International division of labour in the time of nowadays Globalisation. Difference with the previous stage of Globalisation

Division of labor is the specialization of cooperative labor in specific, circumscribed tasks and like roles. Historically an increasingly complex division of labor is closely associated with the growth of total output and trade, the rise of capitalism, and of the complexity of industrialization processes.

In one study, Deon Filmer estimated that 2,474 million people participated in the global non-domestic labor force in the mid-1990s. Of these,

• around 15%, or 379 million people, worked in industry,

• a third, or 800 million worked in services,

• over 40%, or 1,074 million, in agriculture.

The majority of workers in industry and services were wage & salary earners - 58 percent of the industrial workforce and 65 percent of the services workforce. But a big portion was self-employed or involved in family labor. Filmer suggests the total of employees worldwide in the 1990s was about 880 million, compared with around a billion working on own account on the land (mainly peasants), and some 480 million working on own account in industry and services. "ILO Global Employment Trends report" indicates that services have surpassed agriculture for the first time in human history: "In 2006 the service sector’s share of global employment overtook agriculture for the first time, increasing from 39.5 per cent to 40 per cent. Agriculture decreased from 39.7 per cent to 38.7 per cent. The industry sector accounted for 21.3 per cent of total employment.

Recent changes in the patterns of world production are driven by trade liberalization, technological change and economic reforms. Economists have a set of tools for understanding these changes. Theories of comparative advantage suggest that differences between countries determine what they produce: Countries with, say, lots of skilled workers produce skill intensive goods. New Trade Theory downplays differences between countries emphasizing instead differentiated goods and economies of scale: Globalization leads countries to specialize in varieties (Germans make BMWs; Swedes, Volvos), allowing longer production runs and lowers costs; trade allows consumers greater choice, and of course labor mobility between countries plays a great role in global changes.

5. Role of international economic organisation in modern international economic relations. Classification of international economic organisations.

IOs: organizations established by intergovernmental treaties for considering and settling issues related to international economic relations.

Intergovernmental organizations: established by states and they are subjects of the international law. These regulate the world economy.

Non-governmental organization (NGOs): a legally constituted organization established by legal entities or an individual that operates independently from from any government. May have some influence.

The International Organizations play an important role in coll ecting statistical information, analyzing the trends in the variables, making a comparative study and disseminate the information to all other countries. There are some intergovernmental organizations that have set international Minimum standards. Such norms are difficult to be set at the state level.

There are some international organizations that perform certain supervisory functions. The supervisory system of the UN is very weak. In contrast, the supervisory mechanism of the ILO (int. labor org.) is quite strong. The European Union, together with the Commission and the Court of Justice, has a relatively strong supervisory mechanism.

The third function of the international organizations is setting up multilateral or bilateral agreements between countries.

Another function, that has assumed importance in the recent times, is lending out technical cooperation to the member countries. By technical cooperation we mean the provision of intellectual or financial material to the countries, which require them.

Amongst all the roles and activities of the international organizations, the most important is negotiating and setting up multilateral agreements. Minimizing the transaction costs can strengthen the cooperation between different countries. Beside they also provide lucidity (ясность) and information. For negotiations, forums for bargaining are set up and focal point structures are constructed during negotiations.

Classification:

1. Included in the system of the UN organizations/related to it

2. Not related to the UN and not linked with it

3. Regional organizations