AK-74 be used by the majority of countries of the former Soviet Union. Additionally, licensed copies were produced in Bulgaria (AK-74, AKS-74 and AKS-74U), and the former East Germany (MPi-AK-74N, MPi-AKS-74N, MPi-AKS-74NK). Besides former Soviet republics and eastern European countries, Mongolia, North Korean Special Forces, and Vietnamese People's Naval infantry use AK-74s. The AK-74 was designed by А. D. Kryakushin's group under the design supervision of Mikhail Kalashnikov and is an adaptation of the 7.62×39mm AKM assault rifle and features several important design improvements. These improvements were primarily the result of converting the rifle to the intermediate-caliber high velocity 5.45×39mm cartridge.
Comparison of the AK-47 and M16 the AK-47 series efficiently in small plants, due to the large amount of metal stamping equipment needed for mass production. However, the milled-steel AK-47 has spawned a cottage industry of sorts and has been copied and manufactured (one gun at a time) in small shops around the world. As of 2014, Kalashnikov Concern sells the AK-103 at a government price of $150 to $160 (USD) per unit. There are places around the world where an AK-47 type rifle can be purchased on the Black Market "for as little as $6, or traded for a chicken or a sack of grain."