Definition: Converters

Category: Classifications

Converters are units which sell goods and services under their own name, but arrange for their production by others. These units are classified to Sector G (wholesale and retail) except when they play a significant role in the design and development of the product (for example, designing) and take the risk associated with production (for example, own the materials from which the product is made), in which case they are classified as if they produce the goods themselves  [Note: For practical reasons, most national statistical institutes only classify converter units as manufacture when both the converter and the producing unit are located within the national territory.].