PDSnet Glossary

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Introductory Technical Fundamental Economics Opinion Sectors International Regulatory Other Markets

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Definition

The act of producing a product. This can take many forms such as harvesting, mining or manufacturing. Th efficiency with which goods and services are produced in the economy is a function of productivity. That in turn determines whether a particular product can compete on price and quality with the same product produced by other countries. For example, South Africa competes with Australia in the production of high-grade bituminous coal which is supplied to markets in Europe. The buyers are only concerned about the price per ton, the quality of the product and the reliability of supply. Basically they will buy the cheapest bituminous coal that meets their quality requirements.

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