Answer
The world economy is a system of national economies united by economic relations based on the international division of labor.
The world economy is the result of long historical development. The world economy as an integral system took shape at the turn of the 19th–20th centuries, when the entire globe was divided and assigned to international corporations and individual countries.
The subjects of the world economy are:
about 200 nation states;
transnational and multinational corporations;
international organizations and institutions.
By the 21st century The following structure of the world economy has formed:
global market for goods and services;
world capital market;
global labor market;
international monetary unit;
international credit and financial system.
International exchange in the field of science and technology, innovation and information, as well as in the field of culture is actively developing.
The structure of the world economy is divided into a center and a periphery.
The center is distinguished by a high level of economic development, has a flexible economic mechanism that quickly adapts to the global economic situation and masters the latest achievements of science, technology and technology. The center includes 26 countries with developed market economies.
The periphery is countries with a low level of development, primarily developing ones, with raw material exports. The periphery depends on the center because it lags behind it in socio-economic development.
The international division of labor is the highest level of development of world production, based not only on the division of labor within one country, but also on the territorial division of social labor. It manifests itself in the specialization of individual countries in the production of certain types of products, which these countries systematically exchange.
The international division of labor is the basis for the expansion of international trade and the objective basis for the development of the world market. The level of development of the international division of labor depends on the level of development of the productive forces of individual countries of the world economy and their external activity. The objective basis of its genesis and development is the difference in natural and climatic conditions of individual countries, the presence of minerals, flora and fauna in them, as well as trends in the manufacture of goods based on the use of local raw materials.
Under the conditions of the international division of labor, there is no need for each country to produce the entire range of necessary goods. It specializes in producing those products that are cost-effective. Thus, large countries with developed economies have broad specialization and compete with each other. Conversely, small countries have a narrow specialization in the world market.
The implementation of the international division of labor occurs through interstate specialization and cooperation. International specialization of production is the production or territorial isolation of the production of a specific good or part of it. Production specialization comes in the following forms: subject, detail, stage. The first form means the release of a known good, the second - the release of units, assemblies, parts of the good, the third - involves carrying out a specific stage of the technological process.
To determine the level of participation of a country in international specialization, two indicators are used: the relative export specialization coefficient (RES) and the export quota in the industry's production.
KOES is calculated using the formula
where E0 is the share of goods in the country’s exports; E m – share of goods in world exports. This coefficient identifies (approximately) industries, as well as goods and services that are specialized for a country at the international level.
The export quota is determined by the ratio of the value of the exported product to the value of the gross domestic product.
An increase in the export quota shows not only an increase in the level of a given country in the international division of labor, but also an increase in the competitiveness of goods and services. International specialization of production allows for economies of scale in production by reducing costs per unit of output. For example, detailed specialization makes it possible to reduce the costs of materialized labor by almost half, and the costs of living labor by up to five times.
Modern concepts of the international division of labor originate from classical political economy, from the theories of A. Smith and D. Ricardo.
International cooperation in production is stable production ties between isolated producers from different countries and the exchange of specialized goods. International cooperation, as well as international specialization, contributes to increased production efficiency in the countries participating in these processes.
One of the important forms of interstate relations is international trade. Moreover, foreign trade exchange of goods and services in the world is approximately three times faster than the growth rate of production.
You can also find information of interest in the Sci.House electronic library. Use the search form:
is a stable exchange between countries of products produced by them with the greatest economic efficiency, based on the international division of labor.
From the above examples it follows that the international division of labor does not necessarily require international labor cooperation for its existence and development, although in most cases it leads to it. At the same time, international labor cooperation is completely based on the international division of labor and cannot exist independently.
The current stage of development of world economic relations is characterized by an increase in dependence caused by the transfer of production in developed economic systems to a new technological base, with the predominance of information technology. The new qualitative state of the productive forces stimulated the internationalization of reproduction processes, which manifested itself in two main forms: integration (convergence, mutual adaptation of national economies) and transnationalization (creation of international production complexes).
The main indicators of the level of international specialization of an industry include the industry specialization coefficient of relative export specialization (RES) and the export quota in the industry's production.
KOES is determined by the formula
Ko = Eo / Em
where Eo is the share of goods (the totality of industry goods) in the country’s exports;
Em is the share of goods (analogue goods) in world exports.
With the help of KOES, it is possible, to a first approximation, to determine the range of goods and, accordingly, industries that are internationally specialized for a given country. The higher (more than one) the ratio in favor of the national structure of exports for a particular product or group of products, the more obvious is the international specialization of the corresponding industry. On the contrary, the lower this ratio (less than one), the less reason to consider the corresponding goods and industries to be internationally specialized.
The export quota indicates the extent to which the national industry and its individual branches are oriented toward foreign markets, and at the same time shows the extent to which the latter are isolated from the national market. An increase in the export quota in production indicates an intensification of international industrial relations in one direction - to foreign consumers and an increase in the competitiveness of internationally specialized products.
The larger the share of products from advanced manufacturing industries in the exported products of internationally specialized industries, the more progressive the country's SMEs are, and the higher their real level. And vice versa, the clear predominance of extractive industries and agriculture in the export of products is evidence of the country’s usually passive role in the MRI and the relative backwardness of its SMEs.
KOES shows the ratio of the national export structure for a specific product (or group of products in an industry) and the global structure of exports for a similar product (or group of products in a similar industry). It all depends on the purpose of the research - whether a particular product is a target for export or whether we are talking about a specific industry.
KOES = E's / E'm E's = E'is / E's E'm = E'im / E'm
KOES = E'is / E's: E'im / E'm = E'is / E'im * E'm / E's = E’is / E’im*(1 / (E’s / E’m))
Where is the share of a particular product or product of a particular industry in the country’s total exports?
E'm is the share of world exports of a similar product or a set of goods of a similar industry in global exports.
Example: what indicators should be used to calculate KOES. I use the indicators from the previous question, spell them out: like a) / b), etc.
With the help of KOES, it is possible, as a first approximation, to determine the range of goods and, accordingly, industries that are internationally specialized for a given country. The higher this coefficient, the more reasons to consider the corresponding goods and industries as internationally specialized, and vice versa, the lower the coefficient, the less reason. If the KOES is higher than 1.5, then this indicates a clearly and clearly defined specialization of the country in the corresponding product or industry. It is considered that there is no international specialization for a product or industry if the KOES is less than 0.5.
The task is not excluded prove that a product is internationally specialized for a certain country. Or is it true that i-th industry is internationally specialized for country A, but not for B. There is no need to confuse the EKPO indicators of the export quota in the industry’s production and the country’s export quota. EKPO is the overall production quota of an industry, and a country's export quota is the ratio of a country's exports for a certain period to its ratio to GDP.
EXPO represents
EKPO = Ei / Pi, Where Ei is the volume of national exports of a total product or the totality of goods of the i-industry. Pi Volume of national production of a particular product or set of goods.
EKPO shows the extent to which the products of a given industry are oriented towards foreign markets. Analysis of the dynamics of this indicator gives an idea of the degree of international competitiveness of the products of the relevant industry for the corresponding period. It is clear that a steady increase in this indicator indicates a steady and stable increase in the international competitiveness of the corresponding products; if the trend is downward, then this is a signal of trouble. If a country's share in the world production of a certain industry is significantly higher than the export quota in the production of this industry of the country, then this is generally other things being equal indicates the discrepancy between the goods produced by the country in this industry and the world level of quality. It is important to take into account a number of other indicators.
The more significant the product of the leading manufacturing industries (products of the so-called secondary sector of the economy) occupies in the composition of the exported products of internationally specialized industries, the more progressive the international specialization of a country’s production is, the higher its level (higher the level of quality). And vice versa, the clear predominance of the country’s exports from the primary sector of the economy (products of extractive industries, forestry) is evidence of the country’s passive role in MRI and this is evidence of the relative backwardness of SMEs in the corresponding country.
The expansion of the product range (assortment) does not always indicate the international despecialization of the country; if the expansion of the country’s export range occurs due to internationally specialized products and the share of the latter in exports grows, then in fact there is an increase in the level of international specialization of the country. Expanding the export of products at the expense of internationally non-specialized products causes the opposite result. For example (a country that produces grain for itself enters the foreign market due to crop failure in the usual supplying countries)
International specialized products include not only products of internationally specialized industries. It also includes: products that are the subject of bilateral and multilateral agreements on international specialization and production cooperation. Some authors also include goods produced in one or several countries and fully covering the needs of the world market for them (but this does not happen spontaneously). This also includes the products of international companies produced on the basis of a division of labor between their foreign branches.
Points of view on the export of raw materials from the Russian Federation:
- The structure of commodity exports of the Russian Federation has a raw material orientation; therefore, it follows, as mentioned earlier, that the country’s international specialization is backward; it plays a passive role in international specialization. But this should not be interpreted as a humiliating role. From an economic point of view:
Subject-role interpretation (raw materials are an object plus its role). Raw materials, being the subject of labor, play a passive role in comparison with the tools of labor, but play an important role in production as a subject of labor. It is incorrect to pose the question as bad or good. Each element is important, but in its own way. Raw materials are by nature a passive element of labor, but without them there can be no production.
2. From the point of view of comparative advantages and economic efficiency (Andrey Illarionov) The fact itself is not a basis for critical assessments. It is important what labor productivity is achieved in the relevant industries. It is in the interests of the Russian Federation to engage not only in the export of raw materials, but also to stimulate the development of related industries for the oil and gas industry. For example, Norway, it has a similar export structure. If you do not develop your advantages, you can lose them; you need to develop complementary production niches plus restore the means of production. (There is pre-revolutionary equipment in the White Sea) When Norway began to develop the North Sea shelf, they used 100% American equipment, but set the task of minimizing this dependence plus becoming an exporter of this equipment to other countries. There was an improvement in exports due to the oil industry.
Relative export specialization coefficient
Cas=(En(T)/
En)/(Et/
Where En(T)/∑En is the share of one product in the total volume of national exports; Eth/∑En – export of this product throughout the world in the total volume of world exports. If Kes is greater than or equal to 1, then we can talk about a pronounced specialization of a given country. If Kes is less than 1, then there is no specialization of the country, the country is in a dependent position, or is focused on self-sufficiency.
The meaning of national trade, advantages: The sales problem is solved. The country receives the missing resources and goods. The problem of jobs is being solved. The range of consumer goods is expanding. If technologies are purchased, the level of technological development increases. The boundaries are expanding, the level of production capabilities is increasing. The volume of world trade is growing faster than the volume of industry. 10% of industrial growth accounts for 16% of trade growth (due to TNCs).
The main indicators of the level of international specialization of an industry include the coefficient of industry specialization relative to export specialization (COES) and the export quota in the industry's production.
KOES is determined by the formula
Ko = Eo/Em,
where Eo is the share of goods (the totality of industry goods) in the country’s exports;
Em is the share of goods (analogue goods) in world exports.
With the help of KOES, it is possible, to a first approximation, to determine the range of goods and, accordingly, industries that are internationally specialized for a given country. The higher (more than one) the ratio in favor of the national structure of exports for a particular product or group of products, the more obvious is the international specialization of the corresponding industry. On the contrary, the lower this ratio (less than one), the less reason to consider the corresponding goods and industries as internationally specialized.
The export quota indicates the extent to which the national industry and its individual branches are oriented toward foreign markets, and at the same time shows the extent to which the latter are isolated from the national market. An increase in the export quota in production indicates an intensification of international industrial relations in one direction - to foreign consumers and an increase in the competitiveness of internationally specialized products.
The larger the share of products from advanced manufacturing industries in the exported products of internationally specialized industries, the more progressive the country's SMEs are, and the higher their real level. And vice versa, the clear predominance of extractive industries and agriculture in the export of products is evidence of the country’s usually passive role in the MRI and the relative backwardness of its SMEs.
Another aspect of the qualitative side of international specialization of production is associated with the breadth of the nomenclature (range) of goods supplied to foreign markets. The rapid expansion of the range of exports is generally evidence of the country’s international despecialization, and, conversely, the reduction of the range makes the export profile clearer. This conclusion, however, is too general and needs clarification. Thus, if the expansion of the range of exports as a whole occurs due to internationally specialized products and the share of the latter in exports increases, then in fact there is an increase in the level of international specialization of production; expansion of the range due to non-specialized types of products causes the opposite results. Consequently, the expansion of assortment in itself does not indicate a deterioration in the country's SMEs.
More on the topic Indicators of the level of international specialization of the industry:
- I.3.3. Quantitative indicators of the characteristics of the main forms of the international division of labor - specialization and cooperation
- 12.2. Trends in international specialization in manufacturing
- 3. INTERNATIONAL SPECIALIZATION AND COOPERATION OF PRODUCTION: ESSENCE, FORMS, DIRECTIONS OF DEVELOPMENT
- 6.2.3. Indicators of asset quality and risk level of individual active operations
- International law for the protection and promotion of human rights as a branch of international law