International and foreign economic relations

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:41

The global division of labor, the development of international institutions and transnational corporations have united all countries of the world into a complex system of relationships. By the middle of the 20th century, there were no more countries that did not have international and foreign economic relations. The most closed country in the world, North Korea, conducts international trade with dozens of countries, including Russia, despite the sanctions imposed by the UN. The poorest country in the world, Tokelau, has ties with New Zealand, receiving financial assistance from there. And the country's international foreign economic relations are actually also limited to New Zealand, which is responsible for the security of the three atolls of which this state consists.

What are international connections

With the emergence of ancient states, the first international relations were established, first military and commercial. With the development of society and the state, new areas of interaction appeared in politics, culture, religion and manyother areas of human activity. All these types of connections between states, associations of states, public, cultural, religious and political organizations in the international arena are now included in the concept of international relations. In a broad sense, these are all relations between peoples.

Sometimes international and foreign economic relations are separated. Then everything that is connected with economic relations in the world market - trade, investment, scientific and technical cooperation - is singled out as foreign economic relations. And everything else, including political, cultural, humanitarian and other ties, is classified as international.

Types of international relations

Differences in geographical location, climatic and natural conditions, levels of development of productive forces, labor force, means of production and capital lead to the fact that countries are "forced" to build international relations and especially their economic part.

Conventionally, international relations are divided into:

political - are considered the main ones that determine the presence and degree of interaction in other areas;
economic - inextricably linked with political ties, foreign policy is almost always aimed at protecting economic relations and obtaining better conditions for international trade entities;
international legal - regulate relationships by establishing norms and rules for work in other areas (close connectionforeign economic relations of economics and law is always decisive for successful economic activity);
military-strategic, military-technical - few countries in the world are able to protect their national interests alone, countries unite in military alliances, conduct joint military exercises, jointly produce or purchase weapons.
cultural and humanitarian - the globalization of public consciousness, the interaction and interpenetration of cultures and the almost instantaneous availability of information quickly increase and strengthen these ties; Non-governmental and public organizations are playing an increasingly important role here.

Key actors

For a long time, international and foreign economic relations were considered as the exclusive prerogative of the state. The countries agreed on political and military cooperation and on the terms and volumes of foreign trade. With the development and complication of public life, more and more new participants, in addition to states, joined international activities. Transnational corporations, which often work directly with states, are also recognized as subjects of foreign economic activity.

The first such company was the British East India Company, created by the decree of the English Queen Elizabeth I and which was engaged in the colonization of India and China, and even had its own army. The subjects of international and foreign economic relations are:

nation states;
international organizations;
non-governmentorganizations;
transnational corporations;
religious organizations;
public, political, environmental and other associations.

Communications Chief

International relations began as relations between countries. The state represents the country as a whole to the outside world, and not individual social groups, organizations or movements. This is the only legitimate institution that will determine the policy of the state of all aspects of international life from declaring war to determining the conditions for economic cooperation and cultural exchange. Any actions of the state are aimed at obtaining a favorable environment for the implementation of foreign economic relations.

The level and quality of international, including foreign economic relations is determined by the competitiveness of the state, its economic and military potential. Of course, the level of national we alth, natural and labor resources, the level of development of science and education, and achievements in the field of high technologies are also important.

International Institutions

Associations of states began with military alliances of Greek cities -states with the development of public consciousness came to the creation of one of the first international organizations - the League of Nations, which became the prototype of modern institutions of cooperation. Now hundreds of international organizations are full-fledged participants in international relations in all spheres of human activity. For example,organizations involved in foreign economic relations - the World Bank, the International Monetary Fund and a number of others, provide financial and technical support to all countries that need such assistance. The UN is a universal organization that works in all areas, from politics and cultural ties to military peacekeeping operations.

Global Opportunities

Distinguish between foreign economic activity, which is carried out by individual enterprises for the purchase of goods or attracting investments in the world market, from foreign economic relations, which are considered as the totality of the activities of all such companies. However, with the increase in the scale of activities and reaching the supranational level, the approach also changes.

Since the middle of the 20th century, transnational corporations have been recognized as full participants in international relations. Global corporations, whose economic opportunities have become higher than those of many countries of the world, began to influence directly many aspects of international life. Corporations operating in the jurisdiction of dozens of countries often enter into agreements with them that regulate not only the terms of actual foreign economic relations, but also in the field of scientific, cultural and humanitarian ties.

Politics is primary

Politics determines everything. Political relations create prerequisites and conditions for the development of all types of international relations, including foreign economic relations of countries. They define, shape, securecooperation between states and other subjects of international relations. Depending on the level of political ties, countries also establish rules for economic interaction. Recently, when the US government announced the introduction of protective duties aimed at protecting the market from metallurgical products, it made an exception for its neighbor Canada. Then she began negotiations with her Asian allies South Korea and Japan on conditions under which these countries would not be subject to the new rules.

Ties in the external economy

The Institute for Foreign Economic Relations is the same age as the first states. Barely born, the countries began to fight and trade among themselves. International trade has long been practically the only type of foreign economic relations. With the development of technology and the global division of labor, new types of connections have appeared, which are now divided into the types described below.

International trade.
Scientific and technical cooperation.
Economic cooperation.
International cooperation.

The economy of foreign economic relations includes, among other things, more than 30 trillion of world trade and 35 trillion of foreign direct investment.

A little about Russia

Complicated international relations with the developed countries of the world had a negative impact on Russia's foreign economic relations. The imposition of mutual sanctions, especially with its largest trading partner, the European Union, which accounts for52 percent of trade turnover, reduced the volume of foreign trade and the ability to attract investment. Against the backdrop of increasingly deteriorating international relations with the countries of the Atlantic Union, Russia is successfully building up ties with the BRICS countries, especially with China. Having the largest natural resources, Russia still occupies a not very attractive role in the international division of labor as a supplier of minerals and agricultural raw materials. Of more than 393 billion exports of goods and services, only 9.6 billion were in high-tech products and 51.7 billion in services.

Connections work

To paraphrase a classic - you cannot live in the world and be free from the world. There are no longer countries that are not involved in international cooperation, which enables countries to use their advantages and offset their shortcomings through:

strengthening the international division of labor - countries can specialize in the production of goods that they can better produce at the lowest cost;
saving public costs - efficient distribution of limited resources among world market participants is possible;
intensify the exchange of scientific and technological results - international cooperation and economic cooperation enable the rapid exchange of scientific and technological achievements;
increasing the use of market economy mechanisms - competition in the global market forces the use of the most efficient methods of management.