Economics Of Manufacturing Process

Introduction:

In opinion view of economists, manufacturing process is a wealth producing system. However government service sectors feel manufacturing as wealth consuming process.  In recent era the growth of manufacturing process led to the development of manufacturing belt or rust belt in United States. Economists view states that manufacturing process helps nationwide by improving national infrastructure and defense materials for a country. Hence manufacturing process is incurred as social costs and environmental costs. For environmental costs instance, hazardous waste cost in handling and maintenance shall be outweighed when compared to benefits of a end product. In addition, hazardous waste increases health hazard risk of individual who are involved in manufacturing process.

For this reason, government has enforced a law, rules and regulations for hazardous waste consents. These regulations are referred as environmental protection rules and labor laws. Rules and regulations were set and put forth by Occupational Safety and Health Administration and Environmental Protection Agency of United States. In European countries, pollution is added in the environmental tax for exploiting the natural environment and sustainability. Manufacturing systems like craft guild system and labor unions has played a major role in labor wages determination. However additional economic cost is incurred on manufacturing process by Tort law and product liability acts.

Manufacturing and investment in and around the world:

The advanced up and coming technologies have extended in various fields such as biotechnology, nano technology and information technology. Robotization of these technologies has been widely spread all over the world. The survey and basic trend analysis led to the manufacturing and investment in and around the world for the following reasons

• Resource utilization all across the nation
• Competitive environment
• To meet the customer demands and satisfy customer

Many key aspects of manufacturing systems are investigated. It includes comparison of investment in processing and output from end product in both western and non western countries through case studies.

Questions:

• What is clean up costs of hazardous waste?
• What is tort law and product liability?
• Is manufacturing process is wealth producing process or wealth consuming process?