The past century has been characterized by a real breakthrough in the cause of the international movement of factors of production. This is due to many reasons, but in the first place it should be called the ever-growing need to expand the business, its rationalization, the conquest of new markets. The end result of all these efforts is an increase in profit margins while lowering costs.
Income and expenses
First you need to understand what factors of production are, how they affect the general economic situation, what are their funds, how do they make a profit. So, economic science distinguishes the following factors of production: land, labor, capital; later, some economists added entrepreneurial abilities to them. Each of them brings the corresponding income, called factor. For example, the income from labor will be wages, from the land - rent, capital is able to generate interest, and entrepreneurial abilities, when properly applied, will bring profit. All economic systems of the world in modern science are usually called the world economy, this emphasizes their close relationship and the impossibility of an isolated existence. And since they are united in a global structure, then, accordingly, the movement of factors of production is already taking place not on a national but on an international scale.
Economic meters
One of the indicators of economic development is the productivity of factors of production, i.e., the costs of various resources for a certain unit of time for the production of a given amount of product. The lower the cost, the higher the productivity. Each factor of production, as a rule, has a master who has the right to dispose of it at his discretion. If you have a certain profession, then you can offer the employer this type of service; Undoubtedly, in the interests of each owner of the mentioned resource is to sell their abilities as expensive as possible, which in the global market structure is one of the reasons for the international movement of factors of production in this direction. Capital also overcomes interstate borders in search of the most favorable conditions, while it is necessary to differentiate it as physical, i.e. equipment, and financial - cash. So, the movement of this factor of production is mainly carried out due to investments in the foreign market. There is also an explanation for this, because labor costs, as well as environmental requirements in developed countries, require significant costs. The easiest way to move production to developing countries and reduce total costs.
Global market
The motive of the international movement of factors of production, as it has already become clear, is the search for the most suitable business background.
Entrepreneurial abilities can bring high profit to its owner, but for this you need to send them in the right direction. Each businessman seeks to get the most profit at the lowest cost. Of course, this is not always possible, and in this case the talents and acumen of a business person are manifested. He sees the benefits not only in the market environment, but also in the future. It has become commonplace for large multinational companies to turn to the services of hired managers — it is they who develop the strategy of the firms. Here, the interests of external managers - as free business units - and corporate owners around the world intersect. This is the source of the international movement of factors of production already in the form of entrepreneurial abilities. Land does not cross the borders of states; its movement is associated only with a change in ownership. This phenomenon can be partly called the movement of this factor of production.
The result of all the above trends was the emergence of a complex global economic system of needs and ways to meet them.