Zosymova Ganna
Ph.D. in Economics
Senior Lecturer
Department of International Economics
Kharkov State
University of Food Technology and Trade
THEORETICAL ASPECTS
OF FOREIGN OPERATIONS
Foreign economic activity - a combination of
the forms and methods of trade and economic, financial and productive
interaction between the subjects in the global market in order to take
advantage of the international division of labor to achieve higher efficiency
of the actors involved.
Foreign economic relations - a combination of
regular and stable economic relations between the actors on the implementation
of export-import operations related to the movement of goods, services, labor
and capital across national borders to ensure the interconnected reproduction.
Investment cooperation is a rational
allocation of resources, a way to achieve high results Bole states in the
economy due to the benefits of participation in the international division of
labor, upgrade the technological structure of social production.
Investment cooperation is implemented in
foreign economic activity as follows.
• through portfolio investments - investments
that are not related to direct control over foreign enterprises, and
implemented through the purchase of shares, bonds and other securities of the
long-term (usually no more than 25% of the share capital) with a view to
profit;
• through direct investment - the formation of
their own companies as well as investments in foreign enterprises, constituting
not less than 25% of the share capital (an important role in attracting direct
investment and the creation of joint ventures and foreign companies played by
the state, namely the legislative support in the form of government guarantees,
contracts on double taxation treaties on international arbitration, protection
against expropriation or nationalization, ensuring the free transfer of capital
and returns on investment, and so on.).
Investment cooperation is closely intertwined
with other forms of foreign economic activity.
For example, the relationship of industrial
cooperation and investment cooperation lies in the fact that with the help of
direct investment are joint or foreign enterprises. In addition, government
policies to attract foreign investment is closely connected with the foreign
exchange and credit provision, which also can be attributed to the forms of
foreign economic activity.
Monetary communication as a form of foreign
economic activity is also closely intertwined and basically play the role of
ensuring the financing of foreign trade, production and investment cooperation.
Among the areas of monetary and credit
relations of foreign economic relations is necessary to highlight the
following:
1. Financing of export-import transactions
(bank loans in local and foreign currency government loans as a form of export
subsidy, mutual crediting of the exporter by the importer and, conversely, the
importer exporter, etc.).
2. Organizational support of foreign trade
transactions (opening and maintenance of foreign currency accounts, foreign
earnings and enrollment automatic mandatory sale of export revenue to the
state, the operations of foreign exchange purchase and sale for the payment of
import and transfer of export revenues in the national currency, the use of
various forms of international payments bank transfer, letter of credit,
collections, etc.)..
3. Loans and repayment of other countries,
international financial institutions (MFIs) and non-resident (foreign exchange
swap transactions, exchange operations national currency for foreign exchange
with an obligation to return after a certain period between the central banks,
monetary co-operation with the International Monetary Fund; group World Bank,
European Bank for reconstruction and development and other international
organizations, servicing and repayment of external liabilities in foreign
currency).
4. Dealing operations in the world financial
markets (arbitrage, hedging, etc.) And others.
In principle, the classification of monetary
activities can be presented on different grounds, both in the spirit of credit
and currency relations in foreign trade activities, as well as on the subjects
of providing and implementing these connections.
In modern conditions of
large-scale production can not fully develop only within their own country. It
has demonstrated a policy of autarky pursued by our country during the years of
Soviet power. Domestic enterprises have successfully operated only within the
territorial framework of the USSR. But with the fall of the "Iron Curtain"
it was found out that the level of production in our country is much inferior
to the West. And in this regard, domestic enterprises are having difficulties
in the implementation of foreign economic relations.
Foreign economic
activity is a form of realization of foreign economic relations, which in turn
determine the nature of the external economic relations.
At the present time
the situation in the sphere of foreign economic activity of enterprises
can be described as complex. This is due to many factors, first of all, with
the economic crisis in the country, the fall in production, low level of
competitiveness of their products, a chronic lack of funds in enterprises.
Domestic enterprises inherent in small scientific and technical potential, an
old industrial base and production management form. All this, of course, is an
echo of the past, carried out in the economic policy.
References:
1.Al-Ali, N. (2003).
Comprehensive intellectual capital management: Step-by-Step. John Wiley &
Sons.
2.Barney, J. (2008).
Resource-Based Theory: Creating and Sustaining Competitive Advantage.
OxfordUniversity Press.
3.Pasher, E., Ronen, T. (2011).
The Complete Guide to Knowledge Management: A Strategic Plan to Leverage Your
Company’s Intellectual Capital. Wiley.