Meaning of DIT

DIT is an acronym for International Division of labour, which expresses the way how is the distribution of production at the global level, between developed and underdeveloped countries. – abbreviationfinder.org

The DIT is characterized by specialization of countries in production of anything, are final products or intermediate products that will be used at the conclusion of a final product. This need arose because it is not possible that a country can produce alone all the goods you need.

The relationship between more and less industrialized countries is an essential part of the DIT, because less developed countries present benefits to more developed, such as cheap labour, low taxes, etc.

Evolving along with capitalism, the DIT is a strategy used to increase profits, since the reduction in the cost of the final product.

There are several authors who present criticism to DIT, stating that this Division is responsible for creating inequalities between countries. The countries that are on the rise, often buy very high-priced technologies, and their final products do not reach adequate prices, which represses its development, and consequently benefits economically stronger countries.

The international division of labour can be separated into three phases. The first stage (characterized by commercial capitalism) occurred in the 15th and 16th centuries, where the colonies take minerals, spices and slave labour, and metropolises were responsible for the production and export of products developed. The second phase occurred in the 17th, 18th and 19th centuries, and was marked by industrial capitalism, where the colonies (or underdeveloped countries) provided the raw materials and other agricultural products and minerals, and the developed countries were the industrialization of raw materials provided. During the third phase, the financial capitalism imposes that the underdeveloped countries to provide the raw materials and industrial products, while developed countries dealing with investments, development of new technologies and industrial products.

The DIT is a dynamic process that has changed over the years, because the economic and industrial context has been altered by globalization .

Originally, the classical DIT indicated that the underdeveloped countries supplying raw materials to developed countries, while these used for the production of final goods. Subsequently, the underdeveloped countries have to buy these products from producer countries (developed).

Later, the new DIT (also known as DIT of the new world order), the least developed countries not only provide the raw material, but make the production of materials and goods whose production is more expensive (or causes a lot of pollution) in the most developed countries. These contribute to investment and technologies that help in production processes. The new DIT corresponds to the third phase dealt with previously, and has a high level of complexity, because the flow of investment and also products of the least developed countries to the more developed, which does not happen in the DIT.

 

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