Differences between countries in geographical location, climatic and natural conditions, raw materials led to the emergence of such a thing as "international division of labor." It denotes the specialization of each individual mill in the production of any type of product. 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 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. The industry specialization of individual countries.
2. Subject (types of products).
3. Technological specialization (individual parts, components).
The international division of labor involves not only a gap, but also a union of production processes. In other words, in order to increase the efficiency of the process and make more profit, in some cases it is necessary to isolate or specialize labor activity. However, mutual assistance and joint efforts on a global scale are often required. On this basis, distinguish the international division of labor. And its forms can be of two types: cooperation and specialization.
International production cooperation involves the union of enterprises from different countries to improve, accelerate the labor process for the production of a product. Signs of cooperation:
1. Long term.
2. Complexity. The production process affects sales activities, scientific, research work.
3. The joint solution of all issues, from projects to markets.
International specialization involves the production of a certain type of product only in the territory of one or several countries (to satisfy both its own and global needs).
It is important to note that international specialization and cooperation significantly reduce capital intensity and reduce the time of production of goods.
A number of factors affect the international division of labor and the result that 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. This is especially true for the production of information.
2. The system of settlements between countries.
3. Demand for products in the global market.
4. The national factor. In the international division of labor, they are associated with the socio-economic and geographical features of various countries.
5. Environmental issues. They force a different assessment of the natural resources and goods produced with their help.
Among others, the most significant socio-economic features of the international division of labor can be distinguished:
- structure and organization of national production;
- economic and technical development;
- historical traditions of the country and its foreign economic relations;
- the economic situation of the country;
- legislation.
The international geographical division of labor is based on the presence of any minerals, labor resources in different countries. As a result, individual states begin to produce and exchange certain types of products, and economic relations arise at the international level.
The international geographical division of labor can arise only when a country begins to produce a certain type of product in quantities significantly exceeding its own needs. In addition, these products should be cheap enough to make it profitable for other countries to buy them.