Conjuncture of world markets: factors and conditions of formation, characteristics.

The law of comparative advantage states that each country, even one that has absolute advantages in the production of any goods, is more profitable to focus its efforts on the production of those goods and services in the production of which it has relatively greater efficiency, and export them in exchange for goods which it does not produce.

For example, entrepreneurs of a country specializing in the world economy in the production of science-intensive products (robots, computers, electronic communication systems, etc.) should not divert economic resources to the manufacture of simple and cheap products. It also happens that a country that cannot establish an efficient management system often has nothing to offer on the world market except raw materials, such as oil, gas or forest. But, in the end, the international division of labor and participation in foreign trade relations are beneficial to all.

In order to realize the opportunities that arise in the process of developing the international division of labor and ensuring the movement of goods, services, capital, labor, world markets require the interaction of legal, administrative, monetary systems, effective organization of production and foreign trade. Thus, there is a need for constant support of international bilateral and multilateral economic relations, the conclusion of foreign policy and foreign trade agreements both between individual firms and between governments.

In the XX century. The use of new and the latest technologies has allowed many countries to use their economic resources much more productively than ever before and to achieve a sharp increase in production in relatively short periods (Fig.). Thus, if during the first industrial revolution (XIX century.) Doubling of production per capita in Britain was achieved in more than half a century, and in the United States – for 46 years, in the second half of XX century. Japan, the Republic of Korea and China have achieved the same result in 10-12 years of economic development.

The third prerequisite is integration into the world economy. Effective economic development becomes possible when the free movement of goods, capital, scientific and technical information contributes to the economic growth of all countries. Thus, during the industrial revolution of the XIX century. in the process of interaction, the economy of European countries “rose”, and nowadays such countries as Japan, the United States, the “Far Eastern Tigers” through the exchange of goods, technology and capital have become major players in world markets. in modern conditions, the processes of internationalization are intensifying, ie the deepening of economic ties in the world economy.

The interdependence of the economies of individual countries is growing. The development of the world’s economy is increasingly influenced by scientific and technological progress, the activities of international financial organizations, transnational corporations (ie, large concerns and trusts whose activities go beyond individual states). Thus, the processes of international integration and cooperation are intensifying.

The internationalization of economic life can be traced even at the household level. Thus, a modern resident of an economically developed country mostly drives an American or Japanese car, watches a TV made in Japan topic for narrative essay, uses household appliances imported from Italy or another European country. And in the morning he drinks Brazilian coffee with French cheese or German ham.

Thus, the problem of ensuring the progressive and proportional development of the world economy, its individual countries is global in nature, because it can not be solved without the interaction of all members of the world community and the use of mechanisms of international division of labor …


Conjuncture of world markets: factors and conditions of formation, characteristics. Abstract

Factors and conditions of formation and development of world markets. Characteristics of the world market of services

Factors and conditions of formation and development of world markets

The term “conjuncture” comes from the Latin word “conjungo” which means “connect” “connect”. The terms “commodity market situation” and “general economic situation” are most often used when referring to the characteristics of a particular situation that has developed at the moment or for a certain period of time in the commodity market or in the national economy.

Characteristics of the market situation include, as a rule, the following:

the degree of balance of the market (the ratio of supply and demand), formed, outlined or changed; trends in its development; strength and scope of competition; the level of stability or variability of its main parameters; the scale of market operations and the degree of business activity; level of commercial risk; market position at a certain point in the economic or seasonal cycle.

Market conditions are characterized by three most important fundamentally distinctive features:

variability; cyclicity; dynamism.

The study of market conditions can be both general, integrated and special, ie differentiated by specific markets. There are market conditions for goods and services on a global scale, on a national scale and in individual regions. This work is devoted to market research in world commodity markets and aims to highlight their specific features.

The study of world commodity markets includes a comprehensive analysis of various factors that affect the state and development of world commodity markets. To quantify changes and identify trends in the development of the situation under the influence of these factors, an appropriate system of indicators is used. The study of the conditions of production and consumption of goods, changes in supply and demand takes place in a certain sequence using the appropriate techniques and rules, which will be discussed below.

The state of the world economy or a particular industry and commodity market at any given time is determined by a large number of factors, causes and conditions of economic development.

The development of the situation is determined by the influence of:

economic; political; military; scientific and technical; climatic; psychological (rumors, panic, expectations) and other factors.

The whole set of conjunctural factors is structured on:

a) permanent and temporary, accidental, spontaneous; b) stimulating factors and factors that hinder economic development; c) cyclical and non-cyclical factors.

In our opinion, the analysis of cyclical and non-cyclical factors is important for clarifying the state and prospects of the situation, so we will dwell on them in more detail.

Market cycles can have different lengths and sequences. Within one cycle, seasonal changes are usually observed, the intensity of which is estimated by the coefficients of variation. The nature and strength of market cycles differ for individual products and are manifested differently in different climatic and economic zones.

Cyclic factors include all the processes and causes that form the basis of the mechanism of the reproduction cycle. These factors are constant. They include:

fixed capital renewal process; demand for consumer goods (state of the sphere of circulation); activity of development of the monetary sphere.

In the course of research it is necessary to establish activity and character of ACTION of cyclic factors, to carry out definition on the basis of the available estimations and results of the analysis of a phase of a cycle in which economy at the given concrete moment of time, to define terms of transition of a cycle to the following phase.

The group of non-cyclical factors is structured into two subgroups: a set of permanent (STP, level of monopolization, government regulation, inflation) and temporary (seasonality, social and political crises, natural disasters) factors.

Consider the directions and nature of the influence of these factors in more detail.

Scientific and technological progress (STP) causes a qualitative throw in the development of productive forces that:

a) accelerates the process of renewal of fixed capital in traditional sectors of the economy. As a result, the market pays special attention to the means of labor, which are characterized by energy and material-saving effect, short payback period; b) stimulates the rapid development of new industries (aerospace, laser, biotechnology, etc.). These industries in the market are growing demand for various means of production.

We will note that on a conjuncture of the commodity markets NTP influences differently:

in the markets of new, progressive products there is an outstripping (compared to the markets of traditional goods) excess of demand over supply; the market situation of obsolete goods, on the contrary, is significantly deteriorating.

The level of monopolization, concentration and competition of production affects the state of commodity markets directly and indirectly:

directly – through direct regulation of production and prices by monopolies due to insufficient competition; indirectly – through the links of monopolists with their foreign affiliates.

After all, as a rule, large companies, often transnational (TNCs), have a monopoly position on the market. And within each TNC there is a special, artificially created market – intra-corporate. Artificially formed proportions of prices, volumes of demand which are established in mutual trade between branches of one corporation, influence the corresponding proportions on national scales. The conjuncture of the world markets is under the influence of these special intrafirm markets.

States, through the use of more or less the following tools for regulating economic processes are able to reduce the cost of production of private enterprises, which, in turn, increases their competitiveness in world commodity markets:

by direct or indirect regulation of domestic market prices; or by budget subsidies for exports and imports (direct subsidies for exports; reduction or abolition of tariffs on certain types of imports).

The most common is the first type of regulation, ie state support of a certain guaranteed price level. This could be, for example, lower prices for products and services of state-owned enterprises that serve private enterprises. In addition, such regulation can be carried out by providing subsidies to producers from the budget in the event of a fall in market prices below the guaranteed minimum.