A intermediate good It is an object that is used to make a final product that will later be marketed. For instance: wood, fuel, flour.
A good is said to be intermediate both when it is used within the production chain of another good and when it requires a certain degree of modification. They are also known as raw materials or inputs.
Intermediate goods they can never be services, are always products and are part of the production chain. Nor should they be confused with final products or consumer goods, which are those goods produced (with intermediate goods) for marketing and which are already fit for consumption. For example: flour is the intermediate good in the manufacture of bread, which is the final good.
However, there are goods that, depending on the case, act as an intermediate or final good. For example: a fruit is very final when it is marketed directly for consumption and is very intermediate when it is used to make a jam.
Examples of intermediate goods
- Flour. When used to make food.
- Alcohol. When used to make wines and sparkling wines.
- Steel. When used to fabricate beams and building elements.
- Water. When used in the process of making another good.
- Cotton. When used for making fabrics.
- Clay. When used to make bricks.
- Silica sand. When used to make glass.
- Sugar. When used to make desserts.
- Bike. When used as a work tool.
- Sugar cane. When it is used for the manufacture of sugar.
- Coal. When used for making pencils, refractory crucibles and lubricating products.
- Paperboard. When used as packaging for the final product.
- Cement. When it is used to make a home.
- Copper. When it is used to produce integrated circuits that will later be part of different objects.
- Leather. When used to make clothing or footwear.
- Fruits. When used to make jams or jellies.
- Sunflower. When used to make sunflower oil.
- Latex. When used to make rubber.
- Milk. When used to make yogurt, cheeses, and smoothies.
- Wood. When it is used to make furniture or real estate.
- Sewing machine. When used to make garments.
- Petroleum. When used to make gasoline.
- Plastic. When used for making food or beverage containers.
- Wheels or parts of a vehicle. When used to make a car.
- Drill. When used to make furniture for sale.
- Wheat. When used to make flour.
- Stone. When used to make a home
- Paper. When used in the making of a newspaper or magazine.
- Brick. When it is used to make a home.
- Tanza. When used to make a fishing rod.