Page 15 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.71, # 2, 2014, pp. 5-20

firstly directed to new spheres- high profit and speedy developing spheres. To penetrate this

sectors not only scientific-technological base but also methods as absorption of operating

companies is used. The diversification of corporations pushes all entities into competition.

The transnationalisation of big corporations which is objective reason of economical

globalisation also plays an important role to boost the competition. The issue is not only of low

developed countries’ and transition economy countries’ attraction to the process of international

competition sphere but also empowering of competitive condition in local markets of developed

countries. Governments of developed countries purposely use international competition as a tool

of pressure to their monopolists to stimulate innovations and to increase effectiveness.

Continuing and harmonized policy of opening developed countries’ markets for import of goods

and services and encouragement of international competition created reasonable condition for

empowering competition.

Substitutes which strengthened thankfully to improvement of transportation and

telecommunication as well as use of accomplishments of scientific-technological development

not played a little role to limit monopoly trends.

Empowering of competition gave back market mechanism the role of autonomous

regulator of economic balance. Renaissance of market was an objective reason of neoliberal

wave in economics and economical experience. Even in developed countries in the 80s states

economic role was re-considered and reregulation of economy was begun.

In this way historical period is noticed in development of competitive relations. In middle

ages’ manufacture production system markets operating with artificial monopoly and no

competition were noticed. In the next step of economical development market gradually decreases

monopoly condition and enables competitive mechanism. Free competition becomes an invisible

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