Тимофеева А.А. 2017 © 1 international division of labor

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

Тимофеева А.А. 2017 ©

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

Тимофеева А.А. 2017 ©

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 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

Тимофеева А.А. 2017 ©

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

Тимофеева А.А. 2017 ©

2017 ©

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.

Тимофеева А.А. 2017 ©

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 ©

2014

– 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.

Тимофеева А.А. 2017 ©

(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)
How you can define country’s specialization in the world economy? (to be able to create your own indexes)
Be able to explain country’s 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