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  • Essay / Romania Production Factor - 1028

    Romania is a beautiful country located in Central Europe. Many tourists travel to this country to experience all the wonders it has to offer. Some of these things are their agriculture, architecture, major attractions of the cities and even cultural insight. Although these things attract tourists, Romania's production factor deepens the functioning and even functioning of the country. The first factor of production is land. Land represents the environment and agriculture of that country and how it is used. “Romania is well endowed with natural resources” (Encyclopedia of Nations), this is an advantage for a country. Having natural resources helps many of their industries. Romania has sufficient reserves of oil, natural gas, coal, iron ore, wood and salt (Encyclopedia of Nations). All of these things contribute to what will be manufactured and produced. During the transition to a market economy, the coal sector was hit hardest (Nations Encyclopedia). Coal is one of many elements involved in agricultural production. “Coal production fell 57 percent between 1989 and 1998, to 28.6 million short tons, as the economy shrank and the use of other, less polluting fuels increased” (Nations Encyclopedia) , this quote shows the statistics on coal production through the years. Over the past five years, Romania has been forcefully pushed to close inefficient mines. They were pushed by the World Bank and the Monetary Fund, which had a negative impact on society, both socially and economically (Nation Encyclopedia). As a result, many miners lost their jobs and even pushed the unemployment rate in some parts of their country to 70 percent; or even harm the economy. “The current government has promised that the pit will be closed... middle of paper... capital, with a total foreign investment amounting to 37.7 billion euros” (FRD). This gives an overview of a number of foreign investors invested in Romania. “In 2013, business and household investment accounted for 16.7% of EU-28 GDP, while the equivalent figure for public sector investment was 3.0%” (National Accounts). This shows some of the minimum percentiles of contribution to their GDP. As we have learned, production factors play an important role in Romania and its economic system. Without most of these factors, Romania would not be the same and would not even have the same opportunities, professions, jobs or transactions as today. Whether it is land, capital, labor or even entrepreneurship, they all seem to affect this country. There may still be negative impacts, but these production roles have overall left Romania with a positive impact on its country..