THE MECHANISM OF DEVELOPMENT OF COOPERATION OF ENTERPRISES ON THE SCALE OF THE NATIONAL ECONOMY

Authors

DOI:

https://doi.org/10.32782/city-development.2024.2-14

Keywords:

cooperation, a sign of cooperation, cooperation development mechanism, absorption, association, concentration

Abstract

The main driving force of material production is the personal interest of a person, and the general fundamental foundation of his life activity is individual work with the right to its results and ownership of the means of production. However, the possibilities of an individual producer-owner, especially a small or medium one, are limited. The greatest effect is achieved only in various types of interaction, a unique form of which is cooperation. This is a general form of labor organization, a way of creating a single, effectively functioning system of social production, which complements the division of labor, its specialization and deepening. As a result of these processes, cooperation is becoming increasingly large-scale, covering all levels of activity. Alone, they cannot successfully compete with large players, especially medium and small ones, so it is important to combine them into a single production and technological process. Cooperation at the current stage is precisely the promising direction that allows progress in the development of the country's industrial complex. The article is devoted to the analysis of the problems of the development of cooperative relations as the basis of innovative development of the national economy and food supply of the country. Foreign experience and domestic practice show that one of the key areas of effective development of enterprises, especially small ones, is the formation of strong cooperative and integration ties with counterparties. When creating a cooperative association of enterprises, an important step is the development of a model of relations between the subjects of the cooperation. The main principle should be that the relationship mechanism provides equal opportunities to benefit from joint activities for all subjects of the cooperative. The economic mechanism of mutual relations should ensure the relationship in a cooperative formation based on the equivalence of mutual settlements, which guarantees the reimbursement of costs and the receipt of profit by all participants. Internal estimated prices must compensate for the costs of members of the cooperative association and ensure the necessary savings, taking into account the specifics of production.

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Published

2024-08-23

How to Cite

Fimyar, S., & Koval, D. (2024). THE MECHANISM OF DEVELOPMENT OF COOPERATION OF ENTERPRISES ON THE SCALE OF THE NATIONAL ECONOMY. CITY DEVELOPMENT, (2 (02), 113–120. https://doi.org/10.32782/city-development.2024.2-14

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