Why are factors interdependent

Production is a team effort, A chain saw by itself is useless for cutting down a tree. A worker with empty hands is equally worthless. Together, the worker and the saw can cut the tree very nicely; In other words, the productivity of one factor, such as labor, depends upon the amount of other factors available to work with. Therefore, it is generally impossible to say how much output has been created by a single input taken by itself. The different inputs interact with one another. Sir William Petty put the matter in this striking way: Labor is the father of product and land the mother.

Interdependency means that what happens in one place increasingly has impacts on other places. If a natural disaster or conflict impacts negatively on a host country for migrants, then the value of remittances sent to their home source countries may be reduced.

This adversely affects people in the source countries who have become dependent on financial flows from their family overseas. Summarised below are four different ways in which people and places have become more interdependent over time. Globalisation has led to a rise in international migration.

A record number of people moved abroad for work in There is now a total of more than million people worldwide living in a country they were not born in. Some sectors of the UK economy are highly dependent on eastern European labour; Eastern Europe, in turn, relies on migrant remittances from the UK.

Overnight, the money sent home by migrant workers fell in value by over 10 per cent. One viewpoint on globalisation is that economic interdependence leads to political interdependence. Social ties between two countries can be strengthened through migration.

Extensive family networks now straddle the two countries. For our mutual survival, we must all trust that other states and their citizens will work towards the shared goals of climate change mitigation and biodiversity protection. Some forms of environmental interdependency are unsustainable, however.

Forest loss may become irreversible if it continues at its current rate. Company Reg no: VAT reg no