The concept and main types of economic relations

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:40

The history of economics has long studied the study of schools in this area. Scientists tried to find the intersection point. It became economic relations. This concept denotes a process in which cooperation is formed between two objects in the process of manufacturing, sharing, exchanging, using a product. Economic schools were different. But all of them, one way or another, explored this aspect. For example, the mercantilists paid attention to trade relations, and the physiocrats paid attention to cooperation between agriculture and other industries.

General Terms

The concept and types of economic relations can be defined in different ways. Obviously, this term implies a connection between someone. Most often, it indicates the interaction of a person with any thing. But you need to look at this definition from the point of view of economic science. And so we are talking about the relations of economic entities regarding the goods.

By "thing" is meant not onlysubject, but also an intangible object, for example, information. Considering that we are talking about the economy, money is also involved in such relations. 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, etc. interact with each other. The main types of economic relations are manifested not only between people, but also between entire teams, parties and even countries.

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

For human

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

Property relations are, first of all, the interaction between classes, groups, collectives and members of society. Commander-in-Chief in thiscommunication is the one who took control of the manufacture of the product, who was able to appropriate its factors and achievements. Basically, socio-economic relations depend on the form of ownership, conditions and the result of production.

Think ahead

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

It is worth noting that this is the most ancient type of relationship. Its first manifestation was the fencing off of agriculture from cattle breeding. In modern society, the division of occupation 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 employees. It is this residency that is the fundamental form of separation of activities.

This also includes cooperation. The joint work and implementation of the work of a significant number of employees who perform their operation in one process can be quite efficient in production. But for this it is also necessary to involve organizational and economic relations.

Together or apart?

If you take intoattention to the above, it becomes clear that this type of economic interaction has its own classification. This type of connection can be of three types:

• Division of labor/cooperation.
• Coordination of chores.
• Economy management.

In the first case, there is a division between areas of the economy, organizations or their internal branches. In the second - an association for the joint production of products. Businesses can expand and collaborations become permanent. The next two types are distinguished by the fact that natural and commodity-market economy or spontaneous market and state-planned regulation are involved in relations.

The backbone of the economy

Production interactions also belong to the main types of economic relations. They are the basis in the coordination of society. Such relationships arise when people interact at work. Production as a process has several stages: production, division, barter and use.

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. But then there is coordination of the share and volume of the resulting product. The section in this case can be stated in a broad and narrow sense. Globally, such a process is based on the distribution of labor and reserves over different areas of the economy. In a narrow sense, a section isthe 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 manufactured products.

Another stage of production is exchange. In this case, the goods begin to move in society. Finance is the mediator in this process. Well, the last stage 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 relationships 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, partition, exchange and exploitation will not disappear.

Conclusion

This is how we learned what economic relations (types) are. Economic systems are associated with this term. Their definition is rather vague, yet we can say that this is the totality of all existing economic elements that are interconnected with each other. Economic systems act as an integral economic structure of society. Types of economic relations achieve unity in the four stages of production.