Methods of international trade in the modern world economy. International trade: concept, main elements, methods Basic methods of international trade
The method of international trade is a method of carrying out a trade exchange (trade operation or trade transaction) between its participants, who are residents of both different (direct method) and one (indirect and cooperative methods) countries. Methods of international trade include:
- 1. Direct method.
- 2. Indirect method.
- 3. Cooperative method.
- 4. Countertrade.
- 5. Institutional method.
- 6. Electronic method.
- 1. The direct method characterizes the implementation of trade exchange directly between residents of different countries. Under the terms of such a transaction, the seller (a resident of one country) undertakes to transfer the goods to the ownership of the buyer (a resident of another country) within the time periods stipulated by the contract and on the conditions specified therein, and the buyer, in turn, undertakes to accept this goods and pay for it agreed in the contract amount of money. A distinctive feature of the direct method of international trade is the fact that the focal company is directly involved in carrying out all the main and (usually part) supporting operations related to the preparation, conclusion, execution and maintenance of international sales contracts, as well as other agreements that are the subject of international commercial business when counterparties (partners) are residents of different countries.
It is most typical for such forms of international trade as:
- c) international auctions, where the objects of trade are finished products, raw materials and semi-finished products;
- d) international auctions, where complex engineering services;
- e) operational leasing of machinery and equipment, as well as scientific and technical knowledge and intellectual property.
- 2. The use of the indirect method is associated with the participation of an intermediary in the trade exchange. This method is typical for such forms of international trade as:
- a) import / re-import: finished products; machines and equipment; raw materials and semi-finished products; tourist services.
- b) export/re-export: finished products; machines and equipment; raw materials and semi-finished products; tourist services.
- d) financial leasing of machinery and equipment, as well as scientific and technical knowledge and intellectual property.
- 3. The cooperative method is associated with the implementation of an international trade transaction through a special intermediary, which is a certain organizational form of business created by a group of initiators of this transaction, the completion of which by each member of this group individually seems too risky, impossible and / or economically inefficient. The use of this method is reflected in the activities of freight forwarding companies, which take on most of the export formalities and deliver the goods to the buyer. Other forms of the cooperative method are:
- 1) Piggybacking, in which a certain manufacturing company uses a distribution channel created by another experienced company to enter a foreign market. Currently, this practice is being transformed into the creation of strategic business alliances.
- 2) An export consortium, which is a temporary union of small and medium-sized companies that retain their legal independence within its framework, to organize exports.
- 3) Cartel as an association of exporters, providing for certain obligations on a number of issues (participant quota, pricing, conditions for lending to buyers, etc.).
The cooperative method is typical for such forms of international trade as:
- a) import / re-import: finished products; machines and equipment; raw materials and semi-finished products; tourist services.
- b) export/re-export: finished products; machines and equipment; raw materials and semi-finished products; tourist services.
- c) international exchanges, where the objects of trade are raw materials and supplies;
- d) international auctions, where the objects of trade are finished products, raw materials and semi-finished products;
- e) international tenders, where complex engineering services are provided;
- f) operational leasing of machinery and equipment, as well as scientific and technical knowledge and intellectual property;
- g) financial leasing of machinery and equipment, as well as scientific and technical knowledge and intellectual property.
- 4. Countertrade can be regarded as trading operations, the terms of which provide for counter obligations of sellers to purchase goods from buyers for a part or the full value of the goods supplied. At the same time, the obligations of sellers to buy goods and the counter obligations of buyers are fixed in an agreement or contract. The following forms of countertrade can be distinguished:
- 1) Pure barter, considered as an exchange of consignments of goods agreed between the parties; the deal is short-lived.
- 2) A clearing agreement providing for the mutual offset of counterclaims and obligations. Accordingly, groups of goods are involved on both sides, third parties are not involved in the transaction.
- 3) A switch as a form of a clearing agreement in which the rights to debts resulting from a unilateral exchange transaction are sold to a third party. Accordingly, as a rule, there are no monetary settlements, the transaction is of a long-term nature, groups of goods are involved on both sides, and third parties take part in the settlement of relations;
- 4) Offset (gentlemen's agreements), which does not contain legally binding obligations of the exporter in relation to counterpurchase, although it implies the consent of the exporter, in order to compensate for the cost of the contract being concluded, to purchase goods from the importer, but in a legally unspecified quantity. Offset provides for cash settlements, and mutual obligations are not limited to bilateral purchase of goods.
- 5) Counterpurchase, which can be characterized as a counter-delivery of goods within due date carried out on the basis of a complicated international contract purchase and sale or the specified contract and the agreements attached to it on counter or advance purchases. Accordingly, cash settlements are provided, the exporter is obliged to purchase goods from the importer, while the origin of the goods purchased from the importer is not related to the use of the goods purchased from the exporter.
- 6) Buyback, which provides that the equipment supplied by the exporter, components, raw materials will be included in manufacturing process, on the results of which the settlement with the importer depends. Accordingly, monetary settlements are provided, the exporter is obliged to purchase from the importer the goods that are produced using the goods purchased in turn from the exporter. Countertrade is typical for such forms of international trade as:
- a) import / re-import: finished products; machines and equipment; raw materials and semi-finished products; tourist services.
- b) export/re-export: finished products; machines and equipment; raw materials and semi-finished products; tourist services.
- c) operational leasing of machinery and equipment, as well as scientific and technical knowledge and intellectual property.
- 5. The institutional method involves the conduct of trading operations through special institutions (exchanges, auctions, auctions). The use of this method serves a single goal - the establishment of a fair or recognized by all potential sellers and buyers of the ratio of price and quality of goods. The institutional method is typical for such forms of international trade as: a. international exchanges, where the object of trade is raw materials and materials; 6. international auctions, where the objects of trade are finished products, raw materials and semi-finished products; in. international tenders, where the object of trade is complex engineering services; d. operational leasing associated with the provision of complex engineering services.
- 6. The emergence and subsequent spread of the electronic method (or e-commerce) is associated with the implementation of trade within the World Wide Web. Its advantages are significant compared to traditional methods of saving time and money at the stage of pre-contract work and during the maintenance of the contract, as well as the possibility of global access to potential markets, independent of such weighty "pre-virtual" arguments as the size international company and the geographic location of its headquarters. The electronic method is characteristic of such forms of international trade as: a. international exchanges, where the object of trade is raw materials and materials; b. international auctions, where the objects of trade are finished products, raw materials and semi-finished products.
To modern methods international trade can be attributed to: operations with tolling raw materials and the purchase of used equipment.
Operations with tolling raw materials in international practice are called tolling. Tolling(eng. tolling) -- processing of customer-supplied raw materials of Russian and imported origin in compliance with the prescribed customs regime for the movement of goods. External tolling is the processing of foreign tolling raw materials by Russian enterprises with the subsequent export of finished products. Interior tolling is the purchase of tolling raw materials by foreign firms in Russia for processing into Russian enterprises and subsequent export. They have signs of counter trade and are balanced and pre-priced.
The purchase of used equipment is an opportunity for an exporter to produce more competitive products, and for an importer - to get rid of obsolete equipment or sell it for residual value. As a rule, it is used in the sale of cars and trucks, computer and copy equipment, marine vessels, agricultural machinery, metalworking and woodworking equipment.
Summing up, we can summarize: international trade is a global mechanism that includes almost all types of international division of labor, providing a large-scale trade turnover of various goods, as well as services, functioning through the use of many methods. Thus, we can say that international trade is the most important component of world economic relations, the basis on which a single international economic system rests.
international trade- this is the exchange of goods and services between different countries, associated with the general internationalization of economic life and the intensification of the international division of labor in the conditions of the scientific and technological revolution.
Some firms choose to stay away from international trade activities because of their risks and complexity. A firm wishing to buy goods abroad can buy them through an import intermediary. It is an international trader who buys goods from foreign suppliers and makes a profit from reselling these goods to other firms in his own country. In the same way, a firm may sell goods to an export intermediary or an export firm in its home country.
The firm may also decide to limit its involvement in international trade by relying on the services of a representative, agent, or confirmation house.
An agent is a foreign firm that undertakes to perform any of the following functions on behalf of the exporter:
· receive orders from customers in the country of the agent;
· carry out price quotation for potential clients and fulfill other requirements of clients;
· keep the exporter up to date on local market conditions, prices, etc.;
Deal with customer complaints.
Confirmation houses act as agents for foreign buyers. The Overseas Buyer may ask the Confirmation House to purchase goods on its behalf and deliver credit to the buyer by paying for these goods. The English exporter would then be dealing with a confirmation house in the UK and not with a buyer abroad.
MT Methods:
1. Direct (Implementation of transactions directly between producers and consumers)
2. indirect (implementation of external trade transactions through intermediaries)
Main intermediaries:
-exchanges
- international trades
- international auctions
The method of international trade is a way of carrying out a trade exchange (trade operation or trade transaction) between its participants, who are residents of both different (direct method) and one (indirect and cooperative methods) countries. Despite the fact that there are usually two main methods of trading in international trade practice, it is customary to consider six methods.
Direct export (import) - the completion of an international trade transaction directly between the manufacturer/seller and the buyer/consumer/user. Its advantages:
reduces production costs;
reduces the risk and dependence of performance on possible dishonesty and incompetence of intermediaries;
allows the manufacturing company to constantly be in the foreign market, take into account its changes and respond in a timely manner.
Indirect export (import) - an international trade transaction through an intermediary. Its advantages:
the intermediary has a higher commercial qualification;
there is no need to concentrate financial and intellectual resources at the first stage of entering the foreign market.
Cooperative export (import) - the completion of an international trade transaction through a special intermediary, which is a certain organizational form of business created by a group of initiators of this transaction, the completion of which by each individual member of this group seems impossible, too risky and / or economically inefficient.
Countertrade - stands out as a method due to the peculiarities of the preparation, maintenance and completion of such international commercial transactions, payment for which is carried out without the use of (hard) currency or only partially covered by the currency, that is, it differs markedly and is isolated by the method and procedure for the implementation of international transactions.
International auctions, exchanges and auctions - involve the conduct of trading operations through special institutions. Taking into account the fact that all of the listed institutions have a unifying function of establishing the quality and price of the goods sold through them, based on the ratio of supply and demand and the assessments of buyers, some authors propose calling this method institutional competitive.
14. World market of goods and services and its conjuncture.
The development of the international division of labor lays the foundation for the formation and subsequent dynamic development of the world market. The modern world market was formed in the course of a long historical process on the basis of the domestic markets of individual, primarily leading states, the relationships of which gradually went beyond the national-state framework and developed already in the system of international economic relations.
Domestic market - the sphere of economic communication (exchange), within which everything produced and intended for sale is sold within a given country (in other words, domestic products are sold within the country).
The national market is the entire market of a given country, part of which is associated with international exchange (export and import of goods and services).
International market - part of the national markets, which is directly connected with foreign markets and is focused on foreign buyers and sellers.
The world market is a synthetic concept that unites the markets of all countries of the world into a single whole.
The transition from the domestic market to the world market reflects the historical evolution in the development of the market - from its primary, relatively simple forms connected exclusively with the domestic market, to the complex complex interactions of the modern world market, in which market strategies of a truly global scale are often implemented.
Consider the main features of the global market:
1) it is based on the development of a market economy, which goes in search of areas and objects of sale, effective international cooperation as a whole beyond the national framework;
2) the world market finds its manifestation in the interstate movement of goods, services and the main factors of production (labor, capital) under the influence of not only internal, but also external factors supply and demand;
3) world market (in more than internal) optimizes the use of factors of production, directing their movement to the most efficient areas and sectors of the market;
4) the world market acts as a kind of filter that rejects certain goods from international exchange that do not correspond to international standards quality and do not withstand the strict requirements of international competition. In this regard, in international trade, there are concepts of so-called tradable goods that are sold
in foreign markets, and non-tradable goods that are sold in the same country where they are produced.
And give an example of a market from your project.
15. Price, pricing methods in international trade.
Price, pricing methods in international trade.
Price is the monetary expression of the value of a product.
World prices are the prices at which large import and export operations are carried out. MT condition of specific goods.
Basic prices are PRICES that are the basis for determining price indices.
16. Foreign trade policy of the state: concept, purpose, types. (prices of goods
V.T. the policy of the state-va is a complex of state. Measures to purposefully regulate the volume of foreign trade and the impact of the state on the entities involved in M.T.
Maximizing benefits, not just economic ones
Benefits:
Disadvantages:
· Increasing technological and financial dependence on industrialized countries
Protectionism is foreign trade policy state aimed at encouraging its own subjects of foreign trade, protecting their interests from foreign. competitors in foreign and domestic markets.
Protectionism and free trade
17. Tariff instruments of the state's foreign trade policy: concept, characteristics of advantages and disadvantages.
These are indirect taxes levied by the state for protectionist or fiscal purposes on goods at the time they cross borders.
Main functions customs duties:
1) Fiscal - replenishment of state budget income
2) Protective - protection domestic manufacturer
3) Balancing - preventing unwanted exports
Classification:
By way of setting:
A) Ad valorem - set in% to the price of goods that have a qualitative difference within the 1st group
B) Specific - set on the quantity, weight or volume, as a rule, of standard goods
C) Combination (A + B) - (for example, 5% of the price of goods for no more than $ 10
D) Alternative - the establishment of 1 rate (ad valorem or specific), providing. Max. Income to the budget
In the direction of movement of goods
A) imported
B) export
B) transit
Depending on the duration
A) Temporary - to regulate exports and imports for the period of bulk deliveries
B) permanent - they are valid for the entire period of trading in these goods
Depending on the direction of action
A) FMSK - are established for the import of goods not produced in the country
B) protectionist installations on goods produced in the country to protect the manufacturer
B) anti-dumping
D) Compensatory - are introduced for the purpose of equalizing prices analogue. Goods of national production and imported, using subsidies due to the inclusion of duties in the price of goods.
Depending on the size:
A) maximum - Usually set for all countries without agreement with them
B) Minimum - are established as a rule by mutual agreement.
C) Preferential - I usually get paid below the minimum,
D) Optimal - Established as a result of negotiations
By nature of origin
Conventional - established on the basis of international agreements as a pledge of the participating countries
B) Autonomous - The country independently fixes the tariffs.
Advantages:
Protecting the interests of a domestic manufacturer
Replenishment of the state budget
disadvantages
1) Price increase
2) Worsening terms of foreign trade
3) The depreciation of the currency of the country of the initiator of its conduct and, as a result, leads to a reduction in exports and imports.
18. Non-tariff instruments of the state's foreign trade policy: concept, characteristics of advantages and disadvantages.
Quotas during foreign trade- measure of operational regulation foreign economic relations a state that:
Imposes quantitative and cost restrictions on the import (export) of goods into the country;
Introduced for a certain period in relation to certain goods, vehicles, works, services, etc., to countries or groups of countries;
Acts as:
Non-tariff measure of foreign economic regulation;
Regulator of supply and demand in the domestic market;
Retaliation against discriminatory actions of foreign trade partners, etc.
Voluntary export restrictions
An agreement made by the exporters of a certain country or its government to restrict exports to some other country. The established restriction may have a quantitative form, value or market share form. Export restrictions are considered "voluntary" even if they are enforced to avoid the threat of tariffs or other barriers to trade. However, there may also be genuine voluntariness if exporting firms plan to make more profit from exporting a smaller volume of products, selling them at higher prices.
Export subsidies
EXPORT SUBSIDY - financial assistance to the exporter from the state. It is used by the state to encourage the export of certain types of products and the provision of services to foreign partners, to expand exports, and master foreign markets.
Dumping (from the English dumping - dumping) - the sale of goods at artificially low prices. Dumping prices are significantly lower than market prices, and sometimes even lower than the cost of goods or services.
Economic sanctions
Action taken by one country or group of countries against the economic interests of another country or group of countries, usually with the aim of bringing about social or political change in that country(s). Typically, sanctions take the form of restrictions on imports or exports or on financial transactions. They may relate to certain goods or transactions, or they may take the form of a comprehensive ban on trade.
19. Modern forms foreign trade policy.
Free trading. This economic theory, based on the policy of non-intervention of the state in international trade, assumes complete freedom of foreign trade in making and implementing their decisions.
Benefits:
Stimulates competition processes
Approximation of product quality to world quality
Accelerated formation of market infrastructure
Disadvantages:
In the short term, a decrease in employment
Destructive influence on the domestic producer with the destruction of entire industries and individual important enterprises
· Increasing technological and financial dependence on industrialized strpans
Loss of national Producers of part of the domestic market
Protectionism is the foreign trade policy of the state aimed at encouraging its own subjects of foreign trade, protecting their interests from foreigners. Competitors in foreign and domestic markets.
Selective - directed against certain entities, countries, firms, transnational corporations or objects of trade.
Co-selective - involves the unification of the actions of groups of countries against countries that are not members of them (WTO)
Sectoral - aimed at protecting individual industries
Hidden - not recognizing actions as protectionism, but explains their actions as unsafe goods
Economic autarchy is a policy of economic isolation of the state. Only goods not produced in the country are allowed on the market and ensures the complete subordination of exports to imports (North Korea, the USSR, the 1st French Empire (my version))
International trade method is a way to carry out a trade exchange (trade operation or trade transaction) between its participants. Methods of international trade include:
direct method;
indirect method;
Cooperative method;
counter trade;
institutional method;
electronic method.
I. direct method characterizes the implementation of trade exchange directly between residents of different countries. It is most typical for such forms of international trade as:
a) import/reimport:
finished products;
Machinery and equipment;
Raw materials and semi-finished products;
b) export/re-export:
finished products;
Machinery and equipment;
Raw materials and semi-finished products;
Tourist services;
c) international auctions, where the objects of trade are finished products, raw materials and semi-finished products;
d) international tenders, where complex engineering services are provided;
e) operational leasing of machinery and equipment, as well as scientific and technical knowledge and intellectual property.
II. Application indirect method associated with the participation of an intermediary in the trade exchange. This method is typical for such forms of international trade as:
a) import/reimport:
finished products;
Machinery and equipment;
Raw materials and semi-finished products;
Tourist services (recreational, scientific, educational, family, extreme, pilgrimage, ecological, shopping);
b) export/re-export:
finished products;
Machinery and equipment;
Raw materials and semi-finished products;
Tourist services;
d) financial leasing of machinery and equipment, as well as scientific and technical knowledge and intellectual property.
III. cooperative method associated with the implementation of an international trade transaction through a special intermediary, which is a certain organizational form of business created by a group of initiators of this transaction, the completion of which by each member of this group individually seems too risky, impossible or unprofitable.
The use of this method is reflected in the activities of freight forwarding companies, which take on most of the export formalities and deliver the goods to the buyer.
Others forms of the cooperative method are:
1. piggybacking, in which a certain manufacturing company uses a distribution channel created by another experienced company to enter a foreign market. Currently, this practice is being transformed into the creation of strategic business alliances.
2. Export consortium, which is a temporary union of small and medium-sized companies that retain their legal independence within its framework, to organize exports.
3. Cartel as an association of exporters, which provides for certain obligations on a number of issues (participant quota, pricing, credit conditions for buyers, etc.).
The cooperative method is typical for such forms of international trade as:
a) import/reimport:
finished products;
Machinery and equipment;
Raw materials and semi-finished products;
Tourist services (recreational, scientific, educational, family, extreme, pilgrimage, ecological, shopping);
b) export/re-export:
finished products;
Machinery and equipment;
Raw materials and semi-finished products;
Tourist services;
c) international exchanges, where the objects of trade are raw materials and supplies;
d) international auctions, where the objects of trade are finished products, raw materials and semi-finished products;
e) international tenders, where complex engineering services are provided;
f) operational leasing of machinery and equipment, as well as scientific and technical knowledge and intellectual property;
g) financial leasing of machinery and equipment, as well as scientific and technical knowledge and intellectual property.
IV. counter trade can be considered as trading operations, the terms of which provide for the counter obligations of sellers to purchase goods from buyers for a part or the full value of the goods supplied. At the same time, the obligations of sellers to buy goods and the counter obligations of buyers are fixed in an agreement or contract.
The following can be distinguished forms of countertrade:
1. Pure barter, considered as an exchange of consignments of goods agreed between the parties; the deal is short-lived.
2. Clearing Agreement, providing for the mutual offset of counterclaims and obligations. Accordingly, groups of goods are involved on both sides, third parties are not involved in the transaction.
3. Switch as a form of clearing agreement in which rights to debts resulting from a unilateral exchange transaction are sold to a third party. Accordingly, as a rule, there are no monetary settlements, the transaction is of a long-term nature, groups of goods are involved on both sides, and third parties are involved in the settlement of relationships.
4. Offset (gentlemen's agreements), which does not contain a legally binding obligation of the exporter to buy back, although it implies the consent of the exporter, in order to compensate for the cost of the contract being concluded, to purchase goods from the importer, but in a legally unspecified quantity. Offset provides for cash settlements, and mutual obligations are not limited to bilateral purchase of goods.
5. Counterpurchase, which can be characterized as a counter delivery of goods within a specified period, carried out on the basis of a complicated international sales contract or the specified contract and the agreements on counter or advance purchases attached to it. Accordingly, cash settlements are provided, the exporter is obliged to purchase goods from the importer, while the origin of the goods purchased from the importer is not related to the use of the goods purchased from the exporter.
6. buyback, which provides that the equipment supplied by the exporter, components, raw materials will be included in the production process, the results of which depend on the settlement with the importer. Accordingly, monetary settlements are provided, the exporter is obliged to purchase from the importer the goods that are produced using the goods purchased in turn from the exporter.
Countertrade is typical for such forms of international trade as:
a) import/reimport:
finished products;
Machinery and equipment;
Raw materials and semi-finished products;
Tourist services (recreational, scientific, educational, family, extreme, pilgrimage, ecological, shopping);
b) export/re-export:
finished products;
Machinery and equipment;
Raw materials and semi-finished products;
Tourist services;
c) operational leasing of machinery and equipment, as well as scientific and technical knowledge and intellectual property.
v. institutional method involves the conduct of trading operations through special institutions (exchanges, auctions, auctions).
The use of this method serves a single goal - to establish a fair or recognized by all potential sellers and buyers of the ratio of price and quality of goods.
The institutional method is typical for such forms of international trade as:
b) international auctions, where the objects of trade are finished products, raw materials and semi-finished products;
c) international tenders, where the object of trade is complex engineering services;
d) operational leasing associated with the provision of complex engineering services.
VI. Appearance and subsequent distribution electronic method associated with the implementation of trade within the World Wide Web. Its advantages are significant compared to traditional methods of saving time and money at the stage of pre-contract work and during contract maintenance, as well as the possibility of global access to potential markets, independent of such weighty “pre-virtual” arguments as the size of an international company and geographical the location of its headquarters.
The electronic method is typical for such forms of international trade as:
a) international exchanges, where the object of trade is raw materials and materials;
b) international auctions, where the objects of trade are finished products, raw materials and semi-finished products.
Weather conditions affect consumer requirements and offers for the supply of organic, mineral and agricultural raw materials.
6. Purchase of obsolete products. It is used most often in the industrial sector, for example, when it is necessary to buy passenger airliners, metal processing equipment, ships, etc. When a buyer purchases a new machine or equipment, the cost of the old one is deducted from its cost. The method contains a developed markdown system, which takes into account the year of issue, technical condition and mileage.
7. Operations with tolling raw materials - under the terms of such an agreement / contract, one of the parties works to export raw materials in order to further import finished products / processed products. In turn, the second participant undertakes to process the received raw materials using their own capabilities. The amount of additional deliveries of tolling raw materials acts as a payment for the processing of raw materials for the firm that provides its services.
8. Trade. This category is defined by a number of heterogeneous quality characteristics, seasonality of production and consumption, limited storage time. This form trade is distinguished by a number of features that are associated with a large-scale list of manufactured goods and the breadth of demand. By the way, the demand is determined by the needs and tastes, traditions, the level of employment and the solvent characteristics of the population.
9. Trade in the results of IP, this includes:
inventions and patents;
industrial samples;
trademarks;
The objects of international transactions are the rights to use these products for industrial and commercial purposes. A license agreement is an agreement on the provision of rights for compensation. practical use, the seller in such an agreement is the licensor, and the buyer is the licensee.
10. Trade in engineering and consulting services, which have a global impact on the international trade in goods, because they further increase the competitiveness of these goods and, often without them, it is not possible to promote the goods to the market.
Methods of international trade in services
In WTO terminology, services can be supplied (or sold) by four different ways(methods).
First way: cross-border supply of a service (from the territory of a WTO member country to the territory of another WTO member country). It's about when the selling and buying parties do not cross the border. Only service crosses the border.
Cross-border supply of services - this may be the transfer of postal information, the transmission electronic information. This form is extremely relevant in the supply of postal, medical, travel and other types of services. Today, the issue of cross-border supply of services tends to use new technologies that increase its relative importance. WTO and some others international organizations strive to approve certain standards, methods electronic exchange data, compatibility technical requirements. They want to establish rules on the legal protection of the supply of services in a cross-border way. The terms "first", "second", "third", "fourth" ways of supplying services in the terminology of the WTO have an independent meaning and are used as special terms.
Second way: service consumption outside the border. A customer from one country buys and uses the service while in another country. Only the consumer (not the service or seller) crosses the border.
In other words, the consumer of the service goes to the territory of the country where the service provider is located (tourist travel abroad, studying at a foreign university, receiving medical care in foreign clinics, etc.).
Third way: commercial presence is one of the most popular methods. One WTO member provides a service through commercial presence in the territory of another WTO member. Then the supplier company crosses the border and establishes a representative office/subsidiary company, through which it provides the products of its labor to the consumer of this state, being on its territory.
WTO statistics show that more than 50% of the inflow of foreign direct investment is spent to ensure a commercial presence in the world market of services. Commercial presence, as a method of service delivery, outstrips all other methods in terms of cost.
Fourth way: moving individuals that provide the service to the territory of the state where they provide it.
Individuals can provide services on their own or while working in a foreign company (as specialists in the framework of an intra-company transfer), or after entering into service contracts signed by a foreign / national company. The free movement of natural persons who are engaged in the supply of services is due to the formation of an open and barrier-free global labor market. However, no country currently has such a situation.
To liberalize this method, within the WTO, this has been reduced to horizontal commitments to expand temporary movement management personnel firms and employees high level qualifications. Some States have adopted specific commitments for certain service sectors, limiting them to significant regulations.
The main regulation is that a foreign specialist engaged in the supply of services can obtain permission to enter the country for the purpose of work only if there is a need for labor in this state. Individuals from abroad are limited in the ability to sell their services while staying abroad, because they are not always professional qualification turns out to be recognized.
Now this nuance has grown into the category of a global contradiction between developed and developing countries, although states are striving to reach some kind of consensus. In developing countries, there is an excess of labor, primarily in the field of medicine, computer and professional services, in the field of management. Thus, they could supply services while working abroad. But developed countries impose restrictions on the opportunities for individuals from developing countries to work in their service market. The main problem of the negotiations is to find a solution to resolve the whole range of issues that determine the status of individuals who provide services abroad.
In order to learn the methods of international trade, organizations need a large amount of information about the market, which they often do not have. Therefore, it is worth turning to professionals. We offer you to get acquainted with the reports of the analysis of import and export deliveries, compiled by specialists information and analytical company "VVS" based on customs statistics.
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The subjects of international trade, entering the world market in order to sell their products, choose one or another method of organizing foreign trade activities. The method of international trade is organizational form and the procedure for carrying out a foreign trade operation.
In international trade practice, two main methods of conducting trade operations are used: direct and indirect.
The choice of the method of foreign trade activity is influenced by the nature of products, the scale of production, features target markets where it is planned to sell products, as well as forms of international trade.
At direct method implementation foreign trade operations it provides for the establishment of direct links between the manufacturer (supplier) and the final consumer, that is, the goods are delivered directly to the final consumer, and purchased directly from the manufacturer on the basis of an international sales contract. About 50% of international trade takes place on the basis of direct links.
The direct method is usually used:
When TNCs sell large-sized and expensive industrial products.
When carrying out export-import operations between large TNCs for the supply of raw materials, semi-finished products, components and parts, etc.;
When delivering goods through foreign divisions of TNCs that own retail network. in the implementation of export-import of industrial raw materials on the basis of long-term contracts;
When purchasing agricultural raw materials from farmers in developing countries;
When carrying out foreign trade activities state enterprises and institutions in developing countries through the organization and conduct of tenders.
Direct selling has a number of advantages: it gives exporters the opportunity to establish close contacts with foreign consumers, exercise tight control over trading operations; receive higher profits by reducing costs by the amount of the commission fee to the intermediary; better study the state and development trends of the market; adjust your production programs to the demand and requirements of the external market; reduce the risk and dependency of outcomes commercial activities from the dishonesty of the intermediary organization.
The disadvantages of the direct trading method include: the presence of a high degree of risk, which is due to differences in economic, legal and social conditions in different countries, as well as the need to attract personnel with high commercial qualifications (otherwise, financial costs can increase significantly).
At indirect method the purchase and sale of goods is carried out through the trade and intermediary link on the basis of the conclusion of an agreement with the trade intermediary, which provides for the fulfillment by the latter of certain obligations for the sale of the seller's goods.
Resellers are legal entities(firms, organizations, institutions, etc.) that promote the exchange of goods and are independent of producers and consumers. Their direct function is to connect sellers and buyers, linking supply and demand.
Trade mediation covers a wide range of services:
Search for a foreign counterparty;
Preparation and conclusion of the contract;
Lending to the parties and providing guarantees of payment for the goods by the buyer;
Carrying out transport and forwarding operations;
Insurance of goods during transportation;
Fulfillment of customs formalities;
Implementation Maintenance and other services.
More than half of all goods involved in international trade are sold with the assistance of resellers. Their services are widely used in foreign trade by the USA, Great Britain, the Netherlands, Sweden, Japan, etc.
The use of a trading and intermediary link is addressed to:
When selling a standard industrial equipment and consumer goods;
When large firms sell secondary products;
When selling products in remote, hard-to-reach and poorly studied markets, markets of small capacity;
When promoting new products;
If the importing countries do not have their own distribution network;
When large trading and intermediary firms monopolize the import of certain goods into the country;
Large firms with a small volume of export-import operations;
In the implementation of episodic foreign trade operations by small and medium-sized firms.
The advantages of the indirect trading method are that:
· The exporting company does not invest in organizing a distribution network on the territory of the importing country, since trading and intermediary firms own their own material and technical base (warehouses, repair shops). This facilitates the development of new markets;
· the exporter is released from activities related to the sale of goods (delivery to the importer, packaging, adaptation to the requirements of the local market, paperwork);
· Intermediaries have at their disposal great opportunities in organizing advertising, exhibitions, fairs;
· it becomes possible to use the capital of trading and intermediary firms to finance transactions on the basis of short-term and medium-term lending;
Resellers have stable business connections with banks, insurance companies and transport companies;
· Markets for individual goods, monopolized by trading and intermediary firms, can only be accessed through the use of an intermediary link.
The disadvantage of the indirect method of trade is the exporter's deprivation of direct contacts with sales markets, as well as its dependence on the honesty and activity of the reseller.
To the features of the activity of resellers in modern conditions applies to:
Expansion of directions and spheres of trade and intermediary activities, which is carried out according to individual goods(nomenclature), types of activities (wholesale, retail, mail order), operations performed (export, import), services provided, nature of transactions and functions. The specialization of intermediaries in operations with a certain group of goods is growing. Provision is expanding different types services in the complex;
· linking resellers to manufacturers of machinery and equipment;
concentration of the vast majority of trade and intermediary operations in the hands of a small number of TNCs with their own financial, Insurance companies, fleet, warehouses of spare parts;
· strengthening the influence of transnational corporations on resellers, which coordinate the scope and nature of their activities by dividing sales markets;
subordination to large industrial companies of small and medium-sized trading and intermediary firms through a system of franchises, that is, long-term contracts with the provision exclusive right for the sale of goods and services while maintaining trademark manufacturer;
· Subordination of small and medium-sized exporting firms and manufacturers in developing countries to trade monopolies. Through them, the purchase of raw materials is carried out, which is independently processed and sold by them through their own Retail Stores;
· participation of trading and intermediary firms in international consortiums for the implementation of large construction projects (carry out purchasing and marketing operations for these enterprises).