WHAT IS THE INTERNATIONAL DIVISION OF LABOR? FEATURES - CULTURE VOCABULARY - 2024

The international division of labor is understood as the division that exists between countries in the world production process. It arises in the middle of the 19th century and has a greater consolidation during the first half of the 20th century.

The international division of labor is a term that explains how each of the countries is inserted in the world economy, specializing in the production of certain goods and services, and causing countries to be classified according to their economic base.

In this sense, on the one hand there are the central or industrialized countries, whose economy is based on industrial production.

On the other hand, there are peripheral or non-industrialized countries, which are economically supported by the export of food and raw materials.

The main objective of the international division of labor is to take advantage of the resources and productive capacities that each country has.

At the same time, it fosters commercial exchange by establishing economic ties between countries.

Origin

The international division of labor originated in the middle of the 19th century, as a consequence of the need that industrialized countries had to buy raw materials due to the productive increase of their industries.

The increase in the production of industries and the demand for goods and services made it impossible to keep up with the production rate, since they did not have the amount of raw material necessary to keep up with the demand.

For this reason, it was necessary for the countries of America, Africa and part of Asia to start producing the raw material that the industrialized countries did not produce.

Consequently, the division of countries into two large economic classes arises: the industrialized or central countries, and the non-industrialized or peripheral ones.

Industrialized countries (also known as developed and / or central) were those that possessed the technology, experience, and economic support necessary to engage in industrial production.

On the other hand, the non-industrialized or peripheral countries were those that did not have the conditions for industrialization, but had natural wealth.

This allowed them to dedicate themselves to the exploitation and export of the most abundant raw material in each country.

Characteristics of central and peripheral countries

Central countries

- They maintain a high level of industrial and technological development.

- They have high levels of annual production.

- They have high rates in the education of the population.

- They have low levels of infant mortality.

- They have low levels of poverty.

- The majority of the population of working age has a job.

Peripheral countries

- Initially, they presented an increase in external debt (currently some countries have solved this problem by applying a new economic system).

- They are exploiters and exporters of raw materials.

- In some cases they have low education rates.

- They have high levels of poverty.

-In some cases, the population of working age is unemployed.

Among the peripheral countries are: Argentina, Uruguay, Brazil, Colombia, Ecuador, Bolivia, Venezuela, among others.

These stand out in the export of rice, corn, cotton, sugar, cocoa, coffee, meat, iron, aluminum, coal, copper, wood and oil, among others.

It should be noted that some of the aforementioned countries are on the way to development. For this reason, they own some industries.

Advantages and disadvantages of the international division of labor

Advantage

- Promotes productive development.

- Promotes commercial exchange between countries.

- It promotes the reduction of production costs (specifically for industrialized countries).

Disadvantages

The international division of labor produced the unequal distribution of wealth, since the raw material produced by non-industrialized countries had a lower cost than industrialized products.

This occurs as a consequence of the existence of the phenomenon called "deterioration of the terms of trade", where it is evidenced that the raw material loses relative value (value conditioned by own or other people's need) alongside industrialized goods, causing countries to peripherals are decapitalizing.

Consequently, with the international division of labor, the industrialized countries were favored, increasing their wealth while poverty increased for the rest.

Another disadvantage of the international division of labor is that it causes underdeveloped countries to depend economically on the great economic powers, preventing the establishment of industries, which would give them economic independence.

For this reason, it is said that this division only benefits the great powers.

The new international division of labor

After the Second World War a new capitalist economy emerged based on the massive migration of capital from industrialized countries to countries that were not.

Consequently, it is evident that the international division of labor was not in accordance with the reality of the 19th century.

Today globalization and technological advances have led to the emergence of a new international division of labor, since those countries that were producers of raw materials now generate industrialized products.

This change arises as a consequence of the investment of transnational companies: it is cheaper for them to produce in underdeveloped countries because wage costs and taxes are lower than in developed countries.

For their part, the core countries are now focused on developing advanced technology and making their capital profitable, through national and international investments.

In this sense, now there are two large groups: those that produce thanks to foreign investment, and those that invest in other countries and develop quality technology.

However, there is still economic dependence and now it is added the excessive increase in the purchase of latest generation electronic devices.

Consequences of the new division of labor

- Increased competitiveness among industrialized countries seeking to expand their production.

- Requires a higher level of worker training.

- Causes the relocation of production in various parts of the world. For this reason, it is observed that not all parts of a product are made in the same place.

- In some countries there is an increase in the time stipulated for working hours.

- Specialization in a specific field of production.

- Unequal distribution of wealth.

References

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