IN

RT
M A
N -
GA
G
JA
P.
 FACTORS OF PRODUCTION
1. LAND - Natural resources of the earth, sea and air.

The following are considered examples of land:

 Mineral deposits
 Sunshine IN
RT
 Rainfall
M A

N -
Rivers, ponds, lakes, seas, oceans
 Air space
GA
G
JA
 Deserts
 Forests
P.
LAND(NATURAL RESOURCES) CAN
BE FURTHER DIVIDED INTO TWO
CATEGORIES:
RENEWABLE RESOURCES NON-RENEWABLE RESOURCES
 Can be replenished over time through • Cannot be readily replaced by
natural processes such as farming.
IN
natural means at a quick enough pace
RT to keep up with consumption
A
 Can reproduce themselves or can be
M
-
reproduced by man. For eg., bamboo • Cannot reproduce themselves or be
N
replanted. GA
trees once harvested can be reproduced by man.

G
JA
• Limited in supply.

P.
 Has unlimited supply
 EXAMPLES
RENEWABLE RESOURCES NON-RENEWABLE RESOURCES
 Biomass energy (biomass – organic  Fossil fuels:
material from plants or animals) : • Coal
wood, ethanol • Oil
 Hydropower • Natural gas
 Geothermal power • Nuclear
 Wind energy IN
 Metallic Minerals:
 Solar energy RT• Iron
 Soil
M A • Copper
 Plants
N - Aluminium
 Water
GA  Non-Metallic Minerals:
G • Salt
JA • Phosphates
P.
 NATURAL RESOURCES OF THE
CARIBBEAN REGION
COUNTRY NATURAL RELATED INDUSTRIES
RESOURCES
 TRINIDAD AND ASPHALT ASPHALT
TOBAGO OIL PETROLEUM,PETROCHEMIC
IRON ORE IN AL
NATURAL GAS
RT STEEL
ARABLE LAND
M A ENERGY, NATURAL GAS

N -
SAND AND SILICA AGRICULTURE

GA
LIMESTONE
CLAY
CONSTRUCTION
CONSTRUCTION
G
JA
SUN, SEA, SAND CONSTRUCTION
P. FLORA & FAUNA TOURISM
TOURISM
COUNTRY NATURAL RESOURCES RELATED
INDUSTRIES
 JAMAICA BAUXITE ALUMINIUM
GYPSUM CONSTRUCTION
MARBLE CONSTRUCTION
LIMESTONE
IN CONSTRUCTION

RT
SILICA, SAND, GRAVEL CONSTRUCTION

M A
ARABLE LAND (RICH AGRICULTURE
SOIL)
CLAY N - CONSTRUCTION
TOURISM
GA
SUN, SEA, SAND TOURISM
G
JA
FLORA & FAUNA CONSTRUCTION

P.
LIMESTONE
COUNTRY NATURAL RESOURCES RELATED
INDUSTRIES
 GUYANA BAUXITE ALUMINIUM
GOLD,SILVER,DIAMONDS JEWELLERY, MINING
TIMBER CONSTRUCTION
CLAY CONSTRUCTION
IN
ARABLE LAND
RICE & SUGARCANE RT AGRICULTURE
RICE & SUGAR
M A PRODUCTION
N -
FISH, SHRIMP FISH PROCESSING

GA
G
JA
P.
COUNTRY NATURAL RESOURCES RELATED INDUSTRIES
 BARBADO CRUDE OIL PETROLEUM
S NATURAL GAS NATURAL GAS
CLAY CONSTRUCTION
CORAL REEFS TOURISM &
BEACHES HOSPITALITY
CAVES FINANCIAL SERVICES
IN
COASTAL LANDFORMS
RT INFORMATION
SERVICES
M A
N -
GA
G
JA
P.
COUNTRY NATURAL RELATED INDUSTRIES
RESOURCES
 ST. KITTS AND FLORA & FAUNA TOURISM, HORTICULTURE
NEVIS ARABLE LAND AGRICULTURE
SUN, SEA, SAND TOURISM
LIMESTONE CONSTRUCTION
SILICA & SAND IN CONSTRUCTION
CLAY RT CONSTRUCTION

M A
 ANTIGUA AND BEACHES
N - TOURISM
BARBUDA A
SUNSHINE
G EDUCATION TOURISM
G INVESTMENT BANKING
JA FINANCIAL SERVICES
P.
COUNTRY NATURAL RESOURCES RELATED INDUSTRIES
 DOMINICA MOUNTAINS & AGRICULTURE
RAINFORESTS ECOTOURISM
RIVERS
HOT SPRINGS
WHALE WATCHING

 BELIZE WILDLIFE
IN TOURISM &
FLORA
RT HOSPITALITY
BARRIER REEF
LIMESTONE M A
N - CONSTRUCTION
G A
 THE
AG
BEACHES TOURISM &
BAHAMAS J
P. BARRIER REEF HOSPITALITY
FINANCIAL SERVICES
2. LABOUR/MANPOWER/HUMAN RESOURCES

 Physical and mental efforts of employees used in the production of goods

and services

N
All personnel available for the work force.


T I
A R
Mpermitted to work by law.
 Labour Force – a group of persons
employment and are of the -age
who are employed or actively seeking

A N
G G
J A
P.
 CLASSIFICATION OF LABOUR
TYPE OF LABOUR DEFINITION EXAMPLES
o MANAGERIAL AND  HIGH LEVELS OF TECHNICAL SKILLS  BUSINESS
PROFESSIONAL  THE ABILITY TO LEAD SUBORDINATES EXECUTIVES
 GOOD COMMUNICATION AND CONCEPTUAL SKILLS  ACCOUNTANTS
 HIGH LEVELS OF EDUCATION AND EXPERIENCE  ENGINEERS
 VETERINARIANS
 ARCHITECTS
 DOCTORS
o SKILLED  HIGH LEVELS OF EDUCATION  CHEFS
 REQUIRED TO COMPLETE COMPLICATED TASKS THAT  TECHNICIANS
 REQUIRE A COMBINATION OF EDUCATION, SKILLS AND  COMPUTER
EXPERIENCE
IN OPERATORS

T
 HIGHLY PAID

A R
M
o SEMI-SKILLED  HIGH LEVELS OF EXPERIENCE BUT USUALLY DO NOT  WAITERS, FACTORY

N -
HAVE HIGH LEVELS OF EDUCATION
 ABLE TO PRODUCE GOOD WORK IN LARGE VOLUMES
FLOOR WORKERS,
CATERERS, MACHINE

GA
 ABLE TO COMPLETE TASKS VERY WELL OPERATORS,
STENOGRAPHERS,
G DOUBLES VENDORS

JA
P.
o UNSKILLED  LITTLE OR NO EXPERIENCE, TRAINING OR EDUCATION  GARBAGE
REQUIRED TO COMPLETE SIMPLE, ROUTINE TASKS COLLECTORS, STREET
CLEANERS, DISH
WASHERS, LOADERS
 VALUE & IMPORTANCE OF
LABOUR
 Human Resources is the most important asset of a country and a company
because of the following reasons:
 Labour is required to produce all goods and services
 Labour is required from planning to implementation stage in any business
I N
R T
 Even in automated industries, workers are needed:
To ensure machinery is in goodAworking condition
M


 Personnel is required toN -

program computers
G A

A G
Technicians are needed to monitor operations
J
P.
What determines the size of the labour
force?
 The size and volume of the operation

 The amount of capital invested

IN
R T
A
 The level of skills and training available
M
N -
 The level of wage rate A
G G existing in the industry/country

J A
P.
FACTORS THAT AFFECT THE SUPPLY OF
LABOUR
 Actual size and structure of the population:
• Aging population
• Young population
 Cultural patterns and religious reasons
 Birth and death rate
IN
R T
 Efficiency of the transportation network

M A
 Quality of the labour force:
• Skills & competencies N
-
• Education level G
A of the workforce

G
Aschool leaving age & retirement age
 LegislationJon
P .
 Migration
 MIGRATION

 Migration is the movement of people from one place to another with the intentions
of settling, permanently or temporarily, at a new location.
*In the Caribbean migration has had a significant social and economic impact on the
labour force.*

IN
T
TWO DISTINCT CATEGORIES OF MIGRATION
R
M A
IMMIGRATION
N - EMIGRATION
G A
A G
Movement of people into a country/region Movement of people out of a
J country/region
P.
 TWO TYPES OF MIGRATION
INTERNAL MIGRATION EXTERNAL MIGRATION
 Movement of people within a  Movement of people out of their
country. home country to developed
 Rural to urban areas countries.
 Urban to rural areas  Search for better living standards
N
 Educational opportunities
I
T
 Jobs
R
M A
N -
GA
G
JA
P.
 EFFECTS OF MIGRATION ON THE CARIBBEAN ECONOMY
POSITIVE EFFECTS OF MIGRATION NEGATIVE EFFCTS OF MIGRATION
 Inflow of foreign exchange  Loss of skilled and educated people leave the
 Creation of new businesses can lead to region to work in developed countries -
creation of jobs (Brain Drain/Flight of Human Capital)
 Returning students and workers bring  Loss of tax revenue as nationals migrate to
valuable work experience and skills other countries for a better economic life
( improvement of human capital)  Local workers have to now compete with a
 Less strain on government resources larger group of people for the same job
 Retired West Indians return to the
Caribbean with saving and pensions which IN
 Strain on government resources when
migration is not curbed
adds to the circular flow of income
RT
 Foreign workers bring new skills and
M A
N -
techniques that they pass onto local workers
(increases the skills bank of the country)
A
 Competition from foreigners means the
G
G
person with the best skills would be chosen

JA
for the job

P.
3. CAPITAL- Money and all other assets that are used in the
production process.

 All man-made items that go into producing other things.

 It includes the building, machinery, equipment, money and

stocks used in the production of goods and services.
IN
RT
3 TYPES OF CAPITAL:
M A
 Fixed capital
N -
 Working capital A
 Venture capitalGG
J A
P.
 FIXED CAPITAL – Assets that remain in the business for a
long time and used to produce further wealth.

 Plant
 Buildings
 Machinery
IN
 Tools RT
M A
 vehicles
N -
GA
G
JA
P.
 WORKING CAPITAL – This is used in the day-to-day
operations of the business.

Stocks of these constantly needs to be replenished over

time.

IN
Raw materials RT
M A
Cash balances
N -
Bank balances
GA
G
JA
P.
 IN
RT
MA
A Firm must have enoughN
-

 It must have enough G
A Working Capital if it is to continue in business.
Current Assets to pay off Current Liabilities when they
A G
fall due for payment.
. J

P
Companies need
and utility bills.
cash in order to buy stocks, raw materials, to pay wages
 VENTURE CAPITAL - Money that is provided by
investors to “start-up” businesses.
 Investors are known as Venture Capitalists

How does venture capital benefit a start-up/small business?

IN
 Provide funds and experience
RT
 It helps a small firm grow
M A
N -
What do venture capitalists gain?
A
 They will be ableG
A G to yield a good return from the investment.
J
P.
 ROLE OF CAPITAL IN PRODUCTION
 It is used to undertake production that labour would not complete in a
timely manner
 Reduces the need for labour and enables work to be done more quickly
 It is used to create other capital goods such as machines and tools for
machines
 It increases labour productivity and speeds up production
IN

RT
It is used for the following purposes:
 To purchase equipment
M A

N -
To provide funds for acquiring larger premises

GA
To pay for wages and salaries of additional employees

A G
 To pay for advertising
J
 To purchase P. computer equipment/software to increase production of
goods and services
4. ENTERPRISE/ENTREPRENEURSHIP –

 Entrepreneurship refers to the process of creating a new enterprise

and bearing any of its risks, with the view of making a profit.

 The person who creates a new enterprise and embraces every

N
challenge for its development and operation is known as
I
an entrepreneur.
RT
M A
 Enterprise
N -
combines the other 3 factors of production to produce
G
goods and services.A
G
JA
P.
 ROLE OF ENTERPRISE/ENTREPRENEURSHIP IN
PRODUCTION

 Use their initiative/innovation to create a saleable product

 Coordinate other 3 factors of production

IN
Supervise work of employees to ensure efficiency
R T
 Control flow of cash out of the business

M A
-
 Ensure investments are profitable

 Make sound decisionsN

G A based on market intelligence and from their
own intuition
A G
J
P.