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Human Captial Development

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Development of Human Capital in Organizations
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Human Capital Development: Issue of Reducing Income Inequality
Introduction
Human capital is the set of skills, talents, skills, experiences accumulated by an individual which determine their ability to produce for themselves or for others. Human capital theory works by analogy to that of financial or physical capital. It is considered that human capital is composed of three elements that together determine a certain ability of an individual to work: namely, skills, experiences and knowledge. Human capital can be developed through continuing education and attention to the health of an individual. The inclusion of human capital in the economic analysis is an important step. It is generally theorized that accumulation of human capital is a key driver of economic growth. According to economists, dissemination of knowledge to general population allows increasing returns and generates positive externalities. Therefore, it is a central concept of development economics that investment in human capital should be the foremost priority of developing countries.
Foreign direct investment refers to international movement of capital across national boundaries. This may take the shape of creation of a subsidiary abroad or to exercise control on the management of a company in another country. The effects of FDI are generally considered to be highly positive on the growth of host country since it leads to transfer of technology and generation of employment in host countries. FDI has experienced strong growth since the mid-1980s and also contribute significantly to economic globalization. Foreign direct investment is also presumed to have positive outcomes for workers in the form of higher wages (Eicher &

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