The production, Fixed and Circulating Capital
Constant or fixed capital means money that cannot transferred, or that is not lost at the will of profit, such as factories, machines, and production institutions.
The production, Fixed and Circulating Capital
Production in its present conditions is a process of coordination between certain ratios of the factors of production, upon which the transformation of materials extracted from nature into commodities or goods depends… The coordinator of these factors and the observer of their progress within the institution is the regulator responsible for their phases and the uses associated with them. It is a complex process. It can summarized in three main elements:
First – work
The work concerned in this field: The field of production is the sum of the activities and tasks that man undertakes in order to extract or analyze natural materials and transform or re-convert them into commodities or goods that satisfy his needs and respond to his desires. It includes physical and technical work. The process of mining. And the production of steel or steel. For example, does not depend on physical labor only but also depends on the knowledge of chemical developments. And technology that take place when materials melted in the furnace, and the advanced agricultural production process has also gone beyond. The stage of traditional work and depends on the knowledge of agricultural engineering, which guarantees a study of agricultural production processes from a technical point of view. It seems that every positive action aims to obtain a material return, which would place within the framework of human activity in order to produce well.
The second – themes
Production topics are not selectable. In addition, it will develop – just as the means and methods of work develop with the development of production, as manifested in the extraction of oil from stones, and butter from plants… It can be said that it is everything on which effort and work are exercised, and includes in the first place what nature allows from raw materials, unfit For use in its first form, and transforming it into commodities with use or exchange values, is what is expressed in the production process. Thus, it becomes clear that commodities or goods pass before they reach the consumer’s hand in three stages: The extraction of their materials from nature. Convert it exchange it or transfer it to the market. We have deliberately tried to convert materials extracted from nature into commodities, as there are many transformations that not taken into account for the production process, as is seen in the transformation of flour into food, and fruits into juice … unless the production of commodities is thus intended.
Third – the means
The means of production are all the things that help the producer, and through which he works to make his projects successful, develop his production, organize, control, and monitor it. Intellectual and material mean… The intellectual adopted in controlling contemporary production include calculation, especially what related to accounting in order to determine economic efficiency, and from material capital, and it is divided in the contemporary concept, into fixed or fixed capital, and circulating or mobile, as it divided into human capital. In addition, material.
Constant or fixed capital means money that cannot transferred, or that is not lost at the will of profit, such as factories, machines, and production institutions… They are the properties that give production or income, and their origin remains and depends more on human capital, which is fundamental in modern technology: Strengthened by its strength and weakened by its weakness. It was strong in the industrialized or developed countries and weakened by its weakness in the third world countries. The reason is not only the inability of some of these countries to buy or obtain advanced devices, which monopolized by the industrialized or developed countries. However, it is also in the inability to configure specialized frameworks at their level. You can use it efficiently. Hence, technology monopolized and exported, and made money capital, and money capital did not make it. However, buy it. Which raised the interests of the third world countries, and made them move towards it now.
In addition , circulating or mobile capital , meaning what traded in such as wages, purchase of raw materials, and performance of duties, in order to complete operations, services, and produce goods…and it is the type that comes out of the ownership of its owner when he wants to profit, as it happens in products and commodities. It mainly depends on the use of monetary value or the purchasing power of money. The monetary value or purchasing power derives its strength from the power of resources, or the economic or productive power of any country, and includes in its entirety agriculture, trade, industry, mineral wealth, livestock, fisheries, tourism, stupidity, and various services…, which are considered resources, contribute to the development of production, and the rise in national and national income. From its total strength – or its weakness -, money derives its strength and weakness. It is this fact that produced strong money known as hard currencies, in industrialized or developed countries, and weak in third world countries, and as a result, strong money dominated financial markets and foreign agreements. The power of the global monetary system fell into the hands of the developed monopoly, so it closed in its favor at the expense of developing countries, or those on the path of growth, as was evident in the “debt” of the Third World… This situation poses the problem for the unification of the currency between two countries with different economic power. This may be the reason for the rejection of “Thatcher» during the days she presided over its unification among the European Community, in addition to the fact that unification may harm countries that choose to deal with each country separately… East Germany has benefited from its unification with the West, in exchange for relinquishing its currency, with what He is afraid of the strong dominating the weak. This can explain the position of “Denmark”, which refused to ratify the project of unity among the European Community… As for the weak purchasing power of third world money, there are other reasons.