International trade

International trade is the process of buying and selling between buyers, sellers and intermediaries from different countries. Int. Trade includes exports and imports of goods, the ratio between which is called the trade balance. A significant role in accelerating the growth of world trade was also played by the active inclusion in it of new groups of countries that were previously economically backward. Many of them, after gaining independence, embarked on the path of industrialization, which caused an increase in their imports of machinery and equipment from industrialized countries. According to available forecasts, the high rates of world trade will continue in the future: by 2003, the volume of world trade will increase by 50% and exceed 7 trillion. USD

Commodity structure world trade is changing under the influence of scientific and technological revolution, the deepening of the international division of labor. Currently, manufacturing products are of the greatest importance in world trade: they account for 3/4 of the world trade turnover. The share of such types of products as machinery, equipment, vehicles, chemical products. The share of food, raw materials and fuel is approximately 1/4.

Trade in science-intensive goods and high-tech products is developing most dynamically, which stimulates the cross-country exchange of services, especially of a scientific, technical, industrial, communicative, financial and credit nature. Trade in services (especially such as information and computing, consulting, leasing, engineering) stimulates world trade in capital goods (the dynamics of the structure of which is presented below

The geographical distribution of world trade is characterized by the predominance of countries with developed market economy, industrialized countries. So, in the mid-90s. they accounted for about 70% of world exports. Developed countries trade the most with each other. The trade of developing countries is mainly oriented towards the markets of industrialized countries. Their share in world trade is about 25% of world trade. The importance of oil-exporting countries in world trade has declined significantly in recent years; the role of the so-called new industrial countries, especially Asian ones, is becoming more and more noticeable.

AT modern conditions The active participation of the country in world trade is associated with significant advantages: it allows more efficient use of the resources available in the country, to join the world achievements of science and technology, to carry out structural restructuring of its economy in a shorter time, as well as to satisfy the needs of the population more fully and in a more diverse way.

International foreign trade is becoming a real and more and more tangible factor in the reproduction process, in meeting the needs of the population and any economic activity.

Every sixth good or service gets to the consumer through world trade.

At the same time, this is a real factor in the development of the integration type of world economic relations. All this predetermines shifts in the geographical, country structure of international trade: the center of gravity in it moves to mutual relations between economically developed countries and groups of countries (60-70% of world trade). The quantitative and qualitative characteristics of modern international economic relations show the strengthening of the interconnection and interdependence of national economies , increasing the importance of foreign economic growth, predetermining the benefits of international integration development associated with the formation and development of the structure of international labor markets. In a broad sense, the market is a set of economic, social and political relations that develop in the process of exchanging goods and services. The market is a separate category that develops under the influence of its own laws and affects the entire course of reproduction. Consequently, it is an integral stage of reproduction, developing in close interaction with its other elements - production, distribution and consumption. The market is a system for exchanging labor products with different consumer properties as commodities "

At the present stage international trade plays an increasing role in the economic development of countries, regions, and the entire world community. As a result, on the one hand, foreign trade has become a powerful factor in economic growth, and on the other hand, there has been a noticeable increase in the dependence of countries on international trade.

The term "foreign trade" implies the exchange of a country with other countries, which includes paid export (export) and import (import) of goods and services.

According to modern classification the subdivision of foreign trade activity according to the principle of commodity specialization is carried out as follows: finished products, machines, raw materials, services.

International trade serves as a means that allows the countries participating in the process, by developing their specialization, to increase the productivity of available resources and thus increase the volume of goods and services they produce, as well as the level of well-being of their population. In the second half of this century, international exchange is gaining grandiose proportions. Today, 4/5 of the total volume of international economic relations falls on world trade.

Modern international trade is developing at a rapid pace.

Such a steady growth in international trade was the result of the manifestation of the following factors:

Development of the international division of labor and internationalization of production;

scientific and technological revolution, contributing to the renewal of fixed capital, the creation of new sectors of the economy, accelerating the reconstruction of old ones; active activity of transnational corporations in the world market;

Regulation (liberalization) of international trade through the activities of the General Agreement on Tariffs and Trade (GATT), and now the World trade organization(WTO);

Liberalization of international trade, the transition of many countries to a regime that includes the abolition of quantitative restrictions on imports and a significant reduction customs duties- formation of free economic zones;

Development of trade and economic integration processes - elimination of regional barriers, formation of common markets, free trade zones;

Obtaining the political independence of the former colonial countries, separating from among them "new industrial countries" with an economy model oriented to the foreign market.

The geographical structure of international exchange provides a system for the distribution of commodity flows between individual countries, groups of countries, formed either on a territorial or organizational basis. -

The uneven dynamics of foreign trade was especially clearly seen in the second half of the current century, which affected the balance of power between countries in the world market. The USA gradually lost its dominant position in the system of international exchange. Germany's exports, on the other hand, approached the US, and in some years even surpassed it. In addition to Germany, exports of other Western European countries also grew at a significant pace. In the 90s. Western Europe is turning into main center modern international trade. The total export of this region is almost 4 times higher than the export of the United States. In addition, in the 80s. Japan also made a significant breakthrough in the field of international exchange. In 1983, for the first time, this country was able to come out on top in the world in the export of cars and trucks, household appliances and other goods. One third of Japanese exports go to the USA. The gradual decline in the dominant role of the USA in international trade was due to the decline in the competitiveness of American production. By the mid 90s. The United States is once again taking the world's leading position in terms of competitiveness, but they are closely followed by Singapore, Hong Kong, and Japan. Against the background of the ongoing changes, the distribution of equity participation of various groups of countries in international exchange has remained almost constant for two decades. So, specific gravity industrialized countries in world exports fluctuated in the last twenty years within 70-76%, the states of the developing world - in the range of 20-24%, and in the former socialist countries - did not exceed 6-10%.

Mercantilism and the Free Trade Theory

The root cause of the emergence and development of international economic relations is the difference in the endowment of countries with factors of production (economic resources), which, on the one hand, leads to the international division of labor, and, on the other hand, to the movement of these factors between countries.

Due to the different endowment with production factors, economic entities specialize in the production of a limited set of products. At the same time, they achieve high labor productivity in its manufacture, but at the same time they are forced to exchange this product. The division of labor originates within the country, then covers neighboring countries and the whole world. Factors of production (capital, labor, entrepreneurial ability, knowledge.)

The international division of labor is the specialization of individual countries in the production of goods and services that they exchange with each other. Before the industrial revolution (18-19th century), MRI was based on the endowment of countries natural resources, then specialization is intensified, based on differences in the endowment of countries with capital, labor, entrepreneurial abilities, and knowledge.)

Movement of factors of production

It is advisable for countries not only to use the abundance of some and the scarcity of other factors to establish exports and imports of certain goods and services, but also to export the abundant and import the missing factors of production. Countries that are poor in capital actively attract it from abroad, the labor force that is surplus for some countries seeks to find a use for itself in other countries, states with developed science export technology to places where there is no such technology of their own. The international movement of factors of production depends not only on the supply and demand of these factors in different countries, but also on their mobility, various barriers to the movement of factors, and many other factors that hinder this movement. Nevertheless, the volume of international movement of factors of production is quite comparable with the volume of international trade.

Definition

Benefits of participating in international trade

Modern theories international trade

Mercantilism

Adam Smith's Absolute Advantage Theory

David Ricardo's theory of comparative advantage

Heckscher-Ohlin theory

Leontief's paradox

Product life cycle

Michael Porter's theory

Rybchinsky's theorem

Theory of Samuelson and Stolper

territory;

Acquired Benefits:

production technology, that is, the ability to produce a variety of products.

David Ricardo's theory of comparative advantage

Specialization in the production of a product that has the maximum comparative advantage is also beneficial in the absence of absolute advantages. A country should specialize in exporting the goods in which it has the greatest absolute advantage (if it has an absolute advantage in both goods) or the least absolute disadvantage (if it has no absolute advantage in any of the goods). Specializing in certain types of goods is beneficial to each of these countries and leads to an increase in total production, trade is motivated even if one country has an absolute advantage in the production of all goods over another country. An example in this case an exchange of English cloth for Portuguese wine can serve, which brings income to both countries, even if the absolute costs of production of both cloth and wine in Portugal are lower than in England.

Heckscher-Ohlin theory

According to this theory, a country exports a product for the production of which a relatively surplus factor of production is intensively used, and imports goods for the production of which it experiences a relative shortage of factors of production. The necessary conditions existence:

countries participating in international exchange have a tendency to export those goods and services for the manufacture of which predominantly the factors of production that are available in excess are used, and, conversely, a tendency to import those products for which there are any factors;

the development of international trade leads to the equalization of "factor" prices, that is, the income received by the owner of this factor;

it is possible, given sufficient international mobility of factors of production, to replace the export of goods by the movement of the factors themselves between countries.

Foreign trade is

Leontief's paradox

The essence of the paradox was that the share of capital-intensive goods in exports could grow, while labor-intensive goods could decrease. In fact, when analyzing trade balance USA, the share of labor-intensive goods did not decrease. The resolution of the Leontief paradox was that the labor intensity of goods imported by the United States is quite large, but price labor in cost product is significantly lower than in export supplies USA. The capital intensity of labor in USA significant, together with high labor efficiency, this leads to a significant impact on the price of labor in export supplies. The share of labor-intensive supplies in US exports is growing, confirming Leontief's paradox. This is due to the growth in the share of services, labor costs and the structure of the American economy. This leads to an increase in the labor intensity of the entire American economy, not excluding exports.

Product life cycle

Some types of products go through a cycle consisting of five stages:

product development. Organization finds and implements new idea product. At this time, the sales volume is zero, costs are growing.

Export

Export (English export) in the economy is the export abroad of goods sold to a foreign buyer or intended for sale in a foreign market.

Export also includes the export of goods for processing in another country, the transportation of goods in transit through another country, the export of goods brought from another country for sale in a third country (re-export), etc. Indirect export - export with the participation of intermediaries.

Sources

wikipedia.org - Wikipedia - the free encyclopedia

glossary.ru - Glossary.ru

Encyclopedia of the investor. 2013 .

See what "Foreign Trade" is in other dictionaries:

International trade- trade between countries, consisting of export (export) and import (import) of goods and services. Foreign trade is carried out mainly through commercial transactions formalized by foreign trade contracts. In English: Foreign trade See also: ... ... Financial vocabulary

Foreign economic activity: training course Makhovikova Galina Afanasievna

1.1 Foreign trade and foreign economic activity: concept, features, development trends

Foreign economic relations- these are international economic, trade, political relations, including the exchange of goods, various forms of economic assistance, scientific and technical cooperation, specialization, production cooperation, the provision of services and joint ventures. back to basic shapes foreign economic relations include the following.

1. Trade. With the help of this form, the sale and purchase of consumer goods is carried out: clothes, shoes, perfumes, haberdashery, religious goods, as well as food products and raw materials. There is also a trade exchange of products for industrial consumption: components, parts, spare parts, rolled products, bearings, units, etc. It is possible to purchase goods and equipment for public consumption: urban transport, equipment for hospitals, clinics, resorts, medicines, devices and security equipment environment. Purchase and sale of products intellectual labor: licenses, know-how, engineering products.

2. Joint venture. This form of foreign economic relations can be implemented in the industrial sector at factories, factories, enterprises; in agriculture, science, education, medicine, transport, culture, art, credit and finance.

3. Service. Widespread in international business belongs to intermediary, banking, exchange services, insurance, tourism, international transport cargo. The volume of services provided by computer networks available in the developed countries of the world is growing rapidly.

4. Cooperation, assistance. Scientific, technical and economic cooperation is becoming more and more widespread in foreign economic relations. Scientific and cultural exchanges are intensifying, and the number of sporting events is growing.

Foreign trade at the present stage is the most intensively developing form of international economic relations.

The interest of almost all countries in expanding their foreign trade is associated primarily with the need to sell national products on foreign markets, the need to obtain certain goods from outside and, finally, the desire to extract high profit due to the international division of labor, which makes it possible to achieve the economy of social labor in the process of rational production and the exchange of its results between different countries.

A priority in foreign trade should be considered a focus on the development of exports, since the purchase of goods by import can be carried out either in the presence of foreign currency or a competitive product.

To get the most economic effect it is necessary to export science-intensive products that allow obtaining the maximum foreign exchange earnings per unit of labor costs, and those goods that have the highest labor costs per unit of invested funds should be imported.

The difference between the concepts of "foreign economic relations" and "foreign economic activity" is as follows. Foreign economic relations refer to the level of macroeconomic (interstate) regulation, and foreign economic activity - to the micro level, i.e., to the level of firms and enterprises.

The functions of Russia's foreign economic relations are currently aimed at ensuring export deliveries for federal needs and interstate economic (including currency, credit, trade) agreements Russian Federation. Foreign economic relations are being implemented "from top to bottom": the volumes and the list of goods and services are determined at the government level. They are implemented through the state order system (through organizations designated as state customers) and through limits with centralized provision of material and foreign exchange resources.

Foreign economic activity is a set of production, economic, organizational, economic and commercial functions firms and enterprises.

According to the Law "On state regulation foreign trade activities” this activity is understood as entrepreneurship in the field of international exchange of goods, works, services, information, results of intellectual activity. The concept of foreign economic relations is much broader.

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Foreign trade is evaluated using the basic concepts of exports, imports and foreign trade turnover.

— this is the amount of goods (in natural or value terms) exported from the country.

- this is the amount of goods (in physical or value terms) imported into the country from abroad.

Foreign trade turnover is the sum of a country's exports and imports.

Foreign Trade Turnover Formula

Foreign trade turnover = Export + Import.

At the same time, it should be remembered that the country's foreign trade turnover is calculated in value units, since it includes heterogeneous goods that are not comparable in physical terms. For individual goods, it is possible to measure exports and imports in natural units (pieces, tons, meters).

Foreign trade balance formula

A very important concept is the balance of foreign trade.

Balance of foreign trade = Export - Import.

The balance of foreign trade can be positive or negative and rarely goes to zero. Accordingly, we can talk about positive or negative country's trade balance. A negative trade balance means the emergence of a passive trade balance. Conversely, a positive balance characterizes the active trade balance of the country.

World export growth rate

To analyze the development of such a multifaceted phenomenon as foreign trade, a system of indicators is used. Some indicators reflect the growth rate of world trade. These, for example, include the indicator of the growth rate of world exports (Te):

Te \u003d (Ea: Eo) x 100%,

• E1 - export of the current period,
• E0 - base period export.
• In addition, a number of indicators are used to characterize the dependence of the country's economy on foreign trade:

Export quota (Ke):

Ke \u003d (E / GDP) x 100%,

• E is the value of exports;
• GDP is the country's gross domestic product for a year.

Import quota (Ki):

Ki \u003d (I / GDP) x 100%,

• where I is the cost of imports.

Trade is a type of economic activity that promotes the exchange of goods, the purchase and sale of goods, and the subsequent operations associated with this process: customer service, circulation of goods, their path from the stage of production to final consumption. Trading is an old science that is constantly changing and improving. Analyzes the state of internal and external economic relations. Economic relations occur through trade, in which the purpose and state of economic activity is initially determined. Then the profitable parties are clarified, which must necessarily come to uniform terms of the transaction, and then, taking into account all the political, material, legal and moral interests of the counterparties, at the end the process ends with the conclusion of the transaction.

This multi-character process, in which organs take part state power, trade departments, private enterprises, associations, firms and other structures, and separately many thousands of people. Such a complex issue can only be solved using a scientific approach.

It can be recalled that in the 17th and 18th centuries in Great Britain the concepts of "economy" and "trade" were considered identical (or similar). Economic activity studied long ago, even before the conception of bourgeois political economy (17th century). What we know today about modern concepts, such as price, exchange, trade, income, etc., were well known in Egypt and ancient China. Trade, as a science, was developed during the period of the slave-owning society, in which trade influenced the movement of production relations. In the ancient world, when there was no industrial capital, commercial capital, money played a significant role in the development of human society. Trade is the result of the conclusion of contracts directly related to the exchange of prices, goods, the exchange of raw materials and semi-finished products, as well as certain details to create conditions for the production of a product; exchange of results of scientific and technical research.

Trade shows what needs to be produced and in what quantity. This is a question that needs to be studied in detail and in depth.

Almost all developed countries have a special executive body that manages issues related to trade (Ministry of Trade with separate departments: domestic trade, foreign trade, trade consumer goods, trade in means of production.)

Foreign and domestic trade

Trade is divided into external and internal.

Internal, in turn, is divided into wholesale and retail trade.

The outer one is subdivided into and export.

Domestic trade- this is the trade that is distributed only within a certain country. It can be divided into two categories - wholesale and retail. Wholesale trade differs from retail in that wholesale trade usually there is a purchase of goods from dealers or from the manufacturer in large volumes. Accordingly, the price will be lower than the retail price. At the same time, it provides sales of goods in small volumes to the final consumer. There are cases when manufacturers can engage in retail trade bypassing the intermediary for the purpose of higher income.

International trade are international export-import trade relations. For some countries, export (export of goods) is the basis of foreign economic relations. This set of relationships between different countries and forms foreign trade. Over time, an international specialty was formed in this industry, which is the foundation of international trade relations. Foreign trade originated during the subsistence economy, and developed sufficiently in that era.

Wholesale- this is trading activity for the sale of products, buys in large quantities for the purpose of resale or other purposes.

Market activity covers both producers and consumers, as well as intermediaries who are engaged in establishing relations between them. These include wholesale intermediaries, which are extremely useful for both parties. Wholesale is an important link for the distribution of goods movement.

Wholesale trade is necessary due to the following conditions:

• Uneven distribution on the territories of countries of industrial enterprises that produce certain types and names of consumer goods. This contributes to the need for commodity exchange among enterprises located in different regions of the country;

• Production economic and geographical conditions, focus of production in various regions of the country;

• A large number of goods are produced by many enterprises; therefore, these resources should be attracted into the trade turnover and assistance should be provided to enterprises for the marketing of products;

Wholesale tasks:

• Attracting suppliers of products for retail enterprises

• Large orders from manufacturers

• Drawing up a range of goods and adapting it to the needs of end users;

• Goods quality improvement and renewal policy;

• Providing assistance to manufacturers in the marketing of their goods;

• Information service;

• Taking risk in trade.

It should be concluded that manufacturers and retailers have every reason to use wholesale trade services.

Retail It was formed as a commodity exchange process aimed at meeting the needs of people in the form of free sales of goods and services that are valuable to them. Retail trade combines the interests of the entrepreneur in making a profit and the needs of the client in obtaining various goods and services. Same way retail shows the quality of life of society, since this type of trade is based on the theory of individual choice. Manufacturing companies produce goods and sell them to enterprises, which in turn are engaged in wholesale or retail trade.

The main tasks of retail trade:

• Acquisition of goods from a wholesaler and selling them to anyone in their original form.

• Makes up a range of products that are of interest or are necessary for the client.

• Show samples of goods for their further order.

• Delivery of goods that were previously ordered from catalogs, various samples, samples.

• The organization of peddling is when a retailer walks with his products from house to house.

• Organization street trading when the seller minimizes the shopping path for the customer. At the time appointed by him, he comes to a residential area with the aim of selling to residents different products. Most often it can be food.

• Carrying out petty trade - sellers offer their products on the shelves, which are set up on the streets with a large crowd of people or in places where a variety of events are held.

Retail Functions

• Studying the question of the demand for goods and their supply, maintaining a balance between supply and demand

• Formation of the assortment, analyze the degree of satisfaction of needs for goods

• Influence on production issues in order to expand the range and increase the volume of goods;

• Formation of commodity stock and its further maintenance at the required level;

• Information work of retail enterprises;

• Implementation technological works with the goods, such as storage, packing, packaging. Questions regarding placement and display on trading platform, improving trade technologies and improving customer service;

• Formation of customer demand;

• Choice more effective ways sales of goods;

• Providing customers with services that facilitate the process of buying and using goods (For example, pre-ordering, selling goods on credit, delivery.)

• Meeting the needs of residents in goods;

• Bringing goods to customers by moving them to retail outlets;

• Improving trading technologies and improving customer service.

Some features of trading

1. Finishing the process of commodity production, further retail trade.

2. Trade is a source of money circulation in the country.
3. Accumulation Money, the need to comply with applicable norms and rules for organizing cash circulation
4. Providing non-core ways to sell goods to the final consumer
5. High capital, depending on the results of trading and how quickly the funds turn around.
7. Assortment and price policy depends directly on demand, the economic composition of the population served.
8. Trading income is subject to temporary, seasonal fluctuations. For example, during the holidays, the rise in prices for various goods is activated.

Trade Functions:

• sale of goods. This function links production with consumption;

• delivery of consumer goods to the consumer. Trade is the movement of goods from producers to consumers.

• maintaining a balance between supply and demand. Trade also points to the question of the volume of goods produced and its range.

• marketing functions that analyze prices, create utility services, produce goods, etc.

Black

Black market- this is trade in goods or services that is limited or prohibited by law. (For example, weapons, drugs, sexual services, etc.) Often, the black market is directly related to smuggling and has links with organized crime.

Causes of the black market

The black market is present in almost every country where a ban on a certain group of goods or services has been introduced. The formula "Demand - gives rise to supply" also works here. As elsewhere, there is an indefinite number of people trying to get what they need, bypassing all conceivable prohibitions. Here it will be appropriate when there are some people who want to cash in on this. For natural reasons, the black market provides more income than legal trade.

Types of black markets

There are such types of black markets:

• Trade in poaching goods, trade in endangered species of animals;

• bootlegging. Selling alcohol during Prohibition. Countries professing Islam, where alcohol is equated with drug trafficking.

• Drug business.

• Sale of pirated multimedia products, hacking programs.

• stolen.

• Clonlegging. Trade in human organs.

• Prostitution.

• Slave trade. Human trafficking.

• gambling industry.

• Trade in pornographic materials in countries where they are prohibited. Child pornography.

The UN appreciated the black market wildlife in 8-10 billion dollars for 2015. Every year, illegal sales of ivory range from $165 million to $188 million.

Internet trading

Internet trading- is the sale of goods or services through Internet sites. Customers make a shopping list online, then choose a payment and delivery method. That allows buyers to conveniently and affordably make purchases without leaving home. Internet trading has also made prices more affordable, and the choice of goods has become much wider, previously inaccessible to residents of small towns. Internet commerce has a high potential, since the client is limited only to accessing the Internet, and, as mentioned earlier, can make purchases from any city or village. Also commercial activity on the Internet gives some advantages to the owners. For example, the maintenance of an online store is several times cheaper than a regular store: you do not need to hire staff, cleaning services, window dressing, you do not need to rent a site.

WTO - World Trade Organization

This is an international organization that has existed since 1995 as an international body that creates and is responsible for all the rules regarding trade between countries.

Tasks of the WTO:

1. 
   Assistance and control in the process of trading based on special rules.
   2. Settling disputed trade issues between countries.
   3. Responsible for organizing trade negotiations.
   4. WTO member countries must publish their trade rules. They should also have special bodies that are responsible for the transfer of information to other members of the WTO.

The priority goal of the WTO remains the liberalization of world trade and the creation of conditions for fair competition. At the end of 2014, 160 countries are members of the WTO.

The main advantages of WTO membership:

• The best conditions for access to international markets for goods and services

• Ensuring the protection of public interests in the event that they are under pressure from partners.

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