can be seen and touched.
- The creation of physical capital is an economic and technical process.
- Physical capital can be sold in the market directly.
- Physical capital can be separated from its OWNER easily. On the other extreme,
- Physical capital is usually mobile, but some restrictions occurs out of trade barriers imposed by different countries.
>Human capital: - Human capital is defined by collection of knowledge, talent, skills and abilities possessed by an employee or a group of employees working in an organization.
- Human capital is intangible, that can only be experienced.
- The formation of human capital is a social process, but it is also a RESULT of conscious decisions TAKEN by the entrepreneur in this regard.
- Human capital cannot be traded in the market, rather the services are sold.
- Human capital is inseparable from its possessor.
- When it comes to the mobility of human capital, it is not fully mobile between countries, as the mobility is restricted by nationality and culture.
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