In this interesting article, you will know the production factors in a fairly detailed way. For this reason, I invite you to join us, so that you learn everything about this important field of business. You'll be surprised!
Production factors
The production factors they are a staple in the economy, and are associated with different types of resources. They are used in a company to generate profit and stability. They are divided into three types, each equally important.
Types of factors of production
There are three types that are usually the main ones, which are land, labor, and capital.
- Earth: refers to all types of terrain that can be used when carrying out the work, although it can also be attributed to different types of minerals that may exist for other jobs, as well as directly a type of land for a tree or plant . Similarly, land is attributed to goods such as water or natural gas.
- Work: focuses on all types of human intervention, which is required to perform any type of work in a company, as well as the time in which the worker is going to implement his determined action, to continue with the instructions of the company. .
- Capital: These are the different goods that are implemented in a specific job, which is assigned to the person, so that he can fulfill his role as a worker. An example of this can be all the machinery to be able to correctly carry out an industrialization of a product.
Uppercase letters
Other subdivisions can be added to the “Capital” type, which are:
- Physical or real capital: it can also be divided into "Fixed" or "Current", which are attributed to assets that are permanent, such as infrastructure, machinery or raw materials, respectively.
- Human capital: All personnel that participate in the company to produce, depending on the area in which they are located.
- Financial capital: it is the money that is invested to promote and achieve the objectives set, so that the company produces.
Importance
Most of the goods that come to be used by societies in the world come from the proper organization, production and administration of each of the production factors. They all relate to find a common goal: financial balance.
If you want to know about the different economic factors that maintain competitiveness in the market, then you should visit this interesting link: Economic factors.
In the following video you will find more information about the different factors of production, their impact on the world economy and the importance of each of their types.