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 actors. In particular, the overall productivity is increasing, the quality of services is improving, and the use of natural resources is rationalized. Changes in these indicators have a significant impact on the economy of each country participating in world trade processes . However, each subject of the world market is forced to accept new requirements imposed by the world system. In this 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.

The main tasks of the global market system

Especially relevant are the solutions to the problems described above for the subjects of the world trade structure, whose internal economy is undergoing fundamental changes. In these conditions, the social and economic environment within countries has a significant impact on the formation of foreign trade. The main goals and tasks, ways and methods of their achievement are discussed. This situation has developed in the Russian Federation. So, there is a constant search for theoretical and practical measures, under the influence of which is Russia's foreign trade activity. The goal of the events is to achieve positive dynamics of the country's economic development.

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, regulates 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 system. To them, for example, include such as "country of manufacture of goods", "payments used in the design of products" and a number of others. The federal law, which explains the basis of state regulation of foreign trade, includes the basic formulations of areas of activity and development, organizes organizational provisions. In addition, it forms the main principles of activity in the world market. Thus, customs regulation of foreign trade activities is carried out. Thus participants, according to the law, are subdivided into several groups. These include:

• The main subjects of foreign economic relations. These are firms of different types of property that carry out foreign trade activities.
• Federal state organizations and enterprises.
• Participants in international small-scale wholesale trade.

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

Control methods

There are a number of techniques that the government of the Russian Federation uses to exercise control over participants in foreign trade. They include:

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

State Regulation of Foreign Trade Activity

A properly constructed organization of government control is a key factor in the effectiveness of economic development. The bodies under whose leadership foreign trade activity is located are formed on the basis of the country's historical development, its geographical location and common opportunities. For example, in the USSR there was a state centralized monopoly system. It provided general control and guidance in the field of foreign trade. In the future, when switching to market relations, the monopoly structure was liquidated. At the same time, ministries and departments of the regions participating in international trade received a number of rights.

Modern control system in the Russian Federation

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 taken by public authorities.
2. Regional. Here the 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.

Under the government's decision, specialized institutions of executive power have been created, which are entrusted with the management of external 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.

Tariff and non-tariff methods of control

1. The introduction of duties on imports of 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 they incur losses.
2. Introduction of export duties. Consumers receive an additional advantage in the form of lower prices in the domestic market, producers bear losses, the state receives additional income.

To maintain its own producer and increase exports, a number of countries are implementing the following actions:

• Tax exemptions are granted to firms engaged in export;
• Issuance of low-interest loans and loans for the export of products;
• Concluding contracts on the state, aimed at selling goods in foreign countries.

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

• Export restrictions;
• Quotas imposed on imported goods;
• Trade embargo - ban on import (export) of a certain type of products;
• Dumping - the sale of manufactured goods at prices below the domestic market.

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:

• Levels of exports and imports in the total production;
• A large volume of foreign investment in relation to domestic;
• Presence of foreign trade quota (GNP).

International market as a form of relations

In the modern world, trade between different countries is seen as the main type of interaction. The problems of the foreign market are devoted to a huge number of scientific papers, the essence of which is to find the most effective ways of development and stable functioning of the global economic system. Do not remain without attention and its very influence on the social development of society. 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 there is a process of interaction with other entities. It is expressed in the formation of alliances, the creation of certain agreements at the state level.