All countries do not possess the factors of production in different quantities and proportion i.e. factors of production are unevenly distributed. Most of the factors of production in most cases have alternative uses. In economics mobility of a factor of production is its physical movement from one place to another or one occupation to another.
Land may be used for cultivation or as a site for building a factory.
A farmer may work as a trader or factory worker simultaneously or he may have some business in another place.
Capital may be invested in agriculture, industry etc.
This ability of factors of production to move from one place to another is known as mobility of factors of production.
There are two types of mobility’s.
1. Geographical mobility: i.e. the factor of production can move from one place to another. This mobility varies from factor to factor.eg. land cannot be physically moved, capital has greater mobility than labour.
2. Occupational mobility: i.e. the movement of factors of production from one occupation to another. All factors can move from one occupation to another.