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1- Human capital theory suggests that it takes time for investments in human capital to produce
financial or productivity-based returns to the firm. Discuss the reasons for this, providing
examples.
2- Human capital theory suggests that it takes time for investments in human capital to produce
financial or productivity-based returns to the firm and that human capital generally comes to the
firm in the form of generic human capital, which over time develops into firm- specific human
capital. Define and provide an example of generic human capital and firm specific capital.

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