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Introduction to Materials Management 8th Edition by Steve Chapman ,Tony Arnold ,Ann Gatewood ,Lloyd Clive
Edition 8ISBN: 978-0134156323Introduction to Materials Management 8th Edition by Steve Chapman ,Tony Arnold ,Ann Gatewood ,Lloyd Clive
Edition 8ISBN: 978-0134156323 Exercise 1
What is wealth, and how is it created?
Explanation
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Wealth:
Wealth is the total of goods and services produced by a country during a specific time period. The goods have physical presence and services are useful for execution of several activities. Some of the examples of services are: banking services, health care services, social services etc.
Explanation:
Manufacturing companies convert raw materials into finished goods. Raw materials could be in crude form. When companies convert them into finished products they add value to each product. This is how value is created and wealth is generated.
For example steel manufacturing companies use iron ore as raw material for manufacturing steel. The company adds value to iron ore at each state so that the final product (steel) has the highest value. This is how the wealth is created.
Wealth is the total of goods and services produced by a country during a specific time period. The goods have physical presence and services are useful for execution of several activities. Some of the examples of services are: banking services, health care services, social services etc.
Explanation:
Manufacturing companies convert raw materials into finished goods. Raw materials could be in crude form. When companies convert them into finished products they add value to each product. This is how value is created and wealth is generated.
For example steel manufacturing companies use iron ore as raw material for manufacturing steel. The company adds value to iron ore at each state so that the final product (steel) has the highest value. This is how the wealth is created.
Introduction to Materials Management 8th Edition by Steve Chapman ,Tony Arnold ,Ann Gatewood ,Lloyd Clive
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