Impact of Robotics on Business: An Economics Project

This individual project analyzes the economic impact of robotics on businesses. The project examines how the decreasing cost of robots and increasing labor costs influence business decisions, particularly Bruno's choice to utilize more robots to reduce production costs. It explores the expansion of the industrial robot market, the effects of automation on production capacity, and the relationship between worker numbers and output. The project further investigates the impact of robotics on real wages, bargaining power, and profitability, considering Pareto development and fairness in outcomes. Finally, it addresses potential government policies, such as a robot tax, to mitigate unemployment issues caused by increasing automation. The analysis draws on various sources and provides a comprehensive overview of the economic implications of robotics in business.

INDIVIDUAL PROJECT

[Question 1]
From the figure 2, it can be analysed that in 1995 the cost of robots or prices of robot are
decreased whereas the labour cost is increased. Bruno can decide to utilise more robots in his
organisation in term of reducing production cost because as per above mentioned figure 2 the
cost of robots decrease per year and cost of labour is maximised (Pendleton and et. al., 2019). So
if the person will use robotics technology in his venture in compare to human being, he can
reduce manufacturing cost.
Question 2]
From the figure 1 it can summarised that the market for industrial robots have expanded from
last couple of decades because company use robotics technology in their production and
manufacturing of goods due to less consumption of cost in comparison to labour. From last such
year the shipment of industrial robots to be increased. With the use of robots, the organisations
can produced more units and goods within less time or investing less cost whereas in term of
labour, from the figure 2 the cost of labour maximised rapidly and due to which production cost
is maximised and enterprises prefer robot technology (Parasuraman and Mouloua, 2018). Cause
of which industrial robots have be developed from last couple of decades.
[Question 3]
Number of worker Number of windscreens
500 200
1000 400
1500 800
2000 1000
2500 1500
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Utilisation of more robots will create a positive impact over decision of Bruno regarding use of
robots in its business because with the assistance of it, the firm can manufacture more
windscreens. As per the above figure, it is mentioned that with the assistance of 500 workers the
company is able to manufacture only 200 products (Martinez, 2018). But when the enterprise use
more robots then it consumer less time and cost and produce more goods and units. So the
decision of use of more robotics technology in production function will assist in enchaining
manufacturing capacity of company and offer more profits.
 [Question 4]
If the person will make high use of robots then it positively and negatively affect the real wage
and bargaining power of Angela and profitability of Bruno. For example, by considering figure 1
and 2, the shipments of robots is increasing which means industrial market highly uses robot
technology in their production. If the buying of robots or Angela technology increase then in
future it positively affect bargaining power of Angela. Venture purchase Angela technology
without making any kind of bargaining (Graetz and Michaels, 2018). It also favourably affect
real wage of Angela’s because in future when the demand of it will maximise then people are
ready to pay for it. Along with this if Bruno will use robots and Angela then the production will
maximise and profits will increase. As per figure 2, the cost of labour is high in compare to robot
so if Bruno will use robotics technology then its production cost will decrease and revenue will
improve.
[Question 5]
Yes, the more use or high utilisation of robots and Angela technology assist in or bring about a
Pareto development because if the company will use this technology and make advancement in
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its technology then it can make development in its production and manufacturing capability.
Along with this, more use of robots, the profitability and revenue of enterprise because when
Bruno make production through robots then it assist in reducing manufacturing cost which
enable in carry about a Pareto development.
 [Question 6]
Yes, the pronouncement of Bruno to utilize more robots consequences in a fairer result. Because
when the respective firm make production through robots then it make fairness in goods and
commodities as well as it consumer less cost. If the respective firm consider the decision of use
of robots then it makes procedural judgement of fairness. Because with the help of the form can
manufacture the limited quantity of goods which they want. It makes fairness in the quantity of
products and as well as no make more wastage of resources. Apart from this, use of robots makes
sustentative judgement of fairness (Rus and Tolley, 2018). For example, the robotics technology
will not based or depend on other things and resources. It is has its own separate existence which
assist in making a fairness in production without affecting or connecting other assets of
company. In addition to it, the decision of utilisation of robots positively influence in term or
manufacturing ability and capacity.
 [Question 7]
In Future, the assessment of Bruno to utilize more robots can affect Angela’s Future because
when company use more robots in its business then Angela technology can affect in negative
form as it has been functioning at a actual pay rate of $25 per hour. But if the company will use
robot then it will not invest much cost (Pendleton and et. al., 2019). The real wage of robot will
be less in compare to per hour working cost if Angela. It will assist in manufacture quality and
effective commodities and make less expenditure as well less time. This affects the future of
Angela in different term like real wage, time, utility and expenditures.
[Question 8]
There are several government policies but taxation policy can alleviate the possible problem of
rising computerization within companies and industrial market. In this current era, the
organisation’s make more use of robots and artificial intelligence in their business which affect
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the employment rate of nation in negative manner because when operations and production are
done by robots and using advance technology them it maximise the rate of unemployment so by
executing and considering the robot tax policy, the national authority can measure and minimise
the potential issue (Parasuraman and Mouloua, 2018). The rationale behind the choice of this
policy is that if the government developed these kind of policy then it will assist in offering
employment to people and improving the nation’s growth and make it a develop nation.
REFERENCES
Books & Journals
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Pendleton, I.M. and et. al., 2019. Experiment Specification, Capture and Laboratory Automation
Technology (ESCALATE): a software pipeline for automated chemical experimentation and data
management. MRS Communications, 9(3), pp.846-859.
Parasuraman, R. and Mouloua, M. eds., 2018. Automation and human performance: Theory and
applications. Routledge.
Martinez, J., 2018. Automation, growth and factor shares. In 2018 Meeting Papers (Vol. 736).
Society for Economic Dynamics.
Graetz, G. and Michaels, G., 2018. Robots at work. Review of Economics and Statistics, 100(5),
pp.753-768.
Rus, D. and Tolley, M.T., 2018. Design, fabrication and control of origami robots. Nature
Reviews Materials, 3(6), pp.101-112.
Online
Robots are going to take a lot of jobs - here's what we could do about it. 2020. [Online].
Available Through: <https://www.businessinsider.in/stock-market/robots-are-going-to-take-a-
lot-of-jobs-heres-what-we-could-do-about-it/articleshow/58446131.cms>.
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