Characteristics of the world economic system
The World Economic System as an Object of International Economic Research
Taking into account that the world economy system, or the world economy, is the object of research of the scientific apparatus of the international economy, let us dwell on its brief description.
International economy; the world economic system; National economy; autarky; open economy; international division of labor; the rate of economic growth of countries; gross domestic product; level of technological development; level of social and economic development; competitive advantages of countries.
The world economy is a subject of economic science
The world economy is an unusual system and an unusual object of analysis. It needs an approach different from the approach used to analyze the national economy.
■ World economy (the world economy) is a set of national economies interacting on the basis of the historically formed international division of labor.
The essence of the international division of labor lies in the unity of the two processes - dismemberment and unification.
The process of producing goods or rendering services is broken down into separate phases, stages, stages, concentrated in a separate country, in a separate territory. The motivation for a more in-depth international division of labor is the need to increase labor productivity, due to the need to meet increasing demand.
■ The international division of labor is the division of labor between countries that specialize in the production of an economically advantageous commodity for the purpose of exchanging it for goods of another country, within the framework of a general, private and individual division of labor. >
The international division of labor is affected by factors such as:
- distribution of natural reserves in the world;
- climatic conditions in the regions of the world;
- the geographical location of the country;
- the volume and qualification of the country's labor resources;
- the level of technology;
- the economic policy of the government (tax, budget, monetary, foreign trade).
The interaction of national economies is expressed in the following forms:
- International Trade;
- international investment cooperation
- international credit relations;
- international humanitarian aid.
The interaction of national economies is not spontaneous, it is regulated by a system of international agreements - two and multilateral. There are many international financial and economic organizations involved in the analysis and regulation of processes in the world economy.
The interaction of national economies takes place on the world markets of goods, services and world financial markets. It is carried out in the context of globalization, integration, the creation of economic groups of countries, as well as in the conditions of competition between national economies and the widening gap between rich and poor countries.
Based on the foregoing, the world economy can be given a broader definition.
■ The world economy is a combination of national economies that carry out trade, investment, credit relations based on the international division of labor, while respecting multilateral international agreements, analyzed by international organizations, in the context of globalization, economic integration and competition.
The world economy as a subject of study is part of economic theory, which is formulated as a study of the behavior of individuals and institutions in the production, distribution and consumption of material goods and services in a world of limited resources.
Why is it necessary to study such a subject of analysis as the world economy is?
All the problems that people face, namely: inflation, unemployment, expenditures on the military-industrial complex, the country's budget deficit, poverty, economic inequality, environmental pollution, taxation and government spending, etc., are the result of inefficient use limited resources, for which the subjects of economic activity of various national economies are competing. By the beginning of the XXI century. economic development of each country has become significantly dependent on the development trends of the world economic system as a whole, or, in other words, countries have become interdependent in their economic development. It follows from this that the task of analyzing the world economy is to determine its state over the past period and at the present time to develop forecasts for the further development of the world economy, and on the basis of forecasts, the development of well-founded solutions for the development or elimination of undesirable processes and consequences in the economy of a firm, region , national economy.
A wide range of global economic problems that every day as leaders of different levels (countries, subnational education, enterprises and organizations) have to face, and to an individual, is presented in various publications, ranging from popular ones to special reviews. It is assumed that members of the government, politicians, leaders of different levels should know the subject of economic science, called the "world economy", and use this knowledge when making appropriate decisions, or at least have an idea how to cope with the problems arising in everyday life life of the country, region, firm. At the same time, citizens should be well informed about the fundamentals of the functioning of the world economy in order to be guided by the promises that politicians expound in the process of election campaigns.
Thus, the economic theory used to explain the functioning of the world economy is also a practical science.
Economic theory is of practical importance not only for the leaders of the country or subnational education, but also for a separate enterprise (organization, firm). If managers understand what is happening in the world economic system and the national economy connected with it, they better determine the strategy of the activity of their enterprise. The management of the enterprise, to which the causes and consequences are clear, for example, fluctuations in the exchange rate of the national currency, can make more adequate decisions in comparison with other enterprises during the period of falling or appreciation of the national currency. Similarly, we can talk about taking into account the consequences of inflation in decision-making. Economic theory gives the consumer an idea of how to protect oneself from the consequences of a decline in the purchasing power of the national currency, an increase in inflation and changes in other parameters of the economic environment.
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