The international division of labor is the driving force of international development. Stages of development of the world economy

2. World division of labor

In addition to MRI, there is also the concept of the global division of labor (WDL). In essence, the term ART refers to the international division of labor on the scale of the entire civilized world, while MRT can also be considered at the regional level. The global division of labor is the objective basis of production, scientific, technical, trade and other cooperation between countries of the world. Currently, the interaction of states around the planet in economic, and sometimes in politically, is determined precisely by the degree and direction of their participation in ART. In fact, the global division of labor is the basis of the world economy.

The participation of ART is inevitable for any state, because it allows you to generate income through the difference between national and international costs of production. The law of value is the driving force of the global division of labor in the conditions of commodity production, because goods form international value and are exchanged in proportions subject to the laws of the world market, including the law of value. The incentive to participate in the global division of labor is also to use its capabilities in solving global problems humanity through the joint efforts of all countries of the world: environmental protection, solving the food problem, space exploration, etc.

The global division of labor complicates complex system world economic relations, where trade, although it now occupies a leading place, is gradually losing its importance. The foreign economic sphere of the world economy has a complex structure and includes:

1. international trade;

2. international specialization and cooperation of production;

3. scientific and technical cooperation;

4. joint construction of enterprises and their subsequent operation on international terms;

5. international economic organizations, various types of services and more.

Under the influence of global production forces, an “additional” force is born, which is, as it were, free and operates simultaneously with material and personal factors of social production. The results of the activities of each link in the world production system are more actively used as cooperation participants grow, which leads to an increase in the economic power of the entire system.

For all its complexity and inconsistency, modern world in economic terms, it is a fairly efficiently functioning system, united by international socialized production, which has reached a relatively high level of development.

The international division of labor is a kind of integrator that was formed from individual elements into a global economic system. The international division of labor, being a function of the development of productive forces and production relations, has created objective prerequisites for the growing interconnection and interdependence of farms various countries, expanded the limits of internationalization to global ones.

According to experts, the global division of labor will steadily deepen in the future. In the future, production in developed countries will focus on external consumers, and domestic demand will focus on imports.

• ? The concept of the international division of labor and the stages of its development
• ? Modern model of the international division of labor
• ? Factors influencing a country's participation in the international division of labor
• ? International production specialization
• ? Absolute and relative trading advantages
• ? M. Porter's theory of competitive advantage
• ? International cooperation of production and its forms
• ? International production

Stages of development of the international division of labor

International division of labor (ILD) is the separation and specialization of activities, suggesting that a single manufacturing process is dismembered and breaks up into relatively independent phases, which are concentrated in separate territories in different countries.

The international division of labor is carried out:

• between countries and regions of the world;
• between firms from different countries;
• within firms (transnational corporations) between their constituent enterprises.

The international division of labor is formed spontaneously in intense competition in the world market. On its basis, regions and individual countries specialize in the production of certain types of products and services. As a result, opportunities arise to increase labor productivity and production efficiency, and save labor costs.

The main thing in the process of development of the international division of labor is that each participant must have an economic interest and benefit from their participation in it. This benefit may include:

• obtaining the difference between international and internal price exported goods and services;
• saving domestic costs due to the abandonment of domestically produced goods and their replacement with cheaper imports. The international division of labor has undergone three developments

First stage(XVI - first half of the XVIII century). It was characterized by the spontaneous nature of the development of the so-called natural (primary) processes, i.e. factors of production directly given by nature. Their use did not ensure a high level of labor productivity and significant surpluses of production, so only what was not consumed domestically was exported.

Second phase(second half of the 18th - 19th centuries). The basis of the international division of labor began to be artificial (secondary) factors formed as a result of the use of the achievements of the industrial revolution.

Countries that have mastered machine production began to supply technically complex products, as well as cheap consumer goods, to the foreign market. Those who did not succeed were content with trading in raw materials, agricultural products, and handicrafts.

Third stage(1917-1990). Characterized by the split of the world into warring political systems- socialist and capitalist. The economic development of their member countries, and, accordingly, the division of labor, was carried out in each separately, while there was a general tendency towards mutual penetration and integration of national economies (in the socialist world it was constrained by political factors).

At the same time, the world remains divided into developed and developing countries. In the previous model of the international division of labor, the manufacturing industries were concentrated in the first, and mining and agriculture in the second, i.e. they were preserved as an agricultural and raw material appendage.

Currently emerging new model international division of labor is based on the participation of all states, including developing ones, in production finished product. However, within its framework, developed countries specialize in knowledge-intensive production (radio electronics, instrument making), while developing countries specialize in resource-intensive production that harms the environment. Moreover, some of them still maintain a monoculture raw material orientation.

Practice shows that the ability of any country to participate in the international division of labor, its place and role in it, depend on many factors. First of all, these include:

• 1) capacity of the country's domestic market. Large states (USA, Germany, etc.) have more opportunities to find the necessary factors of production and consumer goods there and, therefore, have less need to participate in the international division of labor and commodity exchange;
• 2) dynamics of national production. Under the influence of scientific and technical progress, its growth rate in the second half of the 20th century. accelerated significantly, causing even vast domestic markets to become cramped. This made it possible to direct an increasing part of products for export and expand the import of exotic goods, products of higher quality than local ones, and thereby more fully satisfy their own needs;
• 3) progressiveness of the structure of the country's economy and the level of its scientific and technological development, which largely determines its international specialization. For example, basically only the USA, France, Germany and Russia produce complex military equipment (airplanes, tanks, missiles, space equipment, etc.);
• 4) Availability natural resources. Thus, a large amount of oil reserves determines the international specialization of Iran, Iraq and other OPEC countries. Significant reserves of gold and diamonds in the Republic of South Africa, gas in Russia, and copper in Chile determine the direction of their participation in the international division of labor.

The high degree of provision of the country with only one type of resource (for example, oil, coffee, bananas, rubber, etc.) and the lack of others necessitates more active participation of the country in the international division of labor;

• 5) specific gravity in the structure of the country's economy, basic industries(energy, mining, metallurgy, etc.). The higher it is, the less, as a rule, its inclusion in the system of international economic relations;
• 6) the degree of openness of the national economy, its readiness for external cooperation,
• 7) ability to adapt to international conditions economic life and at the same time influence them in the desired direction.

The influence of these factors can be weakened to one degree or another, for example, by increasing the international competitiveness of local products or limiting exports.

At the lower stages of social development, the determining factors of the division of labor were natural, at present they are social. We also note a clear trend towards a further deepening of the international division of labor, and with it subject, detail and technological specialization.

Question 1. The essence of the international division of labor and its significance

- a natural result of the development of social division in human society, in the process of which qualitative differentiation occurs various types human activity.
Division of labor- a historically determined system of social labor, which is formed as a result of qualitative differentiation production activities in the process of development of society.
Social division of labor- justification individual species labor activity, which became the cause and condition for the emergence of commodity production.

International division of labor- this is a way of organizing the world economy in which enterprises from different countries specialize in the production of certain goods and services, and then exchange them on the world market.
The international division of labor arose during the manufacturing period of the development of capitalism (17th-18th centuries). At the turn of the 19th-20th centuries. The international division of labor has spread throughout the world. Before the industrial revolution, the international division of labor was based on a natural basis. During the heyday of the colonial system a large number countries have consolidated their role as suppliers of raw materials and energy products. However, in the 20th century. Developed countries have become characterized by the dependence of specialization on the level and characteristics of economic development.
A. Smith, D. Ricardo, and K. Marx dealt with issues of the international division of labor.

The international division of labor is of the following types :

1. General - division of labor between large spheres of material and non-material material production: industry, agriculture, transport, etc.
2. Partial - division of labor by industry and sub-industry: cattle breeding, oil production.
3. Single - division of labor within one enterprise, while the enterprise is not considered as a cycle of creating a finished product.

The essence of the international division of labor: on the one hand, the production process involves the isolation and specialization of various types of activities, and on the other, it involves the exchange of them.
The international division of labor manifests itself in 2 forms:

1. International specialization
2. International cooperation

The meaning of the international division of labor

• The international division of labor is the basis for the exchange of goods, services, knowledge, the development of production, scientific, technical, commodity and other cooperation between countries of the world, regardless of their level of economic development.
• The international division of labor is the basis of the world economy, allowing it to progress in its development and create the preconditions for the more complete emergence of economic laws.
• The international division of labor is carried out in order to increase the efficiency of production and serves as a means of realizing social production forces.
• The international division of labor plays an ever-increasing role in the process of expanding reproduction in the countries of the world.
• Participation in the International Division of Labor contributes to solving global problems facing humans.
• Under the influence of the International Division of Labor, trade relations between countries are becoming more and more complicated, developing into a complex system of world economic relations.
• Under the influence of the International Division of Labor, specialization and cooperation manifest themselves on a planetary scale, and production forces acquire a worldwide character.

Main factors in the development of the International Division of Labor and indicators of participation in MRI

• Natural geographical differences between countries
• Scientific and technical process
• Differences in the level of economic and scientific-technical development of countries in the world economy
• Type of business and nature external relations countries
• Economic expansion of TNCs
• Development of regional economic integration processes

Factors encouraging countries to participate in the International Division of Labor:

• The volume of the country’s domestic market (large countries with a developed market have more opportunities to find the necessary factors of production and consumer goods in the international division of labor. Large countries have less need to participate in international specialization and commodity exchange, but on the other hand, developed market demand in the country encourages the expansion of imports purchases, compensating them by expanding export specialization)
• The level of economic development of the country (the need for the country’s participation in the International Division of Labor is greater, the lower the country’s economic potential)
• The country's provision with natural resources ( high degree the country's provision of resources, as well as the low degree of availability of minerals, necessitates active participation in the International Division of Labor)
• The share of basic industries in the structure of the country’s economy (The higher the share of basic industries, the less its inclusion in the system of the International Division of Labor)

The main thing in the process of the International Division of Labor is that each participant seeks and finds economic benefits from participation in the International Division of Labor.
Benefit :

• Obtaining the difference between the international and domestic price of an exported product
• Savings in domestic costs due to the abandonment of national production while using cheaper imports.

Coefficient for measuring MRI (according to Russian experts) :

• Share of exports in the total volume of manufactured products
• Share of the industry in the total value of exports
• Growth rates of export specialization industries compared to the growth rates of the country's entire industry

The most common indicators of country participation in MRI are:
Export quota - reflecting the share of a country’s exports in its GDP
Ke = E/GDP*100

Import quota - the share of a country's imports in its GDP
Ki = I / GDP * 100

Foreign trade quota
Qto = WTO/GDP *100
WTO - foreign trade turnover

MRI dynamics coefficient , reflects the ratio of growth rates of exports and domestic production
Kd = Jе/Jп
Jе - export volume index
Jп - production volume index

Intra-industry coefficient international organization.
Kvs = (E-I)/(E+I)* 100

The value of the coefficient ranges from -100 (the country is exclusively an importer of goods) to +100 (the country is exclusively an exporter). Indicators within characterize the degree of a country’s involvement in intra-industry international specialization.

Question 3. International specialization: concept, types, directions of development

International production specialization - a form of division of labor between countries in which industries, sub-sectors, individual technological processes of enterprises of national economies are oriented towards the production of homogeneous products in excess of internal needs.

International production specialization is divided into two areas:

1. Industrial

• Industrial
• Intersectoral
• Intra-industry
• Specialization of individual enterprises

• Individual countries
• Country groups
• Regions

Types of international labor specialization:

• Subject specialization
• Detailed specialization
• Technological or stage specialization (carrying out individual operations or performing individual technological processes)

• The dynamism of ongoing processes
• Continuous change in its types and directions
• Transition to more complex forms

There are 2 definitions associated with the concept of international specialization of labor:
International specialized industry - the established set of industries in the sphere of material production of any country that accept Active participation in the international division of labor
Their characteristic features:

1. Significantly high share of exports in production compared to other industries
2. A higher share of such industries in the production of a given country in comparison with their share in the world economy
3. Higher level of development of intra-industry specialization and cooperation

International product specialization - products that are the subject of bilateral and multilateral agreements on MEAs and division production programs, i.e. These are goods produced in 1 or several countries and covering the needs of the world market. Such goods include products of international cooperation that carry out the division of labor between their manufacturing enterprises located in different countries.

International specialization of products must be developed taking into account social relations. In order to increase production efficiency it should be supplemented International cooperation of production .
The objective basis of international cooperation in production is the growing level of development of productive forces and differentiation of production.

An important function of international production cooperation is the implementation of new tasks that are difficult to solve without the combined efforts of producers from several countries.
International production cooperation - the process of sustainable production relations between independent enterprises of different countries, i.e. Team work enterprises from various countries that have fully retained their economic independence in the development, production and marketing of certain goods and services.
International cooperation in production helps firms reduce production and distribution costs, and therefore the cost of production, reduce production costs, and enhance the competitiveness of products produced under MCP conditions.

MCP classification .

The basis of the world economy is the international division of labor. Deepening specialization and cooperation industrial production led to a modification of the international division of labor and the relationship between its types. There has been a transition from inter-industry to intra-industry division of labor, which, in turn, increases the specialization not only of countries, but also of individual firms. According to most economists, the process of specialization and its structure is greatly influenced by the updating of the range of products under the influence of scientific and technical progress. New manufacturers are emerging, creating their own “niches” or squeezing out competitors.

Do you think absolute and relative advantage are enough to characterize current state international division of labor, specialization and cooperation of national economies?

First of all, let's look at the history of the issue. The founders of modern economics, the mercantilists, considered trade with other countries to be useful only if exports exceeded imports and the country received “profit” in the form of money, that is, gold. Then Adam Smith tried to justify the possibility of mutually beneficial trade, for which he introduced the concept of absolute advantage in the production of any product. David Ricardo later added relative advantages here. Now the vast majority of economists follow the ideas of Smith and Ricardo and call for maximum freedom of trade, the removal of all barriers and restrictions, the abolition of quotas and tariffs. The opposite point of view evokes sympathy among patriots of different countries, but has practically no justification.

What's happened absolute and relative advantages? Here is how these terms are explained in the American economics textbook "Applied Economics":

"Some countries, such as Zaire and South Africa, have significant mineral reserves. ... Other countries, such as Honduras and Guatemala, have favorable geographical conditions for growing tropical fruits. Still others, Switzerland and Japan, have concentrated large technical capabilities and qualified labor In each of these cases special conditions give the state advantages in the production of certain goods and services.

Absolute advantages in the production of products occur when one country can produce them more efficiently than another. Due to its tropical climate and geography, Costa Rica, for example, can grow bananas much cheaper than it can produce computers. The USA, on the contrary, has enough high technology, have the equipment and trained workers to produce computers. The US has an absolute advantage in producing computers, and Costa Rica has an absolute advantage in growing bananas.

The relative advantages of a country are said to exist when the opportunity cost of producing a product is lower than that of other countries. ...Suppose nation A can produce 12 wide-body jet aircraft or 12 ocean-going supertankers. Country B in our example is equal in population size to country A, but based on the level of technology, it can only build 6 planes or 3 supertankers. It is clear that country A can produce more of both aircraft and ships than country B. ... the opportunity cost of one jet in the economy of country A is one tanker. In other words, if A chooses to produce both airplanes and tankers at the same time, then she can produce six of both each month, or 4 of one and 8 of the other, etc. ... On the other hand, the efficiency of the economy of country B is two times lower in the production of aircraft than in the production of tankers.

Nation A can build more aircraft and ships than B. However, within its own country, Nation B has greater productivity in aircraft manufacturing because it can produce 2 airliners in the same time as one sea vessel. Due to different efficiency, it is more profitable for country A to specialize in the production of ships, and for country B - only in the production of aircraft. ... Let us assume that the countries have concluded an agreement among themselves to exchange 2 tankers (from A) for 3 aircraft (from B). If A chose to produce both types of products, 3 ships would cost her 3 airplanes. Country B agrees to supply 3 aircraft to A in exchange for only two ships. For its part, now country B will be able to get 2 tankers in exchange for 3 aircraft, whereas producing 2 ships on its own would cost it 4 aircraft."

Everything is correct here, and countries will indeed receive more products if they specialize in the production of those goods for which they have absolute or relative advantages. But the considered model completely ignores the development of the situation over time. Based on the principle of comparative advantage, a poor country will always strive to produce only one good, which it will then exchange for all others. The rich country will produce a variety of goods, since the production volumes in the poor country are not enough to satisfy demand.

In the example from Applied Economics, B will produce 6 airplanes and A will produce 12 tankers. After the exchange, B will have 4 tankers, A will have 6 planes and 8 tankers. Notice that B gives away all of his product and is left with just the tankers. There seems to be nothing wrong with this (we ignore the possibility of war). However, with the growth of the national product, which we assume is exponential (with the same indicator for everyone), the ratio of the standard of living in A to the standard of living in B will remain constant. That is, if now in a poor country the standard of living is ten times less than in a rich one, then in a thousand years it will also be ten times less. And in absolute terms, the gap will increase.

For now, trade, free or not, has nothing to do with it. But let's see what happens if a poor country decides to catch up with a rich one and, for this purpose, begins to rapidly develop the same efficient production, As in rich country. If a little of everything is produced, then new technologies can be introduced at existing specialized enterprises. Specialists in the relevant industry already more or less know what they are dealing with. If, due to free trade, a country is completely specialized in the production of one type of product, then new production will have to start from scratch. Train specialists, but everyone works in the only profitable export industry. Take resources away from this industry in order to build new factories from scratch. The standard of living, of course, will fall, which will not happen if the country does not participate in trade and does not specialize. Thus, a poor country is unlikely to benefit from free trade unless it wants to remain poor forever. It is clear that we need to develop our own production as quickly as possible at the level of standards of highly developed countries. You don’t need to trade with them, but buy (or invent yourself, whichever is easier) new technologies. Because the standard of living can really grow only if labor productivity increases.

For a poor country, therefore, it is better not to get involved in trade, but to develop its own production. If all countries are at the same level of development, trade between them is meaningless. The production of each type of product under such conditions develops in parallel in all countries. The products are intended for the domestic market only. There is no exchange of goods, but there is an exchange of information. If an invention was made somewhere and they were able to reduce the cost of producing a product, then it quickly becomes known to everyone. Other countries either buy a license or repeat the invention and thus the whole production moves forward. Due to the difference in culture, innovations also turn out to be different than if all the goods of a given type were produced in only one country. There is a process of international competition in the production of ideas, which, presumably, is more effective than competition only within the country. In addition, there are no transportation costs.

Now let's see what happens in practice. Look at the state of Honduras and Guatemala, mentioned in Applied Economics as having "advantageous conditions for growing tropical fruits." What does free trade bring them? The same goes for Zaire and, to a large extent, South Africa. For many it is even worse. What should a country do that has nothing to offer on the world market, that has neither absolute nor relative advantages in anything? As for Switzerland and Japan, why shouldn’t Costa Rica concentrate its “technical capabilities and qualified workforce”? Only rich countries will lose from this, such as Switzerland and Japan, since they will not receive bananas, which Costa Rica will have no need to export - it will already have everything. Who benefits?

About Russia. Our country has an absolute advantage over the USA, Western Europe and many other states in the field of production (extraction) of oil, gas and many other natural resources. During the Soviet period, the economy was largely closed, and extracted resources were mainly consumed by its own manufacturing industry. I would venture to suggest the following logic from American economists of the late 80s: “It’s not normal that Russia has such a closed economy. During the reforms, it should be restructured and become part of the global one. Free trade is good, and in accordance with the principles of free trade, Russia should specialize in the production of that in which it has an absolute or relative advantage, that is, in the extraction of resources."

As is known, as a result of the reforms, the sectors that suffered the most were the manufacturing industry, high-tech production, Agriculture. Russia now exports oil, gas, aluminum, timber, and imports computers, cars, clothes, household appliances, food (and much more). If we assume that our country is governed by American economists (and this is, to a large extent, the case), then everything is quite understandable, and we should not consider these economists to be Russophobes, participants in a worldwide conspiracy, etc.

Using all its resources to produce good X and good Y, country A can produce 80 units of good X and 40 units of good Y, country B - 60 units of good X and 60 units of good Y. Provided that costs are constant, show in production what products each country should specialize in and why.

If not the most famous, then the most cited part of the teachings of D. Ricardo is his theory of comparative advantage, a theory that relates to the field foreign trade. Smith proved that a country should specialize in the production of those products where it has an absolute advantage, that is, products in which its production costs are lower than in other countries. D. Ricardo proved that specialization is beneficial even for a country that does not have absolute advantages, provided that it has comparative advantages in the production of some goods. And each country must specialize in the production of goods that have maximum comparative efficiency.

Accordingly, country A should produce goods X, and country B should produce goods Y.

3. The table shows the production capabilities of two countries:

For country A, the optimal product structure in specialization is option B, and for country B, option D.

• a) Are the comparative cost ratios such that the two countries should develop specialization? If so, what product should each country produce?
• b) What will be the total increase in computer and oil production resulting from such specialization?
• c) What are the limits on the terms of trade? Let us assume that the actual terms of trade are 1 EVM = 1.5 tons of oil and that 4 EVMs are exchanged for 6 tons of oil. What will be the gain from specialization for each country?

Rice. 1.1.

As can be seen from the graph, from the initial condition, the production possibility lines of these two countries do not coincide, which is explained by differences in the structure of resources and the level of technological process. To obtain a unit of product X, country A needs to give up producing 2 units of product Y, i.e. The slope of the production possibilities line is -2/1 = -2.

Analyzing the situation in country B, we see that when resources are transferred from the production of product X to product Y, and vice versa, the ratio will be -1/1, i.e. the slope of the curve is -1. Thus, country B has a comparative (cost) advantage in the production of product X and should specialize in it. Country A, on the contrary, has lower opportunity costs for the production of product Y, i.e. to produce one unit of this product, it needs to sacrifice all S of product X, while country B needs to sacrifice a whole unit.

We conclude that country A has a comparative advantage (with country B) in producing product Y and therefore should specialize in it.

Logic dictates that if these two countries abandon the production of a product that requires high costs, and specialize entirely in a product for which they have comparative advantage, then they will both benefit.

By specializing entirely in product X, country B will be able to exchange some of it for product Uh, what the country specializes in A. Let's see how profitable trade will be for them and in what respect these two countries will trade their products. By trading on the domestic market, the country would receive, as we have already noted, 1 X =1 U, those. she will seek to exchange her goods X on foreign market for more than 1 U quantity (otherwise, it simply doesn’t make sense for her to sell it to the country A).

Likewise, since in the country A the ratio is 2U = 1X, then this country will strive to pay for the goods X for less than two units U. Otherwise, she will not want to take part in the trade.

It is obvious that the international exchange rate, or terms of trade, is between 1X = 1U and 1X = 2U. The actual exchange ratio, which is located between the upper and lower limits, depends on the relationship between current global demand and supply for these two goods.

If the total world demand for a product X will increase, then the exchange rate will approach 1X = 2U and, conversely, when demand for it decreases, tend to the ratio 1X = 1U, more beneficial for the country A.

The current state of 28 thousand computers and 18 thousand tons of oil. If we switch to a narrow specialization (country A, product structure A; country B, product structure E) we will get 30 thousand computers and 20 thousand tons of oil.

We exchange 4 thousand computers of country A for 6 thousand tons of oil from country B (we bring both countries to the optimal product structure): country A receives 2 thousand computers on top, country B - 2 thousand tons of oil.

d) Can we conclude from this example that specialization according to comparative advantage will lead to more efficient use of the world's resources? Explain.

Resources will actually be used more efficiently. But in this case, questions of monopolization of any production arise.

A leader in scientific and technological progress must constantly stay ahead of the development of the product life cycle, continuing to develop more and more new innovations. If everyone New Product goes through a certain life cycle, won't this ultimately lead to the country - the initiator of innovations - lagging behind and creating a chronic trade deficit?

The life cycle of a product characterizes specific patterns of development of turnover and profit of a company in a specific market over time, that is, the dynamics of the behavior of a competitive product on the market. The product life cycle in this case acts as an ideal model of the market reaction to the company’s product offering. The life cycle model illustrates that every product as a product of labor has a limited life span, during which it goes through several specific stages: development, implementation, growth, maturity, saturation, decline.

The product development stage is considered the most important in the entire life of a product. The more efficiently the product development is carried out, that is, the faster the company takes into account the needs and needs of the buyer and the market requirements in the designed product, the lower the costs will be at this stage, the faster the company will enter the market with a new product and receive the necessary profit. However, during the product development stage, significant funds are required for capital expenditures on laboratory and testing equipment, for annual maintenance costs and salaries for designers and researchers. At the development stage, a product is created as a product of research and development. The product is the basis of the product, the bearer of those properties for which the product is purchased. But a product is not a commodity yet. An item becomes a commodity when it is acquired along with physical characteristics advanced characteristics and public recognition. Thus, a product becomes a commodity when elements of the marketing environment are inserted into it. Therefore, the process of forming a marketing environment belongs to this stage.

At the development stage, it is first determined whether the consumer needs the future product, and if so, in what volume? Then the situation on the market of productive forces is studied, that is, the state with labor force, material, raw materials and necessary equipment to justify the production of this product. In addition, the level of competition for existing products that satisfy a similar need is analyzed. Based on the results of the feasibility study of the project, a decision is made to organize the production of this product or to completely stop design and survey work. If the project is recognized as unpromising before production development, the company will not be in danger of further spending funds on the development of the project and losing its prestige due to the release of an uncompetitive product. If the product successfully passes all stages of the development stage, pilot production and testing, and the formation of a marketing environment, then the implementation stage begins, including mass production and launching the product on the market.

The stage of mass production and implementation is characterized by the appearance of the product on the market and an increase in sales volume. However, at this stage, production growth is slow, as consumers are poorly informed about the new product or are slow to change their established consumption habits of existing products of a similar purpose. The company directs its influence on buyers who are most ready to purchase the product. During this period prices are at high level due to significant production costs, high costs of advertising and sales promotion. Marketing policy, including measures to increase sales volume, is focused on the quality of the product, effective advertising, price reduction, organization of after-sales service.

The growth stage is characterized by an increase in sales volume, profitability, and a decrease in marketing, sales promotion and advertising costs. At this stage, the product gains recognition among consumers, demand for it grows, all the company’s efforts are aimed at quick learning market.

Competing firms intensify their activities by releasing products of similar value, but most often better in quality, to the market, organizing increased advertising, and stimulating the activities of sales workers.

Increased consumer interest in competitors' products can lead to accelerated market saturation with this product due to the development of the market and the concentration on it of several producers producing the corresponding type of goods.

In order to maintain a stable position in the market, the company must carry out the following activities: improving the quality of the product; creation of new models; launching products into new market segments; attracting potential consumers through enhanced advertising; reduction in the price of goods; improving customer service before and after purchase; increasing the competitiveness of goods; consolidation of the company's image.

Despite the fact that at this stage the company’s profit is growing (due to an increase in sales volume and a decrease in the cost of a unit of goods, a decrease in unit advertising costs), the growth rate is somewhat reduced. In such a situation, increasing sales volume is problematic, and to maintain it at the achieved level, additional marketing costs are required in order to obtain the planned profit. Therefore, it is necessary to strengthen control over the dynamics of production growth rates, and if they slow down, develop and implement new marketing strategies to improve the situation on the market, extend the time a product stays at this stage of its life cycle and occupy a leading position in the product market.

The maturity stage characterizes the continuing expansion of the market and absolute increase, maximization of product turnover. Inventories increase in the system of production and distribution of goods finished products. The market is dominated by intense competition, when competitors, thanks to additional investments, try to influence buyers through intensive innovative activities. This is, first of all, the introduction of new modifications of goods and the expansion of their assortment group, as well as the introduction of new methods of customer service and the conclusion of preferential contracts with wholesale and retail resellers.

Differentiated, individual activity firms with consumer groups, taking into account the characteristics of consumer behavior and carrying out marketing activities to retain consumers in the market provide significant support in extending the life of the product and stabilizing the company’s position in the market. However, the situation when the product is in the maturity stage requires the company to constantly search for new ways to improve the quality of the product, improve marketing activities and intensify communications with consumers. As the main strategies at the maturity stage, it is advisable to use various combinations of marketing strategies for modifying the market, product and marketing mix. It can be effective to work on finding ways to use the product more diversified and new areas of its application.

The saturation stage occurs when, despite measures taken in the maturity phase of the product, sales volumes do not increase and even downward trends are outlined. Demand is created mainly by attracting additional customers at the stage of product maturity due to optimal pricing policy. However, the profitability of production continues to be maintained due to a reduction in production costs (full mastery of technology and reduction in defects).

The saturation stage is actually the stage of struggle between competitive goods. The consumer does not give preference to any one product or manufacturer. Making any technological changes to further stimulate demand for a product requires significant effort from the manufacturer. Additional expenses are necessary for the development of advertising and personnel incentives. Costs increase and unit profit decreases. Keeping sales and profits at the proper level in order to stabilize the company's position is becoming increasingly difficult due to intense competition. Increasing the quality of goods, improving service, intensifying advertising means, and reducing the yen can be effective as marketing activities to increase sales volume. The company's financial goal is to reduce costs while reducing sales. This stage of the life cycle corresponds only to consumers who belong to it - ordinary consumers, conservatives and brand followers (Table 1.3).

Table 1.3. Characteristics of consumers by market segments

The decline stage is the final stage of a product’s life cycle, characterized by a sharp decline in sales volumes and then in profits. The decline occurs both due to the obsolescence of the product, and due to changes in technology, changes in consumer preferences and tastes, as well as due to significant successes of competitors in the market. The range of goods is being reduced, manufacturers are leaving this market space as their distribution channels become ineffective. Under these conditions, a company can take specific measures to extend the life of a product, for example: leave the production of this product unchanged, but carry out intensive advertising; change packaging; use such a factor as price flexibility, adapt existing system sales; reduce production and sales costs; organize the sale of the remaining goods in order to obtain all possible profits; change the marketing concept; remove the product from production and sale.

As a rule, firms are reluctant to abandon the production and sale of obsolete goods, since there is hope for a more favorable economic situation. The company may not exit the market by cutting marketing costs in order to increase profits for the same sales volume. It is possible to transfer an obsolete product to another, for example, a smaller company, in order to receive part of the profit and at the same time develop a new product. And yet, it must be borne in mind that, despite all the efforts of the company, profitability from the sale of obsolete goods falls, a deep recession occurs and the product is eventually discontinued. In such a situation, neither increased advertising nor increased costs for the marketing service will help.

To prevent the stage of decline in the life cycle of a product, it is advisable to increase the duration of the stages of growth and maturity by introducing a new product to the market in advance until the market is saturated with the previous product. However, this maneuver is not available to every manufacturer, since eliminating the gap between cycles requires an active innovation and marketing policy and the availability of appropriate finances and the intellectual potential of employees.

Life cycle lengths vary greatly for different products. Certain reserves for extending the life cycle of a product are inherent in the production and sale of not one, but several products. Moreover, these goods can various combinations located in various markets. The most rational in this case are decisions to place on the sales markets not one, but a set of goods with a planned shift in the stages of their life cycles. The formation of such a company’s product portfolio allows it to carry out balanced production and sales activities, which ensures constant profit generation and creates conditions for the flexible use of capital when carrying out innovative activities.

The duration of the entire life cycle and its individual stages depends on the type and type of product. However, the general trend for both consumer goods and industrial goods is a shortening of the product life cycle, although the average length of product development time is increasing.

The product life cycle concept has great importance. Firstly, it guides managers to analyze the activities of the enterprise from the point of view of both present and future positions. Secondly, the concept of the product life cycle aims at carrying out systematic work on planning and development new products. Thirdly, this concept helps to form a set of tasks and justify marketing strategies and activities at each stage of the life cycle, as well as determine the level of competitiveness of your product in comparison with the product of a competitive company.

It is comparatively more profitable to produce small cars in Japan than in the United States. How do you explain this comparative advantage of Japan? Can a country that has a comparative advantage in producing a good subsequently lose it?

The market for compact urban runabouts is currently particularly popular only in Japan, where in multimillion-dollar cities, every centimeter removed from the car’s dimensions is a huge advantage.

Constant traffic jams and overcrowding make it impossible to use the bulky SUVs, sedans and station wagons that are familiar to Russia.

According to contemporaries, the first Japanese cars, televisions and refrigerators often broke down, while remaining significantly cheaper than imported products and in demand in the domestic market. Improving product quality and production technology have become critical challenges for Japanese corporations in the face of ongoing competition. Talented, self-taught managers at the helm of leading enterprises relied on technological leadership, trying to improve production to such an extent that mass production was consistently different high quality products and low costs. In the United States, many believe that the ideas of W. Edward Deming made a major contribution to the development of mass production of high-tech products in Japan. Paying tribute to the merits of the scientist, it still seems to me that the scientific organization of labor and automation of production, which in practice proved the correctness of his statistical models, owe their appearance primarily to high competition in the Japanese domestic market and traditional Japanese production culture, which implies full dedication from each employee, saving resources and a clear understanding by all employees of the goals of the entire corporation.

The Japanese government promoted the prosperity of large corporations by stimulating exports and improving product quality. The most notable contribution to export development was the program to create export promotion centers, through which Japanese enterprises could study consumers in target foreign markets and carry out trade transactions abroad through the mediation of officials. When the energy crisis hit in the seventies, Japanese automakers were already ready to supply economical small cars of quite acceptable quality to consumers abroad, primarily to the US market.

Countries in the production of certain types of goods, for the production of which the country has cheaper production factors and preferable conditions in comparison with other countries. With this specialization, the needs of countries are met own production, as well as through international trade.

Prerequisite for the emergence of MRI- These are differences in the endowment of countries around the world with economic resources. The MRI is based on the trade exchange of goods, services and capital between all countries of the world. The reason for countries' entry into MRT is the contradiction between the growth of social needs and the insufficient level of existing resources to satisfy them. Benefits from participation in the international division of labor:

• allows you to concentrate your efforts on the production of those products for which it has the best conditions;
• allows you to expand the production of these products to a scale capable of satisfying the needs of both its population and the population of partner countries;
• allows you to abandon the production of goods for which the country does not have good conditions production and ensure their consumption through imports.

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Factors in the formation and development of MRI

1. Natural-geographical differences between countries;
2. Scientific and technical progress;
3. Differences in the levels of economic and scientific-technical development of countries;
4. Type of management and nature of the country’s foreign economic relations;
5. Economic expansion of transnational corporations;
6. Development of regional economic integration processes.

Types of MRI

1. general MRT - division of labor between large spheres of material and non-material production (industry, transport, communications, etc.). The general MRI is associated with the division of countries into industrial, raw material, and agricultural ones;
2. private MRI - division of labor within large spheres by industry and sub-industry (heavy and light industry, cattle breeding and agriculture, etc.). It is associated with subject specialization;
3. single MRI - division of labor within one enterprise. At the same time, the enterprise is interpreted broadly - as a cycle of creating a finished product.

Single and private MRI is largely carried out within single corporations (multinational corporations) that operate simultaneously in different countries.

Exchange information technology- technology exchange through modern information networks.

Structure of MRI of the second half of the 20th century

Industrialized Western countries produced high-tech products. Socialist countries specialize in extractive industry goods. Developing countries are suppliers of raw materials and food products.