arvonlisäamisen

Arvonlisäys, often translated as value addition, is an economic concept referring to the increase in the value of a good or service that occurs as a result of the production process. It represents the difference between the value of the output of a firm or industry and the value of the intermediate inputs it uses. Essentially, it is the contribution made by a business to the creation of goods and services.

The process of value addition can occur at various stages of production, from raw material extraction and processing to manufacturing, assembly, and even the provision of services. For example, a farmer adds value to land by growing crops. A manufacturer adds value by transforming raw materials into finished products. A retailer adds value by making those products accessible to consumers and providing a convenient shopping experience.

Economically, value added is a key component in calculating Gross Domestic Product (GDP). GDP measures the total value of all final goods and services produced within a country's borders in a specific period. By summing the value added at each stage of production across all sectors, economists can arrive at the overall economic output of a nation. It is also used to measure the productivity and profitability of businesses and industries. A higher value added generally indicates greater efficiency and economic contribution.