# Production costs

- Canonical URL: https://www.gerhardmerk.de/production-costs
- Post ID: 593044
- Modified: 2023-07-25T21:11:37+00:00
- Language: en

## Definition

The amount of effort required to produce a good. - When comparing production costs internationally, it is not only the absolute level that is important for assessing a country's competitiveness. Above all, in order to attract investors, other circumstances must also be suitable, such as in particular: - a positive overall impression in the producing country, - a smoothly running administrative structure including legal system, - functioning transport system, - a high ecological standard and - a competent banking system. If these and other conditions are not in place, even domestic investors will prefer to invest their money abroad, as was clearly demonstrated in the course of the Greek crisis, for example. Without structural reforms such as debureaucratization, more flexible labor markets, simplification of market entry or implementation of the subsidiarity principle, economic strength will not increase even in countries with very low production costs - otherwise many African countries would have to be booming countries. - See labor market flexibility, Balassa index, producer prices, industrial, European stabilization mechanism, EMU explosive, research quota, monetary home, patent grants, production costs, structural change, terms unit value ratio, competitive status, international. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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