Export and productivity as a growth factor

Export and productivity as a growth factor  Economic Growth

Export and productivity as a growth factor

Export and productivity as a growth factor

Economic Growth

The economic growth of a country, a state, a city or a region, occurs only by two factors: productivity or export.

Economic growth is understood as an increase in an economy’s ability to produce goods and services by comparing one period of time with another.

Traditionally, economic growth is measured by the Gross Domestic Product (GDP) of a given period of time, although other metrics are sometimes used. Often, but not necessarily, it is common for productivity increases to correlate with increased average productivity. This means that the average worker in a particular economy becomes, on average, more productive.

 

Productivity

Productivity is the result obtained when something or someone has the quality of being productive. It is identified as productive that the one that did more and that offered a greater result, or rather, spending less, how to produce more of a certain product using less hours, energy, water or any other inputs.

A professional could be considered more productive if he uses fewer hours worked to deliver a specific amount of work, for example. A vehicle, when using less fuel, a student to spend less hours studying, a restaurant that saves energy in the kitchen, an industrial company that produces the same at lower cost, etc. These are just a few examples of what it is to produce more with less.

 

Export

Export refers to the activity of selling, sending or donating goods, goods and services from one country to another. Basically, it means the exit of a good or national service bound for another country.

But we can expand the definition of export, within the concept of economic growth, to say that we can have a region, a state or an exporting city of goods and services.

Many companies export to grow economically by expanding business and commerce beyond the domestic market or beyond their local market.

And by extrapolating the reach of economic growth, even a family to grow economically or reduce expenses to do the same at lower cost or increase their sources of revenue.

 

Export and productivity as a growth factor

For a region, a country, a state, a city and a company and even a family to achieve economic growth there is only the way of increasing productivity or increasing the value of goods and services sold abroad – export.

 

You can read more about foreign trade topics on the Intradebook blog: https://blog.intradebook.com/

Image: econlib

 

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