The Potential Costs Of Investment Essay - 2146 Words

1) If the potential costs of investment are shared between worker and employment, they both share costs and benefits of the firm-specialized training. The worker benefits because their initial earning potential is higher comparatively to the rest of the similar general training market workers; the worker also benefits in having job security or retained employment with the firm. But if the worker leaves, the potential costs fall to both the firm and the worker because the worker cannot carry his training elsewhere to another firm and the firm loses a trained worker and investment of time and money, and now must expend cost toward another worker’s training. The worker also must keep in mind that his earnings could remain stagnant while generally trained workers will eventually increase their earnings in the competitive market. Firm specific training is often paid for by the employer for firm-only knowledge and training or can be dually invested by worker and firm; however, it is not transferable among the market. While, highly specialized training is concentrated within the market and only few are trained, specialized, and knowledgeable in the industry or field. Training and investment for firm-specific training can be risky for the employer and the worker while in this worker-employer relationship the potential benefit is mutual only if the worker retains his employment with the firm who trained the worker. The highly-specialized training could be costlier in comparison toShow MoreRelatedAbc Based On Current Cash Flow, Production Cost, Potential Investments, And An Overall Risk Profile1292 Words   |  6 Pagesmaterials to build cedar houses. 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