SUMMARY OF LECTURES ON THE FOUNDATIONS OF FOREIGN ECONOMIC ACTIVITIES
G.L. Ghukasyan
TOPIC 1. Types of foreign economic activity and their characteristics
Importance of foreign economic activity
International trade allows states to exchange those goods that they have in abundance (cheaper) for those that they need. Currently, the exchange is in such main areas as: international trade in goods and services, production cooperation, exchange in the field of science and technology, the movement of capital and foreign investment, labor migration, monetary and credit relations. By improving the directions of its RE policy, Russia can effectively use these directions in its interests.
The essence and concept of foreign economic activity of the enterprise.
It is necessary to distinguish between the concepts of "foreign economic relations" and "foreign economic activity".
Foreign economic activity of enterprises is a sphere economic activity associated with international industrial and scientific and technical cooperation, export and import of products, the company's entry into the foreign market. Foreign economic activity, unlike foreign economic relations, is carried out at the level of production structures (firms, organizations, enterprises) with complete independence in choosing the range of goods for an export-import transaction, in determining the price and cost, volume and delivery time.
So foreign economic activity can be represented as a set of certain foreign economic functions of a business entity: production and economic, organizational and economic, commercial.
From an organizational point of view, barter transactions are countertrade, in which the supply of goods, services, technologies, and other commodity values in one direction is linked to the supply in the opposite direction. But in addition to the linkage between deliveries in two directions, all types of counter transactions have one feature that distinguishes them from other types of foreign trade transactions: they either completely exclude or limit cash settlements.
Essential specific gravity counter transactions in the total volume of international trade necessitated the development of documents at the international level summarizing the established world experience in their implementation, both in terms of legal aspects and in terms of their features compared to traditional forms of international trade. Such documents were prepared by the United Nations Economic Commission for Europe: Guidelines for the drafting of international countertrade agreements (1990), on buy-back purchases (1990). In addition, the United Nations Commission on International Trade Law (UNCITRAL) prepared and adopted in 1992. Legal guide to international countertrade transactions.
There are various forms of countertrade. Taking into account the peculiarities of each transaction in countertrade, it can be divided into several types:
counter purchases;
compensatory;
Barter, i.e., performed on the basis of barter.
Counterpurchase means a transaction in which the parties, concluding a contract for the supply of goods in one direction, simultaneously sign an agreement on concluding a contract for counterpurchase. At the same time, the delivered goods are not interconnected: the buyer can offer any goods he has as a counter goods.
The counterpurchase is executed in two separate contracts:
The first is for export, where, in addition to normal conditions the export contract contains the seller's obligation to purchase counter goods from the buyer or in the buyer's country for a certain share of the proceeds (usually as a percentage of the amount of the export contract), if such an obligation is not included in a separate agreement; the second - on the import of counter goods.
Alternatively, the primary contract may provide for the seller's obligation to ensure the purchase of goods offered by the buyer by a third party and agree on the terms of the counter-purchase (which must be provided by the seller). Usually, if the seller fails to fulfill its obligations under the counterpurchase or to ensure such a purchase by a third party, a fine is provided in the amount of 20-50% of the amount of unfulfilled obligations.
If, under the primary contract, the seller of an export product must first purchase the goods from his buyer, and then deliver his goods, then such transactions, also drawn up by two contracts, are called advance purchases in the framework of countertrade.
In the commercial practice of foreign countries, transactions involving the sale of equipment, complete enterprises with subsequent payment in counter deliveries of products manufactured on them, as well as the provision of licenses, technologies with subsequent payment in products obtained using them, are allocated to a separate group and are called compensation transactions. A compensatory transaction concluded in this form is a modification of barter, that is, an exchange in natural-material form. Common to these types of transactions is the lack of use of the mechanism of currency and financial settlements. The difference lies in the fact that offset transactions are carried out within the framework of long-term industrial cooperation, when the goods supplied by the first party are used in the production of a counter goods, which is associated with the provision of commercial credit. Legal registration of compensation transactions is carried out in the form of a general agreement, which defines the goals of the transaction and ways of its implementation, as well as specific agreements concluded under the general agreement on lending, supply of equipment and counter products in repayment of the granted loan.
It becomes more difficult to control the quality of the goods according to the terms of the contract: if in a normal commercial transaction it is possible to refuse to accept the supplier's account due to non-compliance with the condition on the quality of the goods, then in a barter transaction such a refusal is impossible, because it means the loss of a partner in the transaction.
Thus, different forms of countertrade have their own characteristics, certain benefits and disadvantages. Common to all forms is that. that any of them provides for two legally independent and at the same time actually interconnected purchase and sale transactions. The possibility of using this or that form of countertrade by Russian participants in foreign economic activity depends on whether it complies with the currency legislation of the Russian Federation.
TOPIC 2. Participants in foreign economic activity as subjects of state regulation, the legal status of participants in foreign economic activity
position in the world market.
In the 60s, there was a surge in foreign economic activity, the CIS countries accounted for 50% of world trade.
In 75, the USSR dominated 38 economic markets.
Over the past 10 years, our position has been declining as we have lost market dominance: in the 90's, we are leading in 5 markets.
Currently, Russia relies on the export of raw materials (oil and gas 45%, timber, diamonds, ferrous and non-ferrous metals 15%), because. it is not profitable to produce HP - there is strong competition from foreign firms, whose products do not always meet high quality.
Thus, Russia occupies a position in the world market that is inadequate to its economic capabilities and political significance. The main share of imports is occupied by engineering products and foodstuffs.
Russia is a member of such international organizations regulating international trade relations as:
1. Economic and Social Council at the United Nations.
2. System of UN development programs (economic growth and development, World Food Programme, etc.).
3. Commission on International Trade Law.
4. Vienna Convention on Contracts for the Sale of Goods.
6. International Chamber of Commerce.
The totality of modern participants in foreign economic activity can be classified according to a number of principles: the profile of foreign economic activity; the nature of the foreign trade operations carried out; organizational and legal forms that determine the order of their formation, the ownership of capital and the procedure for distributing income. The development of foreign economic activity is accompanied by a change in the appearance of its subject. Let's consider the main types of modern subjects of foreign economic activity.
For the implementation of foreign economic relations, the following is required:
1) state registration of the enterprise at the location of the enterprise (approval of constituent documents: charter and contract, as well as obtaining a certificate of state registration);
2) register with the tax office at the place of registration;
3) receive a seal, a stamp in accordance with the established procedure;
4) register in the state register.
Determining the economic feasibility of the planned commercial transaction also implies compliance with the following basic provisions:
The export-import operation is based on the principle of full self-sufficiency (including foreign exchange), self-financing, i.e. the basic principles of full cost accounting;
The volume of the proposed transaction is established based on the resources at the disposal of the enterprise: material, currency, intellectual;
A commercial transaction must be preceded by thorough marketing, a feasibility study, and numerous options for possible commercial transactions must be calculated and considered;
The organization of a commercial transaction must be carried out in compliance with regulatory legal acts (international laws, decrees, resolutions of the relevant authorities; bilateral state agreements).
A newly created enterprise should not start its activities with foreign economic relations with foreign partners, it is necessary to accumulate certain experience while working in the domestic market.
The main forms include:
Consortiums are a form of association of enterprises with a production and foreign economic profile of activity. Their share in the total number of participants in foreign economic activity is no more than 0.5%. Consortiums are being created for the implementation of large-scale projects (for example, the construction of facilities abroad). The participants of the consortium are manufacturers and suppliers of export products, design and financial organizations. The action of the consortium can be one-time (during the construction of a specific facility) and long-term (if it is necessary to implement any foreign economic program).
Foreign Economic Organizations (VO) MINFER serve state-level wind farms on the terms of intergovernmental agreements, including exports under licenses from the Ministry of Foreign Economic Relations (MFER), special (critical) imports under separate government decisions.
Sectoral foreign economic associations (VEO) are designed to promote the development of foreign economic activity of enterprises and associations of the industry.
Mixed companies are created abroad with the participation of large Russian exporters and foreign partners. The purpose of creating mixed societies is to promote the expansion of domestic exports. Through mixed companies, they receive more complete information about the sales market, the degree of competitiveness of products.
Trading houses are associations of various types of foreign trade, manufacturing, transport, storage, research, banking and insurance organizations that are part of them on a voluntary basis and operate both in their own country and abroad. Trading companies are close to trading houses, but with less universalization (sales of their own national products). The main functions of trading companies are the choice of "a market for a product and a product for the market", providing a loan to the buyer, transportation, paperwork.
The main tasks of associations for foreign economic cooperation are:
1) providing practical assistance to participants in foreign economic activity in matters of a comprehensive study of world markets, legal support of foreign trade transactions, assistance in the preparation of foreign trade contracts and the search for partners;
2) holding seminars, conferences;
3) publication of reference books, collections.
Example. "Interelectro" is an association for cooperation in the field of electronics. Created with the participation of Germany, Italy, Great Britain. "WEST" - Eastern European cooperation and trade (established in 1991): among the founders of 700 organizations and firms in Hungary, Poland, the Czech Republic, Russia, the CIS countries.
A significant part of the world trade turnover is carried out through intermediary trading agents. The agent is obliged to comply with the agency agreement.
Simple intermediaries, or "brokers", enter into purchase and sale transactions on behalf of and at the expense of the principal. They are not a party to the contract, but perform the function of searching for goods and partners in the transaction, receiving for this a special brokerage reward - courtship (0.25 - 3% of the transaction value). A brokerage deal, as a rule, is paid by the one who first contacted the broker.
The commission agent, on the one hand, expresses the interests of the principal, on the other hand, acts as a seller on his own behalf, but at the expense of the principal. The parties to the commission agreement are the committent and the commission agent. The commission agent is instructed to sell the goods for a certain commission in the territory of a particular country or group of countries; at the same time, a minimum price is stipulated, below which the commission agent does not have the right to sell the goods.
The auctioneer acts as an agent who has permission to auction trade, ensures the sale of goods to the auction participant who offered the highest price for it.
Distributors (sales intermediaries) enter into sales contracts with sellers and buyers on their own behalf and at their own expense as ordinary merchants engaged in the resale of goods.
The freight forwarder is engaged in the provision of services for the dispatch of goods, taking it from the sender and transferring it to the main carrier. He has special knowledge about the peculiarities of transportation and dispatch of goods, their various specifics (for example, a liquid cryogenic product).
Traveling salesmen are intermediaries in the sale of the exporter's goods abroad.
Heckscher-Ohlin theory
The new model was created by the Swedish economists Eli Heckscher and Bertel Ohlin. Up until the 60s. the Heckscher-Ohlin model dominated the economic literature.
The essence of the neoclassical approach to international trade and the specialization of individual countries is as follows: For reasons of historical and geographical nature, the distribution of material and human resources between countries is uneven, which, according to neoclassicists, explains the differences in relative prices for goods, on which, in turn, depend national comparative advantage. From this follows the law of proportionality of factors: in an open economy, each country tends to specialize in the production of goods that require more factors with which the country is relatively better endowed. Olin put this law even more succinctly: "International exchange is the exchange of abundant factors for rare ones: a country exports goods whose production requires more abundant factors."
In accordance with the Heckscher-Ohlin theory, countries will export those goods, the production of which requires significant costs of relatively surplus factors, and import goods, in the production of which relatively scarce factors would have to be intensively used. Thus, in a latent form, excess factors are exported and scarce ones are imported. The intensive use of a factor, for example, labor, in the production of a product means that the share of labor costs in its value is higher than in the cost of other goods (usually such a product is called labor-intensive).
The relative endowment of a country with factors of production is determined as follows: if the ratio between the amount of this factor and other factors in the country is higher than in the rest of the world, then this factor is considered relatively excessive for this country, and vice versa, if the specified ratio is lower than in other countries, the factor is considered deficient.
Practice partly confirms the conclusions of the Heckscher-Ohlin theory. But in recent decades, the structure of the provision of developed countries (especially European) with the necessary production resources relatively aligned, which should have been. According to the Heckscher-Ohlin theory, reduce their incentives to trade with each other. However, this does not happen. On the contrary, the center of gravity in international trade is shifting precisely to trade between industrialized countries, that is, countries with approximately the same supply of factors of production. Moreover, the proportion of mutual deliveries of similar industrial goods is growing in world trade. This does not fit into the Heckscher-Ohlin theory.
"Leontief's Paradox"
Practical searches in order to confirm or refute the Heckscher-Ohlin theory were largely facilitated by the appearance in the 50s of the so-called "Leontief paradox". V. Leontiev showed that in 1947 the United States, which was considered a capital-abundant country, exported not capital-intensive, but labor-intensive products, although, according to the Heckscher-Ohlin theory, the result should have been the opposite. Further studies, on the one hand, confirmed the existence of this paradox in the United States in the post-war period, on the other hand, they showed that capital is not the most abundant factor in the country. Above it are cultivated land and scientific and technical personnel. And here the Heckscher-Ohlin theory was confirmed: the United States turned out to be a net exporter of goods in the production of which these factors are intensively used. Let's consider this in more detail.
Leontiev, later awarded the Nobel Prize in Economics, relied on the surest of the instincts in science: to always check whether theoretical conclusions correspond to reality.
This time he decided to test the conclusion of the Heckscher-Ohlin theory that countries tend to export goods in the production of which they intensively use factors that are redundant for them, and import goods in the production of which these factors are used less intensively. More precisely, he wanted to simultaneously test two assumptions: 1) the Heckscher-Ohlin theory is correct, 2) the US economy was widely considered to have more capital surplus than its trading partners.
Leontiev obtained the ratio of the value of fixed capital and the number of workers in the export and import-substituting industries of the United States in 1947. This required calculations of capital and employment not only in several dozen of the industries under consideration, but also taking into account the capital and labor that were contained in their goods as a result of the use of products of other industries. Being one of the pioneers of input-output balance, he successfully used its opportunities to obtain required assessments capital-labor ratio by multiplying the matrix of coefficients by the vectors of capital and labor costs, the cost of exports and imports by industry. The test conditions were as follows: if the conclusions of the Heckscher-Ohlin theory are correct, and capital in the United States is relatively more abundant, then the cost of capital per worker in a standard set of goods exported from the United States should be higher than that in import-substituting products included in the standard set of goods imported into the United States.
The paradoxical results obtained by Leontiev puzzled not only himself, but also other economists: it turned out that in 1947 the United States was selling labor-intensive goods to other countries in exchange for relatively capital-intensive ones! The key parameter was only 0.77, whereas, according to the Heckscher-Ohlin theory, it should have been much higher than unity.
Leontiev himself and other economists approached this problem in different ways. The method has been repeatedly tested and found to be basically correct. There was no doubt about the excess of capital in the US compared to other countries. Theoretically, the paradox could be explained by the fact that the share of capital-intensive products in the structure of US demand was even higher than in production, which turned the country into a net importer of capital-intensive goods; however, this explanation was not suitable, since it did not correspond to reality. Other economists have tried to look for the cause in trade barriers or in the so-called "factor intensity reversibility" (where industry A is more capital-intensive than industry B under one ratio of factor prices, and less capital-intensive under another), but even this contributed little to the solution. Problems.
The most fruitful was the decision to introduce other factors of production into the model. Perhaps, many economists (and Leontiev among them) reasoned, one should take into account the fact that there are different types of labor, natural resources, capital, and so on. Numerous studies in this direction have led to two main results: 1) confirmed the existence of a "paradox" throughout most of the post-war period; 2) significantly improved our understanding of the availability of factors and the intensity of their use. The first refuted the Heckscher-Ohlin theory, the second supported it.
Despite differences in calculation techniques, all studies have largely confirmed the existence of the Leontief paradox in the United States between World War II and the early 1970s.
At the same time, in an attempt to unravel the Leontief paradox, scientists began to introduce into the model other factors of production, in addition to capital and labor. New calculations of "factor-intensity" have enriched, as already mentioned, our ideas about
who wins and who loses as a result of foreign trade. In a sense, this by-product of the Leontief Paradox controversy compensated for the damage it had done to the Heckscher-Ohlin theory. Of course, the US had some capital surplus and somehow exported less services of this factor than it imported. But research, stimulated by Leontief's work, has shown that capital is by no means the most abundant factor of production in the United States. The first place here belongs to cultivated land and scientific and technical personnel. Indeed, the United States is a net exporter of goods that make intensive use of these factors, in full accordance with the Heckscher-Ohlin theory. Thus, despite some damage done to the Heckscher-Ohlin theory by the Leontief paradox, it was eventually enriched by new results obtained in the course of the study of this riddle.
Thus, the result of the discussion around the "Leontief's paradox" was the tendency to decompose the factors of production and take into account each of the subspecies when explaining the directions of export and import flows. As separate factors capable of providing relative advantages to industries or firms, they began to single out, for example, labor of various qualifications, the quality of managerial personnel, various categories of scientific personnel, various types of capital, etc.
On the other hand, attempts to find a replacement for the Heckscher-Ohlin theory continue. Such, for example, is the theory according to which the countries that specialize in industries receive benefits from foreign trade. Which are characterized by economies of scale (or lower costs per unit of output when increasing production volume). But it is known from microeconomics that in industries with efficient mass production there is usually no free competition, which means that production will be in the hands of large monopolies.
Neotechnological theories
The Heckscher-Ohlin theory explained the development of foreign trade by the different endowment of countries with factors of production, however, in recent decades, trade between countries where the difference in endowment with factors is small there is a contradiction - the causes of trade have disappeared, and trade has increased. This is explained by the fact that the Heckscher-Ohlin theory developed in those years when inter-industry trade was predominant. Back in the early 1950s, the exchange of raw materials from developing countries for manufactured goods from developed countries was most characteristic. By the beginning of the 80s, already 2/3 of exports, for example, from Great Britain accounted for Western Europe and North America. In the foreign trade of industrialized countries, the mutual exchange of manufactured products has become predominant. Moreover, these countries simultaneously sell and buy not just manufactured products, but goods of the same name, differing only in qualitative characteristics. A feature of the production of export goods of industrialized countries is the relatively high cost of R&D. These countries today are increasingly specialized in the production of the so-called science-intensive high-tech products.
High-tech industries include the production of medicines, electronic computers and equipment, radio-electronic components, laboratory equipment, aviation and rocket and space industries.
The development of knowledge-intensive industries and the rapid growth of the international exchange of their products led to the formation of neo-technological theories. This direction is a collection of individual models that partially complement each other, but sometimes contradict each other.
TOPIC 5. The institution of a transaction in foreign economic activity. Conclusion and form of a contract of sale in foreign economic activity. Details of the contract and problems of applicable law
Types of international commercial transactions.
Export-import operations.
Search for counterparties.
Model contract.
Basic terms of delivery.
Commercial activity through a trade and intermediary link.
Types of customs regimes for goods and vehicles.
Customs payments.
15. Customs clearance.
Customs Broker.
customs carrier.
International commercial negotiations.
Methods of state regulation of foreign economic activity.
24. Certificate of Conformity.
Country of origin certificate
Fundamentals of foreign economic activity (Introduction).
Foreign economic activity- this is an activity related to the exchange of goods between partners located in different countries. A product is not only a material and material form, but also services, as well as knowledge. Partners or parties in foreign economic transactions are called contractors.
Consider the objective reasons that force states to engage in foreign economic activity. These are: 1) Uneven distribution of raw materials over the surface of the earth. (Some countries have minerals and some don't.) 2. Different climatic conditions, which affects the method of cultivating the land, productivity Agriculture 3. The difference in the economy and economic structure of states. (There are developed industrial countries, and there are less developed agrarian ones). 4. Unequal level of development of engineering and technology in individual industries. (For example, German cars, Japanese electronics, French wines, Russian weapons, American aircraft, etc. Almost every state has goods that they make better than others).
Law of minimum cost. In accordance with this law, it is more profitable for the state to specialize in the production of those goods, the production costs of which are minimal, and to import those goods, the production costs of which are higher than when they were imported. But sometimes states, for political reasons, go to the production of goods, the cost of manufacturing which is less profitable than buying, so as not to become dependent on other states. For example, the former Soviet Union produced almost everything itself, although the quality of these goods was often worse and more expensive than if they were purchased.
Model contract.
International trade has been going on for many years. Merchants engaged in international trade developed certain habits and rules. There is a practice of distributing responsibilities and risks between the seller and the buyer of goods. All these habits and rules have been collected by the International Chamber of Commerce into a document - a model contract, recommended for use in international commercial sales transactions. A model contract consists of a title and chapters. The heading indicates the number of the contract, as well as the date and place of its conclusion. The chapters usually include:
1 chapter: introductory part. In this chapter, counterparties are identified, the full legal name of the company is indicated, as well as the place and country of its location. The legal status of the company and the person representing it (signing this contract) are indicated. In accordance with the articles of association, the director or general director has the authority to represent the company. If the contract is entrusted to be signed by another person, then a power of attorney signed by the director or general director is issued for him, and a reference is made to this power of attorney in the introductory part. The period of validity of this power of attorney is also indicated.
Chapter 2: subject of contract. It indicates what type of product the seller is selling and the buyer is buying. If it is one item, it is described in this chapter. If these are several goods, then they use such a form as the creation of specifications attached to the contract, it indicates the name, article, quantity, cost of each product. The specification as well as the contract is signed by both parties and sealed.
Chapter 3: number. The quantity of goods, units of measurement of goods are determined, depending on their type (piece tons, liters, meters, cubic meters, wagons, etc.). The weight of the goods is indicated - gross and net.
Chapter 4: quality. It is determined how the quality of the goods can be controlled and what it should correspond to. The product must comply with either international or national standards. Or, if the product is specific, then it must comply specifications for this product. Sometimes, when trading with less developed countries, the quality is defined as corresponding to a catalog or even a sample. Quality parameters must be agreed upon by counterparties.
Chapter 5: delivery time or date. This chapter stipulates how the delivery is made: at a time, that is, the entire batch at once or in parts. For example - monthly, quarterly, annually or periodically. A specific delivery date may be specified.
Chapter 6: price. Here it is indicated what is the cost of delivery under this contract and in what currency the payment will be made. If the currency tends to change rapidly, then indicate whether the price is flexible (depending on the change in the exchange rate), fixed or floating (the price will be adjusted after the execution of the contract, taking into account all real costs).
Chapter 7: payments. This chapter describes how the payment will be made and specifies the form of payment. For example: - payment on an invoice, - collection form of payment, - letter of credit, - bill of exchange, - check, - electronic payments, - system of interbank electronic payments S.W.I.F.T., - cash.
The collection form of payment will be used to protect the exporter and importer from the partner's failure to fulfill its obligations under the Contract.
Bank of Importer
Bank of Importer
Bank of Exporter
· the exporter, having sent the goods, receives an invoice and a customs declaration called transport documents (TD). He gives them to his bank with instructions to receive payment (Payment) under this contract against the provision of transport documents. The exporter's bank, establishing a correspondent relationship with a bank in the importer's country (Via Border), sends him transport documents with an instruction to receive payment from the importer under this contract against the provision of transport documents to him. A bank in the importer's country provides the importer with these documents in exchange for payment under this contract and then forwards this payment to the exporter's bank for crediting the money to the exporter's account. This method of payment has two drawbacks: Firstly, the movement of documents in one direction and the movement of money in the opposite direction takes a significant amount of time, and secondly, such a situation may arise that TDs have come to the importer's bank, and that there are financial problems and he cannot redeem them, but the goods are already on their way. Therefore, this payment method is used when working with a verified counterparty.
When dealing with an unfamiliar partner, a letter of credit is applied.
Bank of Exporter
TD Border Payment
Bank of Importer
In case of letters of credit, the Importer reserves the amount of payment under this contract in the exporter's bank and, as soon as the exporter sends the goods, receives the transport documents and transfers them to his bank, an amount equal to the payment under the contract will be credited to his account. This form of payment eliminates the situation when the goods are shipped and the importer is insolvent. Letters of credit are: confirmed and unconfirmed, revocable and irrevocable, divisible and indivisible, renewable. The confirmed letter of credit contains the bank's obligation to make payment, regardless of whether it receives money from the importer or not. Unconfirmed such obligations do not contain. Revocable contains a provision that the bank can revoke this letter of credit if the importer's ability to pay is questioned. Irrevocable letters of credit indicate the period during which the bank has no right to send this letter of credit. Divisible, indivisible, renewable letters of credit are used when a part of the goods is sent.
Sometimes combined forms of payment are used (part is paid in cash, part is paid by bills, etc.).
Chapter 8: packaging and labeling. It is indicated what the packaging of the goods should be, whether it is returnable, reusable or non-refundable, whether its cost is included in the cost of the contract. Include in this chapter the order of marking. Each country has its own requirements. Negotiate the language, color, font and content of the marking.
Chapter 9: shipping order. This chapter describes the procedures for notifying a partner when a shipment is ready to ship and when it is ready to receive.
Chapter 10: delivery and acceptance of cargo. It describes how the transfer of the goods takes place, whether a buyer's representative is needed when the goods are shipped, what deviations can occur when receiving the goods, what documents need to be drawn up and who must sign them.
Chapter 11: claims. The period during which the buyer must respond to a deviation in the quality or quantity of the goods received, what documents and within what period to draw up, etc. is indicated. For serious contracts, acceptance of cargo is carried out in the presence of an independent expert, which can be a representative of the Chamber of Commerce and Industry in the country of the recipient of the cargo.
Chapter 12: guarantees. It is indicated how the exporter provides guarantees for the quality of goods in the importing country. In case of breakage during the warranty period, the goods can be sent back to the exporter. You can set up a service center in the country of the importer. But these methods are expensive. Warranty discounts are also used when the quality factor of the goods is set and a larger amount of goods is received by the amount of the probable failure. For example, we buy TVs - 100 pieces. The reliability coefficient of this TV model is 0.97, that is, 3 TVs can fail during the warranty period. Therefore, not 100 TVs are supplied, but based on the probable failure of 103 TVs. Thus, the guarantee discount is 3%
Chapter 13: penalties for delay. This chapter describes what sanctions are applied in case of delay in the delivery of goods and how they are applied. As a sanction, there may be penalties presented in the form of interest or a certain amount for the delay.
Chapter 14: force majeure (force majeure circumstances). Counterparties agree and prescribe those circumstances that they consider to be force majeure circumstances (earthquake, flood, other natural disasters, revolution, change of power, changes in legislation, a sharp change in the exchange rate). For the duration of force majeure circumstances, partners are released from obligations, but the existence of these circumstances must be documented by an independent body. The chamber of commerce and industry in the country of the counterparty affected by force majeure may act as such a body.
Chapter 15: arbitration. Specifies the procedure for resolving disputes, who will be the arbitrator. As a rule, it is an independent body, for example, the Arbitration Court at the Chamber of Commerce and Industry.
Chapter 16: contract language. They indicate to which law the contract belongs, which language is the main one, etc. Also, the contract can be drawn up in two languages, and each of them can have equal force.
Chapter 17: entry into force of the contract. Describes from what date this contract comes into force. It can come into force from the moment of signing, from a certain date, from some action. All previous correspondence, telephone conversations and agreements not included in the contract become invalid, and all interaction between counterparties is carried out strictly in accordance with the signed contract.
Chapter 18: cession. The procedure for assigning rights to third parties is negotiated.
Chapter 19: legal addresses. The legal and actual addresses of counterparties, their postal addresses, telephones, faxes, e-mail are fully prescribed.
Chapter 20: signatures and seals. The signature of those persons indicated in chapter 1 is put. The seal must be the main one (round seal indicating the TIN).
The contract may contain all of the listed chapters, some chapters may be combined, some chapters may be omitted and new chapters may be introduced, for example, on non-disclosure of commercial information under this contract, etc.
Basic terms of delivery.
The main distinguishing feature of the international contract of sale is the use of international commercial terms to determine the basic terms of delivery. International commercial terms in English INCOTERMS, short for International commercial terms, arose and developed on the basis of international trade practice. For the first time, the International Chamber of Commerce published international rules for the interpretation of commercial terms in 1953, then there were only 9 of them. Later, when reissued in 1980 and then in 1990, these rules were improved and supplemented. International commercial terms Incoterms-2000 have been in force since 2000. This document defines the obligations of the seller and the buyer in the delivery of goods, as well as the point of transition of the risks of loss and damage to the goods from the seller to the buyer. In accordance with this document, the following choice of obligations of the seller and the buyer is possible:
1. The minimum obligations of the seller solely to provide their premises for the storage of goods for the purpose of further transfer to the disposal of the buyer (EXW).
2. Broader obligations of the seller to transfer the goods for transportation either to the carrier chosen by the buyer (FCA, FAS, FOB), or to the carrier chosen by the seller, while he (the seller) pays for the carriage (CFR, CPT), and also provides insurance against possible risks in case of transportation (CIF, CIP).
3. The maximum obligations of the seller for the delivery and transfer of the goods at the destination specified by the buyer (DAF, DES, DEQ, DDU, DDP).
In accordance with Incoterms-2000, all international commercial terms are divided into 4 groups:
1 group: E. Includes basic conditions under which the buyer takes the goods from the factory or warehouse of the seller and contains only one term:
EXW from factory
In the event that the buyer fails to notify the seller of the time of arrival of the carrier appointed by the buyer for loading or fails to comply with the terms of acceptance of the goods, the buyer shall transfer all risks for the goods, starting from the date of delivery of the goods specified in the contract, but only on condition that the goods were separated as the subject of this contract and appropriately stored in the seller's warehouse, which may also contain the same goods intended for different buyers.
2 group: F. This group is characterized by the fact that the seller must deliver the goods to the buyer's vehicle.
Group F - main carriage not paid
Under the F-conditions, the seller is considered to have fulfilled his obligations after he has handed over the goods to the carrier in accordance with the instructions received from the buyer. These conditions assume that the buyer's obligations include the choice of a carrier, the conclusion of a contract of carriage with him. The seller informs the buyer about the readiness of the goods for shipment, after which the buyer concludes a contract of carriage and gives the seller instructions on who, when and how to transfer the purchased goods. Therefore, in each specific contract concluded on F-terms, this entire procedure should be clearly defined.
FCA (free carrier) - free from the carrier
FAS (free along side ship) - freely along the side of the ship
FOB (free on board) - free on board
3 group: C. This includes the basic terms of delivery, according to which the seller is obliged to conclude an insurance and freight contract (contract of carriage).
Group C - main carriage paid
In accordance with these conditions, the seller independently concludes a contract of carriage, pays for the carriage to the place of acceptance of goods by the buyer specified in the contract, and also notifies the buyer of the details of the shipment and the estimated time of arrival of the goods at the agreed place of delivery.
CFR (cost and freigt) - cost and freight
CIF (cost, insurance, freigt) - cost, insurance and freight
CPT (carriage paid to ...) - transportation paid to ....
CIP (carriage and insurance paid to ..) - transportation and insurance paid to ...
4 group: D. The seller must deliver the goods to the point specified by the buyer and bear all costs and risks until the goods are delivered to the buyer.
Group D conditions can be divided into two categories. The first includes DAF, DES, DDU conditions, according to which the seller does not clear the goods for import. The second category includes DEQ and DDP. Under these conditions, the seller must obtain all necessary import licenses, as well as pay customs duties, fees and taxes.
DAF (delivered at frointer) - delivery at the border,
DES (delivered ex ship) - delivery from the ship,
DEQ (delivered ex qay duty paid) - delivery from the pier with payment of customs duty at the destination,
DDU (delivered duty unpaid) - delivery without payment of customs duties,
· DDP (delivered duty paid) - delivery with payment of customs duties.
Another important feature document is a classification of terms depending on the means of transportation of goods, which allows the contracting parties to make the most accurate choice of a particular term.
Any type of transport, including mixed:
EXW from factory (with items)
CPT Carriage Paid To (Specifying Destination)
· CIP Carriage and insurance paid (indicating item)
· DAF Delivery at the border (indicating the point)
DDU Delivered Duty Free (Destination Indicated)
DDP Delivered Duty Paid (Specifying Destination)
Air Transport:
· FCA Free Carrier (indicating the item)
Railway transport:
FCA Free Carrier (indicating the item)
Sea and inland water transport:
FAS Free along the side of the vessel (named port of shipment)
FOB Free on board (named port of shipment)
· CFR Cost and Freight (named port of destination)
· CIF Cost, insurance, freight (named port of destination)
· DES Delivered ex vessel (named port of destination)
· DEQ Delivered ex berth (named port of destination)
In the Incoterms-2000 document, for each term, there is a table defining the obligations of the seller (A) and the buyer (B):
Theoretically, you can do without the use of abbreviations of international commercial terms, but in this case you will have to write down in the contract all the nuances of the obligations of the seller and the buyer. The correct entry of international commercial terms in the contract should look like this:
FOB Liverpool, Incoterms 2000.
DDU Frankfurt Schmidt GmbH, Warehouse 4, Incoterms 2000.
CPT Smith Carriers, Inc. Main Warehouse, New York, Incoterms 2000.
Distributor agreement.
Chapter 1: the parties to the contract are indicated, i.e. who is the supplier and who is the buyer. Chapter 2: the goods are determined. Chapter 3: the territory where the distributor will work is determined. Chapter 4: The right to sell is described. Chapter 5: ways to receive rewards, i.e. what discounts will apply, at what prices the goods will be sold. Chapter 6: the minimum turnover of the distributor is indicated. Chapter 7: the obligations of traders (should not sell competitors' goods, advertising, exhibitions, etc.). Chapter 8: control over the actions of the distributor (a report may be submitted or a representative may come and control the distributor on the spot). Chapter 9: obligations of the supplier of goods (warranty service, etc.). Chapter 10: the duration of the contract. Chapter 11: signatures, seals, addresses.
Commission agreement.
Chapter 1: indicates what goods, their quantity, quality. Chapter 2: the territory is negotiated Chapter 3: ownership of this product (the product is the property of the supplier of this product until the receipt of money).
Chapter 4: terms of delivery of goods and their cost. Chapter 5: conditions for receiving remuneration by a commission agent, its amount and how it is paid. Chapter 6: obligations of the committent and obligations of the commission agent (ensuring advertising, safety of goods, insurance, periodic reporting). Chapter 7: the procedure for the return of unsold goods. Chapter 8: dispute resolution procedure.
Chapter 9: signatures, seal, address.
Agency contract.
Chapter 1: determination of the parties. They indicate who is the principal and who is the agent. Indicate his coordinates, if this is a private person, then indicate his passport data. Chapter 2: powers of agents. Whether the agent has the right to enter into contracts on behalf of the principal. Chapter 3: definition of goods (for which goods the agent represents the principal). Chapter 4: definition of the territory. Chapter 5: The right to sell. Chapter 6: the term of the agreement and the procedure for terminating it. The agreement may be concluded for a specified period. Chapter 7: the amount and procedure for receiving remuneration by the agent and when the right to remuneration arises (percentage of the transaction or a specific amount). Chapter 8: agent's obligations (minimum work period clause, non-competition clause, advertising campaign clause, non-disclosure clause). Chapter 9: duties of the principal (to report the results of transactions, inform the agent about new products, provide the agent with advertising materials, when the price or delivery conditions change, the principal must notify in advance, in a timely manner and pay remuneration to the agent in the form of a percentage or a specific amount).
Chapter 10: addresses and coordinates, signatures, seals, dispute resolution procedure.
So let's look at the table. The mediator works:
| Intermediary / type of transactions | Resale operations | Commission/Consignment Operations | Agency Operations |
| Merchant / Distributor | On my own behalf and at my own expense | ||
| Commissioner / Consignee | On my own behalf and not at my own expense | ||
| Trading agent | Not on my own behalf and not at my own expense |
13. Types of customs regimes for goods and vehicles.
All goods imported and exported on the territory of the Russian Federation are placed under a certain customs regime. A person has the right to choose any customs regime or change it to another. For the purpose of customs regulation, the following regimes for goods and vehicles are established.
1. Main customs regimes: Release for internal consumption, Export, International customs transit.
3. Economic customs regimes: processing in the customs territory, processing for internal consumption, processing outside the customs territory, temporary importation, customs warehouse, free zone (free warehouse).
4. Final customs regimes: re-import, re-export, destruction, refusal in favor of the state.
5. Special customs regimes: temporary importation, duty-free trade, movement of supplies, other special regimes.
A person has the right to choose any customs regime, or change it to another, regardless of the nature of the goods, their quantity, the country of origin, etc.
Customs payments.
When moving goods and vehicles across the customs border, the following customs payments and their types are established:
25. Import customs duty paid in accordance with the law of the Russian Federation on the customs tariff. The amount of the duty is taken from the FEACN of the CIS - the classifier of all goods participating in FEA. The document is constantly updated, as the duty is increased for certain goods, and reduced for others, depending on the foreign economic policy pursued by the state. These changes are adopted by the relevant legislative body and are brought to the attention of foreign economic activity participants in advance.
26. Export customs duty .
3. value added tax. Payments are paid in accordance with the law of the Russian Federation on value added tax. It is paid when importing goods, when exporting it is not. This tax is not a customs payment, it refers to taxes that are entrusted to the customs authority for collection. The money is credited to the account of the regional tax authority.
27. excises accrued in accordance with the law of the Russian Federation on excises
and is charged only when goods are imported into the customs territory of the Russian Federation. The accrued money does not go to the account of the customs authority.
4. Customs duties(For example: for the issuance of licenses by the customs authorities and for the renewal of the license. The license must be taken when organizing a warehouse, processing outside the customs territory, etc. for issuing a qualification certificate for a customs clearance specialist and for renewing the certificate, customs fees for customs clearance. This is a payment for the fact that customs examines your documents. The payment is 0.15% of the value of the goods. This fee is always charged, even if the goods are not subject to excise, value added tax, customs fees for storage of goods, fees for customs escort of goods, payment for information and consultation.)
28. Special, anti-dumping and countervailing duties ,
established in accordance with the legislation of the Russian Federation on measures to protect the economic interests of the Russian Federation.
Customs duties and other fees and taxes are not paid if the total customs value of goods imported into the customs territory of the Russian Federation during the week and addressed to one recipient does not exceed 5,000 rubles.
Customs bodies give to the budget from 1/4 to 1/3 of all revenues. Customs payments are paid by the person moving the goods. Any interested person can pay a customs fee. Customs payments are paid before the acceptance of the declaration, or simultaneously. Payment is made to the customs account. We calculate the amount of customs payments ourselves, or a customs broker. In exceptional cases, a delay in the payment of customs payments may be granted, but should not exceed 2 months. During the grace period, interest is charged at the refinancing rate. Customs payments can be paid both in ruble equivalent and in foreign currency. Foreign currency is recalculated at the exchange rate of the Central Bank of the Russian Federation. Unpaid customs payments are collected by the customs authority in an unconditional manner with the help of courts, and penalties are collected for each day of delay in payment of customs payments. The amount of overpaid payments is subject to return at the request of the person within 1 year. When returning customs payments, interest on them is not paid. And, as a rule, customs does not pay with money, but credits it to your account against future payments.
15. Customs clearance.
Customs clearance is carried out in certain places in the region of activity of the customs authority in which the sender or recipient of the goods or its structural subdivision is located. Registration takes place during the work of the customs authority, but the customs code of the Russian Federation provides, at the request of a participant in foreign economic activity, outside the location of the customs authority and outside the working hours of the customs authority, but for a double rate. Customs clearance is carried out in Russian. No one has the right to use and dispose of goods in respect of which registration has not been completed. For customs purposes, customs authorities have the right to take samples and specimens of goods and conduct an examination. These samples and samples are taken in the minimum required quantity. When taking samples, an appropriate act is drawn up. The costs and losses arising from the taking of these samples shall be borne by the person moving the goods.
Customs Broker.
Goods can be declared in two ways:
With the help of your customs clearance specialist. In this case, the declaration comes from the person moving the goods at his financial risks and behind his signature and seal. The power of attorney of the enterprise is issued for a specific specialist.
Declaration with the help of a customs broker (intermediary), which is carried out on behalf of the customs broker, with his signature and seal and at his risk.
To be a broker, you need to obtain an appropriate license for the right to engage in brokerage activities. It is issued when following conditions:
a) it is necessary to have a customs clearance specialist on staff who has received a qualification certificate;
b) it is necessary to conclude an insurance contract for its activities;
c) have material and technical equipment sufficient to carry out activities as a customs broker.
17. Customs carrier.
A customs carrier may be an enterprise established in accordance with the legislation of the Russian Federation, which has the rights of a legal entity and has received a license from the State Customs Committee of the Russian Federation to operate as a customs carrier. To obtain a license, you must:
Have a vehicle whose equipment meets the requirements of the State Customs Committee of the Russian Federation. For example, it must ensure the safety of goods;
Conclude an insurance contract for your activities. Insurance cannot be less than a thousand times the size of the ILO.
The declaration is submitted no later than 15 days from the date of receipt of goods at the temporary storage warehouse of the customs authority of the Russian Federation. When declaring goods, the declarant must:
1. to declare goods and vehicles in accordance with the procedure provided for by this code;
2. at the request of the customs authority, present the goods that are being declared;
3. submit to the customs authority the necessary additional documents and information necessary for customs clearance;
4. pay customs duties;
5. assist customs authorities in customs clearance, loading and unloading.
FOUNDATIONS OF FOREIGN ECONOMIC ACTIVITIES (lectures)
Tambov 2008
BBK U9 (2) 80
Bezuglaya V.M. . Lectures for the course. – Tambov: Tambov. state tech. un-t., 2008 - 80 p.
The theoretical material on the course "foreign economic activity" for students of the economic specialty of a technical university is presented in a compact form. Separate theoretical provisions are supported by the current legislative and regulatory documents.
Designed for 4th and 5th year students of full-time and part-time education in the specialty 080502.
Approved by the Academic Council of the University
Reviewer: head. department " Accounting, analysis and audit"
Branch of PAGS in Tambov, Ph.D. Yu.I. molybog
Bezuglaya V.M.
Tambov State
Technical University (TSTU), 2008
Foreign economic activity
Lecture 1. Subject, goals and objectives of the course
Lecture 2. International division of labor
Lecture 3. Regulation and management of foreign economic activity
Lecture 4. Non-tariff regulation of foreign economic activity
Lecture 5 Customs and tariff regulation of foreign economic activity
Lecture 6. Commodity nomenclature of foreign economic activity
Lecture 7. Basic terms of delivery
Lecture 8. Currency regulation and currency control
Lecture 9. Pricing in foreign trade
Lecture 10
Lecture 1. Subject, goals and objectives of the course
1. Characteristics and main directions of foreign economic activity of the Russian Federation.
2. The main content of the course being studied. Foreign economic activity (FEA) of any state, including the Russian Federation, covers a variety of activities. Foreign trade is the most important direction.
Foreign economic relations (BES) of the state are part of the overall structure of the national economy and affect the location and development of productive forces, the formation of proportions.
For a long period (up to 80-90 years), wind farms were considered in our country as a forced phenomenon.
The country's economy was unbalanced, and imports were seen as a means of covering the deficit, and exports as a forced payment for imports.
The direct creators of the export potential - the primary links (associations, enterprises, research institutes) were excluded from participation in the WEC, and this was one of the reasons for the inefficiency of exports.
Reforming the country's economy, including foreign economic activity, ensures decentralization in foreign economic activity, the destruction of the monopoly on foreign trade.
Enterprises, at the same time, received the right to independently enter the foreign market.
Thousands of enterprises, entrepreneurs and civil servants take part in foreign economic activity today. At the same time, many participants are not familiar with the basics, especially with the intricacies of foreign economic activity. During the period when modern world is rapidly transforming into a single giant global community with international markets, it is very important to train a wide range of specialists who know the mechanism of product management and have the skills to study the situation in the foreign market, search for promising buyers, conduct commercial negotiations with them and conclude profitable contracts.
The right to enter the foreign market was granted to primary business units by the Decree of the President R.F. dated 11/15/1991 "On the liberalization of foreign economic activity on the territory of the RSFSR".
According to the Decree, any enterprise (regardless of the form of ownership) has the right to carry out foreign economic activity, if this is included in its statutory regulations.
When entering a foreign market on its own, an enterprise has to solve a wide range of issues related to the export and import of goods and services, namely:
study of the world market;
choice of partner;
analysis of the activities of foreign firms and marketing;
choice modern forms sales of goods and after-sales service;
foreign trade contract. The success of a commercial transaction largely depends on how professionally the contract is executed.
Training and retraining of personnel for foreign economic activity is of particular relevance for enterprises. There are qualified personnel at the central levels of foreign trade management (MVES, the Chamber of Commerce and Industry of the Russian Federation, etc.), but the process of their formation at enterprises is just beginning.
The national economic policy of each country will be effective if it is coordinated with the economic strategy of other countries (example: EU, WTO, etc.).
All countries benefit from economic integration, but the measure of gain varies.
Our country has long remained aloof from the development of integration processes. For decades, the barter exchange of oil and gas for grain and consumer goods has dominated, which indicates a backward form of international trade.
Participation in full-fledged cooperation is difficult due to the low quality of domestic products. Analysis of Russian exports for 2000-2007. shows that its value does not correspond to the potential of the country's economy
Currently, the main areas of Russia's external relations with foreign partners are improving:
Export-import relations;
Joint venture (production, finance, foreign trade, etc.);
Development of natural resources.
2. The main content of the course being studied
The study of the discipline is connected with the solution of the following tasks:
Show trends and problems in the development of international economic relations;
to give methodological foundations for the economic justification of various forms of foreign economic activity of enterprises;
familiarize with the organization and technique of conducting foreign economic operations of enterprises.
The course will address the following issues:
forms and methods of regulation of foreign economic activity” (legislators and the basis, management bodies;
non-tariff and customs-tariff regulation;
fundamentals of customs;
main provisions of currency regulation and control;
pricing of export and import products;
commodity nomenclature of foreign economic activity;
basic terms of delivery of goods;
Lecture 2: International division of labor (MRI). Forms of International Economic Relations (FIEO)
Concepts and tendencies of MRI.
Forms of international economic relations. Or the main forms of foreign economic relations.
Indicators of Russia's participation in MRI
I. MRI concepts and trends
The world economy has an increasing influence on the national economy of any country. At the same time, the world economy has its own problems that are different from the problems of the national economy of a particular country. At the heart of the world economy, formed on the basis of national economies and economic relations between them, is the MRI.
MRT - represents the specialization of individual countries in the production of individual goods and services that these countries exchange with each other. Such specialization leads to the formation of industries of international specialization, the products of which are mainly export-oriented.
MRI originated in the manufacturing period of the development of capitalism. At that time, the main form of MRI was unilateral and multilateral relations between countries, and in the period of the 19-20 centuries. The international division of labor embraced the whole world. Before the industrial revolution, MRI was based on a natural basis, i.e. on differences between countries: in natural and climatic conditions; geographical location; raw materials and energy sources.
In industrialized countries, the dependence of specialization on a natural basis is greatly reduced. In the modern world, specialization is based on the level and characteristics of economic development, i.e. highly developed countries use scientific and technical potential.
The tendency to expand the international exchange of goods and services is faced with the opposite trend - autarky (the economic policy of the state aimed at the isolation of the national economy). In contrast to autarky, the trend towards an open economy is growing (elimination of the state monopoly of foreign trade; effective use of the principle of comparative advantages of the country; MRI; active use of various forms of joint venture; favorable investment climate in the country).
The specialization of countries generates the international exchange of goods and services, but economic resources also move between countries. Some of them have low mobility. More mobile - labor force and capital. As a result of the development of the international division of labor, a world market has developed - a set of national markets of individual countries connected with each other by economic relations.
The world market originated in the 16th century during the period of great geographical discoveries. This period is characterized by the non-equivalence of trade between the countries of Europe and the rest of the world. During the period of the industrial revolution (18-19 centuries), a higher period of development of the world market began. The developed industry has formed the world market of the era of free competition. Further improvement of the world market predetermined the creation of world transport, communications and the export of capital.
^
II. The main forms of foreign economic relations
WEC is an international economic, trade, and political relations including: the exchange of goods, NT cooperation, cooperation in production, provision of services and joint ventures. Foreign economic activity of any state, incl. and RF covers the following areas:
trade
joint ventures, both domestically and internationally.
foreign enterprises in the country
international organizations and associations
concessions - an agreement on the transfer to operation for a certain period of natural resources or enterprises owned by the state or local authorities.
leasing
international countertrade
processing of tolling raw materials
attracting foreign labor
NT cooperation
trade in licenses and technologies
coastal and border trade
cooperation in the banking sector
foreign tourism
cooperation in free economic zones
The share of science-intensive products in international trade accounts for approximately 60% of the total volume, the share of raw materials 40%. The structure of Russian exports is unsatisfactory; raw materials account for about 70% of all sales.
The developed state export promotion programs provide for financial assistance to exporters, tax incentives, organizational and legal and special measures.
The results of the development of foreign economic activity include:
1. further deepening of MRI
2. economy of social labor in the countries engaged in foreign trade and other forms of SE relations.
3. increase in the number of countries with market economies
4. successful functioning of transnational corporations and concerns.
5. expansion of the number of countries. achieved full convertibility of national currencies.
Lecture 3: Regulation and management of foreign economic activity
International practice and methods of state regulation.
The main stages in the development of the foreign economic activity management system in the Russian Federation.
Governing bodies and their main functions.
^
1. International practice and methods of state regulation
The functions of the state in the mechanism of state regulation of foreign economic activity are implemented using various forms and methods, mainly of an economic nature.
In modern practice, the most applicable methods of state regulation are:
long-term forecasting and medium-term planning;
credit and fiscal measures;
administrative and organizational-legal forms;
demonopolization of market competition.
development of common elements for the functioning of markets (commodity, currency);
credit systems for export-import operations;
currency risk insurance systems;
standard conditions of Incoterms.
non-tariff elements;
tariff preferences;
currency and credit funds;
stimulation of export production;
technical norms, standards, requirements for imported goods.
Intranational methods of regulation are usually specified for export, import, barter.
The main objectives of foreign trade regulation are as follows:
use of foreign economic relations to accelerate the creation in Russia market economy;
protection of national interests, protection of the domestic market;
improving the quality of national products through the acquisition of licenses and patents, the purchase of new technologies, raw materials and materials, the inclusion of Russian enterprises in world competition;
creation of conditions for the access of Russian entrepreneurs to world markets through the provision of state, organizational, financial, information assistance;
creation and maintenance of a favorable international regime in relations with various states and international organizations.
unity of foreign economic policy and domestic economic policy;
unity of systems of state and non-state regulation and control;
priority of economic methods over administrative ones;
ensuring equality of all participants in foreign economic activity.
^
2. The main stages in the development of the foreign economic activity management system in the Russian Federation
Since the formation of the USSR, a state monopoly on foreign trade and other types of foreign economic activity has been established. Foreign trade was nationalized, and trade transactions with foreign states and enterprises were carried out on behalf of the state by the people's commissariat.
The monopoly remained throughout the years and was fixed by special articles of the Constitution of the USSR.
The reform of foreign economic activity began in the period 1985-1986. The first stage was the granting of the right to enter the foreign market to 20 ministries and 70 largest enterprises. Then, since 1989, the lower economic units received the right to enter the foreign market, i.e. direct producers of goods and services.
The principle of currency self-sufficiency was put in the basis of export-import operations.
The system of state regulation of foreign economic activity provided for:
registration of WES participants;
declaration of goods transported across the customs border;
development of rules for the export and import of certain goods (specific, dual-use, licensed);
operational regulation of WPP.
The licensing procedure was introduced in order to:
optimizing the division of all funds between the country's domestic market and exports;
streamlining the competition of exporters.
The Government of the Russian Federation approved the list of licensed goods, which covered 90% of exports and 8% of imports. The state retained the right to export and import nuclear materials, precious metals and stones, weapons and ammunition, works of art and antiquities, narcotic and psychotropic substances.
These measures strengthened the administrative methods of managing the wind farm, but they were forced.
The basis of the process of liberalization of foreign economic activity was laid in the Decree of the President of 15.11.1991. "On the liberalization of foreign economic activity". The main provisions of the Decree are:
Allow all enterprises to carry out foreign economic activity without special registration.
Submit to the Government for approval a reduced list of licensed and quota-bound goods.
Allow authorized banks to open foreign currency accounts for all legal entities and individuals.
Install from 1.01.1992. obligatory sale of a part of foreign exchange earnings by enterprises to the Central Bank for the formation of the republican foreign exchange reserve. Proceeds from the sale are used to service external debt and centralized purchases of imports.
Prohibit settlements and payments between legal entities, legal entities and individuals in foreign currency on the territory of the country.
Stage 1 (end of 1991 - first half of 1992) included the following measures:
removal of restrictions on the export of finished products (while maintaining strict quantitative and tariff restrictions on the export of raw materials);
partial liberalization of the exchange rate;
lifting any restrictions on imports.
The need to regulate exports is caused by the desire to prevent the devastation of the domestic market.
Stage 2 (second half of 1992). The main provisions of the second stage:
the introduction of an import tariff as a protective measure for domestic producers from the competition of imported goods;
tightening controls on the export of FETA;
full liberalization of the exchange rate;
creation of the foreign exchange market. One of the conditions for this is the obligatory sale of 50% of foreign exchange earnings by exporters.
the transition to tariff methods of regulation has been completed. Accordingly, the role of quantitative restrictions is reduced;
the enterprise was singled out as the main subject of foreign economic activity.
These stages completed, in general, the formation of a transition period mechanism based on:
limited use of non-tariff methods of export regulation, mainly in relation to AFTS, military and dual-use products;
mandatory sale of 50% of foreign exchange earnings;
using the customs tariff to protect the domestic market.
convergence of world and domestic prices;
accumulation of significant foreign exchange reserves;
achieving a positive balance of payments;
stabilization of the national currency rate;
development of wholesale trade.
^ 3. Governing bodies and their main functions
The FEA management system is in the process of further development. In accordance with the Constitution of the Russian Federation, the state reserved the right to establish VEO only at the state level. Subjects of the federation, enterprises have the right to independently install wind farms within the powers specified by law.
The independence of the lower economic units is not unlimited, but is regulated and coordinated by the state and its governing bodies.
The system of public authorities of the Russian Federation includes: legislative; executive; judicial branch of government.
The jurisdiction of the legislature includes the adoption of laws, incl. according to foreign economic activity. Laws can be both of a general economic nature (VAT taxes, excise taxes), and specifically for foreign economic activity (TC; Law on Customs Tariffs, etc.). Along with the Laws, Decrees of the President and Decrees of the Government of the Russian Federation are issued.
The judicial system (with regard to foreign economic activity) should ensure the protection of the rights and interests of participants in the foreign economic activity, not only domestic, but also foreign. The court is independent and subject only to the law.
The executive power includes the President of the Russian Federation and the Government of the Russian Federation, including the Ministries.
Thus, the management of foreign economic activity is carried out by a whole system of state authorities. The most diverse organs in the executive branch. The most important are: the Ministry of Economic Development and Trade (MEDT); Ministry of Finance; Ministry of Transport and Communications; Central Bank of Russia; Federal Customs Service.
The main tasks of the Ministries are:
development and implementation of the foreign economic policy of the Russian Federation;
coordination and regulation of foreign economic activity in accordance with the decisions of the highest authorities;
development of a mechanism for regulating monetary and credit relations;
development of a forecast of foreign trade and balance of payments;
determination of the volume of export deliveries and analysis of the state and forecasting of rates, proportions, efficiency of exports and imports, etc.
The structure of the customs authorities is three-level: FCS; regional customs departments; customs and customs posts.
Customs are border and internal. Internal customs carry out the bulk of the work on customs control - inspection, verification of customs declarations, shipping and payment documents, collection of payments.
The border customs send vehicles to the respective customs under the procedure of internal customs transit and carry out the actual release of goods abroad.
Lecture 4: Non-tariff regulation of foreign economic activity
Principles and methods of regulation of foreign trade.
The main forms of non-tariff regulation of foreign trade activities.
Certification of imported products
^
I. Principles and methods of regulation of foreign trade
The success and performance of any state in the foreign market are determined by many factors. One of them is: the composition and effectiveness of the established state procedures to which goods are subjected when crossing the customs border.
Import and export of goods, as well as other types of foreign economic activity, are subject to public policy. In the process of development of world trade, certain instruments of this policy have been developed, which are used by all states of the world.
The national territory is declared the customs territory of the state, it is surrounded by the customs border.
Goods transported across the customs border must be cleared at customs.
The import of goods into the customs territory or its export may be prohibited or restricted. All participants in foreign trade operations need knowledge of the import (export) rules in force in the country.
The world is in the process of forming uniform norms and rules in the world market, as well as systems of interstate agreements. The regulatory mechanism is equipped with a developed information and technical base.
An important feature of the regulation mechanism is a comprehensive approach to the use of various methods and elements of influence on foreign trade.
The modern practice of regulating foreign trade is represented by a set of means and instruments of a national and interstate nature, tariff and non-tariff promotion of exports and restraint of imports.
Interstate regulation of foreign trade is ensured by:
bilateral and multilateral agreements and treaties (GATT, WTO, etc.);
elements of regulation of foreign exchange markets;
standard conditions "Incoterms";
currency risk insurance, etc.
Mandatory application of the most favored nation treatment in mutual trade;
non-discrimination;
Reducing customs duties;
Conducting foreign trade on a private law basis.
The basis of the national system of regulation of foreign trade is a set of permissible:
Methods for restricting exports and imports through non-tariff elements and tariff preferences;
Monetary and credit funds;
Ways to stimulate export production;
Technical norms, standards and requirements for imported goods.
The methods of non-tariff restrictions on exports and imports are distinguished by the greatest variety of elements. In world practice, their number is about 100 positions.
Non-tariff restrictions are a set of restrictive and prohibitive measures that prevent:
A) penetration of foreign goods into the domestic market;
B) the export of goods.
Non-tariff restrictions are: quantitative (quota) and non-quantitative (technical norms). The whole complex of non-tariff restrictions is implemented through the use of administrative regulation tools. Administrative instruments are used when economic levers are not effective enough.
The state foreign trade policy of the Russian Federation was carried out in accordance with the Law of the Russian Federation "On State Regulation of Foreign Trade Activities" (1995), currently in accordance with the Federal Law "On the Fundamentals of State Regulation of Foreign Trade Activities" 2003.
In accordance with these laws, the methods of state regulation of VTD are: customs-tariff and non-tariff regulation. According to the law, export and import to the Russian Federation is carried out without quantitative restrictions. Quantitative restrictions are introduced in exceptional cases by the Government of the Russian Federation.
Government resolutions on the introduction of quantitative restrictions on exports or imports are officially published no later than three months before the introduction of restrictions.
Main forms of non-tariff regulation of VTD
Prohibitions and restrictions on exports and imports are established for:
observance of public morality and law and order;
protection of life and health of people, protection of flora and fauna, environment;
conservation cultural heritage people;
protection of cultural property;
preventing the depletion of irreplaceable natural resources;
ensuring the national security of the country;
protecting the external financial position and maintaining the country's balance of payments;
fulfillment of international obligations of the Russian Federation.
A quota is a tool for regulating exports and imports in foreign trade by establishing quantitative restrictions on the volumes of imported and exported goods for a certain period.
Quotas are introduced for a certain period in relation to certain goods and services. Acts as a regulator of supply and demand in the domestic market and as a response to discriminatory actions of foreign trading partners.
The basic documents of the system of quotas and licensing in the Russian Federation are Decrees of the Government of the Russian Federation of December 31, 1996 No. "On licensing and quotas for exports and imports of goods, works, services on the territory of the Russian Federation since 1992." and dated October 31, 1996. "On the procedure for holding competitions and auctions for the sale of quotas for the introduction of quantitative restrictions and licensing of exports and imports of goods."
According to the documents, the Government of the Russian Federation decides:
Introduce on the territory of the Russian Federation a unified procedure for licensing and quotas for exports and imports of goods.
Approve:
B) a list of goods, the export and import of which is carried out under licenses;
C) a list of specific goods, the export and import of which is carried out under licenses;
D) regulation on the procedure for licensing and quoting goods.
Licensing is a system of state control over export and import operations by strictly accounting for certain commodity flows, and, if necessary, their temporary restriction.
A license is a permit for the import or export of the goods specified in it within the prescribed period.
When establishing quantitative restrictions on the export or import of goods, the following scheme is put into effect:
An exporter (importer) can export (import) goods only if he has a license, which he must obtain and submit to the customs authority;
The basis for obtaining a license is a certificate of receipt of a quota;
Getting a quota is possible only on a paid basis due to winning a competition or auction;
The organization of a competition or auction for the sale of quotas is carried out by a specially created Interdepartmental Commission.
The main task of the commission is the optimal placement of quotas by holding competitions and auctions, while observing the principles of transparency, objectivity, unity of requirements and the creation of equal competitive conditions.
Competitions are open and closed. Any VTD participants can take part in the open tender. The Commission may conduct a preliminary selection of applicants.
Only Russian participants of the VTD who have received an official invitation from the commission can take part in the closed competition.
The winner of the competition receives a certificate, i.e. a document that further gives him the right to obtain a license for the export or import of goods in the amount of the quota.
The license can be single or general. A single license is issued to carry out a foreign trade operation under one contract for a period of up to 12 months. A general license is issued for each type of exported or imported goods, indicating its quantity and value. Unlike a one-time license, it is issued without specifying a specific buyer or seller.
The issued license is issued in one copy and is not subject to transfer to other applicants.
The licensing system is usually used for the purpose of operational control over compliance with quotas. Many countries use it as an independent means of non-tariff protectionism.
Another form of non-tariff regulation is special export controls. A number of goods fall under control:
nuclear materials, equipment, special non-nuclear materials. Control is carried out in accordance with the obligation of the Russian Federation, arising from the Treaty on the Non-Proliferation of Nuclear Weapons and the principles of nuclear export.
dual-use equipment and materials and related technologies (lasers, explosives and explosives, CNC blocks, enriched isotopes, etc.).
ferrous and non-ferrous metals.
One form of non-tariff regulation is measures related to customs or administrative formalities.
Non-tariff customs barriers are not perfect, but their elimination causes significant damage to the state.
V.M. FOREIGN ECONOMIC ACTIVITY ♦ TSTU PUBLISHING HOUSE ♦ Ministry of Education and Science of the Russian Federation Tambov State Technical University V.M. FOREIGN ECONOMIC ACTIVITIES WITHOUT ANGLE Approved by the Academic Council of the University as a course of lectures for 4th and 5th year students enrolled in the specialty 080502 of all forms of education Tambov Publishing House TSTU 2008 UDC 339.9 BBK U9(2)80 B406 R eviewers: Candidate of Economic Sciences, Associate Professor , Head of the Department "Accounting and Audit" TSTU L.V. Parkhomenko Candidate of Economic Sciences, Associate Professor, Head of the Accounting, Analysis and Audit Department of the PAGS Branch in Tambov Yu.I. Molibog Bezuglaya, V.M. B406 Foreign economic activity: a course of lectures / V.M. No corner. - Tambov: Tambov Publishing House. state tech. un-ta, 2008. - 80 p. - 100 copies. – ISBN 978-5-8265-0709-4. The theoretical material on the course "Foreign economic activity" for students of economic specialties of a technical university is presented in a compact form. Some theoretical provisions are supported by the current legislative and regulatory documents. Designed for 4th and 5th year students of the specialty 080502 of all forms of education. UDC 339.9 BBK U9(2)80 ISBN 978-5-8265-0709-4 © Tambov State Technical University (TSTU), 2008 Educational publication BEZUGLAYA Valentina Mikhailovna FOREIGN ECONOMIC ACTIVITY Course of lectures Editor O.M. Yartseva a Computer prototyping engineer T.A. Synkov Signed for publication on May 27, 2008. Format 60 × 84/16. 4.65 arb. oven l. Circulation 100 copies. Order No. 268 Publishing and Printing Center of the Tambov State technical university 392000, Tambov, Sovetskaya, 106, room 14 Lecture 1 SUBJECT, GOALS AND TASKS OF THE COURSE 1. Characteristics and main directions of foreign economic activity of the Russian Federation. 2. The main content of the course being studied. 1. Characteristics and main directions of foreign economic activity of the Russian Federation Foreign economic activity (FEA) of any state, including the Russian Federation, covers a variety of activities. Foreign trade is the most important direction. Foreign economic relations (FER) of the state are part of the general structure of the national economy and affect the location and development of productive forces, the formation of proportions. For a long period (until 1980 - 1990) wind farms were considered in our country as a forced phenomenon. The country's economy was unbalanced, and imports were seen as a means of covering the deficit, and exports as a forced payment for imports. The direct creators of the export potential - the primary links (associations, enterprises, research institutes) - were excluded from participation in the WEC, and this was one of the reasons for the inefficiency of exports. Reforming the country's economy, including foreign economic activity, ensures decentralization in foreign economic activity, the destruction of the monopoly on foreign trade. At the same time, enterprises received the right to independently enter the foreign market. Thousands of enterprises, entrepreneurs and civil servants take part in foreign economic activity today. At the same time, many participants are not familiar with the basics, especially with the intricacies of foreign economic activity. At a time when the modern world is rapidly turning into a single giant world community with international markets, it is very important to train a wide range of specialists who know the mechanism of production management and have the skills to study the situation in the foreign market, search for promising buyers, conducting commercial negotiations with them and entering into profitable contracts. The right to enter the foreign market was granted to primary business units by the Decree of the President of the Russian Federation “On the liberalization of foreign economic activity on the territory of the RSFSR” dated 11/15/1991. According to the Decree, any enterprise (regardless of the form of ownership) has the right to carry out foreign economic activity, if this is included in its statutory regulations. When independently entering the foreign market, the enterprise has to solve a wide range of issues related to the export and import of goods and services, namely: − study of the world market; − choice of partner; − analysis of activities of foreign firms and marketing; − selection of modern forms of product sales and after-sales service; − assessment of the efficiency of export-import operations. An important place among these problems is the conclusion of a foreign trade contract. The success of a commercial transaction largely depends on how professionally the contract is executed. Training and retraining of personnel for foreign economic activity is of particular relevance for enterprises. There are qualified personnel at the central levels of foreign trade management (MVES, the Chamber of Commerce and Industry of the Russian Federation, etc.), but the process of their formation at enterprises is just beginning. The national economic policy of each country will be effective if it is coordinated with the economic strategy of other countries (example: EU, WTO, etc.). All countries benefit from economic integration, but the measure of gain varies. Our country has long remained aloof from the development of integration processes. For decades, the barter exchange of oil and gas for grain and consumer goods dominated, indicating a backward form of international trade. Participation in full-fledged cooperation is difficult due to the low quality of domestic products. Analysis of Russian exports for 2000 - 2007 shows that its value does not correspond to the potential of the country's economy. Currently, the main areas of Russia's external relations with foreign partners are improving: − export-import relations; − joint venture (production, finance, foreign trade, etc.); − development of natural resources. 2. The main content of the course under study The study of the discipline is connected with the solution of the following tasks: - to show trends and problems in the development of international economic relations; − to give the methodological foundations for the economic justification of various forms of foreign economic activity of enterprises; − familiarize with the organization and technique of conducting foreign economic operations of enterprises. The content of the course is interconnected and based on the materials of the courses studied: economic theory, world economy, tax law, marketing, management, etc. The following issues will be considered within the course under study: − forms and methods of regulating foreign economic activity (legislative framework, governing bodies); − non-tariff and customs-tariff regulation; − basics of customs business; − main provisions of currency regulation and control; − pricing of export and import products; − commodity nomenclature of foreign economic activity; − basic terms of delivery of goods; − content, conditions of conclusion and execution of foreign trade contracts. Lecture 2 INTERNATIONAL DIVISION OF LABOR (MRI). FORMS OF INTERNATIONAL ECONOMIC RELATIONS (FIER) 1. Concepts and tendencies of MRI. 2. Forms of international economic relations, or the main forms of foreign economic relations. 1. Concepts and tendencies of MRI The world economy has an increasing influence on the national economy of any country. At the same time, the world economy has its own problems, different from the problems of the national economy of a particular country. The basis of the world economy, formed on the basis of national economies and economic relations between them, is MRI. MRT is a specialization of individual countries in the production of certain goods and services that these countries exchange with each other. Such specialization leads to the formation of international specialization industries, the products of which are mainly export-oriented. MRI originated in the manufacturing period of the development of capitalism. At that time, the main form of MRI was unilateral and multilateral relations between countries, and in the period of the 19th - 20th centuries. The international division of labor embraced the whole world. Before the industrial revolution, MRI was based on a natural basis, i.e. on differences between countries: in natural and climatic conditions; geographic location; raw materials and energy sources. In industrialized countries, the dependence of specialization on a natural basis is greatly reduced. In the modern world, specialization is based on the level and characteristics of economic development, i.e. highly developed countries use scientific and technical potential. The tendency to expand the international exchange of goods and services is faced with the opposite trend - autarky (the economic policy of the state aimed at the isolation of the national economy). In contrast to autarky, the trend towards an open economy is growing (elimination of the state monopoly of foreign trade; effective use of the principle of comparative advantages of the country; MRT; active use of various forms of joint venture; favorable investment climate of the country). The specialization of countries generates the international exchange of goods and services, but economic resources also move between countries. Some of them have low mobility. More mobile - labor force and capital. As a result of the development of the international division of labor, a world market has developed - a set of national markets of individual countries connected with each other by economic relations. The world market originated in the 16th century. during the period of great geographical discoveries. This period is characterized by the non-equivalence of trade between European countries and the rest of the world. During the period of the industrial revolution (XVIII - XIX centuries), a more active period of development of the world market began. The developed industry has formed the world market of the era of free competition. Further improvement of the world market predetermined the creation of world transport, communications and the export of capital. 2. The main forms of foreign economic relations of the WES are international economic, trade, and political relations, including: the exchange of goods, NT cooperation, cooperation in production, provision of services and joint entrepreneurship. Foreign economic activity of any state, including the Russian Federation, covers the following areas: 1) trade; 2) joint ventures both in the country and abroad; 3) foreign enterprises in the territory of the country; 4) international organizations and associations; 5) concession - an agreement on the transfer to operation for a certain period of natural resources or enterprises owned by the state or local authorities; 6) leasing; 7) international counter trade; 8) processing of customer-supplied raw materials; 9) attraction of foreign labor force; 10) NT cooperation; 11) trade in licenses and technologies; 12) coastal and border trade; 13) cooperation in the banking sector; 14) foreign tourism; 15) cooperation in free economic zones. The most common form of international economic relations is trade. Practice has confirmed the economic feasibility of trade relations between countries. The priority in foreign trade should be considered an orientation towards the development of exports. The structure of exports and imports is important. To achieve a greater effect, it is necessary to export science-intensive products. The share of science-intensive products in international trade accounts for approximately 60% of the total volume, the share of raw materials 40%. The structure of Russian exports is unsatisfactory, since raw materials account for about 70% of all sales. The developed state export promotion programs provide for financial assistance to exporters, tax incentives, organizational, legal and special measures. The results of the development of foreign economic activity include: 1) further deepening of the MRT; 2) economy of social labor in countries engaged in foreign trade and other forms of WES; 3) increase in the number of countries with market economies; 4) successful functioning of transnational corporations and concerns; 5) expansion of the number of countries that have achieved full convertibility of national currencies. Lecture 3 REGULATION AND MANAGEMENT OF FOREIGN ECONOMIC ACTIVITIES 1. International practice and methods of state regulation. 2. The main stages in the development of the foreign economic activity management system in the Russian Federation. 3. Governing bodies and their main functions. 1. International practice and methods of state regulation The functions of the state in the mechanism of state regulation of foreign economic activity are implemented using various forms and methods, mainly of an economic nature. In modern practice, the most applicable methods of state regulation are: 1) long-term forecasting and medium-term planning; 2) credit and fiscal measures; 3) administrative and organizational-legal forms; 4) demonopolization of market competition. Interstate regulation of foreign trade is ensured by bilateral and multilateral agreements and issues: - development of common elements for the functioning of markets (commodity, currency); – credit systems for export-import operations; – currency risk insurance systems; - standard conditions of "Incoterms". The set of tools and tools for regulating foreign trade includes: 1) non-tariff elements; 2) tariff preferences; 3) currency and credit funds; 4) stimulation of export production; 5) technical norms, standards, requirements for imported goods. Interstate forms of regulation are reflected in GATT (WTO) documents, decisions of integration groups, and bilateral agreements. Intranational methods of regulation are usually specified for export, import, barter. The main objectives of foreign economic activity regulation are as follows: - the use of foreign economic relations to accelerate the creation of a market economy in Russia; – protection of national interests, protection of the domestic market; – improving the quality of national products through the acquisition of licenses and patents, the purchase of new technologies, raw materials and materials, the inclusion of Russian enterprises in world competition; – creation of conditions for the access of Russian entrepreneurs to world markets through the provision of state, organizational, financial, information assistance; – creation and maintenance of a favorable international regime in relations with various states and international organizations. The regulation of foreign economic activity in Russia should be carried out in accordance with the following basic principles: - the unity of foreign economic policy and domestic economic policy; – unity of systems of state and non-state regulation and control; - priority of economic methods over administrative ones; – Ensuring equality of all participants in foreign economic activity. 2. The main stages in the development of the foreign economic activity management system in the Russian Federation Since the formation of the USSR, a state monopoly on foreign trade and other types of foreign economic activity has been established. Foreign trade was nationalized, and trade transactions with foreign states and enterprises were carried out on behalf of the state by the people's commissariat. The monopoly was preserved all the years and was fixed by special articles of the Constitution of the USSR. The reform of foreign economic activity began in the period 1985–1986. The first stage was the granting of the right to enter the foreign market to 20 ministries and 70 largest enterprises. Then, since 1989, the right to enter the foreign market was given to lower economic units, i.e. direct producers of goods and services. The principle of currency self-sufficiency was put in the basis of export-import operations. The system of state regulation of foreign economic activity provided for: 1) registration of participants in foreign economic activity; 2) declaration of goods moved across the customs border; 3) development of rules for the export and import of certain goods (specific, dual-use, licensed); 4) operational regulation of WPP. The most applicable mechanism in this system was the licensing of exports and imports. The licensing procedure was introduced with the aim of: 1) optimizing the division of all funds between the country's domestic market and exports; 2) streamlining the competition of exporters. The massive desire of many enterprises to enter the foreign market has led to a shortage of the most important resources (petroleum products, metal, timber, etc.) in the domestic market. The Government of the Russian Federation approved the list of licensed goods, which covered 90% of exports and 8% of imports. The state retained the right to export and import nuclear materials, precious metals and stones, weapons and ammunition, works of art and antiquities, narcotic and psychotropic substances. These measures strengthened the administrative methods of managing the wind farm, but they were forced. The basis of the process of liberalization of foreign economic activity was laid down in the Decree of the President of the Russian Federation of November 15, 1991 "On the liberalization of foreign economic activity." The main provisions of the Decree are: 1. Allow all enterprises to carry out foreign economic activity without special registration. 2. Submit to the government for approval a reduced list of licensed and quota-bound goods. 3. Allow authorized banks to open currency accounts for all legal entities and individuals. 4. Establish from 01.01.1992 the mandatory sale of a part of foreign exchange earnings by enterprises to the Central Bank for the formation of the republican foreign exchange reserve. Proceeds from the sale are used to service external debt and centralized purchases of imports. 5. Prohibit settlements and payments between legal entities, legal entities and individuals in foreign currency on the territory of the country. The liberalization of foreign economic activity was phased. Stage 1 (end of 1991 - first half of 1992) included the following measures: a) removal of restrictions on the export of finished products (while maintaining strict quantitative and tariff restrictions on the export of raw materials); b) partial liberalization of the exchange rate; c) lifting any restrictions on imports. Import liberalization was necessary to create a competitive environment in the domestic market and to compensate for the sharp decline in production. The need to regulate exports is caused by the desire to prevent the devastation of the domestic market. Stage 2 (second half of 1992). The main provisions of the second stage: a) the introduction of an import tariff as a protective measure for domestic producers from the competition of imported goods; b) tightening control over the export of CBTA; c) complete liberalization of the exchange rate; d) the creation of a foreign exchange market. One of the conditions for this is the establishment of a mandatory sale by exporters of 50% of foreign exchange earnings. Stage 3 (covers 1993–1994). During this period: a) the transition to tariff methods of regulation was completed. Accordingly, the role of quantitative restrictions has been reduced; b) the enterprise is singled out as the main subject of foreign economic activity. An important step is the adoption in 1995 of the Federal Law "On State Regulation of Foreign Trade Activities". These stages have basically completed the formation of a mechanism for the transitional period based on: 1) limited use of non-tariff methods of export regulation, mainly in relation to AFTS, military and dual-use products; 2) mandatory sale of 50% of foreign exchange earnings; 3) using the customs tariff to protect the domestic market. Progress towards an open economy is a long period covering a number of areas: – convergence of world and domestic prices; – accumulation of significant foreign exchange reserves; – achieving a positive balance of payments; – stabilization of the exchange rate of the national currency; - development of wholesale trade. The FEA reform proceeded in conditions close to extreme. Primary tasks, basically, have been solved. Economic entities received the right to enter the foreign market. The tariff regulation mechanism has been created and is being implemented. The internal convertibility of the ruble has been achieved. Systems of stimulation, crediting, export insurance have been created. 3. Governing bodies and their main functions The foreign economic activity management system is in the process of further development. In accordance with the Constitution of the Russian Federation, the state reserved the right to establish VEO only at the state level. Subjects of the federation, enterprises have the right to independently install wind farms within the powers specified by law. The independence of the lower economic units is not unlimited, but is regulated and coordinated by the state and its governing bodies. The system of public authorities of the Russian Federation includes: legislative; executive; judicial branch of government. Legislative power includes the adoption of laws, including those on foreign economic activity. Laws can be both of a general economic nature (VAT taxes, excise taxes), and specifically for foreign economic activity (TC; Law on Customs Tariff, etc.). Along with the Laws, Decrees of the President and Decrees of the Government of the Russian Federation are issued. The judicial system (in relation to foreign economic activity) must ensure the protection of the rights and interests of participants in the foreign economic activity, not only domestic, but also foreign. The court is independent and subject only to the law. The executive power includes the President of the Russian Federation and the Government of the Russian Federation, including the Ministries. Thus, the management of foreign economic activity is carried out by a whole system of state authorities. The most diverse bodies are within the executive branch. The most important are: the Ministry of Economic Development and Trade (MEDT); Ministry of Finance; Ministry of Transport and Communications; Central Bank of Russia; Federal Customs Service. The main tasks of the Ministries are: 1) development and implementation of the foreign economic policy of the Russian Federation; 2) coordination and regulation of foreign economic activity in accordance with the decisions of the highest authorities; 3) development of a mechanism for regulating foreign exchange and credit relations; 4) development of a forecast of foreign trade and balance of payments; 5) determination of the volume of export deliveries and analysis of the state and forecasting of rates, proportions, efficiency of exports and imports, etc. An important place in the executive branch is occupied by the FCS. As the central law enforcement agency in the field of foreign economic activity, the FCS participates in the development and implementation of the country's customs policy. The structure of the customs authorities is three-level: FCS; regional customs departments; customs and customs posts. Customs are border and internal. Internal customs offices carry out the main volume of work on customs control - inspection, verification of customs declarations, shipping and payment documents, collection of payments. The border customs offices direct vehicles to the respective customs offices under the internal customs transit procedure and carry out the actual release of goods abroad. LECTURE 4 NON-TARIFF REGULATION OF FEA 1. Principles and methods of regulation of foreign trade. 2. Main forms of non-tariff regulation of foreign trade activities. 3. Certification of imported products. 1. Principles and methods of regulation of foreign trade The success and results of any state in the foreign market are determined by many factors. One of them is: the composition and effectiveness of the established state procedures to which goods are subjected when crossing the customs border. Import and export of goods, as well as other types of foreign economic activity, are the object of state policy. In the process of development of world trade, certain instruments of this policy have been developed, which are used by all states of the world. The national territory is declared the customs territory of the state, it is surrounded by the customs border. Goods transported across the customs border must be cleared at customs. The import of goods into the customs territory or its export may be prohibited or restricted. All participants in foreign trade operations need to know the import (export) rules in force in the country. The world is in the process of forming uniform norms and rules in the world market, as well as systems of interstate agreements. The mechanism of regulation is equipped with a developed information and technical base. An important feature of the regulatory mechanism is a comprehensive approach to the use of various methods and elements of influence on foreign trade. The modern practice of regulating foreign trade is represented by a set of means and instruments of a national and interstate nature, tariff and non-tariff promotion of exports and restraint of imports. Interstate regulation of foreign trade is ensured by: 1) bilateral and multilateral agreements and treaties (GATT, WTO, etc.); 2) elements of regulation of foreign exchange markets; 3) standard conditions "Incoterms"; 4) currency risk insurance, etc. The provisions of the GATT (hereinafter referred to as the WTO) define the principles and rules of international trade that are binding on member countries. Among the main principles: - obligatory application of the most favored nation treatment in mutual trade; – non-discrimination; – reduction of customs duties; - conducting foreign trade on a private law basis. The basis of the national system of regulation of foreign trade is a set of acceptable: methods of restricting exports and imports with the help of non-tariff elements and tariff preferences; currency and credit funds; ways to stimulate export production; technical norms, standards and requirements for imported goods. The methods of non-tariff restrictions on exports and imports are distinguished by the greatest variety of elements. In world practice, their number is about 100 positions. Non-tariff restrictions are a set of measures of a restrictive and prohibitive nature that prevent: a) the penetration of foreign goods into the domestic market; b) the export of goods. Non-tariff restrictions are: quantitative (quota) and non-quantitative (technical norms). The whole complex of non-tariff restrictions is implemented through the use of administrative regulation tools. Administrative instruments are used when the effectiveness of economic levers is insufficient. The state foreign trade policy of the Russian Federation was carried out in accordance with the Law of the Russian Federation “On the State Regulation of Foreign Trade Activities” (1995), currently – in accordance with the Federal Law “On the Fundamentals of State Regulation of Foreign Trade Activities” (2003). In accordance with these laws, the methods of state regulation of VTD are: customs-tariff and non-tariff regulation. According to the law, exports and imports to the Russian Federation are carried out without quantitative restrictions. Quantitative restrictions are introduced in exceptional cases by the Government of the Russian Federation. Government resolutions on the introduction of quantitative restrictions on exports or imports are officially published no later than three months before the imposition of restrictions. 2. Main forms of non-tariff regulation of VTD Bans and restrictions on exports and imports are established for: 1) observance of public morality and law and order; 2) protection of life and health of people, protection of flora and fauna, environment; 3) preservation of the cultural heritage of the people; 4) protection of cultural values; 5) prevention of exhaustion of irreplaceable natural resources; 6) ensuring the national security of the country; 7) protecting the external financial position and maintaining the country's balance of payments; 8) fulfillment of the international obligations of the Russian Federation. The most applicable forms of non-tariff regulation of foreign trade are quotas and licensing. A quota is a tool for regulating exports and imports in foreign trade by establishing quantitative restrictions on the volumes of imported and exported goods for a certain period. Quotas are introduced for a certain period in relation to certain goods and services. Acts as a regulator of supply and demand in the domestic market and as a response to discriminatory actions of foreign trading partners. The basic documents of the quota and licensing system in the Russian Federation are the Decrees of the Government of the Russian Federation dated December 31, 1996 “On licensing and quotas for the export and import of goods, works, services in the territory of the Russian Federation since 1992” and dated October 31, 1996 “On the procedure for holding tenders and auctions for the sale of quotas for the introduction of quantitative restrictions and licensing of exports and imports of goods”. According to the documents, the Government of the Russian Federation decides: 1. To introduce on the territory of the Russian Federation a unified procedure for licensing and quoting exports and imports of goods. 2. Approve: a) a list of goods exported within quotas; b) a list of goods, the export and import of which is carried out under licenses; c) a list of specific goods, the export and import of which is carried out under licenses; d) regulations on the procedure for licensing and quoting goods. Licensing is a system of state control over export and import operations by strictly accounting for certain commodity flows, and, if necessary, their temporary restriction. A license is a permit for the import or export of the goods specified in it within the prescribed period. When establishing quantitative restrictions on the export or import of goods, the following scheme is put into effect: - An exporter (importer) can export (import) goods only if he has a license, which he must obtain and submit to the customs authority; - the basis for obtaining a license is a certificate of receipt of a quota; - obtaining a quota is possible only on a paid basis due to winning a competition or auction; – the organization of a competition or auction for the sale of quotas is carried out by a specially created Interdepartmental Commission. The main task of the commission is the optimal distribution of quotas by holding competitions and auctions, while observing the principles of transparency, objectivity, unity of requirements and the creation of equal competitive conditions. Competitions are open and closed. Any VTD participants can take part in the open tender. The Commission may conduct a preliminary selection of applicants. Only Russian VTD participants who have received an official invitation from the commission can take part in the closed competition. The winner of the competition receives a certificate. f. a document that further grants him the right to obtain a license to export or import goods in the amount of the quota. The license can be single or general. A single license is issued to carry out a foreign trade operation under one contract for a period of up to 12 months. A general license is issued for each type of exported or imported goods, indicating its quantity and value. Unlike a one-time license, it is issued without specifying a specific buyer or seller. The issued license is issued in one copy and is not subject to transfer to other applicants. The licensing system is usually used for the purpose of operational control over compliance with quotas. Many countries use it as an independent means of non-tariff protectionism. Another form of non-tariff regulation is special export controls. A number of goods fall under control: 1) nuclear materials, equipment, special non-nuclear materials. Control is carried out in accordance with the obligation of the Russian Federation, arising from the Treaty on the Non-Proliferation of Nuclear Weapons and the principles of nuclear export. 2) dual-use equipment and materials and related technologies (lasers, explosives and explosives, CNC blocks, enriched isotopes, etc.). 3) ferrous and non-ferrous metals. A limitation is introduced on the number of places for customs clearance, namely 66 points in seaports and 26 railway points. One form of non-tariff regulation is measures related to customs or administrative formalities. Non-tariff customs barriers are not perfect, but their elimination causes significant damage to the state. 3. Certification of imported products Certification of goods in the Russian Federation was introduced in accordance with the laws: 1. On the protection of consumer rights. 2. About product certification. 3. About standardization. Certification is an activity to confirm the conformity of products to established requirements. The development of standards, control over their observance, issuance of certificates are entrusted to the Committee of the Russian Federation for Standardization, Certification Metrology (Gosstandart of the Russian Federation). Certification is either mandatory or voluntary. Mandatory certification covers goods, the quality of which affects human life and health, the state of the environment. The list of these products includes: Food,
Topic 1. Fundamentals of the formation of the world market
1.1. General concepts and categories of foreign economic activity.
1.2. Foreign trade exchange and its causes.
1.3. Factors affecting world economic relations.
1.4. Basic theories of foreign trade.
1.1. General concepts and categories of foreign economic activity
To analyze the economic situation of the countries of the world, a number of indicators characterizing the dynamics and state of the world economy are used. The main one is
gross world product (GMP).
This indicator expresses the total volume of final goods and services produced on the territory of all countries of the world, regardless of the nationality of the enterprises operating there in a certain period of time. Accounting for final products provides for the exclusion of repeated counting of raw materials, semi-finished products, other materials, fuel, electricity and services used in the process of its production.
In each individual country, the most important indicator reflecting the results of macroeconomic activity is gross domestic product (GDP),
determined
based systems of national accounts, which is built on the concept of the productive nature of all activities. It is a set of internationally recognized rules for accounting for economic activity and reflects the main macroeconomic relations of the internal and external sectors of national economies. The calculation of the results of economic activity is carried out according to three principles: production, use and distribution.
According to principle production GDP is calculated as the sum of value added or conditionally net output of individual industries. It is the difference between the value of gross output and the value of intermediate consumption and is made up of the depreciation of fixed assets transferred to the product, wages, profits, taxes, other expenses.
By principle of distribution (income) GDP is made up of income for three factors of production and includes:
- income of employees;
profits of companies (private and public);
rental income (income from property) and income of the self-employed (artisans, doctors, etc.);
indirect taxes;
depreciation deductions.
- personal consumption expenses;
public procurement of goods and services;
gross investment;
net exports (exports minus imports).
At the same time, the generalizing indicators of the system of national accounts include not only the results of the activities of those employed in the sectors of the economy, but also the services of the state apparatus, the army, the police, etc. They are expensed. These indicators also include "assigned", "imputed" values, which are used to evaluate products that do not take a monetary form: conditional rent for individual houses, conditional interest on loans and borrowings. The total amount of these "imputed" values varies from country to country, depending on the conditions of their economic development and government spending. In the US, it is 8% of GDP.
linked to GDP indicator of national income, which is calculated as GDP minus depreciation (net GDP). In quantitative terms, the difference between GDP and produced national income is quite large and amounts to approximately 8-11%, equal to the amount of depreciation. In different countries, this difference may fluctuate, since the amount of depreciation depends on the national mass of fixed assets. The share of depreciation increases slightly during periods of recession and decreases during periods of recovery.
At the national levels, the volume of GDP is measured in current and constant prices of any given year. The difference between these measurements can be quite significant. Quantitative GDP, or GDP at current prices, is growing faster than real GDP, or GDP at constant prices. When calculating at constant prices, there is an elimination (elimination) of value fluctuations. Real GDP growth is widely regarded as an indicator of economic development.
Calculations of GMP and GDP are carried out in a single currency - US dollars at current and constant rates, although these indicators cannot claim to be an accurate quantitative measurement in individual countries and regions. Comparison of gross product across countries on the basis of a common currency may underestimate in dollar terms the volume of goods and services produced in countries with low levels of development due to their large non-commodity sector (barter transactions, household production, livelihood production, informal sector , which are usually left out, and all of which can account for up to 40% of GDP in less developed countries). Research conducted by the UN Project on International Comparisons shows that in less developed countries, using current exchange rates can underestimate GDP by up to three times or more.
An alternative way of calculating GDP is based on a comparison parities purchasing power of currencies (PPP), which are determined on the basis of the ratio of prices of a set (basket) of identical goods in different countries. Estimating a country's GDP in terms of PPP is a rather difficult task, since it requires a scientifically based approach to determining those goods that are included in the basket. In addition, prices for the same goods in different regions of the same state can differ significantly, which makes it difficult to conduct research.
The volumes of GDP calculated on the basis of these methods differ significantly from each other. The calculation based on purchasing power parity leads to underestimation of the leading industrialized countries by 20-40%. Purchasing power parity estimates significantly change the positions of the main subsystems in the world economy. The industrialized countries of the West account for 55% of the GMP (almost 75% at current exchange rates), while the contribution of developing countries rises to 43% (at current exchange rates over 19%). According to this method of calculation, the assessment of the economic indicators of individual countries (for 2001) changes significantly. The United States remains in first place - 21% of the GMP (25.3% at the current exchange rate), further; China - 12% (4.4%), Japan - 8.4% (15.7%), Germany - 5.0% (5.6%), India - 4.1% (1.5%). They are followed by France, Italy, Britain, Canada, Brazil. It is believed that in Russia the exchange rate of the national currency at the end of 2004 at PPP did not exceed 20 rubles per US dollar, which is significantly higher than the current exchange ratio.
The economic growth is an important goal for every country. All countries, regardless of ideology, pursue the goals of developing the economy and raising living standards. The progress of the world economy as a whole is quite significant. So, in 1950-1990. The world population has increased by 2.1 times, and the production of goods and services has increased by 5 times. Today the world economy produces more in one day than in one year a hundred years ago.
Economic growth is largely achieved through export-import activities.
Export- export of goods, works, services, capital outside the customs territory of the country.
Import– import of goods, works, services, capital into the customs territory of the country.
Foreign trade turnover is the sum of exports and imports.
Export (import) quota- the ratio of exports (imports) to GDP, multiplied by 100%.
The value of the export quota shows the degree of integration of the state into the world economy. At the same time, small states usually have higher export quotas than large economic powers. In Russia in 2003, the export quota was 30.2%, and the import quota was 16.8%, which is quite a significant indicator.
1.2. Foreign trade exchange and its causes
International trade is the exchange of goods and services between states. The nature of this exchange is determined by the relations of production in the countries participating in the trade.
The world economy was formed at the end of the 19th century. This was facilitated by a number of conditions:
1. Completion of geographical discoveries, the disappearance of white spots from the world map.
2. Assignment of all territories to any state.
3. Development of transport infrastructure.
4. The emergence of a large machine industry, which led to a significant increase in output, the emergence of new industries and types of production. In the process of industrialization, the demand for various types of raw materials and materials increases sharply. But since the supply of raw materials is limited, it becomes necessary to get raw materials from where they are. At the same time, there is a need to search for new markets.
Need foreign economic activity is due to the following main reasons:
1. Differences in the availability of natural resources (minerals, precious metals, soil cover, water, flora and fauna). In some countries, such plants grow and minerals are mined that are not in others.
2. Differences in geographical (natural-climatic) conditions for the existence of peoples. In some countries there are conditions that are not in others, which is the main reason for tourism.
3. Differences in the historical and cultural heritage. In some countries there are such monuments that are not in others, which is another reason for tourism.
4. Differences in the socio-economic development of countries. They lead to a division of labor on an international scale. In one country, goods are produced that are not produced in others.
5. The desire of people to obtain the greatest profit. The profit from the exchange of goods with foreigners is higher than from the exchange in the domestic market.
The basis of foreign economic activity are:
1. Resources of all kinds (labor, material, financial, information).
2. Products of industrial activity (market of goods and services).
3. Products and services of intellectual activity (market of technologies, licenses and know-how).
4. Products of historical and cultural activities.
5. Recreational landscape services.
6. Monetary and financial and credit relations between countries.
1.3. Factors affecting world economic relations
They can be divided into positive and negative influences. In this case, the first will be much more.
The main factors that positively influence:
1. The growth of labor productivity (labor productivity - the volume of products produced per unit of time). As a result of this, there is a significant increase in the volume of output, and favorable conditions are created for its export.
2. Increasing the comfort of life and the quality of living in developed countries. There is a need for new products and services. Quality of life indicators: income level (GDP per capita), life expectancy, mortality rate, level of education. These indicators make up the so-called integral “human development index”, defined by the UN. In 2004, according to the Human Development Index, Russia ranked 57th in the world. In addition, one can consider the level of morbidity, the level of medical care, the degree of comfort of living, food security, etc.
3. The emergence of new industries and industries. The innovator country gets additional export opportunities. In addition, there is a change in the types of production (transition from mass to serial and small-scale), which leads to an increase in the species diversity of goods and orientation towards the external market.
4. Growth of unevenness in the scientific and technological development of countries, unevenness in the level of qualifications of personnel and the socio-cultural level of development labor resources. Production is shifted to where labor resources are relatively cheaper.
5. Implementation of international measures to ensure freedom of trade, reduce export and import duties. Foreign entrepreneurs receive equal rights with local ones.
6. Development of communication and transport systems. Cellular and satellite communications, the Internet, air transport greatly facilitate the process of international trade.
7. Integration of countries into unions. Within unions, trade increases significantly.
Factors negatively affecting:
1. Disintegration of existing unions and the emergence of state borders (USSR, Yugoslavia, CMEA). As a result, existing economic ties are being destroyed.
2. Implementation of the state policy of protectionism in relation to domestic producers. This leads to restriction of freedom of trade with foreign countries.
3. Sharp fluctuations in exchange rates. Thus, the growth of the national currency leads to a reduction in exports.
4. Economic crises leading to a decrease in the level of international cooperation and specialization, the transition to closed production.
In general, the more developed a country is, the more it is involved in international integration.
1.4. Basic theories of foreign trade
1.4.1. Theory of comparative (relative) advantages (costs)
Back in the 18th century, economists sought to justify the benefits of international trade, while at the same time explaining its essence. The first independent theory of foreign trade, different from the theory of domestic trade, was developed by the English economist David Ricardo.
Ricardo suggested that the two goods he named cloth and wine were produced in only two countries, which he named England and Portugal. At the same time, Ricardo suggested that these goods are produced exclusively by labor with the following ratio of labor costs (Table 1.1).
Table 1.1
Riccardo example. Labor costs in man-hours for the production of a unit of measure of cloth and wine
Riccardo's predecessor, Adam Smith, believed that trade occurs when each country has an absolute advantage in the cost of producing one good.
According to Ricardo, it is necessary to compare not the magnitude of costs, but their ratios. For example, Portugal has a comparative advantage in wine because the cost ratio for wine is lower than for cloth:
In Portugal, 0.88 units of cloth are given per unit of wine, and in England - 1.2 units. Consequently, it is profitable for Portugal to send wine to England, where its unit corresponds to 1.2 units of cloth. Thus, the theory of comparative advantage defines the upper and lower limits within which an exchange between two countries can be mutually beneficial.
If we assume that the exchange takes place in a ratio of 1: 1, then both countries will benefit: before entering into trade, it took 390 labor hours to produce 4 units of goods (one unit of wine and one unit of cloth in each of the countries); after the beginning of the exchange, these 4 units (assuming England specializes in cloth, and Portugal in wine) require only 360 working hours.
If there were no state borders, then all the workers would move to Portugal.
The final ratio at which the exchange will take place, according to John Stuart Mill, will depend on the volume of the world supply and demand for each of these two goods. It follows from this rule that small countries with a neighbor of a large country specializing in the production of other goods benefit greatly, since their demand has little effect on the nature of the exchange ratio.
Conclusion: there is such an exchange ratio in the trade of any goods between any countries, in which trade will be mutually beneficial in the short term.
1.4.2. Heckscher-Ohlin's theory of factors of production
A factor of production is the resources needed to produce a good.
The founder of the doctrine of the factors of production Zh.B. This as such singled out land, labor and capital, which determine the economic feasibility and results of production.
In the 30s. 20th century Swedish scientists E. Heckscher and B. Ohlin developed D. Riccardo's theory, substantiating the need to determine the comparative advantages in foreign trade based on the assessment of production factors, their ratios and relationships.
The essence of this theory is five main provisions:
1. The value of the created goods is made up of incomes for three factors of production: labor, land and capital. All countries are not equally endowed with these factors.
2. Differences determine the prices of factors in relation to the production of specific goods. At the same time, the price of labor is understood as wages, the price of capital is the rate of interest, and the price of land is ground rent. The better the country is provided with a particular factor, the cheaper the goods in the production of which this factor is predominant. For example, if a country is provided with an abundance of labor, then labor-intensive goods will be cheaper in this country.
3. Countries participating in international exchange will export those goods and services for the manufacture of which the factor of production that is available in excess is mainly used.
4. The development of international trade leads to the equalization of prices for factors of production, which entails the equalization of income received by the owners of the same factors in different countries.
5. With sufficient international mobility of factors of production, it is possible to replace the export of goods by the movement of the factors themselves between countries. But on an international scale, only partial equalization in the supply of factors of production can be achieved due to insufficient international mobility of factors, even in conditions of complete freedom of trade.
Thus, the higher the differences in the availability of various factors of production between two countries, the more developed trade is between them. The advantage of the theory is that it allows certain modifications, in particular, an increase in the number and differentiation of the factors of production taken into account.
The Heckscher-Ohlin theory has been criticized based on empirical evidence. The analysis carried out by specialists, the first of which was the American economist V. Leontiev, revealed in a number of cases the inconsistency of the neoclassical concept of Heckscher-Ohlin with the practice of developing international trade relations of individual countries. The so-called “Leontief paradox” is known: after the Second World War, American trade was dominated by labor-intensive goods in exports, and capital-intensive goods in imports. At the same time, the United States was better provided with capital, and labor was expensive.
One possible explanation for the paradox lies in the structure of the labor factor, which can be divided into skilled and unskilled.
The theory of factors of production does not explain the development of trade between two countries with approximately equal prices for factors of production. These include industrialized countries, trade between which is growing rapidly.
1.4.3. Product life cycle theory
Supporters of this theory believe that on the basis of the stages of the life cycle of a product, modern trade relations between countries can be explained, at least in the exchange finished goods. According to the general thesis of the life cycle theory, a product goes through a series of stages from the moment it enters the market until it leaves it (four or five, according to different experts).
This theory introduces a new factor of production - technology. Developed countries, based on investment in technology, can produce new products that have their own life cycle (Fig. 1.1).
Q
1
2
2
I II III IV V
T
I II III IV V
Fig 1.1. Life cycle of new products
The implementation stage (I) is characterized by increased labor intensity of the product. The product is produced and consumed in the country where it was developed. The transition to large-scale (mass) production occurs in the future as the technology improves and new types of equipment are mastered. This can explain, in particular, the relatively large share of labor-intensive goods in the exports of developed countries, which led to the “Leontief paradox”.
At the stage of growth (II), in addition to increasing sales volumes on the domestic market, exports from the country of innovation begin. There is a trend towards an increase in the capital intensity of production. There is no competition yet. Prerequisites are being created for the development of production abroad and the export of capital.
At the stage of maturity (III) a high level of standardization is achieved. It becomes possible to start production in other countries with cheaper labor. An active export of capital begins, and the growth of exports stops.
At the stage of decline (IV), production is already carried out in many countries, including developing ones. The price factor becomes decisive. Therefore, conditions arise for large-scale exports of products from developing countries. In the country of innovation, production becomes unprofitable.
Finally, at the stage of cessation of domestic production (V), there is a narrowing of the market in developed countries, whose needs are now satisfied exclusively through imports.
1.4.4. Theory of intra-industry trade
By the beginning of the 1960s, it became obvious that developed countries, especially in Western Europe, where an integration association was formed, were increasingly trading with each other differentiated goods of the same industry. Such trade could not be explained within the framework of pre-existing theories. One of the first to pay attention to it and developed the corresponding model was the American economist Bella Ballass.
From the point of view of the degree of differentiation of the range of goods, international trade consists of two flows - intra-industry trade and inter-industry trade. An example of intra-industry trade is the export of BMW cars by Germany and the import of Italian Fiat cars. An example of cross-industry trade is Russia's oil exports and US poultry imports.
Intra-industry trade - exchange between countries, differentiated products of one industry.
Interindustry trade - the exchange between countries of products of various industries.
From the point of view of theory, intra-industry international trade differs significantly from inter-industry.
Intra-industry trade is carried out mainly in differentiated (heterogeneous) goods, although in some cases intra-industry trade in homogeneous goods is also possible. The reasons for this may be reduced transport costs or seasonal differences. For example, it is cheaper for a smelter in Pavlodar to bring coal across the border from nearby Ekibastuz in Kazakhstan than from Russia's Kuzbass. Since the seasons in the Northern and Southern hemispheres are diametrically opposed, Brazil exports its agricultural products to the US when it harvests, and the US exports the same agricultural products to Brazil when its crops ripen.
Intra-industry trade in differentiated goods is explained by the following reasons:
1. Differences in the tastes of consumers who want to have a greater choice of products within the same product group. For example, the Japanese in general prefer Japanese cars, but some Japanese want to drive American ones. Some women in Russia prefer French perfumes, while others prefer Italian ones.
2. Intersecting demand. The phenomenon of intersecting demand was discovered by the Swedish economist S. Linder. He believed that a very small number of goods are produced only for export, most of them are sold domestically. In order to export a product, a country must first saturate the domestic market, focusing on the demand of local buyers. Only when the product fully satisfies the needs of buyers within the country can one count on its successful export to the world market. But also abroad, the product will be more successfully sold in those countries where the structure of millet is the same or at least comparable to the structure of domestic demand in the exporting country. At the same time, according to Linder, demand becomes real only when it is supported by a relatively high level of income. The higher the level of income, the higher the quality of the product required by the consumer. Therefore, the more overlapping demand patterns in exporting and importing countries, supported by high income levels, the higher the level of trade between them. Thus, contrary to the Heckscher-Ohlin theory, not only differences, but also similarities between countries can be a precondition for trade.
3. Scale effect. This is the development of production, in which an increase in the cost of factors per unit leads to an increase in production by more than one unit. In other words, there are cost savings due to the increase in the scale of production. Intra-industry trade allows one country to specialize in, say, four-wheel drive jeeps, while another specializes in sports cars. Since there is a demand for both goods, each country will be able to produce and sell to each other more machines of each type.
4. Transport costs and seasonal differences (for non-differentiable goods).
Intra-industry trade has significantly less negative social consequences than inter-industry trade. It does not lead to the movement of large groups of workers from those sectors of the economy whose exports are falling to sectors whose exports are growing. In the worst case, workers move from the production of one type of product to the production of another. Moreover, a small country that opens up large markets in other countries has the opportunity to lower unit costs, increase employment, and even win competition for a particular product from larger countries. Intra-industry trade leads to the fact that the income of the owners of all factors of production increases due to economies of scale. On the other hand, cross-industry trade can lead to the destruction of entire sectors of the economy that cannot withstand competition from cheaper imported goods. If the labor force is highly skilled or geographically immobile and cannot quickly move to a new place of residence, then this will contribute to an increase in social tension in society.
Most of the Russian foreign trade is intersectoral, which is largely due to the low level of development of the Russian economy.
At the same time, this theory does not negate the Heckscher-Ohlin theory, which operates in intersectoral trade.
In general, none of these theories can fully explain the development of international trade, but they complement each other. It is necessary to use different theories to explain different phenomena.
Topic 2. Contract as the main form of foreign trade relations
2.1. Structure and content of a foreign trade contract of sale.
2.2. Peculiarities of insurance in foreign economic activity.
2.3. Basic terms of deliveries. Incoterms.
2.4. Features of contracts in countertrade.
2.5. Variety of prices. Their types.
2.1. Structure and content of the contract of sale
The procedure for concluding a foreign trade contract of sale is regulated by the Vienna Convention of 1980. As a rule, the contract consists of the following items:
- The name of the firms of the seller and the buyer.
The subject of the contract is the type of contract and short description goods.
Basic terms of delivery.
Delivery time.
Quantity of goods in natural units.
Unit price and total contract amount.
Terms of payment - a detailed statement of the procedure for mutual settlements: forms of payment, loan payment guarantees, currency clauses.
Packaging and labeling.
Seller's guarantees for the quality of the goods, as well as the terms and conditions of quality control.
Force majeure circumstances (circumstances of insuperable force). Their list and actions of the parties in case of their occurrence are given: suspension or termination of supplies.
Sanctions are the material liability of the parties for non-fulfillment or improper fulfillment of obligations. Sanctions include the payment of a fine and damages.
- violation of delivery dates;
failure to notify about the shipment of goods;
incomplete delivery;
delays in the provision of technical documentation;
delivery of low-quality goods;
violation of payment obligations.
- Arbitration and litigation of disputes. Indicates in the courts of which country disputes are settled.
Other conditions. These include the procedure for changing and terminating the contract, the procedure and terms for filing claims, etc.
Insurance. This position is indicated if the parties do not use the basic terms of delivery established by world practice.
2.2. Features of insurance in foreign economic activity
The basis of insurance is the creation of a special reserve fund. The funds of this fund are used to cover losses and prevent them in the future.
Policyholder– natural or legal person insuring interest.
Insurer- a legal entity that accumulates the contributions of policyholders and undertakes to reimburse them for their losses (insurance companies).
insurance premium- contributions from the insured to the insurer.
Sum insured- this is the cost of damage accepted for insurance (all or part of the property).
Franchise- a certain part of the insured's damage that is not subject to compensation by the insurer. It can be set as a certain percentage of the value of the property or in monetary terms. It can be of two types: conditional (unsubtracted) and unconditional (subtracted). With a conditional deductible, the policyholder is released from liability for loss if its amount does not exceed the deductible, and must compensate the loss in full if its amount exceeds the deductible. With an unconditional deductible, the amount of insurance compensation is always determined minus the deductible. The franchise is intended to exempt the insurer from compensation for minor losses.
The objects of insurance in foreign economic activity are cargo, vehicle, freight (carriage charge to the owner of transport for the carriage of goods).
The main feature of insurance is that the sum insured often includes a part of the profit expected as a result of the sale of goods (in the amount of up to 10% of the value of the cargo).
The general condition of insurance is good faith principle, which involves receiving all the information from the insured about the features of the cargo, and its destination.
The insurance indemnity for the cargo is provided in the currency in which the insurance premium was paid. The amount of losses is determined by the representatives of the insurer - emergency commissioners.
After payment of the insurance indemnity, the right to recourse passes to the insurer. Regression- this is the right to file claims against third parties guilty of damage or loss of cargo.
In cases of loss of the ship without a trace, as well as in a number of other cases determined by law, the insured may waive the rights to the insured property in favor of the insurer, who pays him insurance compensation for this. This act is called abandonment.
The application for abandonment is made to the insurer within 6 months from the moment of occurrence of the specified circumstances and cannot be taken back. Usually in the legislation, including in the Merchant Shipping Code of Russia, abandonment is considered a unilateral act of the insured. However, under English law, abandonment requires the consent of the insurer.
2.3. Basic terms of deliveries. Incoterms
The most essential terms of transactions, which determine the obligations and rights of the parties, are called the basic terms of supply. The basic terms of delivery (contract) establish who bears the costs of transporting, loading, unloading, storing and insuring the goods. These costs can reach up to 50% of the cost of goods for some types of cargo. In addition, the basic terms of delivery determine the moment of transfer of ownership of the goods from the seller to the buyer.
The delimitation of the basic terms of delivery is enshrined in an international document called Incoterms (International Commercial Terms). Currently, its latest edition is Incoterms-2000. It provides a detailed interpretation of the 13 main options for the basic conditions. The main ones are:
1. FAS (FAS) - "free along the side." The exporter is obliged to deliver the cargo and bears the risks and costs of it until the moment the goods are unloaded at the quay of the port of departure.
2. FOB (FOB) - "free on board". The exporter is obliged to deliver the cargo to the port of departure and load it onto the vessel. Ownership of the cargo passes to the importer at the moment the goods cross the ship's rail.
3. KAF (CFR) - "cost, freight." In addition to the terms of the FOB, it provides for the conclusion of a contract of carriage by sea and the payment of freight.
4. CIF (CIF) - "cost, insurance, freight." In addition to the conditions of the CAF, insurance is paid.
Some obligations are common to the exporter and importer under all conditions. The exporter is obliged:
1. Deliver goods of proper quality to the point specified in the contract.
2. Provide ordinary product packaging.
3. Transfer documents related to the goods and transfer the ownership of the goods.
The importer is obliged:
1. Accept the goods.
2. Pay its cost.
In general, the use of Incoterms eliminates the differences associated with understanding the underlying terms of transactions, which reduces the likelihood of lawsuits.
2.4. Counter transaction contracts
Counter transactions - this is a type of transaction when the counter and main obligations of partners are recorded in one document (related contracts).
Types of counter transactions:
1. Barter deals. Barter is a non-currency, but value exchange of goods.
Valuation provides:
- exchange equivalence;
determination of the sum insured;
determining the amount of penalties.
2. Counterpurchase contracts. When concluding such contracts, the exporter undertakes to receive part of the value of the goods in the form of a counter-purchase of other goods.
3. Contracts for the processing of tolling raw materials (tolling). The contract is concluded when the capacities of one country are not enough to process raw materials and obtain the final product. Raw materials are shipped to another country and returned as finished products. Part of the raw material remains in the processing country as payment.
Such a contract is beneficial to the processing country, which not only receives raw materials, but also loads its production capacities. The raw material producing country gets the opportunity to use cheap labor in the processing country.
Benefits of linked contracts:
- currency savings on imports;
sales promotion;
expand markets and gain competitive advantage.
4. Related loans. These are loans provided on the condition of purchasing certain goods in the creditor country. Such loans are usually provided by the state.
All of these contracts make it possible to intensify foreign economic relations.
2.5. Variety of prices, their types
Price diversity means having a list of prices for goods of the same quality.
The single world price must satisfy the following requirements:
- At this price, large commercial transactions should be carried out.
Payments must be made in a freely convertible currency.
Transactions must be carried out in the most important centers of international trade.
- Export prices of the main producers of goods and suppliers.
European Union import prices.
Prices of the largest exchanges.
1. Reference- seller's prices published in specialized publications, bulletins, as well as in periodicals, newspapers, magazines, computer information channels. The range of goods included in the price guides mainly covers non-exchange commodities and semi-finished products. At present, reference literature on prices for non-exchange goods has become very widespread. Thus, the exporter of petroleum products is guided by daily commodity and regional price quotations published in directories such as Platt's or Argus, which can be obtained daily through a computer communication system. As a rule, these prices are somewhat inflated.
Reference prices do not react quickly to market changes or to any political events, with the possible exception of oil prices - a very specific commodity. However, they reflect the dynamics of prices in this market.
2. Contract- specific prices for products agreed by the seller and buyer during the negotiations. They are usually below the supplier's offer price. Contract prices are not published anywhere, as they are a trade secret. In principle, the contract prices for a certain product in a certain region and in the presence of a small circle of sellers and buyers are known. The practical task is to collect information and create a data bank.
3. Exchange- prices for goods traded on commodity exchanges. Exchange commodities mainly include raw materials and semi-finished products. Commodity prices promptly reflect all changes in the commodity market. The slightest changes in one direction or another of the market situation instantly affect stock quotes. It should be noted that stock quotes do not reflect other instruments of international trade, such as: terms of delivery, payment, etc. As practice shows, stock quotes, reacting quite sharply to various external "irritants", still cannot reflect the actual trends in price movements. Often, transactions are carried out on the exchanges that are frankly speculative in nature.
In international foreign trade practice, experts are guided by the quotes of the most well-known, well-established stock exchanges with highly qualified personnel, such as the London Metal Exchange, the Chicago Stock Exchange, engaged in quotations and sales of grain, the New York Cotton Exchange.
4. Auction- the prices received as a result of the auctions. These are real prices reflecting supply and demand in a given time period. The auction type of trade is quite specific. At auction, for example, furs, animals, art objects are sold and bought.
There are three types of auctions. Traditional(English) An auction involves a successive increase in price by potential buyers until the highest bid is accepted by the auctioneer.
Dutch Auction - A form of auction in which the auctioneer starts at a very high price and lowers it gradually until a buyer is found.
Closed auction An auction in which all buyers bid at the same time (usually in the form of written bids) and the item is sold to the highest bidder. Such auctions are often used by the government to sell property or other tangible assets.
5. foreign trade statistics. These prices are determined by dividing the entire value of exports (imports) in value terms by the entire volume of production in physical terms. They are published in various national and international statistical reference books. They do not show the specific price of a particular item. From the point of view of their practical application, they are interesting for understanding the general dynamics of the foreign trade of a country, for statistical calculations.
6. Transfer prices. These are the prices of intercompany trade between divisions of the same company in different countries. They are used by large TNCs to reduce business taxation.
In the process of negotiating prices, the exporter and importer, based on their own analysis of data on the situation in the market of the goods, begin negotiations, knowing in advance what concessions they can make. In the world practice of conducting foreign trade, a large number of different discounts are known. According to experts, there are about 40 various kinds price discounts and surcharges. The most common discounts include:
- the seller, when the exporter provides a discount for the volume of a one-time purchase (batch) or for the stability of purchases in the process of bargaining, depending on the situation in a particular market (it can reach 20-30% of the original price);
for an exclusive importer, if the importing company is the only supplier of goods to the country or region, seeks best conditions for the sale of this product, essentially helping the exporter to gain a foothold in the market of this country (reaches 10-15% of the original price);
cash discount - if the importer makes an advance payment, in full or in part, for the delivered goods (as a rule, such a discount is also provided with a direct bank transfer of money when registering consignment notes);
traditional partner (bonus), as a rule, is provided to the importer, long time operating on the market with the same exporter, since in this case the exporter is confident in his partner-buyer regarding the correct and timely fulfillment of contractual obligations;
for the purchase of off-season goods, as a rule, it is provided in the markets of agricultural products, clothing, shoes, etc.
dealer, provided to wholesalers and retailers, agents and intermediaries.
Discounts are determined separately for each specific case. Typically, discounts vary between 2% and 10% of the original asking price. More substantial discounts are also available.
Topic 3. International payments
3.1. World financial market and subjects of international settlements.
3.2. The system of organization of international payments.
3.3. Monetary and financial terms of international contracts.
3.4. Currency risks in international trade.
3.5. Forms of international payments.
3.6. The world credit market and its role in foreign economic activity
3.1. World financial market and subjects of international settlements
World financial market is a set of financial and credit organizations that, as intermediaries, redistribute financial assets between creditors and borrowers, sellers and buyers of financial resources.
The global financial market can be viewed in different aspects. From a functional point of view, it can be divided into such markets as foreign exchange, derivatives, insurance services, stocks, credit, and these markets, in turn, are divided into even narrower ones, such as the credit market - into the market for long-term securities and the market bank loans. Often all transactions with financial assets in the form of securities are combined into the stock market as a market for all securities, but more often it means only the stock market.
In terms of maturities of financial assets, the global financial market can be divided into two parts: the money market (short-term) and the capital market (long-term). The short-term nature of much of the global financial market makes it subject to the ebb and flow of funds. Moreover, there are financial assets that are aimed at staying in the money market with only one goal - to maximize profits, including through targeted speculative operations. Such funds are often referred to as "hot money". During a financial boom, they are especially actively flowing between financial centers, as well as between these centers and the periphery, and during periods of financial crises and on the eve of them, they quickly return back.
The boundaries between different segments of the global financial market are blurred, and it is possible without much difficulty to reorient a significant part of the world's financial resources from one part of it to another. As a result, for example, the relationship between exchange rates (determined primarily by the situation in the foreign exchange market), bank interest (determined by the situation in the debt securities market) and stock prices in different countries of the world is strengthening. All this leads to the fact that, on the one hand, the financial market of the world is unstable and, as many economists believe, this instability is growing, and on the other hand, when the globalization of the world's financial resources grows, shocks in some financial markets increasingly affect financial markets. other countries. A massive outflow of short-term capital could trigger a financial crisis in many countries. This was demonstrated by the financial crisis that began in the summer of 1997 in Southeast Asia and then engulfed Russia and a number of Latin American states.
International payments represent a system for organizing and regulating payments for monetary claims and obligations arising from foreign economic activity.
The subjects of settlements are:
- exporters;
importers;
banks.
The totality of state measures in the field of foreign exchange, credit and settlement relations is called state monetary policy. The state monetary policy determines the mechanism of international payments.
Main tasks monetary policy of the state:
- Mobilization and distribution of foreign exchange resources.
Ensuring the continuity of international settlements and the balance of the balance of payments.
Lending to importers and attracting loans from abroad.
Maintaining the external debt of the state within acceptable limits.
Maintaining the exchange rate of the national currency.
Promoting the development of the country's economy.
- international treaties.
Norms of national legislation.
Systematized and unified banking rules.
The system of organization of international settlements includes three elements:
- currency restrictions;
currency conversion modes;
exchange rate.
So, in Russia, individuals have the right to export up to 3 thousand US dollars without a customs declaration, and up to 10 thousand dollars (or their equivalent in another currency) if they have a declaration.
Currency conversion modes three: fully convertible currencies (hard currency), partially convertible currencies and non-convertible (irreversible, closed) currencies.
The convertibility of the national currency is understood as its ability to be freely exchanged for foreign currency:
- according to the exchange rates prevailing in the foreign exchange market;
for all types of transactions (current and capital).
Convertibility for capital transactions - the absence of restrictions on transactions related to the movement of capital (such as direct and portfolio investment, loans, etc.).
There are also external and internal convertibility of currencies. External convertibility is the right of residents to make transactions in foreign currency with non-residents (foreign individuals and legal entities). Internal convertibility - the right of residents to make any transactions in foreign currency without restrictions.
Non-convertible currencies have restrictions for residents and non-residents on free import, export, purchase and sale.
Partially convertible currencies retain restrictions on certain types of transactions. Of the 182 IMF member countries, about 40 have fully convertible currencies (including the Baltic countries). Japan is not included.
The Russian Federation is striving to ensure full convertibility of the ruble from January 1, 2007.
Some currencies have their own graphic symbols (Table 3.1).
Table 3.1
Graphic symbols (signs) of currencies
There is also the concept of major world currencies. These include: US dollar, euro, yen, pound sterling, Swiss franc. At the same time, Switzerland prohibits foreign banks from creating official reserves in Swiss francs.
Exchange rates– exchange rates of one currency for another. Exchange rates depend on: the purchasing power of currencies (prices for goods and services), the volume of money supply, economic indicators of the country's development, foreign exchange interventions, foreign exchange speculation, etc.
There are 4 types of rates: the seller's rate, the buyer's rate, the average rate and the cross rate. A cross rate is a quote of two currencies to each other through the rate of each of them in relation to a third currency. Usually set through the US dollar.
Exchange rates are determined by two types of quotations: direct and indirect.
A direct quote is an expression of a certain number of units of a certain currency in terms of 1 unit of another currency.
An indirect quote is an expression of 1 unit of a certain currency in a certain number of units of another currency.
For example, 30 rubles for 1 US dollar is a direct quotation for the ruble, an indirect quotation for the dollar.
Direct quotation of the national currency is used in most countries of the world. In international practice, direct quotation of most currencies against the US dollar is used. The main exceptions are the euro and the pound sterling, which go against the dollar in an indirect quotation. In addition, only the Cypriot pound, the Falkland Islands pound, the Gibraltar pound, the Irish pound, the Maltese lira and the Saint Helena pound are quoted indirectly against the US dollar.
The difference between the bid and ask rates is called margin (or spread).
3.3. Monetary and financial terms of international contracts
These conditions include a number of concepts.
Price currency is the currency in which the price of the goods in the contract is expressed.
Payment currency– the currency in which goods are paid for.
If the price currency and the payment currency do not match, the exchange rate currencies, which is determined at the current exchange rate on the day of payment.
Protective clauses. There are currency and gold, but gold safety clauses are not currently used. Currency clauses are conditions included in the contract that provide for a change in the payment amount in proportion to the change in the exchange rate of the payment currency to the currency of the clause.
There are two types of currency clauses:
Single currency reservations - the amount of the payment changes in proportion to the change in the exchange rate of the payment currency to the single currency of the reservation.
Multi-currency clauses involve the use of a currency basket that includes several stable currencies. Are applied at instability of currency of the reservation of one kind.
Basket rate = currency rate 1 * currency weight 1 + …+ currency rate n * currency weight n
According to the principle of a basket of currencies, the rate of SDR (Special Drawing Rights, Special Drawing Rights - SDR) is formed. This is the prototype of world money. SDRs exist as account entries, i.e. do not have a paper form. The official issuer of the SDR is the International Monetary Fund. The amount of the SDR issue was established by the IMF decision for a certain period (1970-72 - 9.3 billion units, in 1979-1981 - 12.1 billion units). SDRs were distributed in proportion to the size of the country's quota in the capital of the IMF. In 1997, the Board of Governors of the IMF decided to issue an additional 21.4 billion SDRs, which would allow them to be distributed to new members, including Russia. However, as of January 1, 2005, this decision has not been ratified by the Member States, which together would have the required 85% of the votes.
SDRs are used only in the public sector, primarily for the country's settlements with the IMF. The composition and shares of currencies in the SDR currency basket are reviewed every five years. Thus, from January 1, 2001, these shares are: 45% - US dollar, 29% - euro, 15% - yen, 11% - pound sterling.
Payment terms: cash payment, credit.
Means of payment: bills, checks, bank transfers.
A wire transfer is a simple instruction from a commercial bank to its correspondent bank to pay a certain amount of money, at the request and at the expense of the originator, to a foreign recipient (beneficiary). The bank of the transfer recipient is guided by the instructions contained in the payment order in accordance with the terms of the foreign trade contract.
Bank transfer is used for advance payment and open account settlements.
Forms of payment: advance payment, letter of credit, collection, open account.
3.4. Currency risks in international trade
Currency risks arise as a result of changes in the real value of financial obligations due to changes in exchange rates. For the exporter, the depreciation of the currency of payment leads to a decrease in the amount of national currency he receives when exchanging proceeds. For the importer, the risk arises when the exchange rate of the payment currency rises.
Currency risk insurance is carried out in two main ways:
- entering into the contract of protective currency clauses;
implementation of special foreign exchange transactions.
Exists three main hedging methods. They come to replace currency clauses.
1. Conclusion of urgent currency transactions.
Spot transactions - exchange of two currencies based on standard contracts with settlements on them within two business days.
Direct forwards are transactions on the exchange of two currencies with settlements after more than two business days at the exchange rate set on the day of the transaction.
Swap transactions are transactions involving the exchange of a certain number of currencies at the spot rate and the reverse exchange of the same number of currencies at the forward rate.
Approximately 85% of forward transactions are swap transactions.
When concluding a contract for the supply of goods, the exporter simultaneously concludes a forward transaction with the bank for the sale of foreign exchange earnings on the date of execution of the contract. The bank charges a fee for this.
Forward foreign exchange transactions are carried out over the counter.
2. Futures transactions.
Currency futures are standard forward contracts for currencies that are traded on an exchange.
The difference between a futures contract and a forward transaction:
- futures is the trading of standard contracts;
a prerequisite for the futures is a security deposit made to the clearing house of the exchange (up to 20% of the contract amount);
settlements are carried out through the clearing house on the currency exchange, which acts as an intermediary between the parties and the guarantor of the transaction.
When settling futures, the buyer and seller do not deliver currencies to each other.
Example. Stock trader A entered into a futures contract with stock trader B to sell US dollars (stock trader A sells, stock trader B buys).
The amount of the contract is 10 million dollars.
The dollar exchange rate under the futures contract is 30 rubles.
The actual exchange rate on the day the contract is executed is 31 rubles.
Stock trader A lost to stock trader B:
(31-30) . 10 million = 10 million rubles.
3. Options.
This transaction entitles the buyer of the option for a certain premium to buy (sell) on the basis of a standard contract currency on a certain day (or at any time before a certain day) at a fixed rate. A currency option is similar to a futures, but gives the buyer of the option the right to choose whether to execute the trade or not to trade. For this, he pays a premium in the amount, as a rule, from 1 to 5% of the contract value. The amount of the premium depends on the term of the option: the longer the term, the higher the premium.
3.5. Forms of international payments
There are 4 main forms of international payments:
- prepaid expense;
letter of credit;
collection;
open account.
1. Advance payment
The advance payment can reach 1/3 of the contract amount. In modern foreign economic activity, this form is used relatively rarely. It is applied only in three cases: in the absence of confidence of the exporter to the importer; when the importer is extremely interested in receiving the goods; with strong pressure from the exporter on the importer. The fourth special case is the illegal export of capital (in particular, from Russia).
A documentary (conditional) transfer is understood as a transfer of an advance with the condition that the exporter's bank will actually pay the advance to his account only upon presentation of transport (shipping) documents. At the same time, the period during which the shipment must be made and the relevant documents must be submitted is indicated.
2. Letter of credit
A letter of credit is an undertaking by a bank to make payment to an exporter at the request and in accordance with the instructions of the importer.
In the practice of international settlements, various types of letters of credit are used:
- revocable and irrevocable;
confirmed and unconfirmed;
transferable (transferable);
revolving (renewable);
covered and uncovered;
documentary and monetary;
reserve.
Confirmed letters of credit imply an additional guarantee of payment from another bank that is not the issuer. The bank that confirmed the letter of credit assumes the obligation to pay for the documents that comply with the terms of the letter of credit if the issuing bank refuses to make payment. In international practice, letters of credit opened by the importer's bank are usually confirmed by the exporter's bank.
Transferable letter of credit provides for the possibility of receiving money not only by the exporter, but also by other legal entities at his direction.
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