Intermediate good
Intermediate goods, producer goods or semi-finished products are
Intermediate goods are not counted in a country's GDP, as that would mean double counting, as the final product only should be counted, and the value of the intermediate good is included in the value of the final good.[3]
The
Characterization of intermediate goods as physical goods can be misleading, since, in advanced economies, about half of the value of intermediate inputs consist of services.[4]
Intermediate goods generally can be made and used in three different ways. First, a company can make and use its own intermediate goods. Second, a company can manufacture intermediate goods and sell them to others. Third, a company can buy intermediate goods to produce either secondary intermediate goods or final goods.
Examples
- Sugar – sugar is used as a final good (when it is sold as sugar in the supermarket) or as an input (when it is used as an ingredient in other food products)[5]
- Steel – a material used in the production of many other goods, such as vehicles.[6]
- Car engines - Some firms make and use their own, others buy them from other producers as an intermediate good, for use in their own cars.[7]
- Paint, plywood, pipe and tube, and ancillary parts.[8]
- wood - wood is used in multiple purposes for construction of building or production of furniture
- glass - glass can be used to make dishes, cups, bottles or windows
- salt - salt is used in almost all food production and many chemical processes
- silver and gold - silver and gold can be used to make jewelry, cutlery or electronics, or for ornamentation (even on food)
- An interesting example is the use of diisocyanate and hydrochloric acid that is neutralized in situ. The chlorine is removed as chloride salt waste. The diisocyanate reacts with a diol to produce polyurethane, which contains no chlorine. Chlorine is used because chlorine is electronegative enough to produce an isocyanate, but does not become a part of the product; it lowers the atom economy.
See also
References
- ISBN 0-13-063085-3.)
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: CS1 maint: location (link - ISBN 978-0-07-026365-9. Retrieved 14 August 2017.
- ISBN 978-0-324-57961-1. Retrieved 14 August 2017.
- ISBN 978-81-203-4306-1. Retrieved 14 August 2017.
- ISBN 978-4-431-55927-6. Retrieved 14 August 2017.
- ISBN 978-0-415-31063-5. Retrieved 14 August 2017.
- ISBN 978-1-77025-087-1. Retrieved 14 August 2017.
- ISBN 978-971-23-1794-1. Retrieved 14 August 2017.