International trade is a form of communication between producers of different countries, arising on the basis of the international division of labor, and expresses their mutual economic dependence.

International trade is the process of buying and selling carried out between buyers, sellers and intermediaries in different countries.

The term “foreign trade” refers to the trade of a country with other countries, consisting of paid import (import) and paid export (export) of goods.

At different times, various theories of world trade appeared and were refuted, which in one way or another tried to explain the origin of this phenomenon, determine its goals, laws, advantages and disadvantages. Below are the most common theories of international trade.

Mercantelist theory of international trade.

Of the theories of international trade, the first to emerge was the mercantilist theory, developed and implemented in the 16th-18th centuries. Prominent representatives of this school were Thomas Men and Antoine Montchretien. Proponents of this theory did not take into account the benefits that, in the course of the international division of labor, countries receive from the import of foreign goods and services, and considered only exports to be economically justified. Therefore, mercantilists believed that the country needed to limit imports (except for the import of raw materials) and try to produce everything itself, as well as encourage the export of finished goods in every possible way, achieving an influx of currency (gold). The influx of gold into the country as a result of a positive balance of trade increased the opportunities for capital accumulation and thereby contributed to economic growth, employment and prosperity of the country.

The main disadvantage of this theory should be considered the idea of ​​mercantilists, dating back to the Middle Ages, that the economic benefit of some participants in a commodity exchange transaction (in this case, exporting countries) turns into economic damage for others (importing countries). The main advantage of mercantilism is the policy it developed to support exports, which, however, was combined with active protectionism and support for domestic monopolists. In Russia, the most prominent mercantilist was probably Peter I, who in every possible way encouraged Russian industry and the export of goods, including through high import duties and the distribution of privileges to domestic monopolists.

Theory absolute advantages A. Smith.

The theory of absolute advantage proceeded from a completely different premise (compared to the mercantilist theory). Its creator, Adam Smith, begins the first chapter of his famous book, An Inquiry into the Nature and Causes of the Wealth of Nations (1776), with the words that “the greatest progress in development productive force labor and a large share of the art, skill and intelligence with which it is directed and applied, were apparently the result of the division of labor,” and further comes to the conclusion that “if any foreign country can supply us with any commodity at at a cheaper price than we ourselves are able to manufacture it, it is much better to buy it from her with some part of the product of our own industrial labor applied in the field in which we have some advantage.”

The theory of absolute advantage states that it is advisable for a country to import those goods for which its production costs are higher than those of foreign countries, and to export those goods for which its production costs are lower than abroad, i.e. there are absolute advantages. In contrast to the mercantilists, A. Smith advocated freedom of competition within the country and on the world market, sharing the principle of “laissez-faire” put forward by the French economic school of physiocrats - non-interference of the state in the economy.

To the most strong side The theory of absolute advantage must be attributed to the fact that it demonstrates the advantages of international trade for all its participants, to the weak side - that it does not leave a place in international trade for those countries in which all goods are produced without absolute advantages over other countries.

Theory of comparative advantage D. Ricardo.

Former London dealer David Ricardo, in his book “Principles of Political Economy and Taxation” (1817), devoted a chapter to this theory, in which he proved that it is beneficial for all countries to participate in international trade.

D. Ricardo proved that international exchange is possible and desirable in the interests of all countries.

The essence of the theory of comparative advantage is this: if each country specializes in those products in the production of which it has the greatest relative efficiency, or relatively lower costs, then trade will be mutually beneficial for both countries. The principle of comparative advantage, if extended to any number of countries and any number of products, can have universal significance.

Thus, the theory of relative advantage recommends that a country import that product whose production costs in the country are higher than those of the exported product. Subsequently, economists proved that this applies not only to two countries and two goods, but also to any number of countries and goods.

The main advantage of the theory of comparative advantage is its convincing evidence that international trade is beneficial to all its participants, although it may provide less benefit to some and more to others.

The main disadvantage of Ricardo's theory is that it does not explain why comparative advantages have developed. A serious disadvantage of the theory of comparative advantage is its static nature. This theory ignores any fluctuations in prices and wages, it abstracts from any inflationary and deflationary gaps in the intermediate stages, from all kinds of balance of payments problems. The theory assumes that if workers leave one industry, they do not become chronically unemployed, but move to another, more productive industry.

The theory of relations between production factors.

The question posed above is largely answered by the theory of the relationship between production factors, developed by Swedish economists Eli Heckscher and Bertil Ohlin and described in detail in the latter’s book entitled “Interregional and International Trade” (1933). Using the concept of factors of production (economic resources), created by the French entrepreneur and economist J.-B. Say and then expanded by other economists, the Heckscher-Ohlin theory draws attention to the different endowments of countries with these factors (more precisely, labor and capital, since Heckscher and Ohlin focused on only two factors). The abundance, excess of some factors in the country makes them cheap compared to other, less represented factors. The production of any product requires a combination of factors, and a product in the production of which relatively cheap, redundant factors predominate will be relatively cheap both domestically and internationally. foreign market and thus will have a comparative advantage. According to the Heckscher-Ohlin theory, a country exports those goods, the production of which is based on factors of production that are surplus to it, and imports goods for the production of which it is less endowed with factors of production.

Leontief's paradox.

The Heckscher-Ohlin theory is shared by most modern economists. However, it does not always give a direct answer to the question of why this or that set of goods predominates in the country’s exports and imports. American economist of Russian origin V. Leontiev, studying US foreign trade in 1947, 1951 and 1967, pointed out that this country with relatively cheap capital and expensive labor force participates in international trade not in accordance with the Heckscher-Ohlin theory: imports, rather than exports, turned out to be more capital-intensive.

The so-called Leontief paradox has the following explanations:

highly skilled American labor requires large capital expenditures for its training (i.e., American capital is invested more in human resources than in production capacity);

The production of American export goods requires large amounts of imported mineral raw materials, in the extraction of which American capital was invested.

But in general, the Leontief paradox is a warning against the straightforward use of the Heckscher-Ohlin theory, which, as subsequent testing showed, works in most, but not all cases.

Russia can be classified rather as a typical case for the Heckscher-Ohlin theory: an abundance of natural resources, the presence of large production capacities (i.e. real capital) for the processing of raw materials (metallurgy, chemistry) and a number of advanced technologies (mainly in the production of weapons and dual-use goods ) explain the greater export of raw materials, simple metallurgical and chemical products, military equipment and dairy products.

At the same time, the Heckscher-Ohlin theory does not answer the question why modern Russia with its huge agricultural resources, few agricultural products are exported, but rather they are imported into huge quantities; why, in the presence of a relatively cheap and qualified labor force, the country exports little, but imports a lot of civil engineering products. Probably, to explain the reasons for international trade in certain goods, it is not enough only for different countries to have different factors of production. It is also important how effectively these factors are used in a particular country.

The theory of competitive advantage.

This theory was developed by the American economist M. Porter. One of the common problems of foreign trade theories is the combination of the interests of the national economy and the interests of firms participating in international trade. This is related to the answer to the question: how do individual firms in specific countries gain competitive advantages in global trade in certain goods in specific industries?

In his book International Competition (1990), he concludes that the international competitive advantages of national firms depend on the macro environment in which they operate in their own country.

Based on a study of the practices of companies in 10 leading countries, which account for almost half of world exports, he put forward the concept of “international competitiveness of nations.” A country's competitiveness in international exchange is determined by the impact and interrelation of four main components:

factor conditions;

demand conditions;

the state of service and related industries;

strategy of the company in a certain competitive situation.

Factor conditions are determined by the presence of economic factors, including those arising in the production process (increasing labor productivity with a shortage labor resources, introduction of compact, resource-saving technologies with limited land, development of information technologies). The second component - demand - is decisive for the development of the company. At the same time, the state of domestic demand in conjunction with the potential opportunities of the external market has a decisive impact on the company situation. Here it is important to identify national characteristics (economic, cultural, educational, ethnic, traditions and habits) that influence the company’s exit outside the country. M. Porter's approach assumes the predominant importance of the requirements of the internal market for the activities of individual companies.

Third - the state and level of development of service and related industries and industries. Provision of appropriate equipment, close contacts with suppliers, commercial and financial structures. Fourth, the company's strategy and competitive situation. The market strategy chosen by the company and organizational structure, suggesting the necessary flexibility - important prerequisites for successful inclusion in international trade. A serious incentive is sufficient competition in the domestic market. Artificial dominance using state support- a negative decision leading to waste and inefficient use of resources. The theoretical premises of M. Porter served as the basis for developing recommendations at the state level to increase the competitiveness of foreign trade goods in Australia, New Zealand and the USA in the 90s.

Alternative theories international trade.

In recent decades, significant shifts have occurred in the direction and structure of world trade, which cannot always be fully explained within the framework of classical trade theories. This encourages both the further development of existing theories and the development of alternative theoretical concepts. The reasons for this are the following: 1) transformation technical progress the dominant factor in world trade; 2) increasing specific gravity in trade of counter deliveries of similar industrial goods produced in countries with approximately the same endowment of production factors; and 3) a sharp increase in the share of world trade turnover accounted for by intra-company trade. Let's look at some alternative theories.

Product life cycle theory.

The essence of the product life cycle theory is this: the development of world trade in finished products depends on the stages of their life, i.e. the period of time during which a product has market viability and achieves the seller's objectives.

The product life cycle covers four stages - introduction, growth, maturity and decline. The first stage involves development new products in response to emerging needs within the country. Therefore, the production of a new product is small-scale, requires highly skilled workers and is concentrated in the country of innovation (usually an industrialized country), while the manufacturer occupies an almost monopoly position and only a small part of the product goes to the foreign market.

During the growth stage, demand for a product increases and its production expands and gradually spreads to other countries, the product becomes more standardized, competition between producers increases and exports expand.

The maturity stage is characterized by large-scale production, in competition The price factor becomes predominant, and as markets expand and technology spreads, the country of innovation no longer has a competitive advantage. Manufacturing begins to move to developing countries, where cheap labor can be efficiently used in standardized production processes.

As a product's life cycle enters the decline stage, demand, especially in developed countries, is reduced, production and sales markets are concentrated mainly in developing countries, and the country of innovation becomes a frequent importer.

The product life cycle theory quite realistically reflects the evolution of many industries, but is not a universal explanation of trends in the development of international trade. If Scientific research and development, advanced technology ceases to be the main factor determining competitive advantage, then the production of a product will indeed move to countries that have a comparative advantage in other factors of production, for example, in cheap labor. However, there are many products (with a short life cycle, high transportation costs, having significant opportunities for differentiation in quality, a narrow circle of potential consumers, etc.), which do not fit into the life cycle theory.

The theory of economies of scale.

In the early 80s. P. Krugman, K. Lancaster and some other economists proposed an alternative to the classical explanation of international trade, based on the so-called scale effect.

The essence of the effect theory is that with a certain technology and organization of production, long-term average production costs per unit of output are reduced as the volume of output increases, i.e., economies arise due to mass production.

According to this theory, many countries (in particular, industrialized ones) are provided with the basic factors of production in similar proportions, and under these conditions it will be profitable for them to trade among themselves while specializing in those industries that are characterized by the presence of the effect of mass production. In this case, specialization allows you to expand production volumes and produce a product at lower costs and, therefore, at a lower price. In order for this effect of mass production to be realized, a sufficiently capacious market is necessary. International trade plays a decisive role in this, as it allows expanding markets. In other words, it allows the formation of a single integrated market, more capacious than the market of any individual country. As a result, consumers are offered more products at lower prices.

At the same time, the implementation of economies of scale, as a rule, leads to a violation of perfect competition, since it is associated with the concentration of production and the consolidation of firms that turn into monopolists. The structure of markets changes accordingly. They become either oligopolistic with a predominance of inter-industry trade in homogeneous products, or markets of monopolistic competition with developed intra-industry trade in differentiated products. In this case, international trade is increasingly concentrated in the hands of giant international firms and transnational corporations, which inevitably leads to an increase in the volume of intra-company trade, the directions of which are often determined not by the principle of comparative advantage or differences in the availability of factors of production, but strategic goals the company itself.

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5.4 Brief introduction to the theory of international trade

The modern world economy is a system of economic relations between different countries and regions of the world, based on international trade and the international division of labor. International trade develops because it brings benefits to the countries involved. In this regard, one of the main questions that the theory of international trade must answer is what underlies this gain from foreign trade, or, in other words, how the directions of foreign trade flows are determined.

The basic principles of the international division of labor and international trade were formulated two centuries ago by English economists Adam Smith and David Ricardo. A. Smith in his book “An Inquiry into the Nature and Causes of the Wealth of Nations” (1776) formulated a theory absolute advantage and showed that countries are interested in the free development of international trade, since they can benefit from it regardless of whether they are exporters or importers.

Let us recall that absolute advantage is the ability to produce more units of a given product with the same expenditure of resources, or (which is the same thing), to produce a unit of goods with less expenditure of resources.

D. Ricardo in his work “Principles of Political Economy and Taxation” (1817) proved that the principle of absolute advantage is only a special case general rule, and substantiated the theory comparative advantage. Recall that comparative advantage is the ability to produce a good or service at a relatively lower opportunity cost. Let us recall that opportunity costs are lost production opportunities expressed in the refusal to produce another product while producing this one.

In the two centuries since Smith and Ricardo, the theory of international trade has undergone significant development, but the basic principles remained largely unchanged (at least until 2008 Nobel laureate Paul Krugman proposed his theory of international trade). These principles can be summed up in one sentence: the international division of labor and trade are based on comparative advantage.

A country produces those goods in which it has a comparative advantage. A country that specializes in the production of a particular product becomes its exporter (that is, a seller in international trade). At the same time, the country buys goods from other countries, being their importer.

The ratio of exports and imports is reflected in the trade balance. The trade balance is the difference between exports and imports.

trade balance = Ex - Im

If import costs exceed export revenues (Im > Ex), then this corresponds to a trade deficit. The country buys more foreign goods than it sells domestic goods to foreigners.
In this case, the country needs more funds to pay foreign counterparties for imports than it receives from foreign counterparties for its exports. In other words, as economists say, the trade deficit must be financed.

Financing the trade deficit, i.e. The difference between import costs and export revenues can be made:

• either through foreign (external) loans from other countries or from international financial organizations such as the International Monetary Fund, the World Bank, etc.;
• or through the sale of financial assets (private and public) to foreigners valuable papers) and receipts into the country Money towards their payment.

In both cases, there is an influx of funds into the country (the financial market) from the foreign sector, which is called capital inflow, and this makes it possible to finance the trade balance deficit.
That is, the trade deficit corresponds to the influx of capital into the country.

If export revenues exceed import costs (Ex > Im), which means a surplus (surplus) of the trade balance, then capital outflow occurs from the country, since in this case foreigners sell their financial assets to the country and receive the necessary payment for exports in cash.
A trade surplus corresponds to an outflow of capital from the country.

Economic theory shows that international trade is a means by which countries, by developing specialization, can increase the productivity of existing resources and thus increase the volume of goods and services produced and increase the level of welfare. We have already considered a simple model of trade, where in the course of trade two countries received an increase in their consumption opportunities, which can be shown as the movement of the CPV of each of the economies to the right-up.

Trade allows its participants to realize their comparative advantage. Steven Landsburg's The Couch Economist gives an example that the US has two ways of producing cars: in Detroit and Iowa. One of them involves the production of cars in factories in Detroit, the other involves the cultivation of wheat in the fields in Iowa. The second way implies that the grown wheat will be exchanged for cars in the course of international trade (for example, for Japanese Toyotas). Which of these methods is preferable? It all depends on the opportunity costs of each method. It may well be that having a comparative advantage in growing wheat (i.e. lower opportunity costs), American economy will find that it is profitable for her to completely abandon car production in Detroit in favor of car production in Iowa (that is, in favor of growing wheat, exporting it to Japan, and importing Japanese cars).

5.4.1. Foreign trade policy

The modern world economy operates in conditions of globalization, which represents a new level and type of internationalization of production. Countries and regions of the world are closely connected not only by large-scale commodity and financial flows, but also by international production and business, information technology, scientific knowledge flows, close cultural and other contacts. The interdependence of individual countries and regions in the global economy has increased sharply. For example, American corporations are as dependent on cheap Chinese labor as Chinese consumers are on quality American technology products.

Although free trade leads to an increase in the economic well-being of all countries - both exporters and importers; in practice, international trade has never developed truly freely without government intervention. The history of international trade is at the same time the history of the development and improvement of government regulation of international trade. In the course of the development of foreign trade relations, the economic interests of various social groups both layers of the population, and the state inevitably becomes involved in this conflict of interests. The state acts as an active participant in international trade relations, conducting foreign trade policy(regulation of international trade). Foreign trade policy is one of the areas of state regulation of the economy.

Main instruments of foreign trade policy:

1. Import duty is a state monetary fee on imported goods.
2. Export duty is a state monetary collection on exported (exported) goods.
3. Quotas (establishment of a quota) - a restriction in quantitative or monetary terms on the volume of products allowed to be imported into a country (import quota) or exported from the country (export quota) for a certain period.
4. Licensing - regulation of foreign trade through permits issued government agencies to export or import goods in specified quantities over a specified period of time.
5. Voluntary export restriction is a quantitative restriction on exports based on the commitment of one of the trading partners to limit the volume of exports.
6. An export subsidy is a financial benefit provided by the state to an exporter to expand the export of goods abroad.
7. Dumping is the sale of a product on the foreign market at a price below the normal level, that is, below the price of a similar product on the domestic market of the exporting country.
8. An international cartel is an agreement between exporters of any product from different countries, aimed at ensuring control over production volumes and establishing favorable prices.
9. Embargo is a state prohibition of the import into or export from any country of goods or financial assets.

Foreign trade policy measures aimed at protecting the domestic market from foreign competition through various instruments of trade policy are called policies. protectionism.

Despite the fact that modern economic theory associates protectionism (as well as any economic regulation) with welfare losses for society, protectionism is used everywhere. The logic of protectionism is to create favorable conditions for the development of domestic sectors of the economy, protecting them from competition with foreign goods.

Why is protectionism so bad? The obvious answer is that protectionism prevents the economy from realizing its comparative advantage. For example, if Russia has a comparative advantage in the production of energy resources, and France in the production of food products, then in international trade, according to the theory of comparative advantage, Russia should specialize in the production of energy resources, and France in the production of food products. With full specialization, Russia will focus only on oil production, and will import food from France for its own consumption. This state of affairs will not suit you in the first place. Russian manufacturers food products that will, over time, find themselves increasingly subject to competition from imported French products. Under these conditions, domestic producers of Russian products will take actions aimed at lobbying their interests. In other words, using political support, domestic producers will try to create conditions for themselves that will limit competition from imports. This is precisely what the policy of protectionism is all about.

Protectionism harms competition because it distorts companies' incentives. In order to win consumers in a competitive economy, a company must win the competition, that is, offer a product best quality or at a lower price. In the case of protectionism, when domestic products protected from foreign competition by import duties or other barriers, domestic producers have no incentive to improve product quality because they are protected from competition from foreign producers. Instead of developing new products and constantly improving quality, these companies are busy trying to lobby for more favorable protectionist conditions for themselves. Over time, the quality of these companies' products begins to lag significantly behind the quality of similar foreign products. As a result, consumers receive a product of worse quality than they would have received in the absence of protectionism.

A good example is Russia, with its strong oil industry and a weak auto industry. Having undoubted comparative advantages in oil production over many countries (the cost of oil production in Russia is lower than in the USA and European countries), Russia is realizing its comparative advantages. At the same time, it is also obvious that Russia has no comparative advantage in car production. If it weren’t for the numerous trade barriers on foreign cars and the numerous subsidies to the domestic auto industry, Russian consumers would long ago have been able to buy higher-quality foreign cars cheaper than the Russian Lada. Maybe it would be more profitable for Russia not to produce cars at all and focus only on oil production? The theory of comparative advantage argues that this is true. Why then does Russia produce cars and continue to subsidize and protect domestic producers with import duties? Most likely, the answer does not lie in the economic plane. Perhaps Russia does not want to depend on the import of foreign cars. Perhaps Russia does not want to lay off hundreds of thousands of workers employed in the domestic auto industry. Perhaps there are other motives. In any case, the current state of the domestic automobile industry is a clear example of the fact that the policy of protectionism, distorting the incentives of firms in protected industries, does not lead to the best consequences for consumers and society in the long term.

Arguments for protectionism

• Protection of young industries.
• Protection of politically sensitive industries
• Maintaining employment.

Arguments against protectionism

• Loss of economic efficiency (or, as economists say, net social loss)
• Distorting the incentives of companies in protected industries.
• Retaliatory protectionist measures of other economies.

Modern trade relations are the intersection of many opposing trade interests. Every country is involved in many trade and financial relationships with other economies. When pursuing a protectionist policy, each country should remember that the introduction of protective measures is accompanied by reciprocal restrictive measures from trading partners. For example, under pressure from the American steel lobby, the US government in March 2002 introduced restrictive tariffs ranging from 8 to 30% on imports various types steel and steel products produced in a number of countries in Europe, Asia and Latin America. Following this decision, a number of countries decided to impose retaliatory tariffs on a number of American products. Things were going towards trade war. As a result, the Bush administration decided to eliminate import tariffs, fearing the loss of international markets for a number of American goods.

In a more negative scenario, events developed in the aftermath of the Great Depression of the 1930s. After an unprecedented drop in demand in almost all developed economies of the world, countries Western Europe decided to resort to strict protectionist policies to protect their domestic industries from foreign (primarily American) imports. As a result of the widespread use of trade restrictions, the volume of world trade decreased by 3 times from 1929 to 1933, and the recovery from depression for a number of countries lasted for ten years or more. Countries responded to restrictions from trading partners by introducing new trade restrictions. Countries, even realizing that total trade barriers lead to a deterioration in their well-being, could not refuse to use them. In conditions where trade barriers are used everywhere, if one of the trade participants wants to abandon them, and all others continue to use them, this will lead to the total impoverishment of this participant. In other words, if there is a risk that other participants will continue to use trade barriers, no one will want to be the first to abandon them. At that time, the trading partners lacked coordination. Under these conditions, the General Agreement on Tariffs and Trade (GATT) was formed in 1947, which was transformed into the World Trade Agreement in 1995. trade organization(WTO). The WTO is responsible for developing and implementing new trade agreements, and also ensures that members of the organization comply with all agreements signed by most countries in the world. That is, the WTO acts as the organizer of world trade relations that the world so lacked before 1947. The main function of the WTO is to monitor how trading participants comply with the agreements reached on trade liberalization.

The most popular model of trade relations is the model of trade of two goods between two countries. This model will be discussed in the chapter "Market Equilibrium", after we become familiar with economic concepts supply and demand.

Mercantilist theory developed and implemented in XVI-XVIII centuries, is first of theories of international trade.

Supporters of this theory believed that the country needed to limit imports and try to produce everything itself, as well as in every possible way encourage the export of finished products, achieving an influx of currency (gold), i.e., only export was considered economically justified. As a result of a positive balance of trade, the influx of gold into the country increased the ability to accumulate capital and thereby contributed to economic growth, employment and prosperity of the country.

Mercantilists did not take into account the benefits that countries receive in the course of the international division of labor from the import of foreign goods and services.

According to the classical theory of international trade emphasizes that "the exchange is favorable for each country; every country finds in it an absolute advantage, the necessity and importance of foreign trade is proved.

For the first time, the free trade policy was defined A. Smith.

D. Ricardo developed the ideas of A. Smith and argued that it is in the interests of each country to specialize in production in which the relative benefit is greatest, where it has the greatest advantage or the least weakness.

Ricardo's reasoning found expression in comparative advantage theory(comparative production costs). D. Ricardo proved that international exchange is possible and desirable in the interests of all countries.

J. S. Mill showed that according to the law of supply and demand, the price of exchange is set at such a level that the total exports of each country make it possible to cover its total imports.

According to Heckscher-Ohlin theory Countries will always seek to covertly export surplus factors of production and import scarce factors of production. That is, all countries strive to export goods that require significant costs factors of production that they have in relative abundance. As a result Leontiev's paradox.

The paradox is that, using the Heckscher-Ohlin theorem, Leontief showed that the American economy in the post-war period specialized in those types of production that required relatively more labor than capital.

Theory of comparative advantage was developed by taking into account the following circumstances affecting international specialization:

1. heterogeneity of production factors, primarily the labor force, which differs in skill levels;
2. the role of natural resources, which can only be used in production in conjunction with large amounts of capital (for example, in the extractive industries);
3. influence on the international specialization of foreign trade policies of states.

The state can limit imports and stimulate production within the country and exports of products from those industries where relatively scarce factors of production.

Michael Porter's Theory of Competitive Advantage

In 1991, the American economist Michael Porter published a study “Competitive Advantages of Countries”, published in Russian under the title “International Competition” in 1993. This study elaborates in some detail a completely new approach to the problems of international trade. One of the premises of this approach is the following: Firms, not countries, compete in the international market. To understand a country's role in this process, it is necessary to understand how an individual firm creates and maintains competitive advantage.

Success in the foreign market depends on the right choice competitive strategy. Competition presupposes constant changes in the industry, which significantly affects the social and macroeconomic parameters of the home country, so the state plays an important role in this process.

The main unit of competition according to M, Porter is the industry, i.e. a group of competitors producing goods and providing services and directly competing with each other. The industry produces products from similar sources competitive advantage, although the boundaries between industries are always quite blurry. Choice competitive strategy of the company There are two main factors influencing the industry.

1. Industry structures in which the company operates, i.e. features of competition. Five factors influence industry competition:

1) the emergence of new competitors;

2) the emergence of substitute goods or services;

3) suppliers' bargaining power;

4) the ability of buyers to bargain;

5) rivalry between existing competitors.

These five factors determine the profitability of an industry because they affect the foams firms install, their costs, capital investments, and more.

The entry of new competitors reduces the overall profitability potential of an industry as they bring new production capacity into the industry and seek market share, and the introduction of substitute products or services limits the price a firm can charge for its product.

Suppliers and buyers, by bargaining, benefit from it, which can lead to a decrease in the company’s profit -

The price to pay for competitiveness when competing with other firms is either additional costs or a reduction in price, and as a result, a reduction in profits.

The significance of each of the five factors is determined by its basic technical and economic characteristics. For example, the bargaining power of buyers depends on how many buyers the firm has, how much of its sales is per buyer, whether the price of the product is a significant part of the buyer's total costs, and the threat of new competitors depends on how difficult it is for a new competitor to “enter” the industry .

2. The position a firm occupies in the industry.

The company's position in the industry is determined primarily competitive advantage. A company is ahead of its rivals if it has a stable competitive advantage:

1) lower costs, indicating the firm's ability to develop, produce and sell a comparable product at lower costs than its competitors. By selling a product at the same or approximately the same price as competitors, the company in this case makes a greater profit.

2) differentiation of goods, i.e. the company’s ability to satisfy the needs of the buyer by offering a product or more High Quality, either with special consumer properties, or with extensive after-sales service capabilities.

Competitive advantage results in higher productivity than competitors. Another important factor influencing a firm's position in an industry is the scope of competition, or the breadth of the firm's goals within its industry.

Competition does not mean equilibrium, but constant change. Every industry is constantly being improved and updated. Moreover, the home country plays an important role in stimulating this process. Home country - it is the country where strategy, core products and technology are developed and where the workforce with the necessary skills is available.

M. Porter identifies four properties of a country that shape the environment in which local firms compete and influence its international success (Figure 4.6.). The dynamic model of the formation of competitive advantages of the industry can be represented in the form of a national diamond.

Figure 4.6. Determinants of a country's competitive advantage

Countries have the greatest chance of success in those sectors where the components of the national diamond are mutually reinforcing.

These determinants, each individually and collectively as a system, create the environment in which firms in a given country are born and operate.

Countries achieve success in certain industries due to the fact that the environment in these countries develops most dynamically and, constantly posing complex challenges to firms, forces them to better use their existing competitive advantages.

Advantage in each determinant is not a prerequisite for competitive advantage in an industry. It is the interaction of advantages across all determinants that provides self-reinforcing winning moments that are unavailable to foreign competitors.

Each country, to one degree or another, possesses the factors of production necessary for the activities of firms in any industry. The theory of comparative advantage in the Heckscher-Ohlin model is devoted to the comparison of available factors. The country exports goods in the production of which various factors are intensively used. However, factors. As a rule, they are not only inherited, but also created, therefore, in order to obtain and develop competitive advantages, it is not so much the stock of factors that is important this moment, how much is the speed of their creation. In addition, an abundance of factors can undermine competitive advantage, while a lack of factors can encourage renewal, which can lead to long-term competitive advantage. At the same time, the endowment of factors is quite important, so this is the first parameter of this component of the “diamond”.

Factor endowment

Traditionally and in economic literature, three factors are distinguished: labor, land and capital. But their influence is currently reflected more fully by a slightly different classification:

· human resources, which are characterized by the quantity, qualifications and cost of labor, as well as normal working hours and work ethic.

These resources are divided into numerous categories, since each industry requires a certain list of specific categories of workers;

· physical resources, which are determined by the quantity, quality, availability and cost of land, water, minerals, forest resources, energy sources, etc. These can also include climatic conditions, geographic location and even time zone;

· knowledge resource, i.e. a set of scientific, technical and commercial information that affects goods and services. This stock is concentrated in universities, research organizations, data banks, literature, etc.;

· monetary resources, characterized by the amount and cost of capital that can be used to finance industry;

· infrastructure, including transport system, communication system, post services, transfer of payments between banks, healthcare system, etc.

The combination of factors used varies across industries. Firms achieve competitive advantage if they have low-cost or high-quality factors at their disposal that are important when competing in a particular industry. Thus, Singapore's location on an important trade route between Japan and the Middle East made it the center of the ship repair industry. However, gaining a competitive advantage based on factors depends not so much on their availability as on their effective use, since MNCs can provide missing factors by purchasing or locating operations abroad, and many factors move relatively easily from country to country.

Factors are divided into basic and developed, general and specialized. The main factors include natural resources, climatic conditions, geographical location, unskilled labor, etc. The country receives them either by inheritance or with minor capital investments. They are not particularly important for a country's competitive advantage, or the advantage they create is unsustainable. The role of the main factors is reduced due to a reduction in the need for them or due to their increased availability (including as a result of the transfer of activities or procurement abroad). These factors are important in the extractive industries and V industries related to agriculture, developed factors include modern infrastructure, highly qualified workforce, etc.

Theories of international trade

It is these factors that are most important, as they allow you to achieve a higher level of competitive advantage.

Based on the degree of specialization, factors are divided into general, which can be used in many industries, and specialized. Specialized factors form a more solid and long-term basis for competitive advantage than general ones.

The criteria for dividing factors into basic and developed, general and specialized must be considered in dynamics, since they change over time. Factors differ depending on whether they arose naturally or were created artificially. All factors that contribute to achieving higher-level competitive advantages are artificial. Countries succeed in those industries in which they are best able to create and improve the necessary factors.

Conditions (parameters) of demand

The second determinant of national competitive advantage is the demand in the domestic market for the goods or services offered by that industry. By influencing economies of scale, demand in the domestic market determines the nature and speed of innovation. It is characterized by: structure, volume and nature of growth, internationalization.

Firms can achieve competitive advantage with the following key characteristics of demand structure:

· a significant share of domestic demand falls on global market segments;

· buyers (including intermediaries) are picky and have high demands, which forces firms to raise the standards of product quality, service and consumer properties of goods;

· the need in the home country arises earlier than in other countries;

· the volume and nature of the growth of domestic demand allow firms to gain a competitive advantage if there is a demand abroad for a product that is in great demand in the domestic market, and there is also a large number of independent buyers, which creates a more favorable environment for renewal;

· domestic demand is growing rapidly, which stimulates the intensification of capital investment and the speed of renewal;

· The domestic market is quickly becoming saturated, as a result, competition is becoming tougher, in which the strongest survive, which forces us to enter the foreign market.

The impact of demand parameters on competitiveness also depends on other parts of the diamond. Thus, without strong competition, a wide domestic market or its rapid growth does not always stimulate investment. Without the support of relevant industries, firms are unable to meet the needs of discerning customers, etc.

Related and Supporting Industries

The third determinant of national competitive advantage is the presence in the country of supplier industries or related industries that are competitive in the global market,

In the presence of competitive supplier industries, the following are possible:

· efficient and quick access to expensive resources, such as equipment or qualified labor, etc.;

· coordination of suppliers in the domestic market;

· assisting the innovation process. National firms benefit most when their suppliers are globally competitive.

The presence of competitive related industries in a country often leads to the emergence of new highly developed types of production. related These are industries in which firms can interact with each other in the process of forming a value chain, as well as industries that deal with complementary products, such as computers and software. Interaction can occur in the field of technology development, production, marketing, and service. If there are related industries in the country that can compete in the world market, access to information exchange and technical cooperation opens up. Geographical proximity and cultural kinship lead to more active exchanges than with foreign firms.

Success in the global market of one industry may lead to the development of the production of additional goods and services. However, the success of supplier and related industries can influence the success of national firms only if the other components of the diamond have a positive impact.

LECTURE NOTES ON THE COURSE “WORLD ECONOMY”.FROLOVA T.A.

Topic 1. THEORIES OF INTERNATIONAL TRADE 2

1. Theory of comparative advantage 2

2. Neoclassical theories 3

3. Heckscher-Ohlin theory 3

4. Leontief paradox 4

5. Alternative theories of international trade 4

Topic 2. WORLD MARKET 6

1. The essence of the world economy 6

2. Stages of formation of the world economy 6

3. World market structure 7

4. Competition in the global market 8

5. Government regulation world trade 9

Topic 3. WORLD MONETARY SYSTEM 10

1. Stages of development of the world monetary system 10

2. Exchange rates and currency convertibility 12

3. State regulation of the exchange rate 14

4. Balance of payments 15

Topic 4. INTERNATIONAL ECONOMIC INTEGRATION 17

1. Forms of economic integration 17

2. Forms of capital movement 17

3. Consequences of export and import of capital 18

4. Labor migration 20

5. Government regulation labor migration 21

Topic 5. GLOBALIZATION AND PROBLEMS OF THE WORLD ECONOMY 22

1.Globalization: essence and problems generated by it 22

3. International economic organizations 23

Topic 6. SPECIAL ECONOMIC ZONES (SEZ) 25

1.Classification of SEZ 25

3. Benefits and phases of the life cycle of SEZ 26

Topic 1. THEORIES OF INTERNATIONAL TRADE

1. The theory of comparative advantage

The theories of international trade went through a number of stages in their development along with the development of economic thought. However, their main questions were and remain the following: what underlies the international division of labor? Which international specialization is most effective for countries?

The foundations of the theory of international trade were laid at the end of the 18th - early XIX i.v. English economists Adam Smith and David Ricardo. Smith in his work “Inquiries into the Nature and Causes of the Wealth of Nations” showed that countries are interested in the free development of international trade, because can benefit from it regardless of whether they are exporters or importers. He created the theory of absolute advantage.

Ricardo, in his work Elements of Political Economy and Taxation, proved that the principle of absolute advantage is only a special case of the general rule, and substantiated the theory of comparative advantage.

A country has an absolute advantage if there is a good that it can produce more per unit of input than another country.

These advantages can, on the one hand, be generated by natural factors - special climatic conditions, the availability of natural resources. Natural benefits play a special role in agriculture and in the extractive industries.

On the other hand, advantages can be acquired, i.e. conditioned by the development of technology, advanced training of workers, and improved organization of production.

In conditions where there is no foreign trade, each country can consume only those goods and only the quantity of them that it produces.

The relative prices of goods on the domestic market are determined by the relative costs of their production. The relative prices of the same product produced in different countries are different. If this difference exceeds the cost of transporting goods, then it is possible to make a profit from foreign trade.

For trade to be mutually beneficial, the price of the product on the foreign market must be higher than internal price in the exporting country and lower than in the importing country.

Basic theories of international trade

The benefit received by countries from foreign trade will consist in an increase in consumption, which can be due to 2 reasons:

changes in consumption structure;

production specialization.

As long as differences remain in the ratios of domestic prices between countries, each country will have comparative advantage, i.e. it will always have a product whose production is more profitable given the existing cost ratio than the production of others.

Total output will be greatest when each good is produced by the country that has the lowest opportunity cost. The directions of world trade are determined by relative costs.

2. Neoclassical theories

Modern Western economists have developed Ricardo's theory of comparative costs. The most famous is the opportunity cost model, authored by the American economist G. Haberler.

A model of the economy of 2 countries in which 2 goods are produced is considered. Production possibility curves are assumed for each country. It is believed that the best technology and all resources are used. When determining the comparative advantage of each country, the basis is the volume of production of one good, which must be reduced to increase the production of another good.

This model of division of labor is called neoclassical. But it is based on a number of simplifications. It comes from the presence of:

only 2 countries and 2 products;

free trade;

labor mobility within the country and immobility (lack of spillover) between countries;

fixed production costs;

no transportation costs;

no technical changes;

complete interchangeability of resources when used alternatively.

3. Heckscher-Ohlin theory

In the 30s. XX century Swedish economists Eli Heckscher and Bertel Ohlin created their model of international trade. By this time, great changes had occurred in the system of international division of labor and international trade. The role of natural differences as a factor in international specialization has noticeably decreased, and industrial goods have begun to dominate in the exports of developed countries. The Heckscher-Ohlin model aims to explain the causes of international trade in manufactured goods.

in the production of various goods, factors are used in different proportions;

The relative endowment of countries with factors of production is not the same.

This implies the law of proportionality of factors: in an open economy, each country tends to specialize in the production of goods that require more factors with which the country is relatively better endowed.

International exchange is the exchange of abundant factors for scarce ones.

Thus, surplus factors are exported in a hidden form and scarce factors of production are imported, i.e. the movement of goods from country to country compensates for the low mobility of production factors on the scale of the world economy.

In the process of international trade, the prices of production factors are equalized. Initially, the price of a factor available in excess will be relatively low. Excess capital leads to specialization in the production of capital-intensive goods and the flow of capital into export industries. The demand for capital increases, therefore the price of capital increases.

If there is an abundance of labor in a country, then labor-intensive goods are exported. The price of labor (wages) also increases.

4. Leontief's paradox

Vasily Leontiev studied in Berlin after graduating from Leningrad University. In 1931 he emigrated to the USA and began teaching at Harvard University. Since 1948, he was appointed director of the economic research service. Developed a method economic analysis“input-output” (used for forecasting). In 1973 he was awarded the Nobel Prize.

In 1947, Leontiev attempted to empirically test the conclusions of the Heckscher-Ohlin theory and came to paradoxical conclusions. Examining the structure of US exports and imports, he found that US exports were dominated by relatively more labor-intensive goods, while imports were dominated by capital-intensive goods.

Given that in the post-war years in the United States, capital was a relatively abundant factor of production, and wages were significantly higher than in other countries, this result contradicted the Heckscher-Ohlin theory and was therefore called the “Leontief paradox.”

Leontief hypothesized that, in any combination with a given amount of capital, 1 man-year of American labor is equivalent to 3 man-years of foreign labor. He suggested that the greater productivity of American labor was due to the higher skill of American workers. Leontief conducted a statistical test that showed that the United States exports goods that require more skilled labor than imported ones.

This research served as the basis for the creation by the American economist D. Keesing in 1956 of a model that takes into account the qualifications of the labor force. Three factors are involved in production: capital, skilled and unskilled labor. The relative abundance of highly skilled labor leads to the export of goods that require large amounts of skilled labor.

In later models of Western economists, 5 factors were used: financial capital, skilled and unskilled labor, land suitable for agricultural production and other natural resources.

5. Alternative theories of international trade

In the last decades of the 20th century, significant shifts occurred in the directions and structure of international trade, which are not always explained by the classical theory of international trade. Among such qualitative shifts, it should be noted the transformation of scientific and technical progress into a dominant factor in international trade, the increasing share of counter deliveries of similar industrial goods. There was a need to take this influence into account in theories of international trade.

Product life cycle theory.

In the mid-60s. In the 20th century, the American economist R. Vernon put forward the theory of the product life cycle, in which he tried to explain the development of world trade in finished goods based on the stages of their life.

Life stage is the period of time during which a product has market viability and achieves the seller's objectives.

The product life cycle covers 4 stages:

Implementation. At this stage, a new product is developed in response to an emerging need within the country. Production is small-scale, requires highly skilled workers and is concentrated in the country of innovation. The manufacturer occupies an almost monopoly position. Only a small part of the product reaches the foreign market.

Height. Demand for the product is growing, its production is expanding and spreading to other developed countries. The product becomes standardized. Competition is increasing and exports are expanding.

Maturity. This stage is characterized by large-scale production; the price factor prevails in the competition. The country of innovation no longer has a competitive advantage. Production begins to move to developing countries, where labor is cheaper.

Decline. In developed countries, production is being reduced, and sales markets are concentrated in developing countries. The country of innovation becomes a net importer.

The theory of economies of scale.

In the early 80s. XX century P. Krugman and K. Lancaster proposed an alternative explanation for international trade, based on economies of scale. The essence of the effect is that with a certain technology and organization of production, long-term average costs are reduced as the volume of output increases, i.e. there are economies of scale due to mass production.

According to this theory, many countries are provided with the basic factors of production in similar proportions, and therefore it will be profitable for them to trade among themselves by specializing in industries that are characterized by the presence of the mass production effect. Specialization allows you to expand production volumes, reduce costs and prices. In order for economies of scale to be realized, a large market is required, i.e. world.

Technology gap model.

Proponents of the neo-technological movement tried to explain the structure of international trade by technological factors. The main advantages are associated with the monopoly position of the innovating firm. A new optimal strategy for companies: to produce not what is relatively cheaper, but what everyone needs, but which no one can produce yet. As soon as others can master this technology, produce something new.

The attitude towards the state has also changed. According to the Heckscher-Ohlin model, the government's task is not to interfere with firms. Neo-technological economists believe that the state should support the production of high-tech export goods and not interfere with the curtailment of obsolete industries.

The most popular model is the technology gap model. Its foundations were laid in 1961 in the work of the English economist M. Posner. Later, the model was developed in the works of R. Vernon, R. Findlay, E. Mansfield.

Trade between countries can be caused by technological changes occurring in a single industry in one of the trading countries. This country gains comparative advantage: new technology allows it to produce goods at low costs. If created New Product, then the innovator firm has a quasi-monopoly for a certain time, i.e. receives additional profit.

As a result of technical innovations, a technological gap has formed between countries. This gap will gradually be overcome, because other countries will begin to copy the innovation of the innovating country. To explain the ever-present international trade, Posner introduces the concept of a “flow of innovations” that emerges over time in different industries and different countries.

Both trading countries benefit from the innovation. As it spreads new technology the less developed country continues to gain, while the more developed country loses its advantages. Thus, international trade exists even if countries have the same endowment of production factors.

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Krugman and Lancaster's theory of economies of scale was created in the 80s of the twentieth century. This theory provides an explanation of the modern causes of world trade from the point of view of firm economics. The authors believe that the maximum benefit is in industries where production is carried out in large quantities, because in this case there is an effect of scale.

The origins of the theory of economies of scale go back to A. Marshall, who noticed the main reasons for the advantages of a group of companies compared to an individual company. The greatest contribution to the modern theory of economies of scale was made by M. Camp and P. Krugman. This theory explains why trade exists between countries that are equally endowed with factors of production. Manufacturers in such countries agree among themselves that one country receives both its own market and the market of its neighbor for free trade in a particular product, but in return gives the other country a market segment for another product. And then producers in both countries get markets with a greater capacity for absorbing goods. And their buyers are cheaper goods. Because with the growth of market volumes, an effect of scale begins to operate, which looks like this: As the scale of production increases, the cost of producing each unit of output decreases.

Why? Because production costs are not growing at the same rate as production volumes. The reason is this. The part of costs that is called “fixed” does not grow at all, and the part that is called “variable” grows at a lower rate than production volumes. Because the main component in variable costs production is the cost of raw materials. And when purchasing it in larger volumes, the price per unit of goods decreases. As you know, the more “wholesale” the batch, the more favorable the purchase price.

Many countries are provided with the basic factors of production in similar proportions, and therefore it will be profitable for them to trade among themselves by specializing in industries that are characterized by the presence of the mass production effect. Specialization allows you to expand production volumes, reduce costs and prices.

In order for economies of scale to be realized, a maximally capacious market is required, i.e. world. And then it turns out that in order to increase the volume of their market, countries with equal capabilities agree not to compete for the same products in the same markets [which leads producers to a decrease in income]. On the contrary, to expand their sales opportunities with each other, providing free access to their markets to firms from partner countries, by SPECIALIZING EACH COUNTRY IN “ITS” PRODUCTS.

It becomes profitable for countries to specialize and exchange even technologically homogeneous but differentiated products (the so-called intra-industry trade).

Vorsicht The effect of scale is observed up to a certain growth limit of this very scale. At some point in time, gradually growing management costs become exorbitant and “eat up” the profitability of the company from increasing its scale. Because more and more large companies are becoming increasingly difficult to manage.

Product life cycle theory. This theory, as applied to explaining the specialization of countries in the world economy, appeared in the 60s of the 20th century. The author of this theory Vernon, explained world trade from a marketing perspective.

The fact is that a product, during its existence on the market, goes through a number of stages: creation, maturity, decline in production and disappearance. According to this theory, industrialized countries specialize in the production of technologically new goods, and developing countries specialize in the production of obsolete goods, since to create new goods it is necessary to have significant capital, highly qualified specialists, and developed science in this field. All this is available in industrialized countries.

According to Vernon's observations, at the stages of creation, growth and maturity, the production of goods is concentrated in industrialized countries, because During this period, the product gives maximum profit. But over time, the product becomes obsolete and enters a stage of “recession” or stabilization. This is also facilitated by the fact that goods appear that are competitors of other firms, diverting demand. As a result of all this, prices and profits fall.

The production of obsolete goods is now transferred to poorer countries, where, firstly, it will become a new product again, and secondly, its production in these countries will be cheaper. At this same stage of product obsolescence, a firm can sell a license to manufacture its product to a developing country.

Product life cycle theory is not a universal explanation of international trade trends. There are many products with a short life cycle, high transportation costs, a narrow circle of potential consumers, etc., which do not fit into the life cycle theory.

But the main thing is that for a long time now, global corporations have been locating the production of both new products and obsolete goods in the same developing countries.

international trade

Another thing is that while a product is new and expensive, it is sold mainly in rich countries, and as it becomes obsolete, it goes to poorer countries. And in this part of his theory, Vernon is still relevant.

M. Porter's theory of competitive advantage. Another important theory explaining the specialization of countries in the world economy is M. Porter's theory of competitive advantage. In it, the author examines the specialization of countries in world trade from the point of view of their competitive advantages. According to M. Porter, for success in the global market it is necessary to combine the correctly chosen competitive strategy of companies with the competitive advantages of the country.

Porter highlights four signs of competitive advantage:

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Traditional and more developed form of international economic relations is foreign trade. Trade accounts for about 80% of the total volume of international economic relations.

For any country, the role of foreign trade can hardly be overestimated. According to the definition of J. Sachs, “the national success of any country in the world is based on foreign trade. Not a single country has yet managed to create a healthy economy by isolating itself from the world economic program.” Thanks to trade, countries have the opportunity to specialize in several key areas of the economy, because They have the opportunity to import products that they do not produce themselves. Trade also facilitates the spread of new ideas and technologies.

Modern theories international trade have their own history. The question is why do countries trade with each other? - was put forward by economists simultaneously with the emergence at the beginning of the 17th century. the first schools of economic thought.

International trade is a form of communication between producers of different countries, arising on the basis of MRI, and expresses their mutual economic dependence. International trade is the total trade turnover between all countries of the world. Each state faces a choice when determining the main non-state national policy in the field of foreign trade, which can generally be defined as a choice between free trade and protectionism. The need for choice involves studying the theory of this issue. Main classical theories international trade are:

1. Mercantilist theory.

2. The theory of absolute advantage.

3. Theory of comparative advantage.

4. The theory of the relationship between production factors and how it is refuted by the Leontiev paradox.

Mercantilist theory. It arose in the era of great geographical discoveries, when the discovery of new lands with their natural resources (the main one was gold) led to the seizure of territories and the formation of colonies. The national economies of Europe were strengthened by seizing new territories and dividing spheres of influence.

Mercantilists (Thomas Mann (1571-1641), Charlie Davinant, John Baptiste Colbert, William Petty) were the first to propose a coherent theory of international trade. They believed that the wealth of countries depended on the quality of the gold and silver they possessed, and they believed that:

1) must export more goods than enter, this will ensure an influx of gold as payments, which will increase domestic production, domestic spending and increase the level of employment of its population.

2) foreign trade must be regulated in such a way as to increase the share of exports and reduce the share of imports; the purpose of such regulation is to obtain a positive trade balance through tariffs, quotas and other trade policy instruments.

3) the need to prohibit or strictly organize the export of raw materials and allow duty-free import of raw materials. This was supposed to allow the accumulation of gold reserves in the country and keep export prices for finished products low.

4) it is necessary to prohibit all trade of colonies with countries other than the mother country. This situation, of course, will ensure only the metropolis the right to sell colonial goods abroad, and the colonies will turn into suppliers of raw materials and materials.

According to the theory of mercantilists, the wealth of one country can only be increased at the expense of the impoverishment of another, because growth of wealth is possible only through redistribution. In order to provide the state with a worthy place in the world, a strong state machine, which includes the army, military and merchant navy and which can provide superiority over other countries.

One of the first critics of mercantilist theory was the English economist David Hume. (The influx of gold as a result of a positive trade balance will increase the supply of money within the country and lead to an increase in wages and prices. As a result of rising prices, the country's competitiveness has decreased, etc.).

The theory of absolute advantage.(Chief Representative Adam Smith). According to this theory, international trade is profitable if two countries trade goods that each country produces at a lower cost than the partner country. Countries export those goods in the production of which they have an advantage, and import those in the production of which their trading partners have an advantage. In accordance with the views of A. Smith:

1) the government should not interfere in foreign trade, but should maintain a free trade regime;

2) states and individuals should specialize in the production of those goods in the production of which they have advantages, and trade them in exchange for goods in the production of which they do not have advantages;

3) foreign trade stimulates the development of labor productivity by expanding the market beyond the state;

4) export is a positive factor for the economy, because ensures the sale of surplus products; Export subsidies are a tax on the population and lead to higher domestic prices and should therefore be abolished.

The theory of absolute advantage is that countries export those goods that they produce at lower costs and import those goods that other countries produce at lower costs.

The theory of comparative advantage. Ch. representative - David Ricardo. The theory of comparative advantage is that countries specialize in the production of those goods that they will produce at relatively lower costs compared to other countries. In this case, trade will be mutually beneficial for both countries, regardless of whether production in one is absolutely more efficient than in the other. Price imported goods is determined through the price of the goods that need to be exported to pay for imports, so the final price ratio in trade is determined by the domestic demand for goods in one of the trading countries. As a result of trade based on comparative advantage, one country receives a positive economic benefit called a gain from trade. Gain from trade is the economic benefit that each of the countries participating in trade receives if it specializes in trade in the product in which it has a comparative advantage.

The theory of the ratio of production factors.(Representatives - Hensher and Olin). The essence is the difference in the relative prices of goods in different countries, and therefore, economic trade between them is explained by the different relative endowments of countries with factors of production. Each country exports those goods for the production of which it has a relative surplus of factors of production, and imports those goods for the production of which it has a relative shortage of factors of production. International trade leads to equalization of absolute and relative prices not only for goods, but also for factors of production in trading countries.

The theory of different relative endowments of production factors as a basis for international trade is presented in the form of two interrelated theorems: the Heckshier-Ohlin theories and the theories of price equalization for production factors (P. Samuelson).

Leontief's paradox. Numerous empirical tests have cast doubt on the Heckscher-Ohlin theory.

Leontief's paradox is that, contrary to theory, labor-saturated countries export capital-intensive products, while capital-saturated countries export labor-intensive products. However, Leontief's paradox left numerous questions unanswered, and other empirical studies that took into account the skill composition of the labor force and covered a wider range of countries confirmed the validity of the theory of comparative advantage. But the Leontief paradox continues to serve as a serious warning against the straightforward use of the Heckshir-Ohlin theory.

Each country seeks to optimize its trade relations with other countries. This is facilitated by theories of international trade, which describe its benefits for a particular country on the basis of factor advantages.

An attempt to determine the meaning of foreign trade, to formulate its goals, was made in the economic doctrine of the mercantilists at the stage of the decline of feudalism and the birth of capitalist relations (XV-XVII centuries). In accordance with the thesis about the determining role of the sphere of circulation, which was the basis of their views, the wealth of the country lies in the possession of values, primarily in the form of gold and precious metals. Representatives of mercantilism T. Man, A. Montchretien believed that the increase in gold reserves is the most important task of the state, and foreign trade should, above all, ensure the receipt of gold. This is achieved by the excess of exports of goods over their imports, active trade balance.

The main theories of international trade were laid down in the late 18th - early 19th centuries. Adam Smith and David Ricardo.

A. Smith's theory of absolute advantage
A. Smith in his book “A Study on the Nature and Causes of the Wealth of Nations” (1776) formulated the theory of absolute advantage and showed that countries should be interested in the free development of international trade, since they can benefit from it regardless of whether they are exporters or importers.

The essence of the theory of absolute advantage is as follows: if a country can produce a particular product more and cheaper than other countries, then it has an absolute advantage. These absolute advantages can, on the one hand, be generated by natural factors - special climatic conditions or the presence of vast natural resources. On the other hand, advantages in the production of various products (primarily in the manufacturing industries) depend on the existing production conditions: technology, worker qualifications, production organization, etc.

In conditions where there is no foreign trade, each country can consume only those goods and the quantity of them that it produces. The prices of these goods on the market are determined by the national costs of their production.

The situation is different in the presence of foreign trade. Due to differences in the availability of production factors, technologies used, labor qualifications, etc., domestic prices for the same goods in different countries are always different. For foreign trade to be profitable, the price of a product in the foreign market must be higher than the domestic price of the same product in the exporting country. The benefit that countries receive from foreign trade will consist in an increase in consumption, which may be due to the specialization of production.

Conclusion: each country must specialize in the production of the product for which it has an exclusive (absolute) advantage.

D. Ricardo's theory of relative advantage

D. Ricardo, in his work “Principles of Political Economy and Taxation” (1817), proved that the principle of absolute advantage is only a special case of the general rule, and substantiated the theory of comparative advantage.

To illustrate relative advantages, Ricardo took two countries - England and Portugal, two goods - wine and cloth, and took into account only one factor - national differences in costs due to labor costs. He conventionally measured production costs by working time.

In this example, the production of wine and cloth in Portugal is absolutely more efficient than in England. Based on the logic of common sense, it can be argued that if production in a given country (Portugal) is more efficient, goods are cheaper, then there is no reason to buy more expensive goods in a country (England) where their production is more expensive. However, this is at first glance. If we follow the principle of comparative advantage, then we must compare not the absolute, but the relative effect. In Portugal, the cost of producing cloth is 2:1 of the cost of producing wine, and in England it is 4:3, that is, relatively less.

With wine the situation is the opposite. The efficiency of wine production in Portugal compared to cloth production is higher than in England (1/2< 3/4). Следовательно, Португалии из соображений эффективности национальной экономики выгодней сосредоточить труд и капитал в виноделии, заменив производство сукна на его импорт из Англии. Англии по тем же соображениям выгоднее специализироваться на производстве сукна, импортируя вино из Португалии.

Heckscher-Ohlin theory of international trade

D. Ricardo's theory of comparative advantage does not answer the question: “What causes differences in costs between countries?” The Swedish economist E. Heckscher and his student B. Ohlin tried to answer this question. In their opinion, differences in costs between countries are explained mainly by the fact that countries have different relative endowments of production factors.

In accordance with the Heckscher-Ohlin model of international trade, in the process of international trade, the prices of production factors are equalized. The essence of the alignment mechanism is as follows. Initially, the price of factors of production ( wage, loan interest, rent, etc.) will be relatively low for those that are abundant in a given country, and high for those that are in short supply. The specialization of a country in the production of capital-intensive goods leads to an intensive flow of capital into export industries. The demand for capital increases compared to its supply and, accordingly, its price (interest on capital) increases. On the contrary, the specialization of other countries in the production of labor-intensive goods causes the movement of significant labor resources into the relevant industries, and the price of labor (wages) increases accordingly.

Thus, in accordance with this model, both groups of countries are gradually losing their initial advantages, and their levels of development are leveling out. This creates conditions for expanding the range of export industries, their deeper inclusion in the international division of labor, taking into account the comparative advantages that have arisen at the new level of their development.

Leontief's paradox

The famous American economist of Russian origin Vasily Leontiev in the mid-50s attempted to empirically test the main conclusions of the Heckscher-Ohlin theory and came to paradoxical conclusions. Using the input-output inter-industry balance model, built on the basis of data on the US economy for 1947, V. Leontiev proved that relatively more labor-intensive goods predominated in American exports, and capital-intensive goods dominated in imports. This empirically obtained result contradicted what the Heckscher-Ohlin theory proposed, and therefore received the name “Leontief paradox”. Subsequent studies confirmed the presence of this paradox in the post-war period not only for the United States, but also for other countries (Japan, India, etc.).

Numerous attempts to explain this paradox have made it possible to develop and enrich the Heckscher-Ohlin theory by taking into account additional circumstances affecting international specialization, among which we can note: heterogeneity of production factors, primarily the labor force, which can vary significantly in skill level; quality management decisions; state foreign trade policy, etc.

Stolper-Samuelson theorem

Wolfgang F. Stolper and P. Samuelson proved that, under certain conditions, foreign trade divides society into those who remain net gainers and those who suffer losses.

Prerequisites: A country produces two goods (eg, wheat and cloth) using two factors of production (eg, land and labor); neither commodity is used to produce another; there is absolute competition; the supply of factors is given; for the production of one of the goods (wheat), land is intensively used, and the second (cloth) is labor-intensive both in terms of foreign trade and without it; both factors can move between sectors (but not between countries); the establishment of trade relations leads to an increase in the relative price of one of the goods (for example, wheat).

Stolper-Samuelson theorem: under the above premises, the establishment of trade relations and free trade inevitably lead to an increase in the remuneration of a factor intensively used in the production of a good, the price of which is rising (land), and a decrease in the remuneration of a factor intensively used in the production of a good, the price of which falls (labor), regardless of what the structure of consumption of these goods is by the owners of production factors.

Jones amplification effect

According to the Stolper-Samuelson theorem, international trade leads to an increase in the price of a factor intensively used to produce a good whose price is rising and a decrease in the price of a factor intensively used to produce a good whose price is falling. However, the question arises: is the increase (or decrease) in the price of a factor of production proportional to the increase (or decrease) in the price of the goods produced with its help?

Economic analysis shows that an increase or decrease in the price of factors of production occurs in to a greater extent than increases or decreases the price of goods produced with their help. This effect is called the Jones amplification effect.