Distribution Of Goods And Services

1728 Words May 4th, 2015 7 Pages
Production may be thought of as a process of transforming both tangible and intangible inputs into something that can be utilized by people, which are the goods and services (Wikipedia, 2015). On the other hand, distribution refers to the manner in which these goods and services are sent or conveyed to the consumers (Tutor2u.net, n.d.). Alternatively, the term consumption can be described in various ways. According to Hill (n.d.), it is generally defined as a process of purchasing or buying those previously produced and distributed goods and services. These three terms are related to the economic growth of a region or a country (Wikipedia, n.d.). In other words, they may act as indicators in determining the growth of the economy of a region or a nation, whether directly or indirectly. Therefore, the aim of this essay is to discuss whether is it sufficient or valid enough to only analyse the consumptions of goods and services and neglecting both the productions and the distributions of goods and services in order to measure the economy of a region or a country.
This paragraph will discuss about how analysing the consumption of goods and services is enough to evaluate the economic growth of a region or a country. According to Piana (2001), consumption may be classified in accordance with the durability of the items being purchased (in addition to the consumptions of services); non-durable items (food and drinks) and durable items (furniture and cars). There is a strong…
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