What are the factors of production? Competitiveness!

A study of the question as to the factorsproduction, belongs to a kind of sacred cows of economic theory, which treats them as resources that are somehow attracted to productive activities. Traditionally, the concept of production factors included such components as labor, land and capital. In the second half of the twentieth century, information was also added to these components. Some researchers, in addition, distinguished from the concept of "labor" in a separate indicator of entrepreneurial talent.

Analysis of the processes taking place in the modern economy, gives some grounds to assert that the consideration of the structure of factors of production now requires a certain complement and refinement.

If we consider what is relevant to the factorsproduction from the point of view of the prevailing trends in the modern economy, it is quite obvious that marketing, whose role in the conditions of increasing competition is difficult to overestimate, became quite independent and important.

Here, the task of satisfying market needs comes to the forefront, which limits the use of administrative methods of administration and thus increases market democratism and professionalism.

The classical model of competition is this: "Reduce the price, raise the quality, give the buyer additional benefits (in the forms of payment, supplies, maintenance, etc.)." In addition, the implementation of the functions of competition and the positive consequences of its manifestations in the dynamics of the correlation of the price of consumption and the quality of goods, first, leads to the objective need for the formation of a competitive environment. And this should be done not only in the interests of commodity producers, but, first of all, consumers and, secondly, it directly connects the functions of competition with its advantages, both for companies and for the products they produce. In this case, the factors of social production are quite appropriate to include the competitive advantages of an enterprise.

As the technological,production and management innovations, as well as the globalization of national and international competition, the theory of comparative advantages of production factors that are abundant, the problem itself, which relates to factors of production, ceases to meet the modern requirements of economic science. At present, a new theory of competitive advantages is gaining more and more recognition. It means the following:

1. The advantages of the enterprise and the goods ceased to be static. They change under the influence of innovation and investment processes in technology and production technology, management methods and forms of organization, in the ways of promoting goods to markets.

2. The mechanism of formation of market advantages based on competition is not the only one. The state is viewed here as an important subject of forming competitive strategies and advantages of the enterprise. In this regard, the market mechanism is complemented by a state mechanism for regulating competitive relations and enterprise competitiveness.

3. Globalization of the economy forces the enterprise, when forming its advantages, to take into account not only its own and sectoral interests, but also national as well as international conditions.

All this indicates that, in response tothe question as to the factors of production, we can state with a certain degree of certainty that competitive advantages have become a tangible and isolated factor. To create them, the state needs to implement measures to create a competitive environment and to protect competition, encourage the continuous introduction of innovations, optimize and improve government regulation, taking into account the development trends of the world economy.

These benefits can be defined asefficiency of the enterprise in any area, which, first, gives it the best (in comparison with competitors) opportunities to attract and retain consumers, secondly, it allows to receive a stable profit and on this basis to ensure the reproduction of fixed capital.