Changes Undergone in World’s Economy Using Automation

Automation not only affects individuals, it also has an impact on society. We can traditionally define a process as the ratio of output to the labour input in any organization. A well made automation project will increase the productivity which results in the increment of production rate and reduction in labour content. Over the years, productivity gains have led to reduced prices of products and increased in the income for society. Productivity is a basic economic issue that has been influenced by automation.

Automation of any industry leads to mass productivity because of its fastest producing ability. Mass production of each and every commodity increases day by day which in turn increases the world’s economy. Productivity growth leads to the economic growth which can be described in the following manner. As the productivity increases the real cost of the product decreases. The purchasing power or the real income of the consumers increases since they are buying more goods and services with their incomes. Regardless of how the income of the consumer increases but the overall demand of the goods and services increases. The increased demand for the goods and services results in the growing economy. The increase in the productivity has been related with the technical innovations. Technology advance have long been accepted as significant changes to world’s economy.

A technology advance which in turn means the fast growing of automation techniques increases the world’s economy a lot.