Тимофеева А.А. 2017 © 1

structure of the world economy
23. The structure of the world

economy (open ?)

decisions remain with the government of the reviewed country
Goods, services,

capital, labour and knowledge are of national origin

And yet the value of national economies in the world economy is declining

National economic sovereignty in some integration s has already combined with the supranational decision-making mechanism (especially the EU).

International economic relations are also increasingly taking integration color : “is made in the EU”

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quota

Import quota

Foreign trade turnover quota

The share of

imports in retail turnover

The mapping of the country share in world exports, with its share in world GDP (Russia 0,7 (1,8% : 2,6%); United States 0,6 (12% : 20%); Japan 0,7 (5% : 7%))

The value of exports per capita (Russia – $ 1800, United States – $ 3,500, China – $ 500)

OPEN ECONOMY
CLOSED ECONOMY

25. Indicators of internationalization according to forms of international economic relations (open)

volume of accumulated foreign investment in the country relative to

its GDP
The amount of external debt relative to GDP
The volume of payments on service of external debt relative to revenues from exports of goods and services

25. Indicators of internationalization according to forms of international economic relations (open)

information)
The share of foreign workers in total employment
The number

of occupied overseas domestic labor
The share of foreign patents and licences in the total number of resident patents and licenses
The size of the export and import of technologies

25. Indicators of internationalization according to forms of international economic relations (open)

company (it generally defines the nationality of TNCs) and their

foreign branches

the parent company provides control over the foreign companies through the ownership of 10% or more of ordinary shares or equivalent share capital

The forms of branches

The Department - is firm in the host country, which is owned by parent company wholly or jointly with another company,

the Department is not a legal entity

A subsidiary company is a company in which the parent company owns more than 50% of shares and which is registered in the host country as a legal entity, i.e. as an independent company.

An associated company is a company in which the parent company owns at least 10%, but not more than 50% of shares and which is a legal entity.

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27. Forms of branches

25-30 % of their total volume and with branches in

two or more countries

Transnational corporation (indexes)

I T = 1/3 (A I /A + R I /R + S or I /S) x 100 % ,

where I T is the index of transnationalization, %; A I — foreign assets;
A — total assets;
R I — sales of goods and services by foreign affiliates;
R — total sales of goods and services;
S I — a foreign employees;
S — the total number of employees of the company.

28. Definition of transnational corporation
29. Index of transnationalization and its calculation

diversity and competition is an illusion
31. Top-3 most powerful countries

in the world (video)

leading to their gradual economic merger
The reasons for economic integration:
The

main reason for this process is the desire to improve the economic efficiency of production, and the integration is primarily economic in nature;
Strengthening political influence;
The means of avoiding military politic conflicts.

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32. Definition of Economic integration

or by a decision of existing international organizations to analyze,

discuss and resolve various issues of international economic life.

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division of labor
Тимофеева А.А. 2017 ©

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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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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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

Тимофеева А.А. 2017 ©

division of labor consequences
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

Тимофеева А.А. 2017 ©

33. The international division of labor forms and their meaning
34. the international division of labor consequences

the term “Internationalization”
Reasons for Internationalization
Absolute and relative Indicators of internationalization

for a) trade b) capital flows c) labour migration d) information flows (To be able to create these indicators)
Export quota, import quota, foreign trade quota (how to calculate)
Definition of Transnational corporation
How TNC control its branches?
Types of TNC branches
Index if transnationalization (how to calculate)
Explain why Diversity and competition is an illusion
Economic integration (definition)
Reasons for Economic integration
Examples of Regional integration associations
International organizations (definition)
Types of International organizations with 1 example
General division of labor (definition, examples)
Particular division of labor (definition, examples)
Technical division of labor (definition, examples)
International division of labor (definition, examples)
The forms of specialization. Reasons for specialization
International cooperation (definition)