The geographical division of labor enables countries to develop separate branches of production, without experiencing problems with the lack of goods for which there is demand, but which is impossible or economically unprofitable to produce in their territories. The system of exchange of products between countries arose in antiquity, and with the development of technology and transport is only growing.
Definition
The geographical division of labor is a spatial form that implies a social division of labor. An important condition is the gap between the place where the product is produced and the place where it is consumed. In other words, different countries work for each other - this is the geographical division of labor.
In the understanding of the term erroneous judgments also occur. Some experts include the term geographical division in the concept of the world geographical division of labor. However, this is not entirely true, since rather any global division of labor is part of the concept of a general geographical division.
Cases of division of labor
There are two cases of division of labor:
- Absolute. In this case, the country imports a product from another state for reasons of impossibility of producing it in its own territory for geographical, technical or other reasons.
- Relative. The country imports the product, but can also produce it in its own territory. In most cases, the reason is the economic disadvantage of production on their own territory.
History of the geographical division of labor
In ancient times, the concept of geographic distribution of labor resources was understood as the division between small territories, in most cases that covered the Mediterranean.
Further, already in the Middle Ages, the sphere of the geographical division of labor was not only European territories, such as France, Italy and England, but the territory of the Moscow state, as well as Indochina and Madagascar.
With the creation of railway transport, labor relations also entered the interior of the continents. The economic benefits received by participants have had and have been highly influential in the geographical division of labor.
Factors affecting the geographical division of labor
An important factor in the development of the geographical division of labor between the two countries is the high difference between unit prices and low transport costs. Every year, the improvement of transport leads to lower costs for the transport of goods, and thereby increases the volume of trade between the two countries. The geographical division of labor in this case develops both in depth and in breadth.
Benefits
With the development of the geographical division of labor, its productivity also rises. Countries, guided by their own capabilities and conditions, select several industries in which they can succeed. The development of several sectors most favorable to the state leads to increased productivity and lower unit costs. The reduction in cost is directly proportional to the increase in profit.
With the development of the territorial division of labor, consumers strengthen their own needs, as well as create new ones, which is also an engine in the relationship of supply and demand.
The geographical division of labor is an opportunity for the development of transport equipment. As well as the economies of individual states as a whole.
International geographical division of labor
MGRT refers to a narrow focus in the production of goods and services of individual countries and the subsequent exchange of them. This is an industry of international specialization for each individual country. In other words, each country is characterized by a specific industry, which is more oriented to the export of a certain type of product.
There are a number of conditions for the emergence of such international specialization:
- the presence of a number of advantages for the production of certain products (this may be geographical or other conditions);
- it is necessary to have separate countries that do not have the ability to produce goods in this industry, but are in urgent need of them;
- transport costs should be acceptable to the exporting country;
- the volume of production in this industry should exceed the demand in the domestic market.
Examples
Examples of the geographical division of labor:
- Japan's international specialization is automobiles, robots, and electronics;
- Canada's international specialization is forestry;
- Bulgaria's international specialization is agriculture;
- The United States is actively exporting medical supplies.
The role of Russia
Russia in the international geographical division of labor is far from the last position. The country's international specialization is mainly the extraction of natural resources: oil, gas, diamonds. Russia's participation in the geographical division of labor is also observed in such areas as the extraction of aluminum and nickel.
Most of the country's exports are unprocessed raw materials. The main importers of Russian products are the countries of the European continent, as well as America. A large share of imports in the country falls on automobiles, medical preparations and equipment. In addition, the share of imported food products is high.