10 - Manufacturing

Summary

Manufacturing is defined as the process of transforming raw materials, parts or components into finished goods or products for sale to customers whose expectations or requirements the goods or products meet. Employment of labor (man) and machinery, as the case may be, is vital in manufacturing. Macro analysis refers to how the economic activities of existing firms and government economic policies can affect the overall output, price levels and employment and growth rates of an economy. These models and experiential pieces of information also help to clarify how to maintain both internal and external economic stability in the short run. Economists are hugely interested in the factors that play a role in the economic growth of a country, as these can bring about more job opportunities and make goods and services more affordable, thereby raising people’s standard of living in that country. This chapter gives a thorough insight into the macro analysis of manufacturing industries and how important digitalization is to their improvement, in part by discussing two case studies.