Commodity production

Commodity production is such an organizational structure of the national economy, which mainly contributes to the production of products by individual enterprises, each of which specializes in a certain group of goods. For the required satisfaction of consumer demand, there is a need to create an exchange in market conditions.

At the initial stages of the development of human society, the dominant position was occupied by subsistence economy. Primitive communities, isolated from each other, consumed products that were produced exclusively by themselves.

Natural were the peasant farms of the patriarchal type, and the slave system, as well as the feudal estates that existed in medieval times. However, this type of management is stagnant. It is conducted by manual, nonspecialized labor and is characterized by a very low production of its products. As a consequence, there is no growth in the amount of benefits that are attributable to each resident. And this, in turn, does not contribute to the necessary increase in consumer demand.

In the conditions when the division of labor began to arise between those who produced material goods, and also with the appearance of private property, the dominant structure of management became commodity production. In an environment where the division of labor is maximized, more and more advanced equipment is being used. This contributes to the growth of output. Increase in labor productivity contributes to an increase in the number of manufactured goods per capita. In addition, there is a huge variety of different products that are intended for exchange in the market.

Commodity production is a set of organizational links intended for use in various socio-economic systems. However, the quantity and value of products are not equivalent. In connection with this, throughout its history commodity economy has undergone a number of changes. His initial step was simple management, which was carried out by artisans and peasants with the help of manual labor. At this stage, natural and commodity production closely neighbors each other. This was due to low production. With the advent of the capitalist system, a new stage in economic development began, in which developed commodity production took the leading positions. All the created values went into the category of market product, and the subject of sale and purchase was the hired labor.

Commodity production can exist only if there are certain resources. These include the following:

- work;

- capital;

- natural resources;

- raw materials;

- Ability to entrepreneurship;

- information (knowledge of the technological process);

- Ability to manage.

In the conditions of the market, all these economic factors have the ability to be sold and bought, bringing to their owners factor profit. Land resources bring in income from rent. From the invested capital, interest is paid. The ability to manage contributes to the growth of wages. Entrepreneurial activity brings profit.

The totality of all factors of the commodity economy is a productive force. It serves as the main indicator that characterizes the material and material essence of the process of activity. The productive forces are inextricably linked with the production relations, which, in turn, point to the historical form of economic ties.