Extensive way of development

The extensive way of economic development is characterized by an increase in the social product due to an increase in the number of production factors. To do this, additional resources, land, and capital are attracted. At the same time, the technological basis of production is not subject to change. Thus, for example, cultivation of virgin lands to obtain more cereal crops or to attract more workers for the construction of power plants are considered extensive development paths.

Achievement of growth in output is due to a quantitative increase in the number and qualification of staff. An important role is given to increasing the capacity of the enterprise by increasing the amount of equipment.

An extensive way of development is inherent in organizations that expand production through the construction of new enterprises. Thus, the geographical factor is used. A typical enterprise that has an extensive development path is the fast food chain. In this case, the market is conquered by geographic expansion and manufacturing in a huge amount of cheap products.

The extensive development path is characterized by a relatively uniform growth in the ratio of its factors. The production maximum depends mainly on the availability and condition of resources, especially capital and labor costs. At the same time, scientific and technological progress has little impact on the process. In these conditions, the enterprise becomes dependent on the situation that develops in the market of production factors.

With an extensive path, some of the side effects are reduced unemployment. This is mainly due to the hiring of a significant number of employees. However, reducing unemployment is a temporary phenomenon in this case. This is largely due to the inability to maintain full annual employment. An important factor is that employees generally do not have the necessary qualifications.

Thus, the extensive way is characterized by a stagnant character, which is due to the lack of influence of technological progress, the wear and tear of (both physical and moral) production assets.

Along with this, as experts note, enterprises developing along an extensive path, in the majority depend on external factors. For example, such an enterprise is significantly influenced by state policy, in particular, in the field of investment and tax collection.

Thus, development on an extensive path is completely unacceptable for enterprises in the current market conditions. However, along with this, the use of certain factors makes it possible to obtain high results in individual situations. An example is the oil-rich states, which reached a high revenue level solely due to the stocks of this raw material.

It should be noted that the extensive way was the basis for subsequent economic development, became the basis for the emergence of a new intensive type. At the same time, it is difficult to single out this or that type in the conditions of modern market relations. As practice shows, the most profitable use of their complex.

Development along an extensive path is characteristic of various spheres of social life. In particular, its application in a certain period was also noted in the pedagogical sector. It should be noted, however, that the extensive way of development of education today is changing to an intensive one. In other words, the previous emphasis was more on informing and expanding students' knowledge. Today, the main direction is the formation of abilities and skills, the development of non-standard thinking.