Types of production and their characteristics: corporations in the modern economy

The main characteristics of a market economy are the corporate type of management, enterprises and institutions based on a joint-stock ownership form. They are considered not only as types of production and their characteristics, formation and activity of corporations is considered as a characteristic of the degree of the entire civilizational development of the country, as a strategy of its inclusion in the world economy.

Considering the main types of production, it is important to note that the main thing is not in the category "corporation" itself, but in what types and methods of organization of production and all activities constitute their content.

The main distinguishing feature of the corporation is the association of persons, economic entities, for conducting joint business activities in any sphere of the economy.

P. Drucker, back in 1946, in a famous work, "Principles of the Corporation," wrote that the corporation is called upon to answer who and how in the world can ensure the most effective of its economic development. A large corporation is not even so much an economic institution as a socio-political institution. This determines its internal types of production and their characteristics.

Corporations play an ambiguous role in the development of competition. There is a misconception about the constant development of competition in the current economy. In fact, there are two trends: one aimed at fading competition, the most important feature of which is the reduction in the number of its subjects and the scale, and the other is related to increased competition between states and TNCs, while maintaining some traditional territorial competitive relations, including small and medium-sized businesses .

Obviously, the main reason for the distribution of capital are the types of production and their characteristics, and as a result, the increase in the power of the corporation is the advantage of large-scale production in the form of economies of scale. The essence of the latter is that as the size of enterprises grows, the tendency to reduce costs begins to act.

One form of corporate structures is the oligopoly, the attitude to which from the side of society is ambiguous, as well as to monopoly in general. The difference between an oligopoly and a pure monopoly is that an external demonstration of competition is preserved. So, the types of production and their characteristics from the position of society, are formed in such a way that the oligopoly is more desirable than the monopoly. At one time, J. Schumpeter and J. Hepbreith believed that large oppogopopasticheskie companies are necessary for the rapid growth of NTP. The development of new products and technologies is very expensive, and only opogopopisticheskie firms are able to finance it. Barriers to entry into the industry for competitors guarantee the oligopolist confidence in making a profit, some of which can be channeled to R & D. According to scientists, the oligopoly contributes to the improvement of quality, the reduction of production costs and prices, and can also contribute to an increase in output and employment compared to a sector organized on a competitive basis.

Concentration of production (and therefore, monopolization of the economy) not only contributes to the extinction of competition due to the reduction of competitors, but also contributes to the NTP, i.e. Appears in a role that is usually attributed to competition. As a result, in the second half of the last century, the formation and development of transnational corporations replaced the strengthening of monopolization and integration . It should be considered that this process is still only in its initial phase, because now in the world there is a rapid rethinking of the system of building the world economy and its forms.