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Three typical tasks can be distinguished:
  1. determination of production volumes by industries that provide given options for final consumption
  2. determination of final consumption volumes based on the specified production volumes of industries
  3. calculations of production volumes and final consumption with a mixed composition of unknowns

Basic quadrants of the model

The first quadrant <TAG1> distribution of products between industries (intermediate products)
Second quadrant <TAG1> final output of all branches, leaving the sphere of production for final use (for consumption and accumulation)
Third quadrant <TAG1> value structure of gross domestic product and imports (wages, taxes, subsidies, net income, etc)

General scheme of the value chain (example for material production)

Загальна схема ланцюга створення вартості (приклад для матеріального виробництва)
Загальна схема ланцюга створення вартості (приклад для матеріального виробництва)

Basic concepts and terms

Profitability (R) farms of economic districts are defined as the percentage ratio of the net profit of enterprises of the territory (P) and the amount of its expenses (S).
R=P/S*100 %
Closely related to the cost-effectiveness of production is the indicator labor productivity economy, which is based on the ratio of the volume of produced (sold) products and labor costs. Labor productivity is measured by the number of products or services produced by the employee per unit of time:
LP=V/L
where
LP — labor productivity
V — volumes of sold products (goods, works, services)
L — number of employees
Fund armament or arming with fixed assets — is the volume of fixed assets of the enterprise in value terms, which is per employee
Fa=F/L
where
Fa — capital equipment of labor
F — average annual book value of operating fixed assets
L — average annual number of employees (industrial and production personnel)
Fund return or the return of fixed assets, expresses production relations regarding the economic efficiency of the use of means of production.
The quantitative expression of the return on capital is reduced to the ratio of the volumes of products sold (goods, works, services) to the volume of production facilities used to obtain them:
Fr=V/F
where
Fr — production return
V — volumes of sold products (goods, works, services) for a certain period of time
F — the value of the fixed means of production used to obtain products over a certain period of time
Competitiveness of the enterprise <TAG1> is a complex comparative characteristic of the enterprise, which reflects the degree of superiority of the set of indicators of its activity, which determine the success of the enterprise in a certain market for a certain period of time relative to the set of indicators of competitors
Industry competitiveness it is determined by the presence in it of technical, economic and organizational conditions for the creation, production and sale of high-quality products that meet the requirements of specific groups of consumers
Competitive branch of the economy tends to stay in a state of sustainable growth longer
Competitiveness of the region <TAG1> is its ability in competitive conditions based on the efficient use of resources to stimulate an increase in production productivity and the standard of living of the local population and, accordingly, to ensure a high competitive status in the geo-economic space in the long term
  • Regions find themselves in a state not only of competitive struggle for promotion to foreign markets, but also of struggle for their own markets and their own territory, which attract companies from other regions of the world

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