International division of labor and internationalization of economic relations

Abstract

In the context of the globalization of the world economy, international economic relations have diversified and taken on new dimensions. As a result, the policy of the nation states in this field has also acquired new valences. Freedom of trade and international specialization are the elements on the basis of which the framework in which economic relations between the countries of the world take place, known as the international division of labor, is formed. In other words, the international division of labor presupposes the relations that are established between the states of the world in the process of developing world production and trade, as well as the role and place of each state in the world circuit of material values. It expresses the relations that are established between the national economies regarding the distribution of economic activities between them and shows the way of insertion, position and place of each country and group of countries in the world economy.