Essence, functions and pricing system

In economic science, there are two diametrically opposed approaches to determining the essence and size of the price of goods. The first is represented by the classical concept of pricing, based on the labor theory of value, according to which each commodity has a “value” and a “price”. Value is the socially necessary labor costs […]

Market and market economy

The concepts of “market” and “market economy” are not identical. As already mentioned, the market in one form or another has existed since then, since which commodity production operates. However, commodity production and the market do not always and necessarily lead to a market economy, although the latter implies a high level of market development. […]

Theory of the ratio of factors of production

In their theories of absolute and relative advantage, Smith and Ricardo showed how production can be increased if countries specialize in production that has an advantage. They accept that the functioning of the free market itself will lead producers to goods that they can produce with the greatest efficiency, and  will force them to abandon […]

Problems posed by TNCs in the home country

Despite the obvious competitive advantages and high level of economic efficiency, TNCs are seen as economic agents capable of creating economic problems in both the home and host countries. The most frequent criticism of TNCs in home countries relates to accusations of domestic employment losses: foreign direct investment by TNCs abroad leads to “job exports”. […]

The concept of "world economy"

The world economy is a complex economic organism. It did not arise immediately in a ready-made form, but a long period of formation, which fit within the framework of many centuries, passed. Currently, in the educational and scientific literature, two main approaches to the disclosure of the essence of the world economy have been outlined. […]