2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
The geographical division of labor enables countries to develop certain industries, while not experiencing problems with the lack of goods that are in demand, but which are impossible or economically unprofitable to produce in their territories. The system of product exchange between countries arose in antiquity, and with the development of technology and transport, it only intensifies.
Definition
Geographical division of labor is a certain spatial form, implying a social division of labor. An important condition is the existence of a gap between the place where the product is produced and the place where it is consumed. In other words, different countries work for each other - this is the geographical division of labor.
In the understanding of the term, there are also erroneous judgments. Some specialists include the term geographical division inconcept of the world geographical division of labor. However, this is not entirely true, since rather any global division of labor is part of the concept of a general geographical division.
Instances of division of labor
There are two cases of division of labor:
- Absolute. In this case, the country imports a product from another state due to the impossibility of producing it on its own territory for geographical, technical or other reasons.
- Relative. The country imports the product, but can also produce it on its own territory. In most cases, the reason is the economic unprofitability of production on their own territory.
History of the geographical division of labor
In ancient times, the geographical division of labor resources was understood as the division between small territories, in most cases, which covered the Mediterranean.
Further, already in the Middle Ages, the sphere of the geographical division of labor was not only European territories, such as France, Italy and England, but the territory of the Moscow State, as well as Indochina and Madagascar.
With the creation of railway transport, labor relations also entered the interior of the continents. The economic benefits received by the participants have had and are having a high influence on the geographical division of labor.
Factors affecting the geographical division of labor
Important factors in the development of the geographical division of labor between the two countriesis the high difference between unit prices and low transport costs. Every year, the improvement of transport leads to a reduction in the cost of transporting goods, and thereby increases the volume of trade between the two countries. The geographical division of labor in this case develops both in depth and in breadth.
Benefits
With the development of the geographical division of labor, its productivity also increases. Countries, focusing on their own capabilities and conditions, select several industries in which they can succeed. The development of several industries that are most favorable for the state leads to increased productivity and lower unit costs. Cost reduction is directly proportional to the increase in profits.
With the development of the territorial division of labor, consumers increase their own needs, as well as create new ones, which also drives supply and demand.
The geographical division of labor is an opportunity for the development of transport technology. As well as the economies of individual states as a whole.
International geographical division of labor
MGRT is understood as a narrow focus in the production of goods and services of individual countries and the subsequent exchange of them. This is an industry of international specialization for each individual country. In other words, each country is characterized by a specific industry, which is mostly focused on the export of a certain type of product.
There are a number of conditions for the occurrence of suchinternational specialization:
- presence of a number of advantages for the production of certain products (this may be geographical or other conditions);
- it is necessary to have separate countries that do not have the ability to produce goods in this industry, but are in dire need of them;
- shipping costs must be acceptable to the exporting country;
- production in this industry must exceed domestic demand.
Examples
Examples of geographical division of labor:
Japan specializes internationally in cars, robots and electronics;
- Canada's international speci alty is the timber industry;
- Bulgaria's international specialization is the agro-industrial complex;
- The United States is actively exporting medicines.
Role of Russia
Russia in the international geographical division of labor is far from the last position. The international specialization of the country is mainly the extraction of natural resources: oil, gas, diamonds. Russia's participation in the geographical division of labor is also observed in such areas as aluminum and nickel mining.
Most of the country's exports are raw materials. The main importers of Russian products are the countries of the European continent, as well as America. A large share of the country's imports come fromcars, medicines and equipment. In addition, the share of imports of food industry products is also high.
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