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Real net output ratio

From Wikipedia, the free encyclopedia

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The Real Net Output Ratio[1] (or Vertical Range of Manufacture[2]) describes in a value chain the fraction of the internal (company specific) production on the total production value of one company. The total production value of a company consists of internal production plus the sum of externally produced goods and services.

A Real Net Output Ratio of 0% relates to a company that does not have its own production and therefore only does trading.

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