Tag: Production

Factors of Production

The term ‘factors of production’ refers to the resources that are combined in the production process to create goods and services. These are: Land –     natural resource Labour – human resource Capital – man made resource Entrepreneur – human resource Land includes all natural resources such as soil, seas, rivers, forests, minerals, vegetation etc. Labour…...

Industries Developed from Natural Resources in the Caribbean

Caribbean countries have been blessed with a plethora of natural resources. The industries developed from these natural resources have created employment as well as foreign exchange earnings from exports. Examples: Crude oil is a natural resource of Trinidad. The petroleum industry employs nationals and earns foreign exchange for the country. Clay is found in abundance…...

Difference between Production and Productivity

Production is the process of combining units of inputs (natural, man-made and human resources) to create output (goods and services) capable of satisfying human needs and wants. Productivity is the increase of output from each unit in the production process.  There are several ways of achieving productivity. These include the training of workers and the…...

Effects of Migration

Migration is the permanent movement of workers from one location to the next in search of better opportunities. Internal Migration Migration within a country e.g  rural –urban migration. This is migration of persons from rural communities to the city areas. External Migration Migration of persons from one country to another – For example, the migration…...

Role of the Entrepreneur : Decision Making Process

The entrepreneur organizes the factors of production to create goods and services. The most suitable location, qualified workers, and the right equipment and machinery will ensure efficient production. It is therefore important for him to make the right decisions concerning the employment of the required resources for his business. He must also make decisions on…...

Role of Capital in Production

Capital refers to assets such as machinery, equipment, inventory and cash that are used to start and continuously operate a business. Fixed capital includes machinery, equipment and vehicles owned by the company. These assets are so called because they cannot easily be turned into cash. Circulating capital includes raw materials, finished and semi-finished, goods, bank…...

Levels of Production

Subsistence This is the lowest level of production. Subsistence productions refers to output from the production process that is just enough for the survival. This amount of production is therefore not adequate to meet all needs and wants of a family, community or a country. For example, subsistence farming involves the production of crops to…...

Types of Production

Primary Production This includes all kinds of extractive industries such as agriculture, mining and fishing. Secondary Production This includes manufacturing such as assembling, refining and construction (building) industries. Tertiary Production This includes all kinds of service industries such as transportation, communication and tourism. Read more →...

Cottage Industry

Cottage industry is a generic term for any type of home–based production business. The term is specifically used to describe industries of a craft nature e.g. basket weaving, carving and pottery. This type of home–based business is not difficult to start as it requires little capital to purchase tools and employs family members. These small…...

Linkgae Industries

This refers to industries that are connected because they depend on each other to obtain or to sell raw materials. Forward Linkage If the final product or finished products of one industry is used in another industry as its raw material then a forward linkage occurs. For example, sugar produced from a sugar factory is…...