What is the most

What matters most in determining the efficient distribution of production over the world is:

25 Oct 2022
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This question is quite difficult to answer, as it is highly subjective. However, I will try my best to give a simple and logical answer.Distribution of production plays a very important role in the efficient functioning of an organisation. Production needs to be distributed such that it is used to maximum potential and at the same time, it should also be optimised.There are a number of factors that need to be taken into consideration when trying to optimise distribution of production over the world. These factors include:1. Market conditions – If a country has more resources or less competition in its specific industry than other countries, then it would be more efficient for that company to produce the product in that country rather than shifting production abroad. Likewise, if a country has lower wages or cheaper costs for production than other countries, then it would be more profitable for the company to supply from this country rather than from other countries.2. Relative advantage – Will moving production from one country to another cause an increase or decrease in overall efficiency? What are the benefits and drawbacks of each option?3. Reliable supply chains – Sometimes, it may be easier or cheaper for companies to maintain trusty and reliable supply chains at home rather than taking the risk of operating them abroad. In sensitive industries, companies may prefer to hold onto their product rather than risk being defrauded by unreliable suppliers abroad.

When nations increase production in their area of and trade with each other?

If two nations both produce X and Y, in equilibrium they will be producing X + Y and Y + X. The value of X is higher than Y (look at the supply and demand curves). So when either nation increases production it will only be selling X and buying Y. This is called bilateral trade.If both nations increase production they will export more than they import, so they will be earning more by buying stuff from other nations. Then they will have more to sell hence earning more on their surplus asset money in terms of exports.So there is no winner here as well as no loser. All gain and none lose as there is balance in trade.


What type of advantage do we use to determine what a good country should produce?

Many people make the assumption that a country’s wealth depends entirely on the amount of resources they have. While this might be true in some cases, in many countries, resources aren’t the only factor that affects their ‘wealth’.One example of this is energy. Countries such as the US and UK use a lot of energy due to their advanced technologies and economic growth. However, countries like India and China are able to develop at relatively the same rate due to their abundant supply of cheap, natural energy.Similarly, there are other factors that can affect a country’s wealth such as education and infrastructure. Education allows people to learn more effectively which can lead to greater wealth. On the other hand, poorly-maintained infrastructure can lead to reduced productivity and lower overall wealth.In summary, while natural resources do play a large role in determining a country’s wealth, they are not the only factor involved.


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