What is the international geographic division of labor?
The international geographical division of labor (hereinafter MGRT) is the specialization of the countries of the world in the production of certain goods or the provision of certain services. MGRT arises from the fact that the countries of the world have absolute or relative advantages in the production of goods or services. For example, Ecuador has an absolute advantage over Russia in banana production. They just don’t grow up in Russia. Banana production is an international industry in Ecuador. The grapes grow in Russia and Armenia. In Armenia, summers are hotter and drier, so the local grapes contain more sugar and are ideal for the production of cognac. In Russia, no matter how hard you try, you cannot grow such grapes. Therefore, it is more profitable to buy raw materials for winemaking in Armenia or buy ready-made cognac. And sow the vacated lands with, say, wheat, for which there is not enough space in Armenia due to the mountainous relief. Armenia has a relative advantage over Russia in grape production, and Russia in wheat production. There are many forms of MGRT. This is trade in goods and services, and scientific and technical cooperation, joint production of goods, tourism, the provision of international loans and credits, and more. MGRT united the national economies of the countries into a single world economy.
