Commodity production is such an organizational structure of the national economy that mainly contributes to the production of products by individual enterprises, each of which specializes in a certain group of goods. For the required satisfaction of consumer demand, there is a need to create exchange in market conditions.
At the initial stages of the development of human society, the dominant position was occupied by subsistence farming. Primitive communities, isolated from each other, consumed products that they produced exclusively themselves.
The peasant farms of the patriarchal type and slaveholding, as well as the estates of feudal lords that existed in medieval times, remained natural. However, this type of management is stagnant. It is carried out by manual, non-specialized labor and is characterized by a very low output of its products. As a result of this, there is no increase in the number of benefits that fall to each inhabitant. And this, in turn, does not contribute to the necessary increase in consumer demand.
In the conditions when the division of labor began between those who produced material wealth, as well as with the advent of private property, commodity production became the dominant business structure. In conditions when the division of labor is maximized, more and more advanced technology is being applied. This contributes to the growth of output. An increase in labor productivity contributes to an increase in the number of goods produced per capita. In addition, a huge variety of different products are produced that are designed to be exchanged in a market environment.
Commodity production is a combination of organizational ties intended for use in various socio-economic systems. However, the quantity and value of products are not equivalent. In this regard, throughout its history, commodity economy has undergone a number of changes. Its initial step was a simple farming, which was carried out by artisans and peasants with the help of manual labor. At this stage, subsistence and commodity production were closely adjacent to each other. This was due to low production output. With the advent of the capitalist system, a new stage in economic development began, in which developed commodity production occupied the dominant position. All created values passed into the category of a market product, and hired labor became the subject of sale and purchase .
Commodity production can exist only if certain resources are available. These include the following:
- labor;
- capital;
- resources of nature;
- raw materials;
- entrepreneurial ability;
- information (knowledge of the process);
- management abilities.
In a market environment, all these economic factors have the ability to sell and buy, bringing their owners factor earnings. Land resources generate rental income. Interest is accrued on invested capital. Management skills contribute to wage growth. Entrepreneurship is profitable.
The combination of all factors of the commodity economy is a productive force. It serves as the main indicator that characterizes the material and material essence of the process of activity. Productive forces are inextricably linked with production relations, which, in turn, indicate the historical form of economic relations.