Lecture 14
The world economy and its evolution
The plan:
• 1. Formation, stages of formation and the
basic lines of the world economy.
• 2. The international division of labour and
manufacture internationalisation.
• 3. Processes of globalisation and geoeconomy
formation.
• 4. Role НТП and the transnational capital in
economy internationalisation.
• 1) the World economy – historically developed set of a
national economy of all countries of the world connected
among themselves by the world economic relations.
• Historical stages of formation of a world capitalist
economy:
• The first – occurrence of the world market as a result of
internationalisation processes (an exit for national
borders) exchange relations, trade in the goods and
services. Since XVI century in the big geographical
opening, among themselves the national markets of the
separate countries actively co-operate, and on the basis
of it in XVII century the international division of labour
trading agreements between the separate countries
were which form of realisation has started to be formed.
• The second – actually formation of a world
capitalist economy as a result of
internationalisation of processes of
manufacture and reproduction (capital export
in loan and enterprise forms, migration of
labour, national economy "coupling" in
integration communities).
• Historically the world market was generated
basically to the beginning 19 century, and a
world capitalist economy – in the end of 19 –
the beginning 20 century
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World economy structure:
- The world market of the goods and services
- The world market of capitals
- The labour world market
- The international currency system
- The international credit and financial system
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Subjects of the world economy:
- The states with their economic complexes
- Transnational corporations
- The international organisations and institutes
- Firms of all sectors the economy which have
left for national borders
• 2) as the Economic basis of a modern world
economy manufacture internationalisation –
development of such organizational-economic
forms which connect manufacture of one
countries with consumption by its result in others
serves.
• International contacts become constants when
there is an international division of labour (МРТ)
– isolation of the separate countries in
manufacture of those or other goods and services
with a view of their realisation in other countries
• МРТ develops in two directions:
• The industrial direction is subdivided on:
• Vertical division of labour – when various
manufacturers form an one-linear technological chain
and carry out a number of consecutive industrial
operations in which course the product of each
previous stage is not complete product and becomes
an object of the labour for each subsequent stage.
• Horizontal division of labour assumes manufacturing
by separate manufacturers of components from which
then gathers technically or technologically difficult
product.
• Both horizontal, and vertical МРТ break up
already at the international level on:
• - The general (between large groups of
branches)
• - Private (disintegration of large groups of
branches on less aggressive branches and
подотрасли)
• - Individual (intrabranch division)
• In territorial aspect the international specialisation of manufacture
assumes specialisation of the separate countries, groups of the
countries and regions on manufacture of separate products and
their parts for the world market.
• Manufacture internationalisation is an economic form of
development of the international division of round and the
international nationalisation of manufacture.
• Internationalisation represents development of steady economic
interrelations between the countries (first of all on the basis of
МРТ) and a reproduction exit for frameworks of a national
economy.
• The major indicators МРТ are factor of relative export specialisation
(КОЭС) and an export quota.
• By means of КОЭС it is possible to define
approximately a circle of branches and,
accordingly, a circle of the goods and the services
which are for the given country internationalspecialised.
• The export quota of manufacture shows degree
of internationalisation of economic activities (the
share of production made for export) is fixed
• The export quota is a reference point
characterising level of an openness of the
national industry for a foreign market.
• Marketability index – an indicator which also
characterises a measure of participation of a
national economy in МРТ:
• t = e + i / p * 100 %
• Where: е – export to a current of year; р –
annual gross national product; i – export to a
current of year.
• 3) Globalization is a process of internationalisation of
manufacture and the capital, supported with mature
institutional relations and corresponding information
technology.
• Internationalisation is a development of steady economic
relations between the countries. The term
"internationalisation" concerns a situation when there is an
increase in operations in foreign markets while
"globalisation" means the increasing and big integration of
national economies, including the financial markets that,
finally, conducts to creation of the uniform market. Т.о.,
internationalisation concerns expansion of the
international markets, and globalisation – to creation of a
common market without borders.
• World economy globalisation is characterised:
• First, an exit of interests of national subjects of economic
activities for frontiers in the form of expansion of a field of
activity of trans-national structures in world scales.
• Secondly, an exit of national economic problems on the
global world level demanding for their decision
mobilisation of world resources.
• Thirdly, development of an economic situation in the
leading countries influences other states.
• Fourthly, globalisation demands coordination in universal
scales national, economic and financial the politician and
dictates necessity of uniform world development.
• The world economy current state is characterised by
development of accelerated processes of globalisation,
system integration of the world markets and regional
economy that promotes realisation of modern
technologies and methods of macroeconomic
management, geoeconomy formation.
• The developed states use globalisation fruits basically.
The countries of other world, in a smaller measure
involved in world economic communications, in many
cases remain «behind a board» world scientific and
technical and social and economic progress.
• Internationalisation inseparably linked with transition of the
international division of labour from private to the individual. The
general division of labour is based on specialisation of spheres of a
social production, private – on subject specialisation of separate
branches, and individual – on подетальной, пооперационной
specialisations of separate producing units.
• The multinational corporation (transnational corporations) – the
enterprises (financial and industrial associations) to which belong or
which supervise the manufacture or service complexes which are
outside of that country in which these corporations are based,
having an extensive network of branches and branches in the
different countries both coming to the forefront in manufacture and
realisation of these or those goods.
• The multinational corporation has a number of
advantages before the national enterprises:
• The resource of one enterprise acts as the factor
for another;
• The technology is developed in one country, and
applied in another;
• Management of the foreign enterprises is carried
out from one centre;
• The parent companies finance branches; there
are favourable contracts with other enterprises.
• Multinational corporation role. The multinational corporations have
transformed world economy into the international manufacture,
have provided development НТП in all directions: technological
level and quality of production of % of production efficiency;
perfection of forms of management, management of the
enterprises.
• Multinational corporation formation inseparably from interstate
moving of the capital. Creation of branches, affiliated societies,
representations, joint ventures is there are direct foreign
investments.
• Trans-nationalisation – process взаимопереплетения economy of
the different countries, thanks to activity of corporations on
acquisition of the enterprises in other countries, establishments of
the foreign branches working on the multinational corporation
within the limits of specialisation and cooperation.