"The Competition in the World Economy and It's Determinants"

Abstract

International Congress of Science, Education and Technology Research Odessa National I.I. Mechnikov University, Ukraine 10-12 August 2018 P.55

4 . This work was supported by BAP of İstanbul University. Project Number: BYP-2018-31170

The Competition in the World Economy and Its Determinants4 Ali Osman Balkanlı In the 1600s, the world economy has began its long period of crawling in industrialization journey. This process has lasted until 1950's. After the 1950s, in a growing form, remarkable changes emerged in the structure and composition of the industry. In particular, with the discovery of transistor instead of the vacuum tube in electronics, a dizzying process has begun. The distinctions between the 1st Industrial Revolution and the 2nd Industrial Revolution provide important explanations about the development and shaping of the industry in the world economy. Altough these distinctions are important, the discovery of the transistor is more important, especially in under standing today's electro-economic change. Transistors are the most basic piece of today's computers and telephones and health check machines. The difference between their earlier versions and today's transistors is mainly related to the diminution of their dimensions. Nowadays, what we call processor is the combination of a large number of transistors as a single product. If we think that today's main processor in a computer has 4.000.000 transistors, we can easily understand the form of change. Therefore, in examining the intense competition in today's world economy, it should be said that the first factor underlying this competition is the electronic development and technology that started in 1950s. A key determinant of competition in the world economy is the comparative advantage of factor equipment (Factor endowment theory). This factor is influential in many cases in the world economy in one way or another way. Another determinant of competition in today's world economy is the high level of production know-how flexibility and the training of productive work force. This is a major factor, especially because of the effects on the production process and on the products. On the other hand, another factor that is important in the competitiveness of the economies and the firms in the world economy is ability to offer economic stability of the states. As we have seen in nowadays, the economic decisions of governments also determine the international economic conditions of countries and firms. In this study, the role and significance of these factors in the competitiveness of the countries in the world economy will be examined. Keywords: competition, world economy, determinants, factor