What is a productive apparatus?

When we speak of the productive apparatus we refer to the totality of resources, technologies and instruments that are used to be able to produce the necessary goods and services in a country. For this purpose, the total number of companies, institutions or individuals that produce goods and services in the country is taken into account in order to satisfy demands (both local and foreign or external).

It is indicated that the larger the productive apparatus of a country or the more instruments are used to manufacture these goods and services, the greater the economic growth or level of development of a country.

On the other hand, the productive apparatus moves through incentives, which implies that for the volume of this concept to be greater, both negative and positive aspects must be offered. The purpose lies in the desire of companies to want to make a profit with their actions (hence their existence), wanting to maximize it or make it viable. To do this, the company will have to see if the resources it uses to manufacture the goods or services do not cancel out its usefulness, and thus take advantage of it: achieving its objective.

We can divide the productive apparatus according to 3 sectors, and taking into account that each of them uses different resources:

  • Primary. Activities that have to do with the extraction of natural resources (such as mining, agriculture, livestock, etc).
  • Secondary. It is the industrial sector, which tries to transform resources into manufactured goods with the aim of serving consumers as goods.
  • Tertiary. It is the service sector, which includes activities in order to meet the needs of customers. We include services such as hospitality, transportation, administration, etc.

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