International trade. Methods of international trade International trade presentation
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Presentation on the topic: international trade
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International trade is a system of international commodity-money relations, consisting of the foreign trade of all countries of the world. It arose in the process of the birth of the world market in the 16th-18th centuries. the term was first used in the 12th century by the Italian economist Antonio Margaretti, the author of the economic treatise The Power of the Masses in Northern Italy.
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Benefits of participating in international trade intensification production process strengthening specializationcreating opportunities for the emergence and development of mass productionincreasing the efficiency of introducing new technologiesincreasing employment;international competition necessitates the improvement of enterprises;export earnings serve as a source of capital accumulation aimed at industrial development.
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Classical theories of international trade Mercantilism is a system of views of economists of the XV-XVII centuries, focused on the active intervention of the state in economic activity. Representatives of the direction: Thomas Maine, William Stafford. The term was proposed by Adam Smith, who criticized the writings of the mercantilists. Main provisions: the need to maintain an active trade balance of the state (excess of exports over imports); recognition of the benefits of attracting gold and other precious metals to the country in order to increase its welfare; money is an incentive for trade, since it is believed that an increase in the mass of money increases the volume of commodity mass; welcome protectionism aimed at importing raw materials and semi-finished products and exporting finished products; restriction on the export of luxury goods, as it leads to the leakage of gold from the state.
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Adam Smith's Absolute Advantage Theory The real wealth of a country consists of the goods and services available to its citizens. If any country can produce this or that product more and cheaper than other countries, then it has an absolute advantage. Some countries may produce goods more efficiently than others. Natural advantages: climate; territory; resources. Acquired advantages: production technology, that is, the ability to produce a variety of products.
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David Ricardo's Theory of Comparative Advantage Even when a country has no absolute advantage in anything, trade can be profitable. the law of comparative advantage - it is more profitable for each country to produce and export those goods in the manufacture of which the productivity of labor at its enterprises exceeds the productivity of labor at similar enterprises in other countries. The difference in production costs arises as a result of differences in production methods and in the availability of production factors.
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Examples of Comparative Advantage The United States exports aircraft, tractors, wheat, electronic computers, optical instruments, but imports ships, some brands of cars and motorcycles, shoes, and clothing. Great Britain has a comparative advantage in the manufacture of tractors, explosives, paints, woolen and fur goods, but not in the manufacture of steel, synthetic and cotton fabrics, footwear and clothing. Saudi Arabia has relative advantages in oil production, since it has large deposits. Chile and Zambia can produce copper relatively cheaply.
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This theory introduces the concept of a country's competitiveness. It is national competitiveness that determines success or failure in specific industries and the place that a country occupies in the world economy. National competitiveness is determined by the ability of the industry. At the core of the explanation competitive advantage The role of the home country lies in stimulating renewal and improvement (that is, in stimulating the production of innovations). Government measures to maintain competitiveness: government influence on factor conditions; government influence on demand conditions; government influence on related and supporting industries; government influence on firm strategy, structure, and rivalry.
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Since the second half of the 20th century, international exchange has taken on an “explosive character”, and world trade has been developing at a high pace. In the period 1950-1998. world exports grew 16 times, the period between 1950 and 1970 can be described as a "golden age" in the development of international trade. In the 1970s, world exports fell to 5%, falling further in the 1980s. In the late 80s, he showed a noticeable revival. In the 90s Western Europe- the main center of international trade. Its exports were almost 4 times higher than those of the United States. By the end of the 80s, Japan began to emerge as a leader in terms of competitiveness. In the same period, it was joined by the "new industrial countries" of Asia - Singapore, Hong Kong Taiwan. By the mid-1990s, the United States was once again taking a leading position in the world in terms of competitiveness. Export of goods and services in the world in 2007, according to the WTO, amounted to 16 trillion. USD. The share of the group of goods is 80%, services 20% of the total volume of trade in the world.
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International exchange of goods Export - export of goods from the country for sale or use in other states. Economic efficiency export is determined by the fact that the country exports those products, the production costs of which are lower than the world ones. Import - the importation of foreign goods into the country from abroad. When importing, the country acquires goods, the production of which is currently economically unprofitable. The total amount of exports and imports is the foreign trade turnover with foreign countries.
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In 1966, the UN Commission on International Trade Law was established - a subsidiary body of the UN General Assembly. In 1995, a global international organization in the field of international trade rules - the WTO was founded. The World Economic Forum is an international non-governmental organization whose activities are aimed at developing international cooperation. Forums are held in Davos. About 1,000 members of the World Economic Forum (WEF) large companies and organizations from different countries the world, including from Russia.
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The structure of exports includes about 4 thousand different types of products, but the goods that account for the largest volumes in terms of value are limited to only 10 positions, including primarily oil, gas, non-ferrous and precious metals, and diamonds. The share of fuel and energy resources accounts for about 45% of total exports, for ferrous and non-ferrous metals and products from them - 20%, for chemical industry products - 8-10%, for timber and pulp and paper products - about 4%, for machines, equipment and vehicles- about 10%.
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"Free trade zone" - a group of countries that have abolished all tariffs in trade among themselves, but have not adopted uniform tariffs in trade with other countries. "Customs Union" - a group of countries that not only abandoned tariffs in trade between themselves, but also introduced a common tariff in relation to other countries. Offshore zones - a financial center that attracts foreign capital by providing special tax and other benefits to foreign companies registered in the country where the center is located.
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tariffs, or customs duties - taxes on imported goods, expressed as a percentage of their value or as a fixed fee per unit of goods, regardless of its value. Such taxes go to the treasury and are used to cover government spending. By raising the price of goods coming from abroad, tariffs help domestic producers with higher production costs than foreign rivals compete successfully in domestic markets.
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Quotas are a tougher protectionist measure. Assume the establishment of direct quantitative restrictions on the import of certain goods. Foreign producers can no longer improve their competitive positions by lowering prices. In addition, when quotas are set, the number of importers is also reduced as a result of limiting the volume of imports. Firms that have secured the right to import under such circumstances receive additional profit, since as a result of the introduction of quotas, there is a shortage of quota goods, and the prices of the domestic market for them exceed the world ones. Thus, quotas often lead to corruption, as bribes may be offered to officials distributing import licenses.
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Subsidies. Tariffs and quotas are set by importing countries to protect national markets from competition with foreign-made goods. However, if domestically produced and exported products begin to lose competitiveness, tariffs and quotas are rendered useless. In such cases, the state sometimes helps national producers strengthen their competitive position by enabling them to sell goods on the world market at prices below the actual cost of production. Such measures allow to increase the volume of exports, however, since such an increase in volume is artificial, the end result is an unsustainable use of resources.
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indirect trade barriers. Such barriers include the customs regime, classification and valuation of goods, technical standards and sanitary requirements, transport policy, politics public procurement, subsidizing exports and consumption of locally produced products, as well as taxation. Requiring long-term storage of imported goods at the country's borders or other rules that increase the price of goods, such as higher charges for transporting imported goods, government procurement policies predominantly from domestic producers, and taxes on goods produced abroad, restrict international trade.
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Trade Freedom Rating Since 2008, the WEF has published a report on the status and promotion of global trade. Part of the report is a ranking of countries according to the degree of favorable conditions for the movement of goods and investments across borders. According to the 2010 report, the first place in the list of 121 countries was shared by Singapore and Hong Kong. The last places in the ranking are occupied by Venezuela and Chad. Russia ranked 109th in terms of the integral indicator and 113th in terms of the accessibility of external and internal markets.
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Self-Study Topics International Technology ExchangeTransport Services in the World MarketInternational TourismMultinational CorporationsEuropean UnionWTOInternational Trade of CIS CountriesOffshore ZonesInternational Trade between Developed and Developing Countries
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International trade Exchange of goods and services between state-national economies The totality of foreign trade of all countries of the world Object international trade goods and services supplied to the world market. The basis of world trade is foreign trade turnover Export Import Foreign trade volume = export + import
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- the direction of economic thought of the XVI-XVII centuries, whose prominent representative was T. Mann (1571-1641), studied the problems of foreign trade. Mercantilists believed that foreign trade was necessary for the country to accumulate gold, which was considered the main source of the nation's wealth. The flow of gold into the country is ensured if the export of goods for which the state receives gold is greater than the import, for which the precious metal must be paid. Therefore, the mercantilists advocated the expansion of exports and the all-round restriction of imports. Mercantilism
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Adam Smith put forward the theory of world trade, substantiating the need for liberalization of imports and relaxation of customs restrictions. Smith's approach was called the PRINCIPLE OF ABSOLUTE ADVANTAGE Each country should specialize in the production of goods whose average cost is less than the average cost in other countries Absolute advantage in any product is determined by endowment with appropriate resources. By exporting part of the goods, with the proceeds, the country purchases goods, in the production of which the other country has an advantage
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David Ricardo (1772-1823) Theory of comparative advantage in foreign trade A country benefits if it specializes in the production of those goods whose average cost is relatively less than in the production of the same goods in other countries
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NEOTECHNOLOGICAL THEORIES OF WORLD TRADE These theories explain, for example, the reasons for trade between countries, while the structure and technical specifications factors of production are similar. Within the framework of these theories, the possibilities of new developing equipment and technology are taken into account. High-volume production Decreasing unit costs Decreasing prices Economists pay attention to the continuous technological changes that firms make in order to create competitive advantages. The Netherlands, for example, exports flowers worth more than $1 billion a year, using improved greenhouses heated by electricity or gas and air transport to deliver the goods to consumers.
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Patterns of development of world trade World trade is growing very rapidly, the export shares of countries in the volume of GDP are increasing. In 1950 world exports of goods and services accounted for 13% of world GDP, in 2000. - 17.1%, in 2015, according to the forecast, it will be 18.7%. The share of finished products, especially high-tech, knowledge-intensive products, is growing. The prices of machinery and equipment produced by the leading countries of the world are growing rapidly. Reducing the demand of developed countries for raw materials and food produced by developing countries. Their position in world trade is deteriorating. Profitability of foreign trade for developed countries is growing. Increasing the global market for services, especially tourism, transport, finance, technology transfer. The leaders are developed countries.
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To assess the benefits of international trade for a country, economists use the terms of trade index. The terms of trade index is the quotient of dividing the index of average export prices by the index of average import prices of the country in a particular period of time. Its decrease shows that for the purchase of a unit of imported goods, more and more proceeds from exported goods have to be spent.
"International Relations" - Russia's foreign policy has changed many times. The role of Russia in modern international relations. International relationships play an increasingly important role in people's lives. E.M.Primakov. “A world without Russia? Foreign policy of N.S. Khrushchev. The ability to analyze foreign policy trends contributes to the understanding of global processes in the economy.
"International organizations" - 6. Functions of international organizations. Institutionalization of activities financing decision-making process management, administration of the organization. Lecture questions. History of creation and development of international organizations (IO). main areas of activity. The concept of the international regime. 6. Functions of international organizations.
"Foreign trade" - Customs border. direct transit. Subject, method, tasks and organization of WES statistics. World export of services is estimated at about 4 trillion. dollars. Foreign trade statistics is an integral and main part of WEC statistics. The main participants in international trade are economically developed countries (over 60%).
"World trade" - 5. Intra-industry trade reflects the differentiation of similar goods. Exports of technologically low-intensity products (the share of R&D costs is less than 1%) increased 14 times. Main exporters of goods: USA, Germany, Japan, France, China. Export of technologically high-capacity products (more than 10%) - 14 times.
"Courses 1C Trade Management" - If you are the head of an enterprise, then we will teach you how to use the tools that allow: We will tell you about the work of 1C "Trade Management" with a different number of computers. What you will get by coming to us: The list of knowledge that will be open to you is extensive!). Our classes are grouped by topic and implemented in the form of practical exercises.
"Wholesale and retail trade" - Supply chain management: optimizes the process of procurement, production and distribution of goods. Wholesale functions. Marketing solutions in wholesale trade. 4) Transportation: railway transport water air automobile pipeline. Does the intermediary take ownership of the goods?
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International trade, its place and role in the system of international economic relationsslide 2
1. Theories of international trade. 2. Dynamics and structure of world trade 3. Modern foreign trade policy. Protectionism, liberalism 4. Tariff and non-tariff methods of regulating foreign trade 5. International regulation of world trade 6. WTO, its role in regulating international trade
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1.Theory of international trade Protectionism and freedom of trade. Views of the mercantilists Theory of factors of production and their relationship; The concept of the life cycle of M. Porter's theory of competition. Modern approaches to the problem of international competition Teachings of A. Smith and D. Ricardo about absolute and comparative advantages.
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Protectionism and free trade. Views of the mercantilists Representatives of the theory: A. Montchretien, T. Man. The increase in gold reserves is the most important task of the state, and foreign trade must, above all, ensure the receipt of gold. The trade policy was oriented towards the all-round encouragement of exports and restriction of imports by establishing customs duties for foreign goods.
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The theory of factors of production and their relationship The founder of the doctrine - J. B. Say, followers of E. Heckscher and B. Ohlin. The assessment of factors predetermines three circumstances: the countries participating in international exchange have a tendency to export those goods and services for the manufacture of which predominantly factors that are in excess are used, and, conversely, to import those products for which there is a shortage of any factors; the development of international trade leads to the equalization of "factorial" prices, i.e. income received by the owner of this factor; 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.
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Life cycle concept Representatives of this approach are R.Vernon, Ch.Kindelberger and L.Wales. The life cycle of a product includes the following main stages: Implementation - it is characterized by increased labor intensity of the product; Growth - exports from the country of innovation are expanding, competition is intensifying, there is a tendency to increase the capital intensity of production; Maturity - market saturation begins to be felt, primarily in the country of innovation, demand stabilizes, the role of pricing policy increases; Decline - characterized by a narrowing of the market in developed countries, a greater concentration of production in developing countries.
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Three stages of development of foreign trade 1. 40 years before the start of the First World War (volume increased 3 times); 2. Between the First and Second World Wars (the volume did not increase, stagnation occurred); 3. 1950-1970 - "Golden Age" of trade (a sharp increase in the volume of trade).
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Reasons for the existence of foreign trade relations: International division of labor Mutually beneficial exchange
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1. EXPORT OF CAPITAL 2. ELECTRONIC TRADE 3. TNC Factors contributing to the dynamic development of international trade
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Necessary conditions for a country's participation in international trade: Availability of export resources Foreign exchange Developed foreign trade infrastructure: - vehicles - warehouses - means of communication
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The main forms of m / n trade: Rent - is widely practiced in the trade in machinery and equipment, in the form of export credits. When renting, it is not intended to transfer ownership of the goods. Allocate: short-term medium-term long-term
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Countertrade is a set of transactions, at the conclusion of which the purchase of products is accompanied by reciprocal deliveries of goods. Types of counter trade: Barter - an equivalent exchange of goods. The transaction must be concluded on goods that have the same value. Negativity of barter: increases inflation, no tax revenue from the transaction. Positivity: ease of transaction, no financial transactions. Counterpurchases is an agreement that, in the case of exporting products to a country, involves the purchase of a number of goods from this country.
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Compensation agreement - the agreement provides for the sale of manufactured equipment on the terms of commercial loans with subsequent repayment of the debt by deliveries of products manufactured on this equipment. Clearing - the difference between prices - is a system of non-cash settlements based on the offset of mutual claims and obligations of the parties involved in the settlements. Offset deals - trade in expensive equipment - construction of nuclear power plants, hydroelectric power stations, sale of weapons, ships - a deal that terminates the obligations of the parties on the futures exchange.
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M / n auctions and tenders - the form involves an announcement of a competition for sellers of goods with certain technical and economic characteristics. Types of trades: open (public) and closed. Commodity exchanges are one of the most important types of trade, mainly in agricultural and commodities. Main commodities: cereals, sugar, cocoa, coffee, rubber, cotton, certain types of non-ferrous metals, petroleum products and chemical products. Commodity prices are set on the basis of exchange quotations. Implementation is carried out without preliminary examination, according to samples and standards, according to advance established dimensions minimum lot.
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M/n auctions - a way of selling individual lots and items that are put up for inspection in turn and are considered sold to the one who gives the highest price. Main auction items: furs, unwashed wool, tea, spices, antiques.
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The structure of international trade International trade Export Import Export of manufactured goods Import of goods from abroad abroad Foreign trade balance = E - I Foreign trade turnover = E + I "Terms of trade" - the ratio of export and import price indices. (+ if Ötz grows faster than Öz) Re-export - export of previously imported goods that have not been processed. Re-import - re-import from abroad into the country of domestic goods that have not undergone processing.
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CHANGES IN THE GEOGRAPHICAL STRUCTURE OF WORLD TRADE -Leadership of developed countries - 3/4 of world exports of goods countries with economies in transition - 3.5% of world trade
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Leading exporting countries (according to WTO data) Germany - 9.3% USA - 8.7% China - 7.3% Japan, France, the Netherlands, Great Britain, Italy Canada, Belgium According to WTO economists, exports of Russian goods increased in 2012 year by 17% to $ 355 billion. Thanks to this, Russia took 7th place, and its share in world exports of goods amounted to 3.5%. During the same period, imports of goods to Russia rose by as much as 35% to $223. This is 2.1% of world imports of goods and 10th in the world. In terms of export of commercial services, Russia ranked 25th in the world with $38 billion (+25% compared to 2008), and 16th in terms of imports with $57 billion (+30%). Foreign trade turnover of Russia according to the methodology of the balance of payments in August 2012 amounted (in actual prices) to 42.7 billion US dollars (1351.1 billion rubles), including exports - 27.1 billion dollars (857.2 billion rubles), imports - 15.6 billion. dollars (493.9 billion rubles).
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Foreign trade policy is a set of public funds and methods in the field of foreign trade, aimed at regulating exports and imports, in order to strengthen the position of the country. The main objectives of foreign trade policy are: to change the way and degree of inclusion of a given country in the international division of labor; changes in the volume of exports and imports; change in the structure of foreign trade; providing the country with the necessary resources; change in the ratio of export and import prices.
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Types of state regulation of international trade: Unilateral - Bilateral - Multilateral -
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Forms of foreign trade policy: 1) Autarky - at present, this policy is a relic of the past. This policy involves the isolation of the country, the creation of a closed, self-sustaining economy: self-isolation or imposed isolation, for example, North Korea - self-isolation, Cuba, Iraq - imposed.
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2. Protectionism is the foreign trade policy of the state, aimed at protecting the domestic market from foreign competition, as well as supporting domestic producers in foreign markets. 3. Liberalization is the process of reducing customs and non-tariff barriers to the development of international trade. 4. Moderate trade policy -
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Forms of protectionism: selective protectionism - directed against individual countries or goods; industry protectionism - protects certain industries, primarily Agriculture; collective protectionism - carried out by associations of countries in relation to countries that are not members of them; covert protectionism - carried out by methods of domestic economic policy.
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Tariff methods; non-tariff methods. Essence of the first method. The global organization that regulates the customs and tariff issues of world trade is the General Agreement on Tariffs and Trade (GATT). Customs duties are a monetary fee, or an instrument of administrative and quantitative regulation of imports, collected by the state through a network of customs offices from goods, property and valuables when they cross the country's border. Customs tariffs - a list of goods and a system of rates at which they are subject to duties; classic national remedy economic management import.
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The customs tariff contains: -Name and classification of taxable goods -Duty rates -Methods of accrual and payment of customs fees -List of duty-free passable products -List of goods prohibited for export and import into the country. Objectives of customs duties: -Restriction of imports (in the Russian Federation - exports) -Fiscal objectives -Prevention of "unfair competition"
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Depending on the direction of movement of goods Customs tariffs Import export transit By method of establishment Ad valorem combined specific
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Non-tariff restrictions Non-tariff measures are measures that affect trade, but go beyond the measures provided for in the regulatory legal act on the customs tariff of the state. These measures can be defined as the rules and regulations by which the state has a direct impact on the subjects of foreign trade activity, determines the structure of the domestic market, protecting it both from import supplies and from the possibility of a shortage of domestic goods in this market.
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Non-tariff methods: A. Quantitative restrictions 1. Import-export quotas -export -import 2. Licensing - -auction -explicit preference system -distribution of licenses on a non-price basis 3. "Voluntary" export restrictions
International trade What is international trade? International trade is a system of international commodity-money relations, consisting of foreign trade of all countries of the world. International trade arose in the process of the emergence of the world market in the XVI-XVIII centuries. Its development is one of important factors development of the world economy of modern times. The term international trade was first used in the 12th century by the Italian economist Antonio Margaretti, the author of the economic treatise The Power of the Masses in Northern Italy. Benefits of participating in international trade:
- the intensification of the reproduction process in national economies is a consequence of increased specialization, creating opportunities for the emergence and development of mass production, increasing the degree of equipment workload, and increasing the efficiency of introducing new technologies;
- an increase in export deliveries entails an increase in employment;
- international competition necessitates the improvement of enterprises;
- export earnings serve as a source of capital accumulation aimed at industrial development.
- the need to maintain an active trade balance of the state (excess of exports over imports);
- recognition of the benefits of attracting gold and other precious metals to the country in order to increase its well-being;
- money is an incentive for trade, since it is believed that an increase in the mass of money increases the volume of the mass of commodities;
- welcome protectionism aimed at importing raw materials and semi-finished products and exporting finished products;
- restriction on the export of luxury goods, as it leads to the leakage of gold from the state.
- climate;
- territory;
- resources. Acquired advantages: production technology, that is, the ability to produce a variety of products.
- countries participating in international exchange have a tendency to export those goods and services for the manufacture of which they use mainly production factors that are in excess, and, conversely, a tendency to import those products for which there is a shortage of 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.
- government impact on factor conditions;
- government influence on demand conditions;
- government impact on related and supporting industries;
- government influence on the strategy, structure and rivalry of firms.
- product development. The company finds and implements new idea goods. During this time, sales are zero and costs rise.
- bringing the product to market. No profit due to high marketing costs, slow growth in sales
- fast market conquest, profit increase
- maturity. Sales growth is slowing down, as the bulk of consumers have already been attracted. The level of profit remains unchanged or decreases due to an increase in the cost of marketing activities to protect the product from competition
- decline. Decreased sales and reduced profits.
- foreign trade has become a powerful factor in economic growth;
- the dependence of countries on international trade has increased significantly.
- The main factors affecting the growth of international trade:
- development of the international division of labor and internationalization of production;
- activities of transnational corporations.
- INCOTERMS are international rules recognized by government bodies, law firms and merchants around the world as an interpretation of the most applicable terms in international trade. The scope of Incoterms extends to the rights and obligations of the parties under the contract of sale in terms of the supply of goods. Each Incoterm term is a three-letter abbreviation. There are different editions of Incoterms (2000, 2005, 2010). Their application is optional at the choice of the parties to the contract.
- place and time of sale of goods;
- relationship between seller and buyer;
- terms of a commercial transaction;
- the nature of the market;
- sources of price information. World prices are called a special kind of prices in international trade - the prices of the most important (large, systematic and stable) export or import transactions made on ordinary commercial terms in the main centers of international trade by well-known firms-exporters and importers of relevant products.
- manufacturer's prices;
- the cost of translation services;
- the cost of legal support of the transaction;
- cost of production control (product inspection);
- transportation costs;
- the amount of payments to the budget (customs payments, VAT, etc.);
- commissions of intermediaries organizing the import of products.