Humanities

What is distribution (economic and social)? »Its definition and meaning

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Distribution is the process of making a product or service available to the consumer or business user in need. This can be done directly by the producer or service provider, using indirect channels with distributors or intermediaries.

Distribution can make or break a business. A good distribution system simply means that the company has a better chance of selling its products more than its competitors. The company that distributes its products more widely and quickly to market at lower costs than its competitors will make the improved margins better absorb rising raw material prices and last longer in tough market conditions. Distribution is critical for any type of industry or service. The best-priced product, promotion, and trade are useless if the product is not available for sale at the points where consumers can buy.

In economics, distribution is the way in which total product, income or wealth is distributed among individuals or among factors of production (such as labor, land, and capital). In the general theory and national accounts of income and products, each unit of product corresponds to one unit of income. One use of national accounts is to classify factor income and measure their respective shares, as in National income.

The analysis starts from the basis that, if the enormous diversity of tasks and requirements is taken into account, the social distribution of powers and actions cannot be assumed exclusively by the State. The neoliberal currents postulate a decrease in the size of the State, but this cannot be understood as an overlap of them in civil society. On the contrary, both areas must jointly face a double challenge, which includes addressing basic needs and improving the quality of education. By delimiting the frontiers of action, the State and civil society will be able to confidently address the requirements related to future technological development.