Foreign trade activity: features and methods of regulation

Foreign trade activity: features and methods of regulation
Foreign trade activity: features and methods of regulation

The process of globalization of the world economy, accompanied by scientific and technological progress, has a huge impact on the activities of all economic entities. In particular, overall productivity is increasing, the quality of services is improving, and the use of natural resources is being rationalized. Changes in these indicators have a significant impact on the economy of each country participating in the processes of world trade. However, at the same time, each subject of the world market is forced to accept new requirements imposed by the world system. In the current situation, it is necessary to periodically rethink the goals, objectives and ways to achieve them within the framework of the state's influence on the country's foreign economic activity.

foreign trade activity

Main tasks of the global market system

The solutions to the above tasks are especially relevantfor the subjects of the world trade structure, the domestic economy of which is undergoing processes of cardinal changes. Under these conditions, the socio-economic situation within countries has a significant impact on the formation of foreign economic trade. The main goals and objectives, ways and methods of their achievement are discussed. This situation has developed in the Russian Federation. Thus, there is a constant search for theoretical and practical measures, under the influence of which is the foreign trade activity of Russia. The purpose of the events is to achieve positive dynamics in the development of the country's economy.

state regulation of foreign trade activities

Regulation of foreign trade activities at the legislative level

The movement of all goods across the borders of the Russian Federation occurs through checkpoints. Their work is controlled by the Customs Code. This set of norms, in turn, establishes special regimes, streamlines the processes of registration and control. Violation of the rules prescribed in the Code entails various types of punishments. This is also reflected in the document. The Customs Code includes a list of all definitions used in the RF pass system. These, for example, include such as "the country of origin of the goods", "payments used in the design of products" and a number of others. The federal law, which explains the foundations of state regulation of foreign trade activities, includes basic formulations of areas of activity and development, streamlines organizational provisions. In addition, it forms the mainprinciples of activity in the world market. Thus, customs regulation of foreign trade activities is carried out. At the same time, the participants, in accordance with the law, are divided into several groups. These include:

  • The main subjects of foreign economic relations. These are firms of various types of ownership that carry out foreign trade activities.
  • Federal government organizations and enterprises.
  • Participants in the international wholesale trade.

All legal entities and individual entrepreneurs involved in market relations are registered with the customs authorities. However, this procedure is voluntary.

customs regulation of foreign trade activities

Control methods

There are a number of techniques that the government of the Russian Federation uses in exercising control over participants in foreign trade activities. These include:

  • Restrictions and prohibitions.
  • Regulation methods related and not related to customs tariffs.
  • Restraining (stimulating) measures in the field of the economy at the state level.

State regulation of foreign trade activity

A properly built organization of government control is a key factor in the effectiveness of economic development. The bodies that manage foreign trade activities are formed on the basis of the historical development of the country, its geographical location and general capabilities. For example, in the USSR there was a state system of centralized monopoly. She isprovided general control and guidance in the field of foreign trade. Subsequently, during the transition to market relations, the monopoly structure was eliminated. At the same time, the ministries and departments of the regions participating in international trade received a number of rights.

fundamentals of state regulation of foreign trade activity

Modern control system in Russia

The current system for regulating foreign trade activities was finally formed in 2005. This structure is divided into three levels.

  1. Federal. At this level, decisions are made by public authorities.
  2. Regional. Here, decision-making is carried out by the authorities in the subjects of the country.
  3. Local. At this level, foreign trade activities are controlled by local authorities.

By decision of the government, specialized institutions of executive power were created, which are entrusted with the management of foreign economic activity. These bodies include: the Ministry of Economic Development of the Russian Federation, the Ministry of Trade and the Federal Customs Service subordinate to it and the Federal Agency for Control over Special Economic Territories.

regulation of foreign trade activities

Tariff and non-tariff methods of control

  1. Introduction of import duties on imports. This method is aimed at obtaining an advantage for the domestic producer and the state, which have additional income. Consumers, on the contrary, are forced to buy goods at inflated prices, as a result of which theysuffer losses.
  2. Introduction of export duties. Consumers get an additional advantage in the form of lower prices in the domestic market, producers suffer losses, the state receives additional income.

To maintain their own producers and increase exports, a number of countries are taking the following actions:

  • tax incentives are provided for export firms;
  • loans and loans for the export of products are issued at low interest rates;
  • contracts are concluded at the state level, aimed at the sale of goods in foreign countries.

Foreign trade activity is also controlled by non-tariff methods. These include:

  • export restrictions;
  • quotas imposed on imported goods;
  • trade embargo - a ban on the import (export) of a certain type of product;
  • dumping - the sale of manufactured goods at prices below the domestic market.
  • foreign trade activity of Russia

Open economy

This term should be understood as the process of trading with the rest of the world market participants with the introduction of a minimum number of import and export restrictions. This type of economy is characterized by high levels of the following indicators:

  • exports and imports in total production;
  • high volume of foreign investment relative to domestic;
  • existence of a foreign trade quota (GNP).

International market as a form of relationship

In the modern world, trade betweendifferent countries is considered as the main type of interaction. A huge number of scientific works are devoted to the problems of the external market, the essence of which is to find the most effective ways for the development and stable functioning of the global economic system. Its very influence on the social development of society does not go unnoticed. However, despite the globalization of the market, the main regulators of trade relations are the subjects of the world market. They are based on the economic interests of their country, depending on which the process of interaction with other subjects takes place. It is expressed in the formation of alliances, the creation of certain agreements at the state level.

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