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Intermediate Goods

This is a Principles of Business Assignment that I did. Hope it is useful to other users.

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Kiara Golding 7F
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8 views

Intermediate Goods

This is a Principles of Business Assignment that I did. Hope it is useful to other users.

Uploaded by

Kiara Golding 7F
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Intermediate goods are products or services that are in the production process of other goods and services.

They are not sold directly to consumers but are used as inputs for final products. Examples of intermediate
goods include raw materials, semi-finished goods, components, energy and services.
Examples of Intermediate Goods:
 Raw materials: These are the basic inputs used in production, such as wood, iron ore, and cotton.
 Components: These are parts or subassemblies that are incorporated into final products, like car
engines, computer chips, or textiles.
 Semi-finished goods: These are products that have undergone some processing but still require
further work to become finished goods, such as steel ingots or partially assembled electronics.
 Energy: Electricity, natural gas, and oil are essential inputs for many manufacturing processes.
 Services: Transportation, logistics, and information technology services can be considered
intermediate goods when used in the production of other products.
In this case, services such as transportation, logistics, and information technology are considered
intermediate goods when they are used in the production of other products. For example,
transportation services are often required to move raw materials or components from one location to
another as part of the production process. Similarly, information technology services may be used to
support the production and distribution of goods. These services are not the final end products
The Role of Intermediate Goods in the Economy:
 Value addition: Intermediate goods contribute to the value of final products through processing,
assembly, or combination.
 Supply chain integration: They connect various stages of the production process, ensuring a
smooth flow of goods and services.
 Economic growth: The production of intermediate goods supports jobs and economic activity in
various sectors.
 Business competitiveness: Access to high-quality and cost-effective intermediate goods can enhance
a firm's competitiveness.
Factors Affecting Intermediate Goods:
 Technology: Advancements in technology can lead to new intermediate goods or improve the
efficiency of existing ones.
 Globalization: International trade allows for the sourcing of intermediate goods from around the
world, potentially reducing costs and increasing variety.
 Government policies: Tariffs, subsidies, and regulations can impact the availability and cost of
intermediate goods.
 Economic conditions: Recessions or booms can affect the demand for intermediate goods and their
prices.
Would you like to explore a specific industry or aspect of intermediate goods in more detail?

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