What are the factors of production? Competitiveness!

The study of the question, which relates to the factors of production, belongs to a kind of sacred cows of economic theory, which treats them as resources that are somehow attracted to productive activity. Traditionally, the concept of factors of production included such components as labor, land and capital. In the second half of the twentieth century, these components were supplemented by information. Some researchers, in addition, distinguished from the concept of "labor" in a separate indicator of entrepreneurial talent.

Analysis of the processes taking place in the modern economy, gives some grounds to assert that the consideration of the structure of the factors of production now requires a certain complement and refinement.

If we consider what concerns the factors of production from the point of view of the prevailing tendencies in the modern economy, then it becomes quite obvious that marketing, whose role in the conditions of growing competition is difficult to overestimate, became quite independent and important.

Here, the task of meeting the needs of the market comes to the forefront, which limits the use of administrative methods of administration and thereby increases market democracy and professionalism.

The classical model of competition is as follows: "Reduce the price, raise the quality, provide the buyer with additional benefits (in forms of payment, supplies, maintenance, etc.)." In addition, the implementation of competition functions and the positive consequences of its manifestations in the dynamics of the correlation of the price of consumption and the quality of goods, first, leads to the objective need for the formation of a competitive environment. And this should be done not only in the interests of commodity producers, but, first of all, consumers and, secondly, it directly connects the functions of competition with its advantages, both for companies and for the products they produce. In this case, the factors of social production are quite appropriate to include the competitive advantages of an enterprise.

With the development of technological, production and managerial innovations, as well as the globalization of national and international competition, the theory of comparative advantages of production factors that are abundant, the problem itself, which relates to factors of production, ceases to meet the modern requirements of economic science. At present, a new theory of competitive advantages is gaining more and more recognition. It means the following:

1. The advantages of the enterprise and the goods ceased to be static. They change under the influence of innovation and investment processes in technology and production technology, management methods and forms of organization, in the ways of promoting goods to markets.

2. The mechanism of formation of market advantages based on competition is not the only one. The state is considered here as the most important subject of forming competitive strategies and advantages of the enterprise. In this connection, the market mechanism is complemented by the state mechanism for regulating competitive relations and enterprise competitiveness.

3. The globalization of the economy forces the enterprise, when forming its advantages, to take into account not only its own and sectoral interests, but also national as well as international conditions.

All this shows that when answering the question what concerns the factors of production, we can state with a certain degree of certainty that competitive advantages have become a tangible and isolated factor. For their creation, the state needs to implement measures to create a competitive environment and to protect competition, encourage the continuous introduction of innovations, optimize and improve government regulation, taking into account the trends in the world economy.

These advantages can be defined as the efficiency of an enterprise in any area, which firstly gives it the best (in comparison with its competitors) opportunities to attract and retain consumers, secondly, it allows to receive a stable profit and on this basis to ensure the reproduction of the main Of capital.