Economics is a very vast science that studies the economic life of mankind. Perhaps everyone who has given her at least a few hours knows about such moments as: production, distribution, exchange and consumption. And what is their combination called? Just the reproductive process.
general information
And you should start with the definition. The reproduction process is the sum of social needs. Their degree of satisfaction depends on the financial capabilities, resources and potential of the state. Therefore, the main goal of this process is to organize it in such a way that it is aimed at the growth of social wealth. This process can be considered in regional, state and international aspects. When studying it, the stages of the reproductive process play an important role. These are the previously mentioned production, distribution, exchange and consumption. Without them, the implementation of the process seems impossible. Although in certain cases, adjustments may be made to this list. Let's look at the stages in more detail.
What are the stages of the reproductive process?
The starting point for learning is production. At this stage, a product is created (that is, non / material goods and services). Its importance lies in the fact that it is possible to distribute, exchange and consume exclusively what was produced. Each person can produce qualitatively one (rarely several) items of goods and / or services. Distribution reflects what is the proportion of a particular individual in the wealth created. It depends on the ownership of the means of production, as well as on the number of created values that will take part in this process. Along with this, he needs a large number of different benefits, which makes it necessary to make an exchange. What is this process?
Exchange involves the transformation of some products of activity that a person has into others. Modern economists pay special attention to this stage. Indeed, in a market situation, production will be carried out only when there is a corresponding signal.
And the last stage is consumption. Many people make a mistake here and understand this solely as the destruction of goods. This is not true. There are two types of consumption: personal and industrial. In the first case, it is the consumption of food, clothing, and so on. Whereas production consumption involves the waste of raw materials, fuel, and machinery. It is often considered as a continuously renewed cycle. Due to this, the production stage can be considered as a reproduction process in miniature.
What is he like in economics?
Well, the topic of the article in general terms was considered. Now is the time to carefully study the various specific points.
What is the reproduction process in the economy? This is a set of social needs that are completely objective and stem from the existence of man. Without this, it is impossible to satisfy one’s own needs for various benefits. In any society, you have to continuously do this. At the same time, in every system, region, country, there is an increasingly strong tendency to depend on the forms and nature of relations in the world economy. It is influenced by the increasing internationalization of the productive forces, the scientific and technological revolution, changes in the role of the media, standardization and communication. In addition, we should also mention the state of the planet’s resources. It is also necessary to take into account the specifics of individual processes, phenomena and objects. For example, technology for solving planned tasks and achieving calculations. For this purpose, a system of differentiated indicators is used, which can serve to assess the entire economic life, individual areas, industries, associations and enterprises. The reproductive economic process in this case can be assessed by identifying sections and groups of indicators, as well as by conducting departmental, functional, territorial, sectoral and program sections. Differentiation is a prerequisite for targeting and directivity. This allows you to more efficiently manage the economy.
What influences this?
The reproduction process is influenced by information and financial factors. Moreover, the higher the level of its circulation, the more complex the structure can be observed.
Here is a small comparison: the reproduction process is divided into four stages: production, distribution, exchange, consumption. Whereas in the product life cycle they distinguish the stage of development, production development, recovery, stabilization and decline. Particular attention is paid to the role of finance in the reproduction process. Why? What for? And what is their role?
Financial support is a reproduction cost coverage from cash resources that are accumulated by business entities. Their formation takes place in all divisions of social production, after which they are distributed and addressed through targeted funds. Thus, the financial support of the reproduction process is an integral factor in successful production. Resources are generated through specific sources. Potentially, they are created at the production stage when a new value arises and the old one is transferred. But in reality, they are formed only during distribution, when their value has already been realized. The reproductive process of finance is simply impossible without working in an external (relative to the enterprise) market. After all, trading only within a commercial structure is a very complicated business.
About production
What is the most important in this process? That's right, production. And what is it like? In essence, this is a combination of the means of production and labor. Without these two components, success is not possible. Under the means of production means the presence of certain fixed and circulating assets. The former gradually transfer their value to manufactured goods. The speed of this process depends on the service life. Revolving funds are various objects of labor, such as raw materials, components, materials. Their peculiarity is that they go into finished products not in parts, but in full. In practice, depreciation in the reproduction process is extremely important. Indeed, without it, the transfer of the value of funds to the goods produced is impossible. As a rule, in order to conduct the reproduction process, it is necessary to resort to the services of a supplier, for example, for the purchase of material resources. This is often accompanied by a deferment of payments, which are provided depending on existing financial opportunities. In this case, it is necessary to take into account the specifics and make a choice in favor of a strategy for updating production assets. The state can influence this process through tax policy, benefits, financing of individual enterprises and sectors of the economy.
About labor
The reproduction process, in essence, can be carried out independently, without the presence of state regulation. It is difficult to stop production, if only because there is labor, the reproduction of which is not possible without the reproduction of the created value. Simply put, each person needs to eat, dress, study, support his family. And for this it is necessary to receive wages. Ideally, the state should intervene in the reproduction process only with the aim of withdrawing part of the newly created value. In this case, public finances arise. It should be noted that the incentive function of prices, taxes and loans is not a category of monetary economy. If the state intervenes in finances, it is only pursuing fiscal goals. Separately, it should be noted the role in the reproductive process that youth has. Its place is connected with the performed social functions - translational, innovative and reproductive.
On the movement of capital
For many people, the reproduction process is limited to the sphere of material production. This view is erroneous. It should be understood that capital cannot operate within such a narrow framework, given the opportunities that the modern world provides for it. Moreover, he does not even recognize the presence of national borders and can freely move around the world, which is due to the specifics of the banking and exchange sectors. Confirmation of this fact is the emergence and active development of multinational companies. True, the tax and budget policy affects what and where is a desirable object for him. An integrated approach to the study, planning and adjustment of the reproduction process involves research and strengthening the relationships between input and output factors and indicators that affect the life cycle of benefits. Those who have capital make a decision about its movement based on available data. The more confidence in them, and the higher their attractiveness, the greater the interest of capital. That is, a significant impact on the movement is carried out by the information that is available, as well as its reliability. It is important not only for capital, but also for the whole reproduction process. At the same time, information is constantly produced and consumed, reflecting on the final result.
About development and progress
The reproduction process is characterized by specialization, cooperation, concentration and combination. What are they? Specialization involves the division of labor in society: a surgeon performs operations on a person, a pharmacist develops medicines, a farmer plants vegetables and cares for animals. Then comes the cooperation, when people exchange with others to get what they need. For example, a peasant overcame - went to the surgeon who will operate on him. Then it is treated with drugs created by the pharmacist. And in return provides them with food. In general, the formation of a single reproductive process on a global scale is underway. And it is based on the market type of communication between consumers and producers. Due to the fact that everyone concentrates on a certain business, he achieves significant success and heights in it. The level of effective activity is gradually increasing, product quality is improving, and the seizure of new regional or international markets begins.
What does this look like from a commercial perspective?
Let's take a closer look at what the reproduction process of the enterprise is. Working capital takes part in it. They are divided into two types of funds: production and circulation. The former are used in the process of creating goods. Circulation funds are necessary for the sale of finished products, as well as the acquisition of inventory. In this case, it is necessary to search for the optimal ratio between these types.
During the achievement of the best combination between them there should not be a significant balanced load, while the company is simply obliged to develop a clear and rhythmic process of circulation. If you place additional capital, then all this will lead to the activation of the process.
Let's look at an example: the Government of the Russian Federation allocated 50 billion rubles to support AvtoVAZ. Part of this money went directly to workers in the form of wages, others to suppliers and contractors who provided everything necessary. Since people do not tend to save money, there can be no doubt that the bulk of them were put into consumption. And as a natural result - the intensification of economic relations. And since production complexes and contractors are not somewhere in an abstract place, a situation is observed when the regional reproduction process is improving. Workers will be able to actively go to the bakery, and its owner will be able to buy a car. Here is such a small but good example.
Conclusion
As part of the reproduction process, numerous relationships between various subjects of relationships are constantly formed and disintegrated. At the same time, on the part of the state, it is necessary to create a solid material basis for the smooth functioning of the entire system, and especially for the uninterrupted circulation of the money supply. Indeed, if there are no established rules, this does not mean that life will end. What and how to do it - people will come up with, and a way out of the situation will be found. True, it is not a fact that the state will like it.