The existence of the world economy occurs under the influence of basic laws. Economic laws, long discovered by D. Ricardo and A. Smith, underlie the functioning of the economic system. The laws of absolute advantage and relative advantage are universal. The first says that it is more economical (expedient) for any country to import those goods that bring high costs, and to export those goods whose costs are lower. The law of relative advantage says that different countries produce the same types of goods, but some of them have certain advantages in the production of these goods over other countries. This advantage is due to climatic and geographical conditions that have long been established traditions and some other factors. Thus, it is more profitable for some countries to buy certain products from those countries where their production is more efficient.
Economic laws and categories study the system of economic and financial activities of people, as well as the principles of its organization. The methods of economic theory are synthesis and analysis, deduction and induction, the unity of logical and historical approaches, quantitative and qualitative analysis, as well as a systematic approach. Distraction from non-essential properties and phenomena of the system, and focusing on the most significant is an abstraction. In the analysis, the studied object or phenomenon is divided into its constituent elements and the study of all of them separately. Synthesis is the reverse method of analysis, so when it is used, a combination of the analyzed dissected elements occurs. Induction is a movement from the unit to the general, and deduction is a movement from the general to the unit. Induction and deduction in the process of cognition are almost impossible to separate. Basic economic laws show phenomena in development and movement. They also explain economic processes logically. Most of them develop on the basis of progressive quantitative changes. They can be carried out only to a certain level, which is called the measure of quantitative changes. In the case when quantitative changes become impossible in the future, a qualitative change is assumed. A systematic approach to economic theory suggests that any economic phenomena are studied in structure and composition.
Economic law refers to a relationship expressing the true nature of a particular economic process. All of these categories allow you to study these relationships and processes in detail.
Economic laws are those arising between economic processes and dependency phenomena that express their essence. Their most important classification criterion is the duration of action. The general ones are those that operate at all times of the existence of human society, at any stages of its development. These include the laws of division, cooperation and labor change; increase in labor productivity. There are special economic laws that apply only in certain eras (within the framework of certain methods of production).
Economic laws:
- demand, supply;
- increase in additional costs;
- elevation of needs;
- scale of production;
- time saving;
- competition
- the relationship of costs in the field of consumption and production.
Economic categories, which are logical concepts, reflect in general terms the most essential conditions of the existing economic life. These categories include labor itself, methods and objects of labor, product of labor, and consumer value. Some manifestations of relationships between people appear in the following categories: price, money, profit, value. Each law around itself groups a certain number of different economic categories.