International division of labor

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The material basis of the world economy is the international division

The material basis of the world economy is the international division

of labor

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Functional Territorial Public Technical (isolated) Regional international General The selection of

Functional

Territorial

Public

Technical (isolated)

Regional

international

General
The selection
of branches

Particular
The selection of sub-branches

The division of labor

on the number of partial functions within the enterprise

Differentiation in society of various social functions

The division of labor
is differentiation, specialization of labor activities, leading to the identification and coexistence of its different species,
the separation of labor in society

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The classifier of types of economic activity Consists of 17 sections:

The classifier of types of economic activity

Consists of 17 sections:
1. Agriculture,

hunting and forestry
2. Fishing and fish farming
3. Mining
4. Manufacturing
5. Production and distribution of electricity, gas and water
6. Construction
7. Wholesale and retail trade; repair of motor vehicles, motorcycles, household goods and personal items
8. Hotels and restaurants
9. Transport and communications
10. Financial activities
11. Operations with real estate, rent and granting of services
12. Public administration and military security; obligatory social security
13. Education
14. Health and social services
15. Other community, social and personal services
16. Provision of services for the household
17. Activities of extraterritorial organizations

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The social division of labour expressed in the form of specialization

The social division of labour expressed in the form of specialization

of production

Specialization of production
reflects a process of concentration of production of certain products or parts in independent industries and specialized enterprises

The forms of specialization

Subject
the production of finished end products

Detailed–
the production of parts and components

Technological –
the production of semi-finished products

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the international division of labor forms International general International particular International

the international division of labor forms

International general

International particular

International technical

the international division

of labor forms

international specialization
– concentration of resources of the country in those industries, where it has natural or acquired advantages

International cooperation –
the process of establishment and development of production linkages between firms in different countries

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Methods for determining the international specialization On the basis of the

Methods for determining the international specialization

On the basis of the commodity

structure of export
On the basis of the index of revealed comparative advantage (formula Balazs)
On the basis of the index of revealed comparative advantage (formula Niven)
On the basis of territorial coefficient of specialization

Commodity structure of exports
characterizes the share of certain commodities in total exports

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COMMODITY STRUCTURE OF EXPORTS OF THE RUSSIAN FEDERATION Тимофеева А.А. 2017 ©

COMMODITY STRUCTURE OF EXPORTS OF THE RUSSIAN FEDERATION

Тимофеева А.А. 2017

©
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revealed comparative advantage index – RCA formula Balazs Compares the share

revealed comparative advantage index – RCA formula Balazs
Compares the share of

a particular product in a country's exports with its share in world exports.

Where RCAij is revealed comparative advantage of country i in exporting product j;
Xij – export of commodity j from country i;
Xwj – world export of product j;
Xit – total export of country i;
Xwt is total world exports.

RCAij > 1 – the product of specialization of the given country in international trade
RCAij < 1 – this product cannot be regarded as an object of specialization of the country.

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Тимофеева А.А. 2017 © Commodity structure of exports in 2014

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Commodity structure of exports in 2014

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-100> RCAi The maximum and minimum values reaches theoretically in models

-100> RCAi <100
The maximum and minimum values reaches theoretically in

models of 2X2 in complete specialization.
In real conditions, rarely exceeds 10.
A higher index value indicates greater specialization of countries in international trade.
Characterizes the intensity of intra-industry trade: the stronger the bilateral exchange of goods, the closer the indicator value to zero (intra-industry trade – countries export and import products of the same industries).
Where Xi – export of product i;
Mi – import of product I;
ΣXk – of a country's exports;
ΣМk – imports of country K.

revealed comparative advantage index– RCA. formula Niven
Compares the share of a particular product in a country's exports with its share in imports

Тимофеева А.А. 2017 ©

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Тимофеева А.А. 2017 © Commodity structure of exports and imports in 2014

Тимофеева А.А. 2017 ©

Commodity structure of exports and imports in 2014

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Eir – the share of industry i in region r; Ein


Eir – the share of industry i in region r;
Ein –

the share of industry in the whole economy.

Territorial coefficient of specialization
Shows to what extent certain industry represented in the region compared with its share in the whole economy.

t = 1 - the product of specialization of the given country in international trade
t > 1 – this product cannot be regarded as an object of specialization of the country.

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