The meaning of internationalization of production

Capital internationalization refers to the process of capital activities transcending national boundaries and constantly moving in the international scope. International division of labor refers to the division of labor between countries formed by social division of labor across national boundaries. The development of international division of labor is the basis of internationalization of production and capital. After World War II, with the progress of science and technology and the development of the new industrial revolution, the international division of labor has reached a new stage. Its characteristics are as follows: first, the international division of labor between departments has developed into more internal division of labor, that is, the specialization of parts production, intermediate product production and technology in the international scope. Second, from the traditional division of labor based on natural resources to the division of labor based on scientific and technological achievements. That is, using their own scientific and technological advantages to develop new production departments. Third, the pattern of national division of labor in industrial countries and agricultural countries has weakened, and the pattern of industrial division of labor has become increasingly prominent. Fourth, the types of countries participating in the international division of labor have become developed countries and developing countries. The above characteristics show that the contemporary international division of labor has entered a new stage. The development process of international division of labor is also the process of internationalization of production and capital.