Factors of production

Definition

Factors of production are the resources used to produce goods and services, encompassing land, labor, capital, and entrepreneurship. In the context of International Relations and Critical Worldviews in Political Science, they form the basis for economic power and influence among nations.

Related terms

Economic Power: The ability of a country to influence international events and actors through its economic strength, primarily determined by how efficiently it utilizes its factors of production.

Globalization: The process of interaction and integration among people, companies, and governments worldwide, often influencing how factors of production move across borders.

Comparative Advantage: An economic theory that describes how countries gain when they produce goods in which they have lower opportunity costs compared to other nations, heavily relying on their unique factors of production