Productivity and Efficiency

Productivity refers to how much output, like goods or services, a company produces relative to the resources it uses, such as labor and materials. Efficiency, on the other hand, measures how well a company uses its resources to maximize output with minimal waste. In international industrial economics, these concepts are crucial because they help businesses understand their competitiveness in global markets. Higher productivity and efficiency can lead to lower costs, increased profits, and better positioning against international competitors, ultimately contributing to economic growth and development.