International division of labor

Differences between countries in geographic location, climatic and natural conditions, and raw materials resources led to the emergence of such a concept as the "international division of labor". It denotes the specialization of each individual mill in the production of certain types of products. The entire economy, from the world to a single enterprise or even an employee, is based on the division of labor.

No state today can not exist separately. Every day, there is an exchange of goods, technologies, services, information, etc. Thanks to this, the world economy is actively developing .

The international division of labor is of the following types:

1. Industry specialization of individual countries.

2. Subject (types of products).

3. Technological specialization (individual parts, components).

The international division of labor involves not only the discontinuity, but also the unification of the processes of production. In other words, in order to improve the efficiency of the process and obtain more profit, in some cases separation or specialization of labor activity is necessary. However, mutual support and unification of efforts on a global scale are often required. Proceeding from this, the international division of labor is distinguished. And its forms can be of two types: co-operation and specialization.

International industrial cooperation involves the unification of enterprises from different countries to improve, accelerate the labor process for the production of a product. Signs of cooperation:

1. The long-term.

2. Complexity. The production process affects marketing activities, scientific, research work.

3. Joint solution of all issues, from projects to sales markets.

International specialization implies the production of a certain type of products only in the territory of one or several countries (to meet both their own and world needs).

It is important to note that international specialization and cooperation significantly reduce capital intensity and allow to reduce the time of production of goods.

A number of factors affect the international division of labor and the result that the participating countries will receive:

1. Scientific and technological progress. The greatest impact on the world market is the emergence of new technologies in old industries. Especially it concerns the production of information.

2. Settlement system between countries.

3. Demand for products on the world market.

4. The national factor. In the international division of labor, they are associated with the socio-economic and geographical characteristics of different countries.

5. Environmental problems. They make it necessary to evaluate the natural resources and goods produced with their help in a different way.

Among other things, it is possible to single out the most significant social and economic features of the international division of labor:

• Structure and organization of national production;
• Economic and technological development;
• Historically established traditions of the country and its foreign economic relations;
• Economic situation of the country;
• legislation.

The international geographical division of labor is based on the availability of any minerals, labor resources in different countries. As a result, individual states begin to produce certain types of products and exchange them, and economic relations arise at the international level.

International geographical division of labor can arise only when a country begins to produce a certain type of product in quantities far exceeding its own needs. In addition, this product should be cheap enough that it would be beneficial for other countries to buy it.