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ECONOMIC ACTIVITY - a set of actions at different levels of economic activity, as a result of which people satisfy their needs through the production and exchange of material goods and services. The definition of this term is closely related to the definition of the economy itself. An activity becomes economic when it aims or has the effect of producing and exchanging goods or services that are recognized as either useful or rare. Economic activity has a certain sphere of application of forces: agricultural, industrial, handicraft, activities in the field of import, export, activities of liberal professions, etc. The term is also used in a general sense. It serves in this case to characterize the volume of all economic life over a certain period of time and within a certain territorial community; Here, activity is measured using such general indicators as gross national product, gross domestic product.
ECONOMIC (from Latin integer - whole) - combining any parts into a whole. In relation to the economy - the unification of economic entities, the deepening of their interaction, the development of close ties between them. There are vertical and horizontal integration. In the first case, enterprises of one industry specialize in the manufacture of components, parts, and blanks necessary for the production of the final product. In the second, enterprises whose production is characterized by technological commonality and homogeneity of products are united.
In relation to the international economy - the interweaving of national economies and the formation on this basis of interconnected complexes for the production of any product. Closely related to processes such as the international division of labor, interstate cooperation and specialization. The objects of international integration can be: trade and customs relations; currency relations; finance, large investment projects. World integrating development has gone through three stages: Stage I - expansion of sustainable economic ties between individual countries, their internationalization (late 19th - first half of the 20th century); Stage II - the beginning of the formation of the world economy as a single whole and its institutions (IMF, World Bank);
Stage III - which began in the 1970s. and received its greatest development at the turn of the 20th and 21st centuries.
The current stage of economic integration is characterized by the expansion of trade integration. There is a tendency towards the erosion of customs barriers between countries and the removal of non-tariff restrictions. The export quota, i.e., the share of exports of goods and services in total world production, is constantly growing. Fundamental changes are taking place in the structure of world trade. The share of finished products in it, as well as services: transport, tourism, financial, is steadily increasing. The share of trade in services related to intellectual property is growing.
The current level of integration of countries belonging to the European Union (EU) is characterized by a transition from partial coordination in the field of economic development to the development of a common economic strategy and policy, the approval of their main guidelines, as well as monitoring their implementation. The highest stage of monetary, economic and financial integration is the formation of the European Monetary Union (EMU), which has already included 11 countries, and the creation of the European Central Bank. Single currency - euro - in 2002. will replace the national currencies of the EMU member countries. A high level of integration has also been achieved in the North American region. Within the framework of NAFTA (North American Free Trade Area), the US, Canada and Mexico coordinate their economic activities.
Economic activity- this is any activity of economic entities aimed at obtaining economic benefits. Economic activity is aimed at ensuring the life of an individual and society.
The subjects of economic activity in a market economy are: households, firms, and the state.
Household involves a group of people (or one person) jointly making decisions regarding the use of their resources. In the market economy model, the main function of households is consumption.
In this case, households are:
Buyers and consumers of final goods produced by firms and the state;
Owners of production resources.
Firm- an organization that uses resources to produce goods and services for the purpose of their subsequent sale on the market in a market economy model. The main function of firms is production.
At the same time, companies:
Acquire production resources on the market of production factors;
Produce goods and services;
They sell produced goods on the goods market.
The state includes all central (federal), regional (republic, territory, region, etc.) and local bodies that provide legislative, executive and judicial activities. In the market economy model, the main function of the state is to regulate economic activity.
At the same time, the state:
Is a buyer and consumer of both production factors and goods and services;
Produces and sells goods and services;
Manages the resources belonging to him;
Redistributes cash flows and income.
Each economic entity in a market economy has basic goals, for example:
The goal of the household is to maximize the satisfaction of needs;
The purpose of the companies is to obtain maximum profit;
The goal of the state is to ensure the maximum level of well-being of the country's population.
In an effort to achieve the main goals, economic entities enter into economic relations, which can be presented in the form of a model of economic circulation (figure).
Scheme of the circulation of resources, goods, services and money
Modern economic (business) activities of market economy subjects are built on the basis of the following economic phenomena:
Entrepreneurship;
Entrepreneurship is the economic activity of an economic entity using novelty and invention, aimed at making a profit.
Commerce- this is the trading activity of people aimed at obtaining trading profits. This is part of entrepreneurial activity in the sphere of circulation, consisting primarily of concluding trade transactions. The main goal of modern commerce is comprehensive servicing of production and rationalization of the sphere of circulation.
The newest forms of modern economic activity include leasing, factoring, and franchising.
Leasing is a long-term rental of machinery and equipment for the purpose of their production use.
Factoring is a form of commercial activity that represents debt management.
Franchising is an agreement concluded between large and small companies, according to which a large company allows small enterprises to sell their products on its behalf (this is how, in particular, the McDonald's group works).
Management- a set of principles, methods, means and forms of production management, developed and applied with the aim of increasing production efficiency and increasing profits. Management is also the science of managing human relations in the production process and the relationships between consumers and producers. Here we explore ways and means of influencing the production process itself and the people involved in it in order to achieve the best results. A manager is a professional manager, general director, leader who knows psychology, sociology, production organization, etc.
Marketing- a system of measures to study the market and actively influence consumer demand in order to expand sales of manufactured goods and introduce new products into markets.
Economists view marketing as a philosophy of the market, as a type of human activity aimed at satisfying needs and wants through the market.
The main purpose of economic activity is
transformation of limited resources into vital benefits - goods and services.
Services should be distinguished from material goods:
o goods are material, and services are intangible, intangible. For example, skis or a movie are goods, and renting skis or showing a movie are services;
o services are inseparable from their source, for example a ski rental point;
services cannot be accumulated: if skis can be stored, then ski delivery cannot be stored;
If a person buys a thing, he acquires ownership of it, but when using the service, the transfer of ownership does not occur. By watching a movie or buying a plane ticket, a person does not become the owner of the movie or the plane.
During the movement of goods and services from resources to consumers, various types of economic activities are carried out, the main ones being production, distribution, exchange and consumption. These activities are usually called stages of reproduction(Fig. 4.1).
Rice. 4.1.
Economic resources otherwise called factors of production. The main factors of production include: o work- these are all physical and intellectual efforts made by people in the process of economic activity. The workers themselves with their skills, abilities, education, and qualifications are considered a labor resource; O land- substances and forces that nature provides to humans free of charge, for example, land under an enterprise, arable land, minerals, forest, water, air, light, heat;
ABOUT capital- a set of goods created by past human labor that are used in the production process as means: production building, machines, equipment, tools; capital arises from the interaction of land and labor.
Important factors of production also include entrepreneurial abilities - organizational and managerial efforts that contribute to the efficient use of production resources. It is entrepreneurial abilities that make it possible to combine labor, land resources and capital in the process of economic activity. In a modern (information) society, information is often included in the list of determining factors.
Production called the process of creating material goods necessary for the existence and development of society; it is essentially the transformation of economic resources into goods and services. This or that production method is determined by:
ABOUT industrial relations in a broad sense - economic relations between people that arise both in the production process and in the process of movement of goods from producer to consumer (relations between workers, organizer and performer; property relations; relations of cooperation or exploitation, etc.);
ABOUT productive forces, which consist of the human factor of production - labor and the material factor - means of production, which in turn are a set of objects of labor (that from which a product is made, for example raw materials or minerals) and means of labor (that with which it produced, for example, tools, machines, roads). Thus, productive forces are primarily workers, raw materials and equipment.
For production, three questions are critical: What goods should be produced? (this question concerns the product range). How many goods should be produced? (this question concerns production volume). How should they be produced? (this question concerns technologies and methods of efficient and socially responsible production).
Distribution is the process of dividing a produced economic product or income into parts. During distribution, the shares that participants in economic activities and other members of society will receive are determined:
ABOUT primary distribution- distribution of income received among direct participants in economic activity - workers, managers, resource owners, enterprise administration, etc. In a market economy, the main regulator of primary distribution is the market: those who do better and do more get more; O secondary distribution- operations related to the redistribution of primary income - through direct taxes, dividends, subsidies, social payments, benefits, pensions. Secondary redistribution, as a rule, is carried out by the state or various funds: the money is received by those who need it.
Exchange refers to the action as a result of which people give one economic product and receive another in return. In a broad sense, exchange is the process of movement of goods, services and productive resources from one participant in economic activity to another. The exchange can be: o direct, i.e. natural, is a direct exchange of labor products. A typical example of natural commodity exchange at the present stage is barter, in which the parties agree to exchange some goods for others without the use of money;
O mediated by money those. have the form of commodity-money circulation. Since money can also be considered as a special commodity (which can be exchanged for any other commodity), commodity-money exchange actually acts in the form of a specific purchase and sale.
Consumption- use of an economic product to satisfy one’s needs. Consumption is distinguished: o personal - satisfaction of a person’s immediate personal needs for food, housing, clothing, education, recreation, maintaining health, etc.;
o general - meeting public needs in governance, security, human rights protection, etc. Something that contributes to the satisfaction of these needs, such as national defense, is called a public good. A public good cannot be used by just one person; it is available to the whole society.
Economics as a science deals with the study of the principles and patterns of economic activity. Its tasks include optimizing the use of natural resources, labor and capital; studying ways to improve production efficiency; searching for ways to optimally distribute material wealth; study of the patterns of market commodity exchange, as well as the conditions for the population’s choice of goods and services. Summarizing these tasks, the main problems of economic science can be called, on the one hand, the study of relationships between people that develop in the process of economic activity (production, distribution, exchange, consumption), and on the other, the search for ways to effectively manage in conditions of limited resources.
Economics studies the economic system at two main levels of analysis - macroeconomic and microeconomic.
Microeconomics(from the Greek mikros - small) examines the relationships between individual economic entities - individuals, employees, enterprises. At this level, consumer behavior in the market, interaction between the entrepreneur and employees are analyzed; in other words, specific practical issues of economic activity are studied. Particular attention is paid here to the study of prices and their impact on economic activity, as well as to the analysis of the work of individual industries and markets.
Macroeconomics(from the Greek makros - long, large) examines the economy as a whole, analyzing the problems of economic development, increasing employment, increasing production, the role of the state in the economy, eliminating unemployment and poverty, overcoming crises, etc. Macroeconomics is interested in the overall state of the economy in a country, a group of countries, or the entire world, rather than in a single enterprise or industry.
Sometimes it stands out international (world) economy, which examines the international trade system, currency relations, etc.
Management and marketing occupy a special place in the system of economic activity.
Management(from English, management - management) - activities to manage socio-economic systems (enterprises) in order to increase profitability and production efficiency, as well as the science of such management. There are four main functions of management:
o planning - setting goals and determining ways to achieve them;
o organization - distribution of work and powers among employees, groups, departments and their coordination;
o management - creating incentives and motives for work, organizing conditions for effective work;
o control - actions to check the activities of the enterprise and its correction in case of deviations.
Marketing(from English, market - market) - activity aimed at the formation and satisfaction of needs and wants through exchange, as well as the theory of this activity. Marketing considers the processes of creating goods and services and their sale as a single whole. Marketing objectives are:
O market research- research into (possible) demand for a product, established prices for it, competitors’ offers, consumer requests, etc.;
O market introduction- will be successful if the product satisfies the buyer’s needs, its price is reasonable, and there is a developed sales and service network;
ABOUT market impact- stimulation and formation of demand, usually through advertising;
ABOUT production adaptation to market requirements - giving production flexibility, which allows it to quickly adapt to constantly changing demand.
Knowledge of the micro- and macroeconomic characteristics of economic activity, the fundamentals of management and marketing makes it possible to most effectively solve economic problems that arise both in an individual enterprise and in society as a whole.
WHAT YOU NEED TO KNOW
- 1. To the main ones types of economic activities(stages of reproduction) include production, distribution, exchange and consumption.
- 2. To the main ones factors of production(economic resources) include labor, land, capital and entrepreneurial ability.
- 3. Economics as a science is divided into microeconomics(studying the relationships of individual economic entities), macroeconomics(study of the economy of the state as a whole) and international economics(study of international trade, currency relations).
- 4. Management - activities to manage socio-economic systems. Marketing - activities aimed at creating and satisfying needs and wants through exchange.
QUESTIONS
- 1. Give examples of the main factors of production and stages of reproduction.
- 2. What problems can be called the main problems of the economy?
- 3. Give examples of microeconomic and macroeconomic processes and problems.
- 4. What measures from a management and marketing point of view can be taken to improve the efficiency of the enterprise?
Legislative and doctrinal approaches to the definition of the concept of “economic activity”
The right to carry out economic activity is one of the basic constitutional rights of man and citizen. According to Art. 34 of the Constitution of the Russian Federation “everyone has the right to freely use their abilities and property for entrepreneurial and other economic activities not prohibited by law.” Along with other rights and freedoms enshrined in Ch. 2 of the Constitution of the Russian Federation, this right is inalienable and belongs to everyone from birth. Freedom of economic activity is proclaimed and guaranteed by Art. 8 of the Constitution of the Russian Federation as an element of the constitutional status of the state.
Having secured the right of everyone to conduct economic activity, the Constitution of the Russian Federation defined the basic principles of its implementation. So, according to Part 2 of Art. 34 of the Constitution of the Russian Federation, economic activities aimed at monopolization and unfair competition are not allowed. Constitutional norms (Article 8) guarantee the unity of the economic space, the free movement of goods, services and financial resources, and support for competition.
According to G. A. Gadzhiev, “in constitutional law, economic freedom is one of the most important constitutional principles, which together form what is considered the foundations of the constitutional system. This constitutional principle has normative content: various kinds of commands, prohibitions, imperatives. Economic freedom in law exists both as a principle and as a norm (Article 8 of the Constitution of the Russian Federation).”
According to the fair assertion of E.P. Gubin, the implementation of the constitutional provision on the principle of freedom of economic activity will allow dramatic progress not only in the field of economics, but also in all other spheres of life of our society 1 . As the President of the Russian Federation V.V. Putin noted in his annual message to the Federal Assembly of the Russian Federation on December 3, 2015, “it is with this - freedom of enterprise, the expansion of this freedom of enterprise - that we must respond to all the restrictions that they are trying to create for us.”
Economic relations are based on the recognition and protection of private, state, municipal and other forms of property (Article 8 of the Constitution of the Russian Federation). As a constitutional right, the right to private property is protected by law. Everyone has the right to own property, own, use and dispose of it, both individually and jointly with other persons (Article 35 of the Constitution of the Russian Federation).
As G.D. Sadovnikova points out, economic freedom is possible only in conditions of protection and protection by the state of all forms of property, including private property. The state, represented by its bodies and officials, is obliged to protect, along with other forms of private property, and ensure its inviolability.
According to Art. 18 of the Constitution of the Russian Federation, the rights and freedoms of man and citizen determine the meaning, content and application of laws, the activities of legislative and executive power, local government and are ensured by justice. Thus, the constitutional right to freely carry out economic activity is one of the basic provisions underlying economic legislation, the relevant sphere of activity of state authorities and local self-government, as well as economic justice.
Drawing a distinction between hired labor and independent economic activity, the Constitutional Court of the Russian Federation, in Resolution No. 10-P of April 23, 2012, noted that the Constitution of the Russian Federation, in accordance with the goals of the social state enshrined in its art. 7 (Part 1), guarantees everyone both freedom of labor and the right to freely dispose of their abilities to work, choose their type of activity and profession, and the right to protection from unemployment (Article 37, Parts 1 and 3), and also proclaims the right to freely use their abilities and property for entrepreneurial and other economic activities not prohibited by law (Article 34, Part 1). The ways in which citizens can exercise these constitutional rights include hired labor carried out in a freely chosen type of activity and profession on the basis of an employment contract concluded with an employer, as well as independent economic activity carried out in a freely chosen field individually or jointly with other persons by creating a commercial organization as a form of collective entrepreneurship. By giving preference to one method or another, citizens agree with the legal consequences that are determined by the federal legislator - based on the essence and target orientation of the corresponding type of socially useful activity and the actual position of the person in the relations generated by it - the legal status of the subjects of this activity, including the rights and obligations , as well as state guarantees for their implementation and liability measures.
In this regard, it seems particularly important to determine the content of the concept of “economic activity” and its relationship with related categories.
It should be noted that the legislation of the Russian Federation does not have a legal definition of economic activity. However, the “inventory” carried out shows that the term in question is used in regulatory legal acts, including laws, often and for various purposes.
So, ch. 22 of the Criminal Code of the Russian Federation is devoted to crimes in the sphere of economic activity. Article 28 of the Code of Criminal Procedure of the Russian Federation determines the rules for terminating criminal prosecution in cases of crimes in the field of economic activity.
The Law on the Protection of Competition uses the phrase “economic activity” to define the concept of “coordination of economic activity” (Article 4), as well as when introducing rules prohibiting its implementation (Part 5, Article 11). For coordination of economic activities of business entities, which is unacceptable in accordance with the antimonopoly legislation of the Russian Federation, the Code of Administrative Offenses of the Russian Federation provides for administrative liability (Part 2 of Article 14.32 of the Code of Administrative Offenses of the Russian Federation).
Article 3 of the Tax Code of the Russian Federation, defining the basic principles of legislation on taxes and fees, contains a ban on the establishment of taxes and fees that limit or create obstacles to the economic activities of individuals and organizations not prohibited by law.
Chapter 13 of the Federal Law of December 29, 2012 No. 273-FZ “On Education in the Russian Federation” is devoted to economic
activities and financial support in the field of education, ch. III Federal Law of July 17, 1999 No. 176-FZ “On Postal Services” - the fundamentals of economic activity in the field of postal communications; Ch. II Federal Law of August 3, 1995 No. 123-FZ “On Livestock Breeding” - the fundamentals of economic activity in the field of livestock breeding.
Article 1 of the Arbitration Procedure Code of the Russian Federation proclaims that justice in the field of business and other economic activities is carried out by arbitration courts. Article 27 of the Arbitration Procedure Code of the Russian Federation, determining the jurisdiction of cases, establishes that the arbitration court has jurisdiction over cases on economic disputes and other cases related to the implementation of entrepreneurial and other economic activities. Consequently, the question of qualifying an activity as economic is raised to determine jurisdiction and is the subject of consideration by various courts.
Thus, canceling the decisions and rulings of the lower courts in the case, the Presidium of the Supreme Arbitration Court of the Russian Federation, in Resolution No. 14700/12 dated April 2, 2013, forming the practice of applying the relevant legal norm, indicated: “The partnership conducts economic activities aimed at ensuring the ownership and use of the owners premises of the common property of an apartment building. Thus, the dispute about the amount of payment for the maintenance of the common property of a residential building, levied on the entrepreneur, arising from civil legal relations and affecting the results of business activities of both the entrepreneur and the partnership, is directly related to the economic activities of two business entities and, as expressly provided for in Article 28 Arbitration Procedural Code of the Russian Federation, subject to the jurisdiction of the arbitration court.”
Subordinate regulatory legal acts also regulate relations in the field of economic activity, using this concept. For example, Decree of the Government of the Russian Federation dated December 1, 2005 No. 713 approved the Rules for classifying types of economic activities as occupational risk. Decree of the Government of the Russian Federation of December 12, 2015 No. 1358 for 2016 established the permissible share of foreign workers employed by business entities carrying out certain types of economic activities in the territory of the Russian Federation.
The All-Russian Classifier of Types of Economic Activities (OKVED 2) OK 029-2014 (NACE Rev. 2)" states that economic activity takes place when resources (equipment)
research, labor, technology, raw materials, materials, energy, information resources) are combined into a production process aimed at producing products (providing services). Economic activity is characterized by the costs of producing products (goods or services), the production process and the output of products (provision of services).
Similar explanations were contained in OKVED OK 029-2001 (NACE Rev. 1) and OKVED OK 029-2007 (NACE Rev. 1.1). We believe that this interpretation is important for the purposes of the study of this monograph.
In the absence of a legislative definition, the definition of economic activity is analyzed and disclosed in educational and scientific literature. For example, O. M. Oleinik points out that “economic activity is one of the types of human economic activity, a form of individual participation in social production and a way of obtaining financial resources to support life activities.”
According to the position of E.P. Gubin and P.G. Lakhno, “economic activity is the process of reproduction of material and spiritual wealth, including production, distribution, exchange and consumption.” For modern economic activity in our country, scientists believe, it is characteristic that it: 1) follows from the existence of commodity production, market organization of the economy; 2) is associated with the process of reproduction of material goods, that is, it is of a commodity nature; 3) is embodied in the creation (production) of products (goods), in the performance of work, the provision of services of a material nature and (or) their distribution and (or) their use (distribution, exchange, consumption).
Belarusian scientists S.S. Vabishchev and I.A. Mankovsky believe that “in the most general form, economic activity is an activity of a value nature, aimed at creating material and intangible benefits.”
S. V. Belykh, summarizing the judgments expressed in the literature, came to the conclusion that “economic activity is the economic activity of individuals, their associations in the production, distribution, redistribution and consumption of material goods within the framework of commodity-money exchange, the prerequisites of which are ownership, use and disposal of these benefits to satisfy one’s own and others’ material needs” 1 .
Modern researchers in the field of economic law propose to define economic activity as a redistributive process of achieving efficiency at the stages of production, distribution, exchange and consumption of material and intangible goods (values, resources).
We believe that there are no contradictions in the above and other definitions of economic activity in the doctrine; they complement each other. We have also repeatedly noted that economic activity can be defined as reproductive activity, combining such stages as production, distribution, exchange, consumption. It is important to note that each of the constituent elements of economic activity is considered broadly in this context. For example, the production process is associated with the creation of material goods, including the processes of organization and management.
At the same time, we generally agree with A. Ya. Kurbatov, who proposes, based on the presence of a sign of professionalism, to classify economic activity as active (production and sale of goods, work, services) and passive (placement of funds in credit organizations, transfer of property for rent, in trust management, disposal of one’s own property, including by contributing to the authorized capital of organizations, etc.).
At the same time, we will express the opinion that doctrinal judgments and approaches available in normative legal and judicial acts are clearly not enough. There is a need to legislatively consolidate the concept under consideration, since the qualification of an activity as an economic activity entails endowing the entity carrying it out with rights, imposing responsibilities on it, establishing legal mechanisms for ensuring and protecting rights, as well as other legal consequences, the analysis of which is carried out in this monograph.
Economic activity– this is any activity of economic entities aimed at obtaining economic benefits. Economic (economic) activity is aimed at ensuring the life of an individual and society.
The subjects of economic activity in a market economy (mixed market economy) are: households, firms, and the state.
Household involves a group of people (or one person) jointly making decisions regarding the use of their resources. In the market economy model, the main function of households is consumption.
In this case, households are:
buyers and consumers of final goods produced by firms and the state;
owners of production resources.
Firm– an organization that uses resources to produce goods and services for the purpose of their subsequent sale on the market. In the market economy model, the main function of firms is production.
At the same time, companies:
acquire production resources on the factor market;
produce goods and services;
sell produced goods on the goods market.
The state includes all central (federal), regional (republic, territory, region, etc.) and local bodies providing legislative, executive and judicial activities.
In the market economy model, the main function of the state is to regulate economic activity.
At the same time, the state:
is a buyer and consumer of both factors of production and goods and services;
produces and sells goods and services;
manages the resources belonging to him;
redistributes cash flows and income.
Each economic entity in a market economy has basic goals. They are also called economic incentives.
The main goal of a household is to satisfy needs as much as possible.
The main goal of firms is to obtain maximum profit.
The main goal of the state is to ensure the maximum level of well-being of the country's population.
In an effort to achieve their main goals, economic entities enter into economic relations, which can be represented as a model of economic circulation.
Modern economic (economic) activities of subjects of a market economy are built on the basis of the following economic phenomena:
entrepreneurship;
commerce;
management;
marketing, etc.
Entrepreneurship– is the economic activity of an economic entity using novelty and invention, aimed at making a profit. It is carried out at your own peril and risk. Entrepreneurship is characterized by the following features:
freedom in choosing economic activities;
independence;
initiative and innovation;
responsibility for decisions made and their consequences and the associated risk;
orientation towards achieving economic and perhaps moral success.
Entrepreneurship performs a special function - ensuring development and
improving the economy, its constant renewal, creating an innovative environment that breaks traditional structures and opens the way to something new.
According to the forms of ownership, entrepreneurship is private, state and municipal; Based on the number of owners, it is divided into individual and collective. By organizational and commercial forms:
individual and private entrepreneurship;
partnership (partnership);
corporation (joint stock company).
Based on the size of the business, large, medium and small businesses are distinguished.
Commerce is the trading activity of people aimed at obtaining trading profits. This is part of entrepreneurial activity in the sphere of circulation, consisting primarily of concluding trade transactions. The main goal of modern commerce is comprehensive service of production and rationalization of the sphere of circulation.
The newest forms of modern economic activity include leasing, factoring, and franchising.
Leasing- long-term rental of machinery and equipment for the purpose of their production use.
Factoring– a form of commercial activity that represents debt management.
Franchising- an agreement concluded between large and small firms, according to which a large company allows small enterprises to sell their products on its behalf (this is how, in particular, the McDonald's group works).
Management– this is the activity of production management; a set of principles, methods, means and forms of production management, developed and applied with the aim of increasing production efficiency and increasing profits. Management is also the science of managing human relations in the production process and the relationships between consumers and producers. Here we explore ways and means of influencing the production process itself and the people involved in it in order to achieve the best results. A manager is a professional manager, general director, leader who knows psychology, sociology, production organization, etc.
Marketing– a system of measures to study the market and actively influence consumer demand in order to expand sales of manufactured goods and introduce new products into markets (“Dictionary-Reference Book of Economics”).
Economists view marketing as a philosophy of the market, as a type of human activity aimed at satisfying needs and wants through the market.
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