economy

The concept and main types of economic relations

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The concept and main types of economic relations
The concept and main types of economic relations

Video: What is International Economics? | IB International Economics Explained | IB International Economics 2024, July

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The history of economics has long studied the study of schools in this area. Scientists tried to find a point of intersection. It became economic relations. This concept denotes a process in which cooperation develops between two objects in the manufacturing process, division, exchange, use of goods. Economic schools were different. But all of them, one way or another, investigated this aspect. For example, mercantilists paid attention to trade relations, and physiocrats paid attention to cooperation in agriculture and other branches of production.

General terms

The concept and types of economic relations can be defined in different ways. Obviously, this term implies a relationship between someone. More often than not, it indicates a person’s interaction with any thing. But you need to look at this definition from the point of view of economic science. And therefore, we are talking about the relations of economic entities with respect to goods.

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By “thing” is meant not only an object, but also an intangible object, for example, information. Given that this is an economy, money is also involved in such relationships. But that is not all. All types of economic relations are based on the interaction of economic entities about things.

Variety

So, society stands on several “columns” that make it civilized. Among them, in addition to economists, politicians, lawyers, sociologists and others interact with each other. The main types of economic relations are manifested not only between people, but also between entire collectives, parties and even countries.

In science, there is no definite classification of this term. Basically, this includes organizational and economic relations and socio-economic. Textbooks add to these two types still production or, as they are also called, technical and economic.

For man

As mentioned earlier, it is impossible to finally determine the classification and indicate the types of economic relations. And yet, the main ones are social ties. They are created to protect the interests of a person or group of people. Besides the fact that a person can be a driving force in the manufacture of goods, she is also its main consumer. Therefore, this type of connection should not exploit a person only as a mechanism for creating something.

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Property relations are, first of all, the interaction between classes, groups, collectives and members of society. The commander in chief in this regard is the one who took control over the manufacture of the goods, who was able to appropriate its factors and achievements. Basically, socio-economic relations depend on the form of ownership, conditions and the result of manufacturing.

Think ahead

Types of economic relations lead us to organizational ties. They appear due to the malfunctioning of production without coordination. Such relationships should be formed for any joint efforts of people. Organizational and economic relations are found in the economy, commerce, catering, science or education. This includes various types of economic relations, a market system, business, or commodity-money circulation.

It is worth noting that this is the most ancient type of relationship. Its first manifestation was fencing off agricultural crops from cattle breeding. In modern society, the division of employment depends on the quality and quantity of reserves, the ability to coordinate them, and ensure the effectiveness of their use. For this type of relationship to work correctly, it is necessary to pay attention to the narrow specialization of workers. It is such a residency that is the fundamental form of division of activity.

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This also includes cooperation. Joint work and the implementation of the work of a significant number of employees who carry out their operation in one process can be quite effective in production. But for this, it is also necessary to attract organizational and economic relations.

Together or apart?

If we take into account the above, it becomes clear that this type of economic interaction has its own classification. This type of communication can be of three types:

  • Division of labor / cooperation.

  • Coordination of chores.

  • Economic management.

In the first case, there is a separation between the areas of the economy, organizations or their internal branches. In the second - an association for the joint manufacture of products. Businesses can expand, and collaboration becomes permanent. The following two types are distinguished by the fact that a subsistence and commodity-market economy or spontaneous market and state-planning regulation are involved in relations.

The basis of the economy

The main types of economic relations include production interactions. They are the basis for the coordination of society. Similar relationships arise in the interaction of persons in the work. Production as a process has several stages: production, division, barter and use.

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It is clear that the result of processing will always be a product that is necessary not only for the existence of the individual, but also for its development. Before the distribution stage there must be production of something. And here comes the coordination of the share and volume of the product obtained. The section in this case can be stated in a wide and narrow sense. A globally similar process is based on how to distribute labor and reserves in different areas of the economy. In the narrow sense, a section is the formation of a certain share for each participant in these relations. Moreover, the size of this part is determined by the rights and volumes of output.

Another production stage is exchange. In this case, the goods begin to move in society. The mediator in this process is finance. Well, the last step is consumption. In this case, the production results are exploited to meet needs. This stage leads to the complete elimination of the subject, after which the first stage again begins - production. In conclusion, it is worth noting that these relations are directly related to a person, since they cannot exist in an isolated society. Also, an industrial enterprise is considered a continuous process: people will not be able to stop consuming goods, which means that production will continue. Also, the section, exchange and operation will not disappear.

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