By an external factor of production, also foreign factor or object factor mentioned, a factor of production is to be understood, which is brought by the Nachfrager of a service into the production process.

The crucial difference to the internal factors of production is to be seen thereby in the autonomous calculableness lacking on the part of the producer.

Kinds

• human works, which the Nachfrager furnishes in the context of the service production,
• material (e.g. Transportation objects) and
• immaterial (e.g. Information) manifestations.

Examples

The hairdresser can cut the customer only the hair, if this makes its head available for it.

Articles in category "External factor of production"

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