Classification principles

Since the balance of payments is a statistical summary of a country’s transactions with the outside world, each transaction must belong to a particular section in accordance with certain classification principles. The definition of standard balance-of-payments components is based on the following main considerations: the allocated balance of payments component should differ in behavioural patterns […]

Functions of economic theory

Studying economic phenomena and processes, laws and patterns of their course and development, the mechanism of management, economic theory performs three main functions. First, it is a cognitive function. It means that economic theory as a science serves people to learn complex, largely interdependent and intertwined processes of economic development, indistinguishable to superficial observation, to […]

The concept of globalization. Factors in the development of globalization

The consequence of the development in breadth and depth of the processes of the international division of labor was, in particular, the increase in economic interdependence in the world economy at the micro level – between enterprises engaged in foreign economic activity, as well as at the macro level – between national economies. The globalization […]

International production cooperation: the main features and types

The objective basis of international production cooperation (MCP) is the growing level of development of production forces, the degree of their division into industries, production, enterprises. A powerful stimulus for the development of the MCP was the radical transformation in the conditions of str of the primary cell of production – an enterprise from which […]

Competition in industries at a stage of stagnation or recession

Many companies operate in industries where demand is growing more slowly than the average for the economy or is completely negative. Winding down the business in order to obtain as much cash as possible, selling assets and preparing for the closure of the enterprise is a logical solution for weak companies with unclear long-term prospects. […]