Cause productivity figures to be misleading

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Reference no: EM132127425

An Emirates Company has two manufacturing plants, one in UAE, and one in another country. Both produce the same item, each for sale in their perspective countries. However, their productivity figures are quite different. The analyst thinks this is because the UAE plant uses more automated equipment for processing while the other uses a higher percentage of labor.

1. Explain how that factor can cause productivity figures to be misleading.

2. Is there another way to compare the two plants that would be more meaningful?

Reference no: EM132127425

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