The world economy:Basic Characteristics ans structure Flashcards
The history of the world economy begins with the
international division of labor (IDL) associated with
the exchange activity and its products between nation- states.
IDL, or the division of labor between countries is a step in public territorial
division of labor. It is based on the cost-effective production specialization of
individual countries and shows the results in the interchange of specialized
production in certain proportions. The international division of labor exists in two basic forms: the international
specialization and international production cooperation.
The international
division of labor
…- is a form of division of labor
between the countries in which the increase in the
concentration of homogeneous production is based on the
progressive differentiation of the national production. Specialization in the
international division of labor will eventually provide the specialization of countries and regions in the production of certain products and parts for the
global market.
International
specialization
…- is the result of the specialization of national
industries, which interact in the international
division of labor. International clustering based on subject specialization and is
the form of the private and public division of labor in the global economy.
The international production cooperation is meant to include the country in the international division of labor within the so-called vertical model of the international division of labor, that is, while maintaining the autonomy of the production process within the national borders.
International production
cooperation
In contrast to the international division of
labor, this division of labor is not “between the
two countries,” and “inside” of transnational
corporations, that is, internal corporate.
Global economic division of labor is an extraterritorial nature. It can notbe
represented (as the international division of labor) on a territorial basis and in the forms of public -private division of labor. In contrast to the international division
of labor, is a technological division of labor in the production on the basis of a single division (that is internal to multinational corporations) in the form of
transnational cooperation and specialization of production.
The global economic
division of labor
The activities of transnational corporations as one of the organizational
forms of global economic division of labor provides regular circulation on a
planetary scale of goods, services, financial and natural resources, knowledge,
technology and management experience. Through participation in the
transnational division of labor, the national economy has direct access to the
world market of goods and capital, new technologies and modern management.
Forms of transnational division of
labor are intra-corporate specialization and
in-house production cooperation.
Transnational specialization
and cooperation
World division of labor forms the
world economy as a supranational world
economic space, which constitutes a second,
more adequate concept of the “world
economy” level of global economic relations.
A single global economic space - a multinational business environment, in
which there are common economic, technological, legal and socio-cultural
requirements for the subjects of industrial and commercial activities.
The world economy as a
supranational space
The main intrinsic subsystems of the
world economy in the second level should be
considered:
* technology;
* economic;
* legal;
* socio-cultural.
Structure of a single world
economic space
…- a set of requirements, imposed by the STR, and which provide competitive in the global market.
These technology requirements can be reduced to basic parameters:
* the nature of information and computer technology;
* research intensity;
* resource-saving, waste-free and environmentally friendly type of technology;
* biotech, we have the technology, which is based on natural processes.
Technological subsystem
The economic subsystem - is a common
economic space of free movement of goods and
services, capital and labor, and information across the borders of nation-states,
and the free interchange of national currencies.
Economic subsystem is formed as the development and implementation of
uniform standards for international trade, production and investment and monetary affairs
Economic subsystem
The legal subsystem - is the reduction of the general
rules of business law and the norms of business behavior.
They form a single legal framework, as the creation of rules of private
international, civil and patent law. The trend of further convergence of legal systems of the States, which extends to human rights, lays the foundation for global legal space.
Legal subsystem
Socio-cultural subsystem is formed much
more slowly and contradictory than other
subsystems of the single world economic space. The process of formation of the
unique social and cultural environment provides:
* achieving a high general standard of living and reducing disparities
between “rich” and “poor” countries. Created for this purpose the EU structural
funds, various United Nations trust funds;
* one approach to social policy;
* formation of new thinking, breaking the old way of thinking;developing common standards of business conduct and ethics in
management;
* peaceful decision national and international problems.
Socio-cultural subsystem
Each of the sub-systems of the world
economy (technological, economic, legal,
social and cultural) – specific.
These systems have their own logic of development, its own subsystem, but
they function as elements of the whole organism - a common supranational
world economic space. The imbalance in the operation of any of the subsystems
influences the state of the whole system.
The multidimensionality of
the world economic system
The concept of the system of international economic relations - is a system (integral) ratio, which expresses the unity - the integrity of the system:
the overall objective of the whole system and its subsystems at all levels, the
mechanism of functioning of the whole system and its subsystems, as well as the
norms of behavior of its subjects - the motivation of activity, decision making,
the criterion of efficiency, etc.
The concept of the international
economic relations system
Definition of international
economic relations as a socio-driven market system rather vividly reflects its
current state:
* market orientation;
* tangible effect of non-market, institutional controls at both the regional and inter-regional and global levels;
* desire to control the world market and an active influence on the domestic
national markets by international institutions, multinational corporations, with the help of various tools, including the market.
International economic relations -social and market-based control
system
International economic relations are an information system in the information society. This is - one of the faces of her social type that defines its operation and development because:
- information and information technology is one of the decisive factors in the growth of labor productivity and competitiveness of firms, national
economies, regional groups, multinational corporations. Competitiveness on the
basis of information technology is achieved due to a sharp increase in the rate of economic processes by reducing energy consumption, material consumption , the
transition to zero waste production;
- the use of information technology is a major factor in making the right
management decisions;
- information technology will allow effective small-scale production -
oriented to a specific person;
- information and information technologies are changing the nature of the accumulation of wealth, and in the end - the very concept of “wealth”.
International economic relations –
is an information system in the
information society
Substrate (material content) of the
system of international economic
relations, as a subsystem of the global
economy are:
-multitude of relations that develop
as a result of the international movement of goods and factors of production;
-multitude of relations in the international monetary and financial sector.
The structure of international economic relations are:
-the international trade in goods and services;
-the international movement of capital;
-the international migration;
-the international transfer of technology;
-the currency and monetary relations;
-the global financial system and international financial markets.
The substrate of the international economic relations system and their structure
The international economic
relations subjects include organizations whose activities (trade, production and investment, monetary and financial) beyond the national borders. These are the various firms, the state (as an entity), the transnational corporations and transnational banks.
The subjects of the
«International economic
relations» course
International economic relations - is a subsystem of the global economy. System definition of “International economic relations” as a special science and a particular course is only possible in the modern economic theory, which includes the use of tools of
micro-and macro-economic analysis.
System definition of the subject of
the “International Economic
Relations” course
The current state of the system of international economic relations can
distinguish two criteria and therefore the level of openness of its two sub-
systems:
1) due to the international division of labor, the degree and forms of
involvement in the international movement of goods and factors of production.
2) due to the global economic division of labor, the degree of integration of
national economies into a supranational (regional and global) economic area.
