Abstract

The classical definition treats competition as a rivalry of several persons (companies) to achieve the same goal. Adam Smith was the first, who proved that competition by equalizing the rate of profit leads to the optimal division of labor and capital, and defined the basic conditions for its functioning. The first - competitors must act independently and not in concert. The second - the number of competitors should be sufficient to exclude extraordinary approaches. In the scientific literature, there are three approaches to defining competition. The first notion defines competitiveness as a competition in the market. The second approach sees competition as an element of the market mechanism, which allows you to balance supply and demand. The third approach defines competition as a criterion for determining the type of industry market. Price is formed under the influence of supply and demand. The farmers focused on the current level of prices. However, in these conditions, agricultural producers, using the market conditions, can significantly increase the price, and then gradually reducing it to the level of conventional prices in the short term to achieve increase in their income. The Russia’s WTO accession advanced facilities to rise competitiveness on the global market of raw materials and finished products of Russian agriculture, with the benefits and problems of Russia’s WTO accession in agriculture sectors will be different for this complex. We will need to dramatically improve the competitiveness of the Russian agricultural products in the domestic and global markets. Thus, the competitiveness of agribusiness products can be defined as the totality of consumer properties of agricultural products, characterizing its difference from the products of competitors on consumer satisfaction, while maintaining the average market price.

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