Romania is a beautiful country located in Central Europe. Many tourists travel to this country to see all the great things it has to offer. Some of these things are agriculture, architecture, major city attractions, and even a cultural outlook. While these things attract tourists, Romania's production factor delves into the workings and even functioning of the country. The first factor of production is land. Land is the environment and agriculture of this country and how it is used. “Romania is well endowed with natural resources” (Encyclopedia of Nations), this is an advantage for a country. Having natural resources helps many of their industries. Romania has sufficient supplies of oil, natural gas, coal, iron ore, timber and salt (Encyclopedia of Nations). All of these things contribute to what will be made and produced. During the transition to a market economy, the coal sector was the hardest hit (Nations Encyclopedia). Coal is one of many things involved in the production of land. “Coal production fell 57 percent between 1989 and 1998, to 28.6 million short tons, as the economy shrank and the use of other, less polluting fuels increased” (Nations Encyclopedia), This quote shows the statistics on coal production through the years. Over the last 5 years, Romania has been forced to close inefficient mines. They were pushed by the World Bank and the IMF, this led to a negative impact on society both socially and economically (Nation Encyclopedia). The result of this caused many miners to lose their jobs and even pushed the unemployment rate in some parts of the country to 70%; also damaging the economy. “The current government has promised that the pit will close... to half of the paper capital, for a total foreign investment of 37.7 billion euros” (FRD). This gives an idea of a number of foreign investors who have invested in Romania. “In 2013, business and household investment represented 16.7% of EU-28 GDP, while the equivalent figure for public sector investment was 3.0%” (National Accounts). This shows some of the lowest percentiles of contribution to their GDP. As learned, factors of production play an important role in Romania and their economic system. Without most of these factors, Romania would not be the same and would not even have the same opportunities, trade, employment or agreements as today. Be it land, capital, labor, or even entrepreneurship, they all seem to impact this country. There can always be negative impacts on things, but these production roles have overall left Romania with a positive impact on the country.
tags