"International Relations" - Russia's foreign policy has changed several times. The role of Russia in modern international relations. International relations are playing an increasingly significant 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 understanding 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 the creation and development of international organizations (IOs). Main areas of activity. The concept of international regime. 6. Functions of international organizations.
“Foreign trade” - Customs border. Direct transit. Subject, method, tasks and organization of wind farm statistics. World exports of services are estimated at approximately 4 trillion. dollars. Foreign trade statistics are an integral and main part of wind farm 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-intensive products (more than 10%) - 14 times.
“1C Trade Management Courses” - If you are the head of an enterprise, then we will teach you how to use tools that allow you to: We will tell you about the work of 1C “Trade Management” with a different number of computers. What will you get when you come 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. Functions of wholesale trade. Marketing solutions in wholesale trade. 4) Transportation: railway transport water air automobile pipeline. Does the intermediary accept title to the goods?
Slide 1
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
Slide 3
1.Theories of international trade Protectionism and free trade. Views of mercantilists Theory of factors of production and their relationships; The life cycle concept of M. Porter's theory of competition. Modern approaches to the problem of international competition. The teachings of A. Smith and D. Ricardo on absolute and comparative advantages.
Slide 4
Protectionism and free trade. Views of mercantilists Representatives of the theory: A. Montchretien, T. Main. Increasing gold reserves is the most important task of the state, and foreign trade must first of all ensure the receipt of gold. Trade policy was focused on the full encouragement of exports and restriction of imports by establishing customs duties on foreign goods.
Slide 5
The theory of factors of production and their relationships The founder of the doctrine is J.B. Say, followers E. Heckscher and B. Ohlin. The assessment of factors is predetermined by three circumstances: countries participating in international exchange have a tendency to export those goods and services for the production of which predominantly factors that are in abundance 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 “factor” 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 moving the factors themselves between countries.
Slide 6
Life cycle concept Representatives of this approach are R. Vernon, C. Kindelberger and L. Wales. The life cycle of a product includes the following main stages: Introduction - it is characterized by increased labor intensity of the product; Growth - exports from the country of innovation are expanding, competition is intensifying, a trend is emerging in increasing 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.
Slide 7
Slide 8
Three stages in the development of foreign trade 1. 40 years before the start of the First World War (the 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 (sharp increase in trade volume).
Slide 9
Reasons for the existence of foreign trade relations: International division of labor Mutually beneficial exchange
Slide 10
1. EXPORT OF CAPITAL 2. E-TRADE 3. TNCs Factors contributing to the dynamic development of international trade
Slide 11
Necessary conditions for a country's participation in international trade: Availability of export resources Foreign exchange Developed foreign trade infrastructure: - vehicles - warehouses - communications
Slide 12
The main forms of m/n trade: Rent - widely practiced in the trade of machinery and equipment, in the form of export lending. When renting, there is no transfer of ownership of the goods. There are: short-term medium-term long-term
Slide 13
Countertrade is a set of transactions in which the purchase of products is accompanied by reciprocal supplies of goods. Types of countertrade: Barter - equivalent exchange of goods. The transaction must be concluded on goods of the same value. Negativity of barter: increases inflation, there are no tax revenues from the transaction. Positive: simplicity of the transaction, no financial transactions. Counterpurchase is an agreement that, in the case of exporting products to a country, involves the purchase of a number of goods from that country.
Slide 14
Compensation agreement - the agreement involves the sale of manufactured equipment on the terms of providing commercial loans with subsequent repayment of the debt by supplying products manufactured using this equipment. Clearing - the difference between prices - a system of non-cash payments based on the offset of mutual claims and obligations of the parties involved in the settlements. Offset transactions - trade in expensive equipment - construction of nuclear power plants, hydroelectric power stations, sale of weapons, ships - a transaction that terminates the obligations of the parties on the futures exchange.
Slide 15
M/n bidding and tenders - the form involves the announcement of a competition for sellers of goods with certain technical and economic characteristics. Types of bidding: open (public) and closed. Commodity exchanges are one of the most important types of trading, mainly in agricultural and raw materials. The main exchange commodities: grains, sugar, cocoa, coffee, rubber, cotton, certain types of non-ferrous metals, petroleum products and chemical products. Prices for commodities are set on the basis of stock exchange quotations. Sales are carried out without prior inspection, according to samples and standards, according to pre-established minimum lot sizes.
Slide 16
M/n auctions are a method of selling individual lots and items that are put up for inspection one by one and are considered sold to the highest bidder. Main auction items: furs, unwashed wool, tea, spices, antiques.
Slide 17
Structure of international trade International trade Export Import Export of produced Import of goods from goods abroad borders Foreign trade balance = E - I Foreign trade turnover = E + I “Terms of trade” - the ratio of export and import price indices. (+, if ECs grow faster than ICs) Re-export – export of previously imported goods that have not been processed. Re-import is the return import from abroad into the country of domestic goods that have not been processed.
Slide 18
CHANGES IN THE GEOGRAPHICAL STRUCTURE OF WORLD TRADE -Leadership of developed countries - 3/4 of world exports of goods 1. USA 2. Germany 3. Japan -Increasing share of mutual trade between developed countries - 55% -Increasing share of developing countries - 28% of world trade -Weak positions countries with economies in transition - 3.5% of world trade
Slide 19
Leading exporting countries (according to WTO data) Germany - 9.3% USA - 8.7% China - 7.3% Japan, France, Netherlands, UK, 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 into Russia increased by as much as 35% to $223. This is 2.1% of global goods imports and 10th in the world. In terms of exports of commercial services, Russia took 25th place 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 balance of payments methodology 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).
Slide 20
Slide 21
Foreign trade policy is a set of government means and methods in the field of foreign trade, aimed at regulating exports and imports in order to strengthen the country’s position. The main goals of foreign trade policy: changing the method and degree of inclusion of a given country in the international division of labor; changes in the volume of exports and imports; changing the structure of foreign trade; providing the country with the necessary resources; change in the ratio of export and import prices.
Slide 22
Types of state regulation of international trade: Unilateral - Bilateral - Multilateral -
Slide 23
Forms of foreign trade policy: 1) Autarky - currently this policy is a relic of the past. This policy involves isolating the country, creating a closed, self-sustaining economy: self-isolation or imposed isolation, for example, North Korea - self-isolation, Cuba, Iraq - imposed.
Slide 24
2. Protectionism is a 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 -
Slide 25
Forms of protectionism: selective protectionism - directed against individual countries or goods; sectoral protectionism – protects certain sectors, primarily agriculture; collective protectionism - carried out by associations of countries in relation to countries that are not members of them; hidden protectionism - carried out by methods of domestic economic policy.
Slide 26
Slide 27
Tariff methods; Non-tariff methods. The essence of the first method. The global organization that regulates 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, levied by the state through a network of customs institutions on goods, property and valuables when they cross the country’s border. Customs tariffs – a list of goods and the system of rates at which they are subject to duties; a classic means of national economic management of imports.
Slide 28
The customs tariff contains: -Name and classification of taxable goods -Duty rates -Methods of calculation and payment of customs duties -List of duty-free products -List of goods prohibited for export and import into the country. Purposes of customs duties: - Limitation of imports (in the Russian Federation - exports) - Fiscal goals - Prevention of “unfair competition”
Slide 29
Depending on the direction of movement of goods, customs tariffs import export transit According to the method of establishment ad valorem combined specific
Slide 30
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, with the help of which the state has a direct impact on subjects of foreign trade, 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.
Slide 31
Non-tariff methods: A. Quantitative restrictions 1. Import-export quotas - export - import 2. Licensing - - auction - system of explicit preferences - distribution of licenses on a non-price basis 3. “Voluntary” export restrictions
1 slide
Dumping Sale of goods on foreign and domestic markets at artificially low prices, lower than average retail prices, and sometimes lower than cost (production and distribution costs) - market liberalization. Full implementation of all tasks of world trade liberalization will help increase the daily incomes of citizens of developed countries.
2 slide
International trade is a system of international commodity-money relations, consisting of foreign trade of all countries of the world. International trade arose during the emergence of the world market in the 16th-18th centuries. Its development is one of the important factors in the development of the world economy of the New Age.
3 slide
Modern theories of international trade Mercantilism Adam Smith's theory of absolute advantage David Ricardo's theory of comparative advantage Heckscher-Ohlin theory Product life cycle Michael Porter's theory
4 slide
Mercantilism: the main provisions of the need to maintain an active trade balance of the state (excess of exports over imports); recognition of the benefits of bringing gold and other precious metals into the country in order to improve its welfare; money is a stimulus for trade, since it is believed that an increase in the supply of money increases the volume of the commodity supply; protectionism aimed at importing raw materials and semi-finished products and exporting finished products is welcomed; restrictions on the export of luxury goods, as it leads to the outflow of gold from the state.
5 slide
Adam Smith's Theory of Absolute Advantage Country Wealth Goods Services Some countries can produce goods more efficiently than others. The country's resources flow into profitable industries, since the state cannot compete in unprofitable industries. The country's productivity increases. The qualifications of the workforce are improving. The development of more effective work methods is stimulated. Natural advantages: climate, territory, resources. Gained advantages: production technology
6 slide
David Ricardo's theory of comparative advantage Export of goods England Portugal Specialization in the production of goods that have maximum comparative advantages is beneficial even in the absence of absolute advantages. Leads to an increase in the total volume of production Trade is motivated Beneficial for each of these countries England Portugal 1 barrel of wine is produced by 120 people. 1 barrel of wine is produced by 80 people; 1 roll of cloth is produced by 70 people; 1 roll of cloth is produced by 90 people.
7 slide
Heckscher Ohlin's theory Export of goods Import of goods Excess factor of production Lack of factors of production Countries participating in international exchange: Equalize “factor” prices, that is, the income received by the owner of a given factor; It is possible, given sufficient international mobility of factors of production, to replace the export of goods by moving the factors themselves between countries.
8 slide
Slide 9
Michael Porter's theory This theory introduces the concept of country competitiveness. It is national competitiveness, from Porter’s point of view, that determines the success or failure in specific industries and the place that a country occupies in the world economic system. Government measures to maintain competitiveness: government impact on factor conditions; government influence on demand conditions; government impacts on related and supporting industries; government influence on firm strategy, structure, and competition. Old car recycling program
10 slide
Support for the Russian automobile industry Basic information about the state program for recycling old cars. Validity period: from March 8, 2010, extended until January 1, 2012 Mechanism of action: a program participant receives a certificate of recycling of an old car, with which he can purchase a new car made in Russia at a price reduced by 50,000 rubles. Geography of implementation: the program operates throughout the Russian Federation. Nissan cars participating in the program: Teana, X-Trail Ford cars participating in the program: Ford Focus, Ford Mondeo.
11 slide
The role of international trade At the present stage, international trade plays an important role in the economic development of countries, regions, and the entire world community: foreign trade has become a powerful factor in economic growth; countries' dependence on international trade has increased significantly. The main factors influencing the growth of international trade: the development of the international division of labor and the internationalization of production; NTR; activities of transnational corporations TNCs;
12 slide
Regulation of foreign trade Frederie co Bastiat (1801 - 1850) - French liberal economist, supporter of free trade. He advocated freedom of enterprise - a decisive condition for establishing social harmony in society. Supporter of the thesis about the mutually beneficial coexistence of labor and capital. TO THE HOUSE OF DEPUTIES We are subject to fierce competition from a foreign rival who has such superior light-producing apparatus that he can flood our national market by offering his product at reduced prices. This rival is none other than the sun. We are petitioning for a law to be passed to close all the windows, openings and cracks through which the sunlight usually enters our homes, thereby impairing the profitable industry with which we have been able to bestow upon the country. Signed: manufacturers of candles and candlesticks.
Slide 13
Protectionism is a policy of protecting the domestic market from foreign competition through a system of certain restrictions: import and export duties, subsidies and other measures; such a policy contributes to the development of national production.
Slide 14
Measures of state regulation of imports Customs duties - indirect taxes (fees, payments) on imported, exported and transit goods received by the state budget; are collected by the customs authorities of a given country when crossing the border from the owner of foreign-made goods imported into the country for sale.
15 slide
Measures of state regulation of imports IMPORT QUOTA - 1) non-tariff, that is, not related to prices and taxes, quantitative restrictions on the import of certain types of goods into the country, established by the government in order to protect its own economy and protect the domestic market; 2) an indicator characterizing the volume of imports of a certain product, established in accordance with the needs for it and the volume of its own production.
16 slide
Measures of state regulation of imports Foreign trade license - preliminary permission issued by government authorities for the import or export of a certain product. Used to regulate foreign trade. Foreign trade licenses are of the following types: general, one-time (validity period cannot exceed 1 year), individual (name of the importer, validity period, quantity of goods, price, destination), exclusive (exclusive right to export-import a separate product).
Slide 17
General Agreement on Trade and Tariffs (GATT) was signed by 23 countries in 1947. Until 1995, this agreement was the main document regulating international trade. The World Trade Organization (WTO), created in 1995, replaced the General Agreement on Tariffs and Trade (GATT) as the sole international body dealing with the global rules of trade between nations.
Description of the presentation by individual slides:
1 slide
Slide description:
2 slide
Slide description:
International trade Exchange of goods and services between state-national economies The totality of foreign trade of all countries of the world The object of international trade is goods and services supplied to the world market. The basis of world trade is foreign trade turnover Export Import Volume of foreign trade = export + import
3 slide
Slide description:
- the direction of economic thought of the 16th-17th centuries, a prominent representative of which 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 influx 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 it is necessary to pay in precious metal. Therefore, mercantilists advocated expanding exports and limiting imports in every possible way. Mercantilism
4 slide
Slide description:
Adam Smith put forward the theory of world trade, justifying the need to liberalize imports and ease customs restrictions. Smith's approach is called the PRINCIPLE OF ABSOLUTE ADVANTAGE Each country should specialize in the production of goods whose average costs are less than the average costs in other countries. Absolute advantage for any product is determined by the endowment of appropriate resources. By exporting part of the goods, the country uses the proceeds to purchase goods in the production of which another country has an advantage
5 slide
Slide description:
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 costs are relatively less than those of other countries producing the same goods
6 slide
Slide description:
NEOTECHNOLOGICAL THEORIES OF WORLD TRADE These theories explain, for example, the reasons for trade between countries, despite the fact that the structure and technical characteristics of production factors are similar. Within the framework of these theories, the capabilities of new developing equipment and technology are taken into account. Large-scale production Reduced unit costs Reduced prices Economists pay attention to the continuous technological changes carried out by firms in order to create competitive advantages. For example, Holland exports more than $1 billion worth of flowers a year, using advanced greenhouses heated by electricity or gas and air transport to deliver goods to consumers.
7 slide
Slide description:
Patterns of development of world trade World trade is growing very quickly, countries' export shares in 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 forecast, will be 18.7%. The share of finished products, especially high-tech and knowledge-intensive products, is increasing. The prices of machinery and equipment produced by the leading countries of the world are rising rapidly. Declining demand in developed countries for raw materials and food produced by developing countries. Their position in world trade is deteriorating. The profitability of foreign trade for developed countries is growing. Increasing the global market for services, especially tourism, transport, financial, and technology transfer. The leaders are developed countries.
8 slide
Slide description:
To assess the profitability of international trade for a country, economists use the terms of trade index; the terms of trade index is the quotient of the average export price index divided by the average import price index of a country in a particular period of time. Its decrease shows that to purchase a unit of imported goods it is necessary to spend more and more revenue from exported goods
To use presentation previews, create a Google account and log in to it: https://accounts.google.com
Slide captions:
Topic 3. REGULATION OF INTERNATIONAL TRADE Foreign trade policy: protectionism and free trade Tariff regulation of foreign trade activities Non-tariff regulation of foreign trade activities Financial methods of stimulating exports Liberalization of international trade and GATT/WTO Customs union: a form of economic integration
Question 1. Foreign trade policy: protectionism and free trade State regulation of foreign trade is a set of methods and tools used by the state to influence interstate economic relations in its national interests. Foreign trade policy is a policy that determines the conditions for access to goods and services traded in international trade, and as well as their suppliers to the national markets of individual countries. Regulation of foreign trade is carried out in two directions: carrying out protectionist trade policies and free trade policies.
Question 1. Foreign trade policy: protectionism and free trade Protectionism is a policy of using restrictions aimed at impeding the access of foreign goods, services, capital, labor to the domestic market in order to weaken foreign competition in it. The external manifestation of protectionism is a positive trade balance
Question 1. Foreign trade policy: protectionism and free trade Arguments in favor of a protectionist regime Protecting the national economy Argument about the youth of the industry Argument about the aging industry Argument about tax levies Argument about the redistribution of income Employment argument
Question 1. Foreign trade policy: protectionism and free trade Arguments in favor of a protectionist regime Arguments about foreign economic relations Argument about the balance of trade Sanctions argument Argument of independence from other countries (energy) National defense argument Argument about strategic advantage Argument about terms of exchange
Question 1. Foreign trade policy: protectionism and free trade Disadvantages of protectionism: Conservation of technological backwardness Difficulty in identifying promising industries for a given country Rising prices, which, with high elasticity of demand, reduces state revenues Difficulty in identifying industries on which the country’s security depends Protectionism has a certain multiplying effect Protectionism harms the economic interests of consumers The national economy cannot optimally take advantage of international specialization
Question 1. Foreign trade policy: protectionism and free trade Types of protectionism: Sectoral protectionism Hidden protectionism Selective protectionism Integration protectionism
Question 1. Foreign trade policy: protectionism and free trade Free trade policy is the policy of eliminating restrictions in international trade in order to enhance international economic relations Advantages of free trade: Stimulates competition processes Allows international trade in accordance with the law of comparative competitive advantage Creates opportunities for the use of international specialization Helps expand market boundaries
Question 1. Foreign trade policy: protectionism and free trade State foreign trade policy is carried out through the use of economic and administrative methods of regulating foreign trade activities Instruments of state regulation: Customs and tariff instruments Quasi-tariff instruments Monetary and financial instruments Opportunistic duties State monopoly on foreign trade Establishment of technical barriers Quotas for foreign trade transactions Licensing
Question 2. Tariff regulation of foreign trade activities Customs duty is a special type of payment levied by the state when importing goods into the customs territory of a country or exporting goods from the customs territory of a country. Customs tariff is a systematic list of customs duties levied on goods when importing and exporting from a given country
Question 2. Tariff regulation of foreign trade activities Customs tariffs are based on commodity classifiers. The most common classifiers of goods is the Harmonized System for Description and Coding of Goods (came into force on January 1, 1988). Principles for the formation of customs tariffs: Multiple columns Tariff escalation - increasing the level of customs taxation as the product moves from raw materials to finished products, i.e. depending on the degree of processing
Question 2. Tariff regulation of foreign trade activities The main functions of customs duties are: Fiscal Protectionist Restrictive
Question 2. Tariff regulation of foreign trade activities Classification of customs duties By method of collection: ad valorem (percentage of customs value) specific (in a fixed amount) Combined By origin: autonomous conventional preferential
Question 2. Tariff regulation of foreign trade activities Opportunistic customs duties: Anti-dumping customs duties Dumping is the practice of exporting goods at prices significantly lower than those at which the goods are sold on the domestic market Compensatory customs duties (neutralize foreign export subsidies) Seasonal customs duties
Question 2. Tariff regulation of foreign trade activities Quasi-tariff regulatory instruments - regulatory measures that are not customs duties, but are considered as measures similar in nature to customs duties (port, customs duties, etc.) Indirect taxes that are levied on imports ( VAT, excise taxes) The collection of indirect taxes is aimed at equalizing the conditions of competition for foreign and domestic goods
Question 2. Tariff regulation of foreign trade activities. The economic role of import duties. In the economic literature, there is the concept of an economically large and an economically small country, depending on the amount of demand for imported goods. A country is considered large if a change in its demand for imports leads to a change in world prices. A large country, by introducing import tariffs, influences the level of world prices and achieves certain benefits by improving the terms of trade
Question 2. Tariff regulation of foreign trade activities In the long term, protectionism has a negative impact on the country's economy. This is manifested in the following: consumers bear the brunt of it; preservation of jobs in supported industries is accompanied by their loss in other sectors of the economy; trade wars arise; damage is caused to companies whose development depends on imports; there are always opportunities to bypass protective barriers
Question 3. Non-tariff regulation of foreign trade activities According to the most common classification of non-tariff measures adopted by the UN, they are divided into three categories: Foreign trade measures, the use of which is aimed at directly limiting imports in order to protect certain sectors of national production (licensing and quotas of imports, “voluntary” restrictions exports, etc.) Measures related to administrative formalities (technical standards and regulations, packaging requirements, etc.) Measures, the application of which is not directly aimed at restricting imports or promoting exports, but the action of which leads to this result ( public procurement policy)
Question 3. Non-tariff regulation of foreign trade activities Contingent - measures of state regulation that limit the volume of specific goods allowed for import or export of a particular product during a certain period of time. An extreme form of quotas is a complete ban on trade with certain countries, i.e. establishing an embargo Licensing - issuing permits to export or import goods in specified quantities for a certain period of time Voluntary export restrictions (VER) - this is a type of export quota
Question 3. Non-tariff regulation of foreign trade activities In modern conditions, states use methods of hidden protectionism to protect the domestic market: Technical barriers Internal taxes and fees Public procurement policy Inclusion of a certain share of local components in the final product created
Question 3. Non-tariff regulation of foreign trade activities Choice of remedies: non-tariff barriers are gradually replacing trade duties. Reasons: Bypassing WTO principles The effect of disguised measures The effect of confidence The effect of control The effect of obtaining monopoly rent The effect of rising prices due to increased demand
Question 3. Non-tariff regulation of foreign trade activities Choice of means of non-tariff protection: quotas or voluntary export restrictions? Voluntary export restrictions provide the following benefits: Bypassing WTO rules Discrimination of supplying countries The secret aspect of the restriction The interest of the exporting country in obtaining rent
Question 4. Financial methods of stimulating exports Financial methods of stimulating exports aimed at reducing the cost of exported goods and thereby increasing their competitiveness in the world market (subsidies, lending and dumping) The World Trade Organization (WTO) prohibits the use of export subsidies By their nature, subsidies are: Direct Indirect Countervailing duties are used as a retaliatory measure
Question 4. Financial methods of stimulating exports Export support through dumping is a method of promoting goods to the foreign market by reducing prices below normal levels. State services such as stimulating exports through a credit insurance mechanism, providing enterprises with preferential loans and the necessary information are widely used.
Question 5. Liberalization of international trade and GATT/WTO The specifics of the implementation of trade policy within the framework of the country's participation in multilateral mechanisms are as follows: Requires consideration of the country's interests in relations with all member states of the relevant agreements. It requires linking the country's interests in trade in various goods and even in various sectors of the economy. Multilateral mechanisms for regulating trade almost always have a more complex and developed international legal framework. Aimed at achieving long-term economic and political goals
Question 5. Liberalization of international trade and GATT/WTO Creation of GATT/WTO In February 1946, the UN Economic and Social Council at its first meeting adopted a resolution in support of the convening of a conference to develop a charter for the International Trade Organization (ITO) In 1947, a meeting was held in Geneva first meeting of the conference (preparation of the HTA charter, negotiations on a general agreement on multilateral tariff reductions, consolidation of general provisions on obligations in the field of customs policy - the basis of GATT - General Agreement on Tariffs and Trade) In 1948, 20 countries signed a protocol to the tariff reduction agreement In 1995, the World Trade Organization (WTO) began to operate on the basis of GATT.
Question 5. Liberalization of international trade and GATT/WTO Principles of GATT: 1. Non-discrimination between trading partners. GATT contains a clause on: most favored nation treatment - the principle of non-discrimination at the customs border; national treatment - providing foreign goods with the same conditions in the field of taxes and duties as national goods 2. Reciprocity of tariff concessions. 3. Transparency of trade policy. Exceptions to general principles also play an important role. For example: A country is allowed to apply trade restrictions if imports cause significant harm to local production.
Question 5. Liberalization of international trade and the GATT/WTO By the mid-1990s, two circumstances undermined the role of the GATT in organizing international trade: The gradual weakening of multilateral agreements under the influence of most favored nation treatment. In 1964, the United Nations Conference on Trade and Development (UNCTAD) was created to compensate for the shortcomings of the GATT, which was poorly adapted to the needs of developing countries. The principle of this system is to encourage exports from developing to developed countries by almost completely eliminating customs duties without requiring reciprocity and inclusion in most favored nation treatment Strengthening non-tariff barriers (especially in trade in agricultural goods, textiles, automobiles and iron and steel products)
Issue 5. Liberalization of international trade and GATT/WTO Uruguay Round of negotiations (1986-1994): Reduction by 38% of customs duties on goods imported by developed countries, to an average of 3.9% Creation of the World Trade Organization, which was endowed with broad powers, which should complicate the unilateral application of trade sanctions For the first time, trade in certain types of services was included in the GATT agreements
Question 5. Liberalization of international trade and GATT/WTO Structure and composition of the WTO At the time of its creation, the WTO included 125 countries of the world, providing over 90% of world trade turnover. Currently, the WTO unites about 150 countries, more than 30 states have observer status in the WTO. The highest body of the WTO - Ministerial Conference In the intervals between ministerial conferences, the governing body is the General Council, to which are subordinated: Council on Goods Council on Services Council on Trade Aspects of Intellectual Property Issues
Question 6. Customs union: a form of economic integration The American economist J. Wiener in 1950 defined a customs union as an international organization that satisfies the following conditions: Abolition of customs duties between members of the union; Introduction of uniform customs duties on imports from third countries; Coordinated redistribution of customs revenues between member countries of the union.
Question 6. Customs Union: a form of economic integration A customs union is a form of economic integration of several states. Depending on the level of integration, five types of economic cooperation can be distinguished: Association Free trade area Customs union Common market Economic union According to the Treaty of Rome in 1957, the European Economic Community was a customs union, which gradually transformed into a common market and economic union.
Question 6. Customs union: a form of economic integration The union of countries into a customs union leads to a number of consequences: The effect of the formation of exchange is associated with an improvement in the distribution of resources The effect of a shift in the directions of exchange worsens this distribution of resources The consequences of changing the terms of exchange Impact on consumption
Question 6. Customs union: a form of economic integration Conclusions: The higher the initial tariffs between the members of the union, the greater the increase in exchange will be. The lower the uniform customs duties in relation to other countries, the less pronounced the shift in exchange will be. The more countries will join the customs union, the more to a greater extent, the creation of exchange will prevail over its displacement
