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TopIntroduction
In the 21st century, dynamic changes have led to the transformation of business practices, traditional concepts of economic development and approaches. The main goal of this study is to identify the opportunities and challenges for realizing the benefits of cooperation in the digital age.
Of the possible scenarios for global development, confrontation, isolation and cooperation, the latter leaves no alternative to prosperity and progress.
Research Methodology
The main results of our study are aimed at expounding the main shortcomings and omissions of the theories of absolute, comparative, competitive advantages with scientific arguments, justifications, statistical data, economic indicators, methods of factor analysis and state the principles of a new theory of cooperative advantages and synchronized multilateral cooperation.
To make the most efficient use of trade, the principles of absolute advantages (A. Smith), comparative advantages (D. Ricardo) were developed by the founders of the classical theory of economics, as well as more modern theories of advantages, in particular, the theory of national competitive advantages (M . Porter). All these theories describe the possibility of realizing the competitive advantages that can be achieved in one or two countries separately. In addition, another common feature of all three theories is that the arguments are based on certain assumptions and scientific abstractions.
Literature Review
Before presenting fundamental approaches to the advantages of cooperation, it is worthy to briefly recall the basic principles and essence of the theories of absolute, comparative and competitive advantages. According to the theory of Adam Smith, published in 1776 in his study An Inquiry into the Nature and Causes of the Wealth of Nations, the absolute advantage is the ability to produce more goods than competitors (Stigler 1976). This concept substantiates the advantages of free trade on world markets, proving that the absolute advantages of countries for various goods allow them to benefit from both exports and imports, giving great importance to foreign trade without restrictions. One of the cornerstones of this theory is the low cost of production compared to competitors, which allows attracting resources from other areas of production. In other words, the quality and price of a product makes it a certain advantage and leads to specialization in this area, and foreign trade turns this advantage into a mutually beneficial transaction between the parties. The concept of economies of scale helps to understand the process of gaining absolute benefits. This means that less expensive materials and labor require less time to produce the same amount of goods and services. Today, an absolute advantage can be achieved thanks to the unique technology used in the country.
As for the theory of comparative advantages of D. Ricardo, formulated in the On the Principles of Political Economy and Taxation, it can be interpreted as a further development of A. Smith's ideas about the ability to produce cheaper products compared to other competitors. This concept also suggests that comparative advantages can be obtained on the basis of performance related to climate, geographical location, natural resources and other factors. In turn, these factors lead to the country's specialization in low-cost products. It also allows countries to take advantage of the free trade in goods with comparative advantages (Patnaik 2005) (Robinson 1979).
About a century and a half after these theories, Harvard University professor Michael Porter presented his new approach to identifying and realizing the national competitive advantages of the five forces to analyze competition from the micro to the macro level and on a global scale. Changes in one of the forces (company's competitive rivals, potential new market entrants, suppliers, customers, and substitute products) lead to a rethinking of the business environment (Porter 1979). Consequently, new strategies for enhancing competitiveness, doing business, and competition may appear. In addition, the theory of M. Porter suggests that any product or service can be considered as an example of a country's competitive advantage only in the case of local consumer demand for a particular product or service, as well as free competition among local producers of a given product or service.