Page 14 - Azerbaijan State University of Economics

Adalat J. Muradov, Nazim O. Hajiyev: Competitive environment is the main factor for integration
into the world economy

It was assumed that monopolization will grow louder in the second half of the twentieth

century. However, subsequent events showed that these assumptions are not correct. Also at this

time the increasing number of small enterprises which is an important factor of socio-economic

stability in developed market economy countries was observed. The role of small business

especially increased in 70s when the economic situation in developed countries worsened. For

the first sight a strange economic event has been observed – unlike large enterprises small

enterprises often could stand better to economic difficulties.

The enterprises which number of employees less than 50 created 12 million jobs in USA

in 1974-1984. At the same time, the 500 largest corporations reduced 1.6 million workplace

[Small and medium-sized business.1991. p.3]. The employment of the population in little

industrial companies on average increased by 2.5% annuals in France on the second half of 70s,

in average industrial companies this figure remained stable, in big industrial companies

decreased by 1.2%. As little and medium-sized companies compensated reductions on big

companies creating approximately 670000 workplace, big companies reduced more than by

200000 workplace in 1977-1985 in Germany [Small business in Western Europe. 1991. p.12].

The rapid development of small enterprises was continuing in the condition of

economical renascence in the years of 80-90s. This condition showed that growth of economical

importance of certain economic sector is natural and long-term tendency.

The changes in production structure also forced development of competition. This is

firstly related with leading direction of big corporation’s renascence was diversification of

production beginning with 60s years.

The objective basis of diversification is sudden destroy of production structure by

scientific-technological progress. In this condition additional capital created in mature spheres is

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