Foreign economic activity is Management of foreign economic activity

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Foreign economic activity is the activity of the state in the sphere of the economy outside of domestic trade. It has many different aspects, but all of them are somehow connected with the market, the promotion of various kinds of services on it: transportation, sale of goods. In fact, this is a complex system consisting of many interdependent links.

Ultimately, foreign economic activity has the goal of making a profit as a result of certain transactions on the international market.

Since the study of market conditions, demand for various types of goods or services, the presence of competitors, the study of companies - potential consumers is considered an important component of successful trading, a huge team of managers, economists and marketers faces the responsible task of ensuring and maintaining the functioning of all of the above mechanism.

Features of the activities of the state in the field of foreigneconomy

Russia's foreign economic activity has its own specifics. Coordination of the relevant processes of market relations consists of several fundamental points.

Fundamental among them are:

1) state regulation of foreign economic activity by the laws of several countries at once. The execution of foreign economic transactions is impossible without knowledge of the legal basis for the regulation of a particular activity;

2) relations in the external economy are market-based, so activities should be regulated by markets.

Commercial relations will not work if partners from different countries are not interested in mutual cooperation. Foreign economic activity, manifested by any transactions of an international level, is simply impossible without negotiating, concluding commercial transactions between partners. These are important, integral auxiliary functions of foreign economic activity;

3) an equally important component of any transaction is the provision of transport, insurance of enterprises for modal and multimodal transportation. Activities outside one country are not feasible without establishing links between customs, currency and credit exchanges, since clearance and mutual settlements are important for any type of activity. All established and accepted standards are recorded in the protocol, recorded and observed, therefore, special skills and knowledge are easy for interested partiesneeded.

The managerial link in the foreign economic policy of the state

In our country, the Ministry of Trade is responsible for managing the foreign economic activity of the state. In recent years, many forms of activity in Russia have undergone major changes. Functions of the Ministry of Commerce:

• regulates and coordinates foreign trade relations;
• makes proposals for the unification of foreign trade policy between partner countries;
• ensuring the implementation of adopted proposals and laws.

In addition, the duties of the Russian Ministry of Finance include:

• regulation of tax issues;
• setting rules for international settlements;
• determination of the procedure for issues related to financing, lending to various operations in the external economy;
• carrying out various kinds of operations abroad;
• provision of the interests of your country in international monetary and credit organizations, as well as in the Central Banks of other states. It is the Central Bank of Russia that is the main authorized body exercising control over foreign exchange transactions on foreign exchanges, as well as the regulator of relations between them.

Customs is a subject of foreign economic relations

Customs affairs are also foreign trade activities. The Customs State Committee of the Russian Federation, which develops and implements fiscal policy in the state, is one of the indispensable links in the country's tax-accountable system.

In addition, the state structure controls all operations in this industry, regulates economic activity by various means based on the customs policy developed in Russia.

Passing through the procedure of customs verification and identification, each unit of production receives its own code. In addition, the commodity nomenclature of foreign economic activity is carried out within the framework of the existing Russian legislation. Thanks to this procedure, specialists have the opportunity and access to study the structure of international trade.

The development of foreign economic activity is to establish high-quality mutually beneficial relations. For their formation, it is important to expand business contacts between foreign partners - exporters and manufacturers, to provide them with assistance and assistance. At this stage, local authorities by regions, as well as representatives of the administration, the Chamber of Commerce and Industry of the Russian Federation are responsible.

Today Russia has established market relations with many countries of the near and far abroad.

Advantages and disadvantages of reforming

Multiple reforms carried out over a long period of time contributed to the creation of a single base on which foreign economic activity is carried out. This, first of all, plays a significant role in the standardization of processes in the external market.

Although all the long-term reforms have not led to radical changes, questions andThere are many problems in the international market. The state foreign economic activity of Russia remains, as before, not fully prepared, since it was launched prematurely. Hasty liberalization eventually led to:

• depending on imports of many consumer goods;
• deterioration of export relations between countries;
• disintegration of many domestic markets, affecting domestic producers;
• export of our weapons, some scientific products.

The sphere of Russia's foreign economic activity has been repeatedly reformed, but at this stage the mechanism of its regulation remains imperfect.

Main directions in the field of foreign economy

State regulation of foreign economic activity needs an effective system, which means that the adaptability of each individual subject to new modern trends in market economy is in demand:

• internationalization of production;
• development of the international division of labor;
• reconstruction of old and creation of new industries in the economy;
• renewal of capital associated with the inflow of funds in a particular activity;
• development of vigorous activity between transnational corporations;
• trade liberalization between countries. It is important to reduce customs duties, lift restrictions on imported and exported goods for export, and create more free economic zones.

If regional barriers are removed, formcommon markets and increase the number of free trade zones, then the impact on foreign economic relations in the aggregate of all the above factors will be significant.

Changes in foreign trade relations: tariffs and rates

Customs tariffs have been repeatedly changed. The tariff was crushed, set separately for each type of product, duties were differentiated, thereby encouraging the export of goods abroad, or vice versa, they withheld goods if their production brought a significant profit to the country. The sphere of customs regulation will undergo major changes in the coming years. The government intends to reduce the number of duties, their assignment only to large goods in batches, and not to small goods separately.

It is also expected to unify tariff rates, reduce duties after Russia's upcoming entry into the WTO. Already in many developed countries, the level of customs tariffs is average, but not too high. It is important to develop a whole range of measures for non-tariff regulation of relations between the powers, because duties can be reduced only by applying various non-tariff barriers. The international foreign economic activity of some states in this matter can serve as a model for domestic policy.

Changes in taxation and business

In Russia, the taxation of some profitable industries is still humane. Exporters are not interested in investing in the economy of ourcountries if they have excess profits from the supply of their raw materials to the world market in other countries.

It is necessary to pay attention to innovative entrepreneurship, science-intensive exports. To improve the structure of exports from Russia, it is important to form state support for exported industrial goods. If regional export programs are regulated, then there will be less competition between Russian firms producing similar products.

It is possible to increase the efficiency of foreign economic relations by diversifying the sales markets for domestic goods, as well as the sources of raw materials produced for export, maintaining relations with many countries, constantly expanding their circle.

Features of recent foreign economic relations under the USSR

It is important to regulate the export and import of captal and radically change the situation. The export of capital began from Russia to the countries of Asia at the beginning of the 20th century. Under the USSR, mixed joint-stock companies were created, which mainly carried out only trade operations for the export of capital in the form of loans from the state. Further, some Western European countries adopted this idea and began to create such structures at home.

Mostly loans went to Turkey, Iran, Mongolia, Afghanistan. Some developing countries received economic assistance from the Soviet Union. But with its collapse, the issuance of loans and assistance to foreign countries has significantly decreased. The export of capital has increased, but in other forms:

• contribution of investments in largedomestic enterprises;
• issuance of loans for the import of private capital.

Specifics of investing in the Russian economy

Today, a concept has not even been developed for the import of capital in our country, a system for regulating the export of capital has not been developed, with the exception of some of its minor elements. The export of capital from Russia is controlled by the law “On the liberalization of activities outside the economy on the territory of the RSFSR” adopted in 1991.

Control over the implementation of foreign exchange transactions is carried out on the basis of the law "On foreign exchange regulation and control." Private capital for export is not supported by the state in any way, no measures have been taken. All that is known is an agreement on the protection of investments with other countries, the prevention of double taxation.

The placement of various kinds of investments abroad in no way passes the analysis of foreign economic activity. Nevertheless, there are no restrictions on the export of capital abroad in Russia.

Problems of illegal export of capital abroad

There are a lot of illegal immigrants sending capital for export dishonestly. There are far fewer foreign enterprises registered in the state register than those companies in which Russian funds are invested. In order to form national interests and tasks in the field of export, Russia needs to create a detailed concept for the export of private capital outside its borders. This is necessary not only for executive authorities, but also for private investors. The fundamentals of the policy of the Russian state on the export of capital abroad should be clearly marked for them andunderstood.

It is difficult to regulate the entire process of exporting capital, because restrictive and prohibitive measures are not always effective in real life. Improving the investment climate means:

• reduce the tax burden;
• stabilize the political situation in the country;
• keep inflation from rising;
• comply with the law;
• reduce crime in the economy.

With such a change in the situation, the investment climate in the country would improve, and hence changes for the better in the issue of import and export of capital.

Overcoming barriers to the import and export of foreign investment is the task of our government. It is a favorable investment climate that will have an impact on customs control mechanisms, foreign exchange transactions, and will contribute to the effective development of international trade.

Foreign economic activity is precisely that sphere of the economic and political life of the state, to strengthen the positions of which at a high level one cannot do without investment foreign deposits. All activities aimed at improving the environment associated with investments, of course, should be carried out in aggregate. The state needs to pay attention to the following areas to resolve relations outside the country's economy:

• Restore and expand all areas of activity with the countries of the Near and Far Abroad, as well as the European Union.
• Speed up the integration processes existing in the CIS countries.
• Makeforeign economic relations more efficient in all regions of Russia;
• Clearly allocate functions and responsibilities between the regions and the center for the fulfillment of obligations and prescriptions, which are determined by foreign economic activity. This provision allows to carry out work in a decentralized manner, without interfering with the current trade processes and at the same time keep the situation under the full control of the state.