Foreign trade activity: features and methods of regulation

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

foreign trade activity

The main tasks of the global market system

Particularly relevant are the solutions to the problems described above for subjects of the world trade structure, whose domestic economy is undergoing a process of cardinal change. Under these conditions, the socio-economic situation within countries has a significant impact on the formation of foreign trade. The main goals and objectives, ways and methods of achieving them 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 the foreign trade activity of Russia is located. The purpose of the events is to achieve positive dynamics in the development of the country's economy.

government regulation of foreign trade

Foreign trade regulation 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 standards, in turn, establishes special modes, streamlines the processes of design 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 throughput system. These include, for example, such as "country of manufacture of the goods", "payments used in the design of products" and a number of others. The federal law, explaining the basics of state regulation of foreign trade, includes the basic wording of the lines of activity and development, streamlines organizational provisions. In addition, it forms the main principles of activity in the world market. Thus, customs regulation of foreign trade is carried out. Moreover, participants, in accordance with the law, are divided into several groups. These include:

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

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

customs regulation of foreign trade

Control methods

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

  • Limitations and Prohibitions.
  • Regulatory methods related and not related to customs tariffs.
  • Restraining (stimulating) measures in the field of economics at the state level.

State regulation of foreign trade

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

fundamentals of state regulation of foreign trade

Modern control system in the Russian Federation

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

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

By decision of the government, specialized executive institutions were created that 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 and the Federal Agency for Control of Special Economic Territories subordinate to it.

foreign trade regulation

Tariff and non-tariff control methods

  1. Introduction of import duties. This method is aimed at obtaining advantages by domestic producers 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 suffer losses.
  2. Introduction of export duties. Consumers receive an additional advantage in the form of lower prices in the domestic market, producers suffer losses, the state receives additional income.

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

  • tax incentives are granted to export firms;
  • low-interest loans and export loans are issued;
  • contracts are concluded at the state level, aimed at the sale of goods in foreign countries.

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

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

Open economy

This term should be understood as the process of trade with other participants in the global market 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 export and import in the total aggregate of production;
  • a large amount of foreign investment in relation to domestic;
  • the presence of foreign trade quota (GNP).

The international market as a form of relationship

In the modern world, trade between different countries is considered as the main type of interaction. A huge number of scientific works are devoted to the problems of the external market, the essence of which is to find the most effective ways of development and stable functioning of the global economic system. Its effect on the social development of society does not remain without attention. However, despite the globalization of the market, the main regulators of trade relations are the actors 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.


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