Definition Of The Four Factors Of Production Commerce Essay

Definition Of The Four Factors Of Production occupation EssayNatural Resources fewtimes called land consists of all the gifts of nature. This includes mineral deposits, water, cultivatable land, ve placeation, natural forests, marine resources, the atmosphere, sunshine and animal life. They ar a frigid supply. If we want more of them, their approachability stern non be out fuck offth. It is possible to exploit some of the resources, for example, minerals. Once the minerals be exampled, they butt non be replaced. dig out is defined as the come of human mental and physical effort in the doing of slap-ups and serve, where homo are rewarded in the form of an income. The quality of labour is dep devastations on the size of the population and the portion that is able and volitioning to resolve. The quality of labour, which is described by the skill, cognition and health of the workers, is here and noweeant. slap-up is made up of manufactured resources, much(prenomi nal) as machines, tools and builds which are single-valued functiond in the production of some other goods and serve. It is those apparent things that are used to produce other things. These resources do not charter an unlimited life.Entrepreneurship is the availability of natural resources, labour and hood is not suitable to ensure scotch success. These factors of production drop to be organised by people who see opportunity and are entrusting to take lucks to producing the goods, accept that they will be sold. These people are called entrepreneurs. They are the driving get behind the production. They are the innovators, the initiators, who take initiative. They believe that their ideas will forge a profit.2.1 The Four Factors of Production in the Economy2.1.1 Natural ResourcesTo improve the use natural resources we trick implement regulations to protect the natural resources corresponding forests which will increase tourism encourage farming to grow vegetables an d fruit the investing to improve the technology to mine minerals and find ways to improve the practice session of our natural resources.2.1.2 LabourThe labour regulations restrict entrepreneurship, modify organization sponsor, enable employment, regulate minimum wage, maintain standards of working conditions, and ensure safety conditions.2.1.3 CapitalWe can encourage foreign investment, investments in infra expression to rear production easier, for example road maintenance and encourage of loans for new melodic linees.2.1.4 EntrepreneurshipTo encourage entrepreneurship the alter can start in schools whereby economics can be introduced as single-valued function of the curriculum, encourage businesses to flip absolved days for students to learn how the business works, develop and bring on tools that enhance entrepreneurship.2.2 The Four Factors of Production in our presidency2.2.1 Natural ResourcesFor the composition, thither are no natural resources that are used.2.2.2 L abourEmploying individuals who have the qualifications, the mental effort, knowledge and brain power, to fit the agreements culture and set will enhance the business. Training will empower and enhance the employees to do their job effectively. tillSeta assists in improving and up-skilling employees in the fiscal sector. It is issueant to pickings care of the well- universe of the employees for example, having a canteen for employees where the nourishment is easily hearty and safe and time to go and buy lunch and to ensure employees get the relevant training so that they are efficient in their job. thither are two types of physical energies in the validation gross sales and Admin. Sales bring in the business so the Admin can do their job. The organisation is reliant on clients for the business to grow. Admin run the day-to-day admin and they are conditional on the external energy.2.2.3 CapitalIn the previous premises, the parking was not easily accessible, the building co uld not accommodate all the employees, there were not enough working stations and the technology was not up to standard. In the new building the technology and software have been upgraded. The organisation call for to ensure that the systems are suitable for the Banking sector. Suitable working stations are installed, which will enhance the well-being and working environment of the employees. The building and face-off rooms have been built to enhance the clientele and interaction with clients. The building projects the organisations values and culture. The organisations daub and mortalality has been built on RMB and it continues to build its reputation through and through its client services.2.2.4 EntrepreneurshipThe organisation encourages innovations. in that location is an innovations blog where employees can reach their ideas to management where all ideas are taking in consideration. The organisation is forthwith structured and open plan Managers are open to their employ ees and provide unvaried feedback. Employees are empowered and encouraged to take control of their own development. Employees cognize and believe in the organisations values and culture. The organisation is developing self sustaining systems. The organisation is current implementing the care and growth model which is focalizeed on compassionate and growing the employees as individuals.3. The southbound Africa Foreign Trade (Imports and Exports)In this region of the assignment, I refer to the Trade Report October 2009 submitted.The basic indicators section indicates the tidy sum per capita which is the estimated swop of goods and services everywhere the last lead years found on the population. The GDP is measured in nominal terms and with marketplace exchange rates. The trade-to-GDP ratio is the estimated trade of goods and services over the last three years based on the GDP. The real GDP are trades and import of goods and services of data at constant outlays. The ra nks in the world trade of mathematical product and services are defined as members as individual traders and as one trader. In my trust the constituent scratch off from 2007-2008 was from the hem in Street financial fall in 2008, which affected the percentage drop from 2007-2008 of exporting of goods and services. As we had the FICA and KYC regulations in place, this protected us. The percentage drop from 2007-2008 of importation of goods and services, in my popular tone, reflected the fact that the importers were being cautious and they were concerned that the locals wouldnt have the money to buy goods and services. Consumer sp winduping per household decreased.The merchandise trade is broken up into three sections Agriethnical products, Fuels and mining product and Manufactures. In my opinion the percentage drop from 2007-2008 of merchandise exports was caused by the financial fall of Wall Street. The merchandise imports percentage from 2007-2008 stayed constant. For So uth Africa, I feel that we have not been as affected as much as other countries. The verdant felt the recession in 2009. Exporting and Importing ofAgriculture which consists of unexampled materials and foods much(prenominal) as vegetables, fruit, maize, sugar. In my opinion we export the best grade of our food and sell the rest to the locals. This increases the production of GDP and the frugality. We should increase our export of agriculture. We import fewer foods and products into the country.Fuels and mining products which consists of other minerals, fuel and ores and non-ferrous metals. In my opinion we should not export that much. This should decrease. We should rather increase our skills and knowledge so that we can export the end product. This would increase our GDP and the thrift. For example, gold we export most of our raw gold and import the end product because we do not have the skills and knowledge to profess the jewellery. The constant decrease and increase of fue l prices affects the deliverance and people spend. The percentage of imports, in my opinion, is acceptable as this keeps the balance of the economic production levels.Manufactures which refers to steel, iron, chemicals, other semi-manufactures, machinery, transport equipment, textiles, clothing and other consumer goods. In my opinion the percentage of exports should decrease as the country should use these materials to build the economy of the country. In building the status of our country, this would increase our economic growth. For example, building houses. The exporting keeps our foreign exchange inline with other countries. If the exporting decreases, the importation will decrease. In some instances, it is better to import the parts to be assembled locally than to import the end product. For example, in the Operations, Implementation Management and Sustainability, the lecturer gave an example of a company who saved on overall be by importing the parts and assembling it loca lly or else of importing the end product. South Africa has very modernistic people and we should start believing in what we have. When government or investors do not see the potential of the innovative ideas, the innovators end up selling their ideas to other countries and end up importing the end product. We should spend more time in investing in these innovative ideas as this will increase our economic growth.Commercial Services Trade, which refers to construction, finance, computer, insurance, communication, cultural and recreational services, teaching, other businesses, royalties and other fees. In my opinion the percentage of exports and imports indicates that there is a lack of interest, interaction and investment in South Africa from other countries.Transportation in my opinion the percentage of exports is acceptable. The percentage of imports indicates that we lack the skills and knowledge to sustain our transportation.Travel the percentage of exports indicates that loc als prefer to travel to other countries instead of our own. We should improve our tourism locally to encourage the locals and foreigners to explore South Africa. This country has so much to offer.Other commercial services in my opinion the percentage is acceptable.We are losing people who have the skills and knowledge in industries like medicine, engineering, technology and construction to other countries. We should be retaining these skills to build a better country. We should be investing in developing in our people, empowering them so that they have pride in themselves and are proud of their country, so they can make it a better place to live.4. The Banking Sector, Organisation, Department and IThe organisation forms part of the banking sector. The banking sector is linked to economic growth through enhancing the access to financial services, and increasing competitiveness of domestic financial markets both of which reduce the costs of financing. The basic role that the banking sector plays in the butt of transferring savings to borrowers is risk sharing, providing liquidity, information and improving efficiency. If the financial markets are well real, they improve the availability of funds to support borrowers and channel the funds to where the rates of returns are higher. despotic effects like this can increase the economic growth by larger capital accumulation with lower cost of financing and increased efficiency. But in some countries, the financial markets are not developed and market failures exist everywhere.By improving the access to financial services and the efficiency of financial go-between, which can reduce the cost of financing the banking sector, stimulates capital accumulation and economic growth.The role of money replaced the barter system. Each person could trade whatever he or she produced for one common thing. notes means a set of common prices can be established. money is a medium of exchange between individuals and a way to disp ense the ownership in society. It is popularly accepted as payment for goods and services and repayment of debts. Money is used for everyday spending and saving for the future. pitch money for future use is to ensure that the values of the savings do not decrease but increase overtime by through investments and earning of interest. Money helps our economy to work more smoothly, it has three key rolesA medium of exchangeA unit of account or a standard of valueA store of value for future useThe characteristics of moneyDurableNot easily produced by peoplecomparatively scarceNot too scarceEasily transportedDivisibleThe organisation leases to ensure that their products are inline with their competitors and maintain the supply of money and adoption from clients.The Learning Solutions (LS) Department is in the process of becoming a self-sufficient system. We are working well together and have the same focus and goals. At our yearly meeting, we discuss the past year what we have accomp lished, what obstacles we came across, how we can improve, what changes we would like to see and what our focus and goals will be for the coming year.We had looked at the functions of the Human Resources (HR) surgical incision and determined that there were common areas and functions that the HR plane section had. The LS section was a closed system and had no interconnections with them. The HR plane section have three subsystems namely, People Development, Administration and New Recruits. The overlapping of work areas are the new recruits and the people development. Changes impoverishmented to be made.The changes that HR department madeAdministration is an open and closed system, they have secret information that should not be shared with other employees (salaries and medical aid) and the employees submit normal administration / queriesNew Recruits is an open and closed system, they too have confidential information that should not be shared with other employees (agreements bet ween the Bank and employee) and information about the new recruits will be shared with the LS departmentPeople Development is an open and closed system, they have a good relationship with all the managers and know where employee development is required and this information will be shared with the LS departmentThe changes that the LS department madeDevelop a open relationship with the New Recruits teamDevelop a open relationship with the People Development teamIn making these changes we are enabling the growth of knowledge and empowerment in the employees. The employees are enabled to be efficient at their job. In being efficient and knowledgeable, they will enhance the growth of our clients and their investments which will assist the growth of the economy.Each individual contributes to the economy. How can I contribute to the economy? I need to understand my financial status and increase my wealthiness. I need to determine what money I save and invest for the future and invest in my country. I need to sustain my knowledge and personal growth. I need to be awake(predicate) of the countrys financial status. I need to balance my needs with the available resources.5. largeness Consumer Habits and BehaviourThe definition of inflation is the rise in prices of goods and services in an economy over a period of time. When price levels rise, the unit of bullion buys fewer goods and services. It is an erosion of the purchasing power of money. Inflation occurs when the price increase of goods and services are recorded over a period of time. The general price level is measured by the Consumer Price Index.As the price levels rise, the consumer habits and conduct are affected. Consumer behaviour is the study of when, why, how and where people do or do not buy goods and services. It is about disposition the consumers buying decision-making process in an attempt to understand peoples wants. Habitual patterns of spending that consumers have over a period of time are the best thing that can happen to a brand. For this to happen there are two conditions that need to satisfy the consumer the brand in question must fall into a product category that elicits a low level of involvement from the consumer when considering purchasing the product and the consumer becomes a satisfied customer when buying the product the brand should deliver on what was promised. For the brand to be a part of the consumers habit, the faultfinding requirement is the delivery of value on the first purchase.Inflation occurs when the pick out for goods and services increase and the supply remains unchanged or the increase of cost of production which pushes up the price level. How does this affect the consumer? It is dependant on the affordability of the consumer. For example, in the beginning of the year 2008 I bought 6 chocolate muffins at Woolworths for R10.99. In 2009, the costs had increased to R24.99 for the same product. Due to the price increase, I no longer buy the cho colate muffins.6. Microeconomics and bigeconomicsMicroeconomics is the study of how household and organisations make decision to allocate limited resources. It examines the behaviour affect of the supply and drive of the goods and services which determines the prices which in turn determine the supply and demand of the goods and services.Macroeconomics deals with the performance, structure and behaviour of the entire world. It looks at indicators such as GDP, unemployment rates, price indexes to understand the whole economy functions.If the micro and macro economical performance was sustainably improved, the changes to the consumer behaviour would beFor MicroOur environment would be more stableThere would be overall well-being and enjoyment in individuals, less melodic phraseDepending on the individuals mindset, there would be more investment and spendingThe wealth of individuals would growDecrease in crimeDecrease in immigration of individualsIncrease of skilled individualsDown fall is that there would be overspending and more debtFor MacroThe economy would be more liquidThere would be a growth in external investorsThe country would be more racy and innovativeIncrease of tourismIncrease of entrepreneurship and resourcesIncrease of the well being of the countryDecrease of poverty7. ConclusionEach one of us on an individual level has an affect on the economy, which affects the organisation, which affects the country. If the organisation wants to grow they need to have good leadership skills and delivery of goods and services. In my opinion the improvement of the economy starts with oneself. I have a good understanding of my own finances and how I can increase my wealth. I have realised that I need to improve my understanding of my organisation and how it affects the economy of the country. I need to improve my understanding of the economy of the country.