Input it is an economic concept that allows naming a good which is used in the production of other goods. Depending on the context, it can be used as a synonym for raw material or production factor .
Due to their own characteristics, inputs often lose their properties to transform and become part of the final product. It can be said that an input is what is used in the process productive for the development of a good. The input, therefore, is used in an activity that aims to obtaining a more complex or different good , after having undergone a series of certain techniques.
For example: in the manufacturing of a wooden table, nails, glue and varnish are inputs. The manufacturer needs such products for the production of the table that, without the inputs, cannot exist.
The inputs are also the ingredients They are used in a gastronomic recipe. Bread supplies include flour, Water, yeast and salt. A sauce, on the other hand, requires various inputs (such as tomatoes, onion, pepper, garlic, cream, etc.).
The notion of inputs is very frequent in the field of computing . A printer requires multiple inputs for its operation, such as ink cartridges, toners and reams of paper.
He value of the inputs depends on its specificity. If an input is generic and can be used in different production processes, its value is likely to be low. On the other hand, if the input is difficult to obtain and serves a particular product, its value increases.
Product Input Matrix
It is known as the product input matrix (also written input-product) to a record of the transactions made by the various production sectors to meet the demand with final and intermediate goods (the latter are used during the manufacturing itself). Thanks to it, it is possible to study the relationship between the productive sectors, and the consequences, both direct and indirect, of an increase in final demand. In other words, based on the increase of one of them in particular, it allows to calculate the total.
It is used in the following areas:
* business decisions: The IPM offers entrepreneurs who do not have much knowledge about the activities that their buyers carry out with third parties a detailed description of the path that services and goods travel until they reach the final demand. In addition, it provides a relative participation in the branch to which your company, expanding your chances of expanding;
* employment policies: in the same way that the IPM serves to measure the direct and indirect repercussions of the modifications of the final demand in a productive process, it can be used to study the impact of the decisions related to the reduction of unemployment. When a particular activity is expanded, both public and private, this phenomenon affects other sectors linked to it, and the IPM allows to calculate the total growth based on that of any of them;
* projections related to foreign trade: when the balance of payments in some way restricts the policy economical, it is possible to determine the import volume using input-output calculations. In this way, direct and indirect demand is obtained, belonging to sectors that have some kind of relationship with imports. On the other hand, the IPM also serves to analyze exports and their inputs, whether direct or indirect, national or imported;
* cost and price analysis: thanks to IPM it is possible to study the impact which has in the economy the change in the prices of goods and services, or tax rates.