International economic integration means high degree internationalization of production based on the development of deep, stable relationships and division of labor between national economies, leading to the gradual merging of reproductive structures.
MPEI- the highest level of international division of labor, which arose as a result of deepening international specialization and the unification of the national economies of a number of countries.
The integration process usually begins with the liberalization of mutual trade, the elimination of restrictions on the movement of goods, then services, capital, and gradually, under appropriate conditions and the interest of partner countries, leads to a single economic, legal, and information space within the region. A new quality of international economic relations is being formed.
At the micro level, this process occurs through the interaction of capital of individual economic entities (enterprises, firms) of nearby countries through the formation of a system of economic agreements between them and the creation of branches abroad.
At the interstate level, integration occurs on the basis of the formation of economic associations of states and the coordination of national policies.
Note 1
The rapid development of intercompany relations raises the need for interstate (and in some cases suprastate) regulation aimed at ensuring the free movement of goods, services, capital and labor between countries within of this region, for coordination and implementation of joint economic, scientific and technical, financial and monetary, social, foreign and defense policies. As a result, integral regional economic complexes are created with single currency, infrastructure, general economic proportions, financial funds, general interstate or supranational governing bodies.
Forms
Forms (stages) of economic integration:
- Preferential zone– unites all countries in whose mutual trade customs duties on imported goods have been reduced or abolished.
- Free trade Area– means the abolition of trade restrictions between participating countries (customs tariffs and quantitative restrictions).
- Customs Union– an interstate formation within which there is an agreement on establishing a common external tariff, abolishing restrictions on trade for members of the union and pursuing a unified foreign trade policy in relation to third countries. Formation completed customs union EurAsEC (Russia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan). This union provides for the formation of a single management body and a single budget (due to deductions from customs duties).
- Common Market– the 3rd form adds the free movement of capital and labor, as well as coordination between the participating countries of a common economic policy.
- Economic Union- an interstate agreement between countries allowing the free circulation of capital, labor, goods and services, as well as implying the harmonization and unification of social, fiscal and monetary policy. A common economic and monetary policy (for example, the EU) is added to the 4th form.
- Full integration– a form of MEI, which is possible if political measures are added to economic measures (creation of supranational governing bodies, elimination of state borders, etc.).
Figure 1. Main forms of economic integration
Economic integration provides a number of favorable conditions for the interacting parties.
Integration cooperation gives economic entities (commodity producers) wider access to resources - financial, material, labor; to the latest technologies throughout the region; allows you to produce products for the capacious market of the entire integration group.
The economic rapprochement of countries within a regional framework creates privileged conditions for firms from countries participating in economic integration, protecting them to a certain extent from competition from firms from third countries.
Integration interaction allows its participants to jointly solve the most pressing social problems, such as equalizing the conditions for the development of certain, most backward regions, easing the situation on the labor market, providing social guarantees to low-income segments of the population, further development health care, labor protection and social security systems.
At the same time, one cannot fail to mention the problems that may arise in the process of integration interaction.
Free trade Area creates an inconvenience, which lies in the risk of diversion of trade flows: manufacturers from third countries can import their goods into the zone through member countries with the lowest customs duties, which distorts the movement of trade flows, and also reduces customs duties of member states of the community.
The creation of a free trade zone or customs union can either increase or decrease welfare.
Factors
Factors determining integration processes:
- Increased internationalization of economic life.
- Deepening of the international division of labor.
- A scientific and technological revolution that is global in nature.
- Increasing the degree of openness of national economies.
All these factors are interdependent.
Internationalization is a process of developing sustainable economic relations countries (primarily on the basis of the international division of labor) and the expansion of the reproduction process beyond the national economy. Transnational corporations (TNCs) are especially actively contributing to the growth of internationalization.
Another factor in the development of integration processes is profound shifts in the structure of the international division of labor, occurring primarily under the influence of scientific and technological revolution. The term “international division of labor” itself, on the one hand, traditionally expresses the process of spontaneous distribution of production responsibilities between nations, specialization individual countries on certain types of products. On the other hand, production responsibilities are systematically distributed within and between firms. Intra-industry specialization is becoming widespread.
The current stage of scientific and technological revolution brings the internationalization of both the market and production to a qualitatively higher level. new level, despite the uneven distribution of scientific and technological revolution in various countries Oh. Scientific and technological revolution acts as an independent factor determining the increasing role of externally economic ties in modern social reproduction. It is difficult to imagine the successful development of science and technology in a particular country without connections with other states.
Intensive development in last years Cooperation between firms from different countries has led to the emergence of large international production and investment complexes, the creation of which is most often initiated by TNCs. For them, the intra-company division of labor went beyond national boundaries and essentially became international. On this basis, the degree of openness of national economies increases. An open economy is being formed on the basis of a more complete inclusion of the country in world economic relations.
Note 2
Significant role in the formation of an open economy in developed countries plays a role in the foreign economic strategy of states to stimulate export production, promote cooperation with foreign firms and create legal basis facilitating the influx of capital, technology, and qualified personnel from abroad.
There are currently two trends at play in the global economy. On the one hand, the integrity of the world economy and its globalization are increasing, which is caused by the development of economic ties between countries, trade liberalization, the creation of modern communication and information systems, global technical standards and norms. This process is especially manifested through the activities of TNCs.
On the other hand, there is economic rapprochement and interaction between countries at the regional level, large regional integration structures are being formed, developing towards the creation of relatively independent centers of the world economy.
Essence, prerequisites, goals and effects of integration
Content and forms of international economic integration
International economic integration is a process of economic and political unification of countries based on the development of deep, stable relationships and division of labor between national economies, the interaction of their economies at various levels and in various forms. At the micro level, this process occurs through the interaction of individual firms in nearby countries based on the formation of various economic relations between them, including the creation of branches abroad. At the interstate level, integration occurs on the basis of the formation of economic associations of states and the coordination of national policies.
The rapid development of intercompany relations gives rise to the need for interstate (and in some cases suprastate) regulation aimed at ensuring the free movement of goods, services, capital and labor between countries within a given region, at coordinating and conducting joint economic, monetary, financial, scientific and technical , social, foreign and defense policy. As a result, integral regional economic complexes are created with a single currency, infrastructure, common economic “tasks, financial funds, common supranational or interstate governing bodies.
The simplest and most common form of economic integration is a free trade zone within which trade restrictions between participating countries, and above all customs duties, are abolished.
The creation of free trade zones increases competition in the domestic market between national and foreign producers of goods, which, on the one hand, increases the risk of bankruptcy, and on the other, is an incentive to improve production and introduce innovations. The abolition of customs duties and non-tariff restrictions concerns, as a rule, industrial goods; For agricultural products, import liberalization is limited. This was typical for the EU and is now observed in the North American region and Latin America. Another form - a customs union - involves, along with the functioning of a free trade zone, the establishment of a unified foreign trade tariff and the implementation of a unified foreign trade policy in relation to third countries.
In both cases, interstate relations concern only the sphere of exchange in order to provide the participating countries with equal opportunities in the development of mutual trade and financial settlements.
The customs union is often complemented by a payments union, which ensures the mutual convertibility of currencies and the functioning of a single unit of account.
A more complex form is the common market, which is designed to provide its participants, along with free mutual trade and a single foreign trade tariff, freedom of movement of capital and labor, as well as coordination of economic policies.
With the functioning of the single market, common funds for promoting social and regional development are formed, supranational management and control bodies are created, the legal system is improved, i.e. a single economic, legal, and information space emerges.
The highest form of interstate economic integration is an economic and monetary union, combining all of these forms of integration with the implementation of a common economic and monetary and financial policy: This union takes place only in Western Europe. Only here the process of economic integration has passed all the indicated stages.
Factors determining integration processes
Economic integration is based on a number of objective factors, among which the most important are:
- globalization of economic life;
- deepening the international division of labor (see Chapter 33);
- a scientific and technological revolution that is global in nature;
- increasing the openness of national economies. All these factors are interdependent.
IN modern conditions the development of sustainable economic ties between countries and especially between their firms based on the international division of labor has become global. The increasing openness of national economies, the activities of TNCs, the unfolding scientific and technological revolution, international trade, capital migration, modern systems of transport, communications and information contributed to the transition of the process of internationalization of economic life to the level at which global network interrelations in the entire world economy with the active participation in it of the majority of firms in most countries of the world.
The globalization of economic life occurs most intensively at the regional level, since most firms have contacts with firms in neighboring countries. Therefore, one of the main trends in the globalization of the world economy is the formation around one or another country or group of the most developed countries of integration zones, large economic megablocks (the USA - on the American continent, Japan and the USA - in the Pacific region, leading Western European countries - in Western Europe). In turn, within the framework of regional integration blocs, subregional centers of integration are sometimes formed, which is especially typical for the Pacific region. The international division of labor continues to deepen. Under the influence of scientific and technical progress, the subject, detail, and technological division of labor is increasing at the intra-company and inter-country levels. The interconnection (interdependence) of producers in individual countries is increasing based not only on the exchange of labor results, but also on the organization of joint production based on cooperation, combination, and complementarity of production and technological processes. The intensive development of cooperation between firms from different countries has led to the emergence of large international production and investment complexes, the creation of which is most often initiated by TNCs.
A factor stimulating integration processes is increasing the openness of national economies. Characteristics open economy are:
- the deep involvement of the country's economy in the system of world economic relations (this is indirectly evidenced by the large and continuing to grow export quota for goods and services in the GDP of most countries of the world, which in 1995 amounted to 18% of the world average);
- weakening or complete elimination of restrictions on intercountry movement of goods, capital, and labor;
- convertibility of national currencies.
The development of interstate economic integration is facilitated by the presence of a number of prerequisites. Thus, integration processes most productively occur between countries that are at approximately the same level of economic development and have homogeneous economic systems.
Another, no less important prerequisite is the geographical proximity of the integrating countries, located in the same region and having a common border.
The possibility and feasibility of integration is largely determined by the presence of historically established and fairly strong economic ties between countries. Of great importance is the commonality of economic interests and problems, the solution of which with common effort can be much more effective than doing it alone. An example is the most developed form of integration that has developed in the European Union.
Goals and effects of integration
The goals of international economic integration are specified depending on the form in which integration occurs. When forming a free trade area and a customs union (these forms of integration are now the most common), the participating countries strive to ensure market expansion and creation favorable environment for trade among themselves, while simultaneously preventing competitors from third countries from entering the market.
If in the EU the GDP per capita averages 22 thousand dollars, then in Bulgaria - only 1540 dollars, Poland - 2400, Czech Republic - 3200, Hungary - 3840, Slovenia - 7040 dollars."
"MEMO. 1999. No. 3. P. 97.
Based on this, the Council of the European Union developed a special accession strategy for each of the applicant countries, dividing them into two echelons.
The first group of countries: Hungary, Poland, Slovenia, the Czech Republic, Estonia have been conducting individual negotiations with the EU since March 30, 1999. It is assumed that the expansion of the EU through these countries will begin in 2003-2004; the rest - Bulgaria, Romania, Slovakia, Latvia, Lithuania - will be under the supervision of a special European conference, and the date of their accession to the EU has not been determined.
EU enlargement has both pros and cons. On the one hand, it is increasing resource potential The EU, due to new territories and population, significantly expands the market for current members, strengthens political status EU in the world. On the other hand, huge costs will be required from the EU, in particular, increased budgetary costs for subsidies and transfers to new EU members. The risk of instability in the European Union will increase, as countries with a backward economic structure that requires radical modernization will join. The development of broader integration will undoubtedly occur at the expense of its deepening due to reductions in spending on social, regional and structural policies currently being pursued in the EU.
Albania, Macedonia, Croatia, and Turkey, which are in a customs union with the EU, are also planning to join the EU in the future. Malta changed its decision on EU membership in 1996.
Russia's partnership with the EU was legally formalized in 1994. The Partnership and Cooperation Agreement (PCA) recognizes that Russia is a country with an economy in transition. The agreement provides for the implementation of most favored nation treatment for the parties in their foreign economic relations in a form generally accepted in international practice: expansion of cooperation in numerous areas (standardization, science, technology, space, communications), expansion of trade in goods and services, encouragement of private investment, etc.
However, the full implementation of the PCA became possible only after its ratification by the parliaments of all EU member countries and Russia, which took some time. To hasten the implementation of the agreements reached, in June 1995, a Temporary Agreement on Trade between Russia and the EU was signed, including articles of the PCA that did not require ratification, i.e. did not lead to changes in the legislation of the states participating in the agreement. On December 1, 1997, the PCA came into force.
The European Union is Russia's main trading partner. It accounts for 40% of its foreign trade turnover, versus 5% for the United States. Given this ratio, the dollarization of Russia’s foreign economic relations is not entirely justified and in the future the euro may displace the dollar from its defining position in economic relations Russia and the EU. The admission of the euro into domestic Russian currency circulation may contribute to the further development of foreign economic relations between Russia and the European Union.
In the coming years, the main task in relations with the EU will be the implementation of the PCA and the solution of specific controversial issues in the field of trade, in particular, on the anti-dumping policy pursued towards Russia.
At the same time, the European Union believes that the necessary economic and legal prerequisites for Russia’s accession to the EU have not yet matured.
Features of integration in the North American region
It is expected that by 2020, within the framework of APEC, the world's largest free trade area without internal barriers and customs will be formed. However, for developed countries belonging to APEC, this task must be completed by 2010.
The recognized course of Pacific economic organizations is the so-called open regionalism. Its essence is that the development of cooperative ties and the removal of restrictions on the movement of goods, labor and capital within a given region is combined with compliance with the principles of the WTO/GATT, the rejection of protectionism in relation to other countries, and the stimulation of the development of extra-regional economic ties.
Development of interstate economic cooperation on the path to integration is also happening in other regions of Asia. Thus, in 1981, the Cooperation Council for the Arab States of the Persian Gulf arose in the Middle East and is still functioning today, uniting Saudi Arabia, Bahrain, Qatar, Kuwait, United United Arab Emirates and Oman. This is the so-called oil six.
In 1992, the creation of the Organization for Economic Cooperation and Development of Central Asian States (ECO-ECO) was announced. The initiators were Iran, Pakistan and Türkiye. In the future, it is planned to create on this basis a Central Asian common market with the participation also of Azerbaijan, Kazakhstan and the Central Asian republics that are now part of the CIS.
The formation of trade and economic groupings is increasingly based on common religious, ideological and cultural roots. In June 1997 in Istanbul, at a meeting of high-ranking representatives of countries from various regions: Turkey, Iran, Indonesia, Pakistan, Bangladesh, Malaysia, Egypt and Nigeria, it was decided to create the “Muslim Eight” for the purpose of trade, monetary, financial and scientific and technical cooperation.
Integration in Latin America
Economic integration of Latin American countries has its own specifics. At the first stage (70s), Latin America was characterized by the creation of numerous economic groupings with the aim of liberalizing foreign trade and protecting the intraregional market through customs barrier. Many of them formally exist today.
By the mid-90s. integration processes have intensified. As a result of the trade pact concluded in 1991 and entered into force on January 1, 1995 between Argentina, Brazil, Uruguay and Paraguay (MERCOSUR), a new large regional trade and economic bloc was formed, in which about 90% of mutual trade is freed from any tariff barriers and a single customs tariff is established in relation to third countries. 45% of the population of Latin America (more than 200 million people) and over 50% of total GDP are concentrated here.
MERCOSUR has a certain system for managing and coordinating integration processes. It includes the Common Market Council, composed of foreign ministers, the Common Market Group, an executive body, and 10 technical commissions subordinate to it. The activities of MERCOSUR contribute to stabilizing the economic development of its member countries, in particular, curbing inflation and the decline in production. At the same time, there are also unresolved problems: currency regulation, unification of taxation, labor legislation.
The desire of countries Central America(Guatemala, Honduras, Costa Rica, Nicaragua and El Salvador) to economic interaction received legal expression in the agreement concluded between them back in the 60s. agreement, which provided for the creation of a free trade zone, and then the Central American Common Market (CACM). However, the subsequent economic and political situation in this region significantly slowed down the process of integration interaction.
Since the mid-90s. on the basis of the CAOR, whose activity had weakened significantly by that time, a free trade zone was created with the help of Mexico. As a result, intraregional trade turnover has increased significantly. It is characteristic of the integration processes taking place in Latin America that a number of countries are simultaneously members of various economic associations. Thus, the countries included in MERCOSUR, at the same time as other states (11 states in total), are members of the largest integration association Latin America - the Latin American Integration Association (LAI), within which the Andean subregional grouping, including Bolivia, Colombia, Peru, Chile, Ecuador, and Venezuela, has been operating since 1969. Bolivia and Chile at the same time have the status of associate members of the Mercosur bloc.
A fairly developed integration grouping in Latin America is CARICOM, or the Caribbean Community, which unites 15 English-speaking countries of the basin. Caribbean Sea. The goal of this grouping is to create a Caribbean common market.
Within the framework of all integration groups in Latin America, foreign trade liberalization programs have been adopted; Mechanisms for industrial and financial cooperation have been developed, methods for regulating relations with foreign investors and a system for protecting the interests of least developed countries have been determined.
Integration mechanism: the example of the EU
From the very beginning, Western European integration was a process that came both from below (at the firm level) and from above (at the interstate, supranational level).
EU governance system
To date, there has been a peculiar division of interstate powers of the EU into legislative, executive and judicial powers.
The legislative and representative body of the EU is the European Parliament, consisting of 626 deputies, elected by direct secret vote of citizens in all EU member states for a period of 5 years. Parliament has great powers: it approves the budget, controls the activities of the EU Commission and can demand the resignation of all its members through a vote of no confidence.
The system of executive bodies includes: the European Council (European Council), the Council of Ministers and the European Commission (before the proclamation of the European Union in 1994 - the Commission of the European Communities, CEC).
The European Council (European Council) has the status of a forum for political cooperation among EU member states. Its members include heads of state and government of EU member states, foreign ministers, and the chairman of the EU Commission. It gathers to discuss a wide range of political issues; decisions are made based on consensus.
The Council of Ministers, or Council of the European Union, consisting of ministers of member states, ensures the participation of EU member states in decision-making on the implementation of the common policy of the European Union. The votes of various countries on the Council are weighted by their economic strength, and decisions are made by a qualified majority. Germany, France, Italy and Great Britain have ten votes each, Spain - eight, Belgium, Greece, the Netherlands and Portugal have five votes each, Austria and Sweden - four each, Denmark, Finland and Ireland - three, Luxembourg - two votes.
The Commission of the European Union (Commission, CEU) is an executive body that has the right to submit draft laws to the Council of Ministers for approval. The scope of its activities is very extensive and varied. Thus, the Commission exercises control over compliance with the customs regime, the activities of the agricultural market, tax policy, etc. It also performs a number of functions, including financing from the funds at its disposal (social, regional, agricultural). The Commission independently negotiates with third countries and has the right to manage the general budget. One of the most important areas of its activity is the harmonization of national legislation, standards and norms.
The Commission consists of 20 members and a chairman, appointed with the consent of the governments of the member countries and with the approval of the European Parliament. Decisions are made by a simple majority of votes. Members of the Commission are independent from their governments and are controlled by the European Parliament. The term of stay on the Commission is 5 years. The Commission's apparatus consists of several thousand people.
Directives are legislative acts containing general provisions, which are specified in special regulations EU member countries.
Decisions have purely individual addressees and are not formally binding, although they have a certain legal significance.
In the process of Western European economic integration, law plays an active role, counteracting centrifugal tendencies. A single legal space has been formed within the EU. EU law has become an integral part of the national law of its members. Having direct effect on the territory of EU member states, it is at the same time autonomous, independent and not only not subordinate to national authorities, but also has primacy in cases of conflict with national law.
In the field of foreign trade, agricultural policy, commercial and civil law (freedom of competition), tax law (convergence of income tax systems, setting the level of turnover tax and direct contributions to the EU budget), European Union legislation replaces national laws.
However, at the current stage in the field of foreign economic policy, national governments have the opportunity to:
- introduce import quotas on goods from third countries;
- conclude agreements on “voluntary export restrictions,” and primarily with those countries where prices for products of the textile and electronics industries are very low (for example, Japan, South Korea);
- maintain special trade relations with former colonies.
The EU Commission always acts in the interests of protecting the single market. Any national regulations that conflict with EU law are not permitted. And one more feature - the subjects of the legal system are not only EU member states, but also their citizens.
EU finance and budget
Currently, the EU has a single structural fund that finances regional, social and agrarian interstate programs to support individual regions, depending on their belonging to one or another group of “problem” territories.
In the 80s four interstate regional programs were developed and began to be implemented in the most important industry areas: “Star”, which provides for the creation of communication systems in backward areas; "Valoren", aimed at developing the energy potential of these areas; "Renaval" and "Resider", focused on the rise of areas with traditional shipbuilding and the structural reorientation of areas with developed ferrous metallurgy (France, Italy).
In 1990-1993 Ten more interstate regional programs have come into force, providing for the stimulation of coal mining areas, the creation of electricity and gas supply networks in peripheral regions, and the recycling of fresh water in Mediterranean regions, etc.
For successful implementation regional policy a Regional Committee has been created, which regulates direct relations between the EU and individual regions in order to give them new status and limit the influence of individual EU member states on them. Thus, a number of European regions arose: the Trans-Rhine Union of Regions, the Trans-Channel Union of Regions. The Trans-Alpine and Trans-Pyrenees regions are developing successfully. Within regions, the EU strives to develop lagging areas.
The vast majority of funds are concentrated in underdeveloped areas, where GDP per capita does not exceed 75% of the EU average. In accordance with the Maastricht Agreements, the Fund for Promoting the Economic and Social Cohesion of Least Developed Countries, which includes Greece, Spain, Ireland, and Portugal, was created.
Joint science and technology policy
In the initial stages of European integration, joint activities in the field of R&D were carried out mainly in the coal, metallurgical and nuclear energy. Subsequently, medium-term planning of scientific and technical activities was introduced based on the development and adoption of “framework comprehensive programs.” There are three of them in total. Now (from 1995 to 2000) the third comprehensive program is being implemented. All of them are aimed at strengthening the competitiveness of European industry in the field of new technologies on the world market as opposed to the USA and Japan.
Currently, scientific and technological policy has been elevated to the rank of EU priorities. EU institutions are actively creating the necessary infrastructure and a favorable investment climate for companies focused on joint actions in the field of R&D. Moreover, the EU funds only those types of R&D, scientific and technological programs that reflect common, not national, interests.
The most famous scientific and technical programs are ESPRIT (information technology), BRITE (introduction of new technologies into the manufacturing industry), RACE (development of telecommunications). Many companies are involved in the implementation of each program various industries and different countries.
Of great importance is the independent large-scale multi-purpose cooperation program of 19 European countries “Eureka”, which has been in force since 1985, and is open to other countries.
The Council of Foreign Ministers, which coordinates the positions of the CIS member countries in relations with third countries if the governments have come to the conclusion that such coordination is advisable. Foreign Ministers are also discussing issues of establishing a mechanism for relations within the Commonwealth;
The Council of Defense Ministers, which deals with issues of relations between the CIS member countries in the military sphere, including those related to general peacekeeping operations, assistance in the construction of national armed forces, property relations in the military field, the implementation of agreements on the supply of weapons and materials;
The Council of Border Troops Commanders, which coordinates and implements measures for the joint protection of the external borders of the Commonwealth if such a need arises, organizes border development and mutual assistance in training border troops.
The Interparliamentary Assembly consists of representatives of the parliaments of the CIS member countries. At its sessions, it develops recommendations for the harmonization of laws of member countries that affect mutual relations, and organizes an exchange of views among parliamentarians regarding cooperation within the CIS.
6. What are the main sources of revenue for the EU budget?
7. Are there opportunities and prospects for Russia to join the EU?
8. What are the specifics of integration processes in the Asia-Pacific and North American regions?
9. How realistic is the formation of a single economic grouping of the former Soviet republics?
10. Why does Russia need to participate in the CIS? Maybe it would be easier to have only bilateral relations with all other CIS member countries?
IN modern world global processes associated with unification are taking place foreign countries in various unions and formations. This happens for a number of reasons, the main ones of which are the following:
- the interdependence of economies is growing;
- gaining momentum at the micro and macro levels;
- The higher the civilization of a state, the faster it transfers its economy from national economic isolation to openness to the outside world.
The market for the production and consumption of goods and services, international corporations and spheres of influence that regulate ruinous competition - all this is based on the joint balanced economic interaction of countries connected by common business interests.
Definition
It is generally accepted that international economic integration is a conscious process, directed and regulated by heads of state, caused by objective reasons. It is based on the convergence of individual economic, economic systems, their merging, adjusting to each other. Naturally, such unions are not planned for one day; they have long-term potential and elements of self-development.
The international one is beneficial to many individual countries, which, running their own economies separately, face a number of difficulties. By uniting, these difficulties are overcome much easier, solving many problems of an economic and technical nature.
If we consider the economic micro level, then international integration is the creation in nearby states of firms, organizations, and enterprises that have common trade and economic ties. For example, in one country, enterprises produce products from raw materials supplied by another. And production is carried out on equipment produced in a third partner country. This type of connection is established on the basis of economic agreements, the organization of foreign branches, etc.
If we talk about the macro level, it is equated to the interstate level, and here international integration is economic unification states, agreed not only on but also on separate national-political foundations. An example is the European Union.
Intensive development of integration requires the free movement of goods in different state regions, services, Money, labor resources. This, in turn, entails the need for coordinated joint actions in finance, foreign exchange transactions, science and technology, and economics. Moreover, over time, both social and defense are included in the orbit of joint actions. Thus, international economic integration is a complex, multi-level phenomenon, possible at a certain stage of development government systems. For it to occur it is necessary public consciousness high level, overcoming narrow proprietary ideology and confrontation, which is characteristic of states with a militaristic bias in government.
Forms of international economic integration
Traditionally, there are several such forms:
- The simplest of them is considered to be free trade zones. When such zones are formed between the participating countries, various restrictions related to the import and export of goods, customs duties, etc. are eliminated.
- A customs union - this type of form of international economic integration involves introducing not only a free trade zone between the participating countries, but also a common foreign trade policy, and a certain price regulator in relation to countries not included in the integration union.
- A more complex formation is It makes it possible not only to organize a common market space with free mutually beneficial trade, a uniform pricing policy, but also free input and output of capital, movement of labor resources, consistency in the economic legislation of the participating parties.
- International economic integration at the highest level is an economic and monetary union. Such a community, among other things, presupposes a unified interstate monetary, financial, and economic policy.
International economic integration.
Types and forms of international economic integration.
International economic integration is an objective, conscious and guided process of rapprochement, mutual adaptation and merging of national economic systems with the potential for self-regulation and self-development. It is based on the economic interest of independently operating entities and MRT.
The starting point of integration is direct international economic (production, scientific, technical, technological) ties at the level of primary subjects of economic life, which, developing both in depth and breadth, ensure the gradual merging of national economies at the basic level. This is inevitably followed by mutual adaptation of state economic, legal, fiscal, social and other systems, up to a certain merging of management structures.
Integration is the second stage in the development of internationalization (the first is monopolization, the third is transnationalization).
Basic goals
Integrating countries expect to increase the efficiency of the functioning of national economies due to a number of factors arising in the course of the development of regional international socialization of production, as well as
Take advantage of “economies of scale”;
Reduce transaction costs;
Create a favorable foreign policy environment and a stable environment;
Solve trade policy problems;
Promote structural restructuring of the economy and accelerate its growth rate.
Prerequisites
similarity in the levels of economic development of the integrating countries;
territorial proximity of states;
commonality of economic and other problems;
demonstration effect;
domino effect (countries that find themselves outside the bloc develop worse, they begin to strive to join the bloc).
In the modern world, integration is taking place:
global economic integration generated by the processes of transnationalization and globalization;
traditional regional integration, developing in certain institutional forms since the 50s.
Developing at two levels - global and regional - the integration process is characterized, on the one hand, by the increasing internationalization of economic life, and on the other, by the economic rapprochement of countries on a regional basis. Regional integration, growing on the basis of the internationalization of production and capital, expresses a parallel trend, developing nearby with a more global one. It represents, if not a denial of the global nature of the world market, then to a certain extent an attempt to close it within the framework of a group of developed leading states.
There is also a distinction between integration at the enterprise level and integration at the state level:
1. The institutional type of integration, or integration of states, is a process of interpenetration, the merging of national reproductive processes, as a result of which the social, political, and institutional structures of the merging states come closer together. Often this type of integration arises based on the decisions of politicians and managers.
The forms, or types, of regional integration may be different. They are characterized by the degree of freedom of movement within a group of production factors. Currently, the following forms of regional economics exist. integrations:
Free Trade Zone (FTA);
Customs Union (CU);
Single or common market (CR);
Economic Union (EU);
Economic and monetary union.
A free trade zone is a preferential zone within which trade in goods is maintained free from customs and quantitative restrictions.
A customs union is an agreement between two or more states on the abolition of customs duties on trade between them, a form of collective protectionism from third countries.
A single or common market is an agreement when, in addition to the Customs Union, freedom of movement of other factors of production is established, i.e. capital and labor. Trade turnover between countries participating in international economic integration ceases to exist, and an internal market is formed.
An economic union is an agreement when, in addition to the EO, fiscal and monetary policies are harmonized.
Economic and monetary union is an agreement when, in addition to the Economic Union, a unified macroeconomic policy is pursued and supranational governing bodies are created.
Often international economic integration is preceded by preferential trade agreements.
Main results of regional integration:
The processes of economic and social development of countries are synchronized, the values are brought closer together macroeconomic indicators development
The interdependence of economies and the integration of countries is deepening
GDP and labor productivity growth
Increasing production scale, reducing costs
Formation of regional trade markets
2. Private corporate type of integration, or integration at the enterprise level (true integration) - we are talking about the integration of capital and assets of companies. Here they distinguish:
Horizontal integration. It involves the association of enterprises operating in the same industry on the same industry market. Thus, enterprises are trying to resist competition from strong partners.
Vertical integration. This is an association of companies operating in different industries, interconnected by successive stages of production or circulation.
Forms of private corporate integration:
Creation of joint ventures (JVs)
Conducting international production and scientific programs.
Factors in the development of international economic integration
1. Deepening the MPP.
2. Socio-economic homogeneity of national enterprises.
3. Similar levels of economic development of groups of countries.
4. Close intertwining of national economies at micro levels.
5.Long span of cooperation.
6. General boundaries and conditions of development.
7.Development of communication capabilities.
8.Common cultural and historical traditions.
9. Purposefulness of government bodies and parties of countries regarding integration processes.
10. There is an objective need for a common solution to global problems of humanity.
Main participants and organizers of the integration process:
1.States.
4. Public organizations.
Trends in international economic integration are globalization of the world economy and regionalization. The development of IEO, under the influence of specialization and division of labor, leads to globalization.
Main features of globalization:
The form of production is changing, it is moving into an international form in the form of TNCs; change in the content of production and exchange under the influence of specialization, i.e. orientation of the national economy to international standards; fundamental changes in economic life - international control centers, international information systems, system international standards(GATT, IMF, UN bodies, etc.).
Regionalization is a historically established regional community with common economic, geographical, cultural, etc. similarities.
Free trade Area
Free trade area is a type of international integration in which participating countries abolish customs duties, taxes and fees, as well as quantitative restrictions in mutual trade. This is a deeper type of integration than preferential agreements. Each participating country retains the right to independently and independently determine the trade regime in relation to third countries. In most cases, the conditions of a free trade zone apply to all goods except agricultural products. A free trade area can be coordinated by a small interstate secretariat located in one of the member countries, but usually they do without it, and the countries agree on the main parameters of their development at periodic meetings of the heads of the relevant departments. Customs borders and posts that control the origin of goods crossing their state borders are maintained between the participating countries.
Main free trade zones:
The Southeast Asian Free Trade Agreement (ASEAN - Association of South East Asia Nations) is one of the largest regional organizations uniting all the countries of Southeast Asia (1967). It declared its goal to promote the economic, social and cultural development of the participating countries, ensuring security from outside interference. The highest body is the Conference of Heads of State and Government, which meets once every three years. The central governing body is the annual meeting of foreign ministers. There is a permanent secretariat located in Jakarta (Indonesia);
North American Free Trade Agreement (NAFTA) is an agreement between the United States, Canada and Mexico, which entered into force in 1994. The agreement provides for the gradual elimination of customs tariffs and non-tariff barriers for both industrial and agricultural goods, protection of intellectual property rights, development general rules for investment, liberalization of trade in servants and creation of an effective mechanism for resolving trade disputes between participating countries;
European Free Trade Association - in 1960 an agreement was signed between Iceland, Liechtenstein, Norway, Switzerland;
Baltic Free Trade Area - an agreement between Latvia, Lithuania and Estonia, signed in 1993;
Central European Free Trade Agreement - an agreement between Hungary, Poland, Romania, Slovakia, Slovenia and the Czech Republic, signed in 1992;
the Australia-New Zealand Trade Agreement to deepen economic ties, signed by the two countries in 1983;
Free trade area between Colombia, Ecuador and Venezuela, an agreement signed by these countries in 1992;
The Bangkok Agreement is an agreement between Bangladesh, India, the Republic of Korea, Laos, and Sri Lanka, signed in 1993.
Customs Union
Customs union (Custom union) is a type of international integration that involves the agreed abolition by member countries of the union of national customs tariffs and the introduction of a common customs tariff and a unified system of non-tariff trade regulation in relation to third countries; formation of a single customs territory. Thus, a customs union is a deeper type of integration than a free trade area.
The agreement establishing the customs union stipulates the following points:
1) Removal of internal customs borders between member countries of the union;
2) Transfer of customs control to the external perimeter of the union;
3) Elimination of customs procedures in mutual trade in goods of national production;
4) Unification of forms and methods for collecting foreign trade statistics;
5) Coordination of forms and methods of providing benefits to participants in foreign economic activity;
6) Introduction of a common system of tariff and non-tariff regulation for trade with third countries for all member countries of the customs union;
7) Creation common system preferences.
Countries agree to create interstate bodies coordinating the implementation of agreed foreign trade policies. They usually take the form of periodic meetings of ministers heading the relevant departments, which in their work rely on a permanent interstate secretariat.
Examples of customs unions:
The EU Association with Turkey is a customs union between the European Economic Community (now the European Union) and Turkey, created in 1963.
The Arab Common Market is a customs union uniting Egypt, Iraq, Jordan, Yemen, Libya, Mauritania, and Syria. The agreement on its creation was signed in 1964.
Central American Common Market - members of the customs union since 1961 are Guatemala, Honduras, Costa Rica, Nicaragua, El Salvador;
The Organization of Eastern Caribbean States is a customs union created in 1991. The member countries of this organization are Antigua and Barbuda, Grenada, Dominica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines.
Common Market
Common market is a type of international integration when participating countries agree on the free movement across national borders of not only goods and services, but also factors of production - capital and labor. Thus, a common market space is formed. This is a deeper type of integration than a customs union.
Freedom of interstate movement, under the protection of a single external tariff, factors of production (common market) requires an organizationally higher level of interstate coordination of economic policy. Relevant coordination is carried out at periodic meetings (usually once or twice a year) of the heads of state and government of the participating countries, much more frequent meetings of the heads of ministries of finance, central banks and other economic departments, supported by a permanent secretariat.
Examples of groupings of countries that have created a common market:
Cooperation Council Arab countries Persian Gulf - the countries participating in the agreement on the creation of a common market, signed in 1981, are Bahrain, Qatar, Kuwait, Oman, the United Arab Emirates, Saudi Arabia;
Andean Common Market - exists since 1990, unites Bolivia, Colombia, Ecuador, Peru, Venezuela;
Latin American Integration Association - created in 1980 on the basis of the Latin American Free Trade Association, unites Argentina, Bolivia, Brazil, Venezuela, Colombia, Mexico, Paraguay, Peru, Uruguay, Chile, Ecuador.
Caribbean Community - formed in 1973 by the following countries: Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Trinidad and Tobago. The Caribbean Common Market replaced the Caribbean Free Trade Association, which had existed since 1968.
Common Market of the Southern Cone (MERCOSUR) – unites Argentina, Brazil, Paraguay, Uruguay, exists since 1991.
Economic Union
Economic union (Economic union) is a type of international integration that, along with a common customs tariff and freedom of movement of goods and factors of production, provides for the coordination of macroeconomic policies and the unification of legislation in key areas - foreign exchange, budgetary, monetary. This is the highest level of economic integration. At this stage of development of integration, the need arises for bodies endowed not only with the ability to coordinate actions and monitor the economic development of the participating countries, but also to make operational decisions on behalf of the group as a whole. Governments agree to cede part of state sovereignty in favor of interstate bodies with the function of supranational regulation. Such interstate bodies are empowered to make decisions on issues relating to the organization without coordination with the governments of member countries.
Examples of economic unions:
Economic Union - Benelux - has existed since 1948, uniting Belgium, the Netherlands and Luxembourg;
Arab Maghreb Union - formed in 1989. Participating countries: Algeria, Libya, Mauritania, Morocco, Tunisia;
Lagos Plan of Action - created in 1973, unites all countries of sub-Saharan Africa;
Manu River Union - the agreement establishing the union was signed in 1973 by Guinea, Liberia, Sierra Leone
The European Union, EU (since 1957, the European Economic Community, EEC) is the most developed economic bloc in the world. The founding countries of the European economic communities system are France, Germany, Italy, Belgium, the Netherlands, and Luxembourg. Since 1973, they have been joined by Great Britain, Denmark and Ireland. In the late 70s and 80s, Greece, Spain and Portugal also became members of the European Community, as the entire association began to be called then, and in the 90s, Austria, Finland and Sweden. Thus, at the moment, the European Union, transformed from the European Community on the basis of the Maastricht Treaty of 1992, consists of 25 states. Thus, the European Union unites 25 countries.
Political-economic union
Full integration with a common economic policy, a common currency and supranational regulatory authorities. Achieving this level of integration (political-economic union) presupposes that the states entering it, taking into account the achieved results of the previous stages of integration, agree on joint trade and then overall economic policies in relation to third countries, as well as on the unification of regulatory systems economy. This stage of integration involves the coordination of the foreign policies of the participating countries, which provides even greater opportunities for the mutually beneficial pooling of forces and resources in the interests of the economic development of the entire union as a whole and each of the participating countries.
However, not a single integration group has not only reached such a level of development, but does not even set itself such tasks.
Consequences of international economic integration
Modern economic science is not yet able to determine the full effect of the implementation of integration processes at the global level. This is explained not by the complexity of calculating the results of integration, but by the multiplicity of consequences of this process in time and space. Therefore, in studies of this kind it is common to distinguish between static and dynamic effects of integration.
Static effects determine the economic consequences of international integration obtained immediately after the implementation of measures to consolidate the economies of two or more countries.
Dynamic effects evaluate the economic consequences of international integration in the future, manifested in later stages of the functioning of the customs union.
As a rule, calculations of the static effect come down to comparing the results of reorientation of consumers in one country in connection with the purchase of a product or factor of production from a more efficient participant in the integration link in another country.
This takes into account the effect of the presence or absence of a customs union or any other form of integration. In calculations of this kind it is necessary to take into account the negative consequences of international integration. Negative results are especially important to consider in the future. It is in the future that the import of goods from another country may have a negative impact, for example, on the problem of employment in this country.
5. Models of modern integration processes
The models, despite their great specificity, and often unique features and characteristics, are based on common phenomena, which, despite the integration “borders”, are still international in nature, which, by the way, allows competing systems to find a compromise, resolve contradictions brewing between them, etc. That is why it would be a mistake to absolutize the model of any integration system without noticing the general trends in its evolution. Characteristics of existing basic models in global integration processes.
1. Models of political and economic integration (taking into account social aspects):
1.1.European Union (EU).
1.2. Andean group (Latin America).
1.3. Caribbean "common market" (Latin America).
1.4. Association of Southeast Asian Nations (ASEAN).
2. Models of trade and economic cooperation:
2.1. European Free Trade Association (EFTA).
2.2. North American integration (USA, Canada, Mexico).
2.3. Organization of Arab Petroleum Exporting Countries (OAPEC).
2.4. Organization of Petroleum Exporting Countries (OPEC).
3. Models of international economic supragovernmental organizations regulating trade and tariff policies:
3.1. General Agreement on Tariffs and Trade (GATT).
3.2. Organization for Economic Cooperation and Development (OECD).
3.3. United Nations Conference on Trade and Development (UNCTAD).
4. Models of political alliances and military blocs:
4.1. European Council.
4.2. Organization of African Unity (OAU).
4.3. North Atlantic Treaty Organization (NATO).
Features of integration in the North American region
Entire territory North America is a free trade area, officially called the North American Free Trade Agreement (NAFTA), uniting the USA, Canada and Mexico and operating since 1994. For a long time, integration processes took place here at the corporate and industry levels and were not associated with state and interstate regulation. At the national level, the US-Canada free trade agreement was concluded only in 1988. Mexico joined in 1992.
The scale of the economic relationship between these countries based on mutual trade and capital flows can be judged from the following data. About 75-80% of Canadian exports (or 20% of Canada's GNP) are sold in the United States. The share of foreign direct investment of the United States in Canada is over 75% and Canada in the United States is 9%. About 70% of Mexican exports go to the United States, and 65% of Mexican imports come from there.
The existing structure of the North American integration complex has its own characteristics in comparison with the European integration model. The main difference is the asymmetrical economic interdependence of the United States, Canada and Mexico. The interaction between the economic structures of Mexico and Canada is far inferior in depth and scale to Canadian-American and Mexican-American integration. Canada and Mexico are more likely to be competitors in the American market for goods and labor, rivals in attracting capital and technology from American corporations, than partners in the integration process.
Another feature of the North American economic grouping is that its participants are in different starting conditions. While Canada has managed to move closer to the United States in terms of the main economic macro indicators (GNP per capita, labor productivity) over the past decade, Mexico, which for many years has been in the position of an economically backward state with a large external debt, still maintains a significant gap with these countries in terms of basic basic indicators.
The key points of the North American Free Trade Agreement, which regulates in detail many aspects of economic relations between the three neighboring countries, are:
elimination of all customs duties;
gradual elimination of a significant number of non-tariff barriers to trade in goods and services;
easing the regime for North American investment in Mexico;
liberalization of the activities of American and Canadian banks on financial market Mexico;
creation of a US-Canadian-Mexican arbitration commission.
In the future, it is envisaged not only to deepen intraregional cooperation within the framework of NAFTA, but also to expand its membership to other Latin American countries.
In April 1998, in the capital of Chile, Santiago, at a meeting of heads of state and government of 34 countries of North, Central and South America (with the exception of Cuba), the Declaration of Santiago was signed on the creation by 2005 of a Pan-American free trade area with a population of 850 million people and the total volume of GDP produced is more than $9 trillion. Thus, we are talking about the formation of an interregional trade and economic community.
Economic integration in the Asia-Pacific region
A feature of integration processes in the Asia-Pacific region (APR) is the formation of subregional centers of integration, the degree of integration within which is very different and has its own specifics. A number of local zones from two or more countries have emerged in the region. Thus, a free trade agreement has been concluded between Australia and New Zealand. Based on the development of regional trade, the economies of countries such as Malaysia and Singapore, Thailand, and Indonesia are complementary. However, Japan and China remain the main centers of gravity. They occupy a dominant position in the region.
In Southeast Asia, a fairly developed structure has emerged - the Association of Southeast Asian Nations (ASEAN), which includes Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Vietnam, Myanmar and Laos. The association arose in 1967, but only in 1992 did its members set themselves the task of creating a regional free trade zone by 2008 by gradually reducing tariffs within it. Each of the ASEAN member countries is linked to the economies of Japan, the United States and the newly industrialized countries of Asia. A significant part of Asia-Pacific trade (including within ASEAN) is trade between local subsidiaries of Japanese, American, Canadian, Taiwanese and South Korean corporations. The importance of China is growing, especially in countries of Confucian culture.
In addition to ASEAN, there are several other independent economic associations in the Asia-Pacific region, including the Asia-Pacific Economic Community (APEC), created in 1989, initially represented by 18 countries (Australia, Brunei, Hong Kong, Canada, China, Kiribati, Malaysia, Marshall islands, Mexico, New Zealand, Papua New Guinea, Republic of Korea, Singapore, USA, Thailand, Taiwan, Philippines, Chile), which were then (ten years later) joined by Russia, Vietnam and Peru.
International economic integration is a process of economic and political unification of countries based on the development of deep stable relationships and division of labor between national economies, the interaction of their reproductive structures at various levels and in various forms.
At the micro level, this process occurs through the interaction of capital of individual economic entities (enterprises, firms) of nearby countries through the formation of a system of economic agreements between them and the creation of branches abroad.
At the interstate level, integration occurs on the basis of the formation of economic associations of states and the coordination of national policies.
The rapid development of intercompany relations calls for the need for interstate (and in some cases suprastate) regulation aimed at ensuring the free movement of goods, services, capital and labor between countries within a given region, at coordinating and conducting joint economic, scientific, technical, financial and monetary , social, foreign and defense policy.
As a result, integral regional economic complexes are created with a single currency, infrastructure, general economic proportions, financial funds, and common interstate or supranational governing bodies.
Forms of international economic integration:
1. Free trade Area , within the framework of which trade restrictions between participating countries, and above all customs duties, are abolished.
2. Customs Union – Along with the functioning of a free trade zone, it assumes the establishment of a unified foreign trade tariff and the implementation of a unified foreign trade policy in relation to third countries.
3. Common Market – provides its participants, along with freedom of mutual trade and a common external tariff, freedom of movement of capital and labor, as well as coordination of economic policies.
4. Full economic union – combines all of the above forms with the implementation of a general economic and monetary policy. The main forms of integration and the relationship between them are presented in Fig. 9.
Rice. 9 . Main forms of economic integration
Economic integration provides a number of favorable conditions for the interacting parties.
Integration cooperation gives business entities (product producers) wider access to various types of resources - financial, material, labor; to the latest technologies throughout the region; allows you to produce products based on the capacious market of the entire integration group.
The economic rapprochement of countries within a regional framework creates privileged conditions for firms from countries participating in economic integration, protecting them to a certain extent from competition from firms from third countries.
Integration interaction allows its participants to jointly solve the most pressing social problems, such as equalizing the conditions for the development of individual, most backward regions, easing the situation on the labor market, providing social guarantees to low-income segments of the population, and further developing the health care system, labor protection and social security.
At the same time, one cannot fail to mention the problems that may arise in the process of integration interaction.
A free trade zone creates an inconvenience, which lies in the risk of diversion of trade flows: manufacturers from third countries can import their goods into the zone through member countries with the lowest customs duties, which distorts the movement of trade flows and also reduces customs duties of member states of the community.
The creation of a free trade area or customs union can either increase or decrease welfare.
Many Western economists have turned to the problem of customs unions to compare the advantages resulting from the liberalization of exchange within the union with the disadvantages that discrimination causes to third countries.
Works Ya. Weiner And J. Mead lead to ambiguous conclusions. The Union expands exchange within its borders and thereby creates economic benefits for member countries. However, to a certain extent it also discourages trade and thus generates losses for the rest of the world. In some cases, it can be concluded that, at a global level, losses may exceed benefits. Research shows that the creation of a customs union has a greater chance of being overall positive the more more comparable nature of production in countries stnits, the higher the customs duties duties before the formation of the union, the greater was that part of the partners' trade that they already carried out among themselves, and what larger number participating countries. In addition, the dynamic approach allows us to state that the union over time generates additional benefits that are not taken into account in the static analysis: positive effects of scale and the development of competition due to market expansion; increasing foreign investment; gradual economic integration, etc.
The formation of the Western European Customs Union provided an opportunity for a practical assessment of the results of trade integration. According to the world's leading economists, within European Community The increase in trade caused by the customs union exceeded its decrease. M. Kreinin will calculate what image The increase in new trade flows within the Community amounted to approximately 8.4 billion dollars, while imports from third countries decreased by only 1.1 billion dollars.
Although the formation of a customs union within the European Community brought benefits to the world economy as a whole, it had a negative impact on the economies of some countries. Thus, the USA and Canada lost part of their European markets. Within the Community, the Netherlands and Germany had to increase import duties to general level a single tariff, thereby depriving itself of trade advantages. As for Agriculture, then Great Britain suffered the greatest losses here, losing in the mid-70s x years advantage of cheap agricultural imports products from the countries of the British Commonwealth.
The interaction of national economies is developing with to varying degrees intensity and on different scales, manifesting itself more clearly in certain regions.
Factors determining integration processes:
1. Increased internationalization of economic life.
2. Deepening of the international division of labor.
3. A scientific and technological revolution that is global in nature.
4. Increasing the degree of openness of national economies.
All these factors are interdependent.
Internationalization represents the process of developing sustainable economic relations between countries (primarily based on the international division of labor) and the expansion of the reproduction process beyond the national economy. Transnational corporations (TNCs) are especially actively contributing to the growth of internationalization.
Another factor in the development of integration processes is profound shifts in the structure of the international division of labor, occurring primarily under the influence of scientific and technological revolution. The term “international division of labor” itself, on the one hand, traditionally expresses the process of spontaneous distribution of production responsibilities between nations, the specialization of individual countries in certain types of products. On the other hand, production responsibilities are systematically distributed within and between firms. Intra-industry specialization is becoming widespread.
The current stage of scientific and technological progress takes the internationalization of both the market and production to a qualitatively new level, despite the uneven distribution of scientific and technological progress in different countries. The scientific and technological revolution is an independent factor determining the increasing role of foreign economic relations in modern social reproduction. It is difficult to imagine the successful development of science and technology in a particular country without connections with other states.
In recent years, the intensive development of cooperation between firms from different countries has led to the emergence of large international production and investment complexes, the creation of which is most often initiated by TNCs. For them, the intra-company division of labor went beyond national boundaries and essentially became international. On this basis, the degree of openness of national economies increases. An open economy is being formed on the basis of a more complete inclusion of the country in world economic relations.
A significant role in the formation of an open economy in developed countries is played by the foreign economic strategy of states to stimulate export production, promote cooperation with foreign companies and create a legal framework that facilitates the influx of capital, technology, and qualified personnel from abroad.
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