how is physical capital more mobile than human capital?

Dear Student,
Human capital refers to the stock of skill and expertise of the human beings in an enterprise at a particular point of time. On the other hand, physical capital refers to the stock of all the tangible assets, such as building, machinery tools etc. which are used in the process of production.

Mobility is one aspect that sets the human capital apart from physical capital. Today in the age of globalization, it has become easier to shift physical capital. Yet human capital remains tied to cultural and political boundaries, and is not that easy to move.
Therefore, it is a believe that physical capital is relatively more mobile. Whereas, Human capital has relatively restricted mobility due to cultural and nationality obstacles.


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