The international division of labor is what?


In the modern world there is not a single self-sufficient state. Doubtful exceptions can serve unless highly limited systems like North Korea. However, they all the more confirm the inefficiency of full self-sufficiency. Not a single state, even a very developed one, is capable of absolutely independently providing all the conditions for a sufficiently effective reproduction of all services and goods for its citizens and state needs. And in this regard, the international division of labor is an absolutely progressive and useful phenomenon. Essentially, it is a specialization on a global scale. The international division of labor is a concept that modern specialists use in two aspects. Firstly, it is the direct specialization of countries in various productions of certain types of goods for the creation of which in a particular country there are preferable conditions compared to other countries: cheap labor, raw materials, fertile soil, developed infrastructure, machine-building enterprises and so on. Secondly, the international division of labor is a way of self-organization of the modern world economy, which is characterized by the specialization of different countries in the creation of characteristic services and goods. After this, there is a massive exchange between them.


The history of the process and the current state

The development of the international division of labor occurred throughout human history. At a fast or slow pace. Actually, this process has always been in close connection with globalization. The voyages of the Phoenicians, the trade of the ancient Greeks, the conquests of the Roman Empire, the caravan routes of the medieval era, the great geographical discoveries - all these are the steps and stages of the subject of this article. Any export or import of goods already implies an international division of labor. Countries have long traded within Europe and beyond. At the same time, this process began to develop particularly intensively in modern times. Moreover, with increasing speed. If previously, the dominant role was played by characteristic geographical and climatic conditions: weather, natural resources, population size, territory size, location on the map, now scientific and technical progress has reduced the importance of these factors. The development of transport links and many other opportunities that have become available today have brought completely different factors to the fore. The international division of labor is in the modern world the result of the development of the following features:

  • the prevalence of intensive type of economic growth;
  • the emergence of new industries;
  • production cycle cuts;
  • expansion of services: banking, insurance, tourism, transport and other (this factor has become especially significant in information societies).

In addition, the very nature of society has changed. Important socio-economic factors are the following:

  • method of organizing production within the country;
  • a mechanism for organizing state foreign economic relations;
  • levels of well-being in the country: economic, social, educational and scientific and technical.

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