Page 10 - Azerbaijan State University of Economics

Adalat J. Muradov, Nazim O. Hajiyev: Competitive environment is the main factor for integration
into the world economy

were cancelled in 1810 in Prussia. It’s true that, they were restored by legislation in 1849, but

this wasn’t much important for economy [Rauscher V. 1999. p.51].

With this rule, it was a long and controversial way of transition from artificial monopoly

to free competition relationship. There was a combination of competition zones in the unified

system of market competition which began play a regulatory role while transition accelerated

from artificial monopoly to free competition relationship. This process ended in the period of

industrial revolution in England.

Also it should be noted that, about the supremacy of free competition could be talked

only in England, France, Holland and some other countries in XIX century (taking into account

last thirty years of the XIX century transition of development of free competition to monopoly

stage). In various countries of Western Europe in the first half of XIX century a lot of restrictions

were kept which left from feudalism period of competition. It is enough to remember the

restoration efforts of archaic craftsmen workshop in Prussia. Even it is schematic enough to

connect free competition period with XIX century. Competition is only empowering in the

second half of XIX century in Russia (Subordination of economy and particularly competition

processes to regalement and keeping active intervention by government). With this rule free

competition existed in the short period of time in a limited number of countries.

What is the reason to look competition leading in these countries as free one in XIX

centuries? Firstly attention is attracted by the main burdens as productive forces and

undeveloped economic relations that caused a lot of problems to competition. Here, price

competition coming up with efforts to defend and expand their market share by decreasing the

expenses and relatively lowing prices plays an important role. Price competition itself

determined flexibility of market prices, rapid response of prices to demand and supply changes.

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