Protecting its own markets is important for every state. To implement such protection, they use different methods. They are aimed at preventing foreign producers from flooding the market and giving domestic producers the opportunity to work. At the same time, it is not profitable for the state to export too much Russian “goods”; in this case, they use export quota. In addition, the indicator of import, export and foreign trade quotas makes it possible to assess the degree of openness of the country's economy.
There are the following purposes for using quotas:
- Reducing the shortage of a particular type of product on the market. At the same time, import supplies are replaced with national goods.
- Saturation of domestic markets with goods that are not produced in Russia or their quantity is too limited.
- Exception negative impact imported goods on the country's economy, health and life of citizens.
- How to fulfill international obligations.
For a country, such restrictions ensure that imports do not exceed the government-adopted limit. At the same time, the foreign manufacturer will not be able to reduce the price in order to increase sales volume.
Also, quotas are a more flexible regulatory tool, because it does not require going through a lengthy procedure for adoption by legislative bodies. At the same time, foreign trade policy becomes more selective, since through the issuance of a certain volume of licenses the state manages to provide support to certain areas of the domestic economy and even individual enterprises.
The essence and types of quotas
Quotas are an opportunity to allocate a certain part, which has a certain effect on participation in a joint business. If we apply it to the economy, then it makes it possible to regulate the relations between participants in the economy. activities within the country. The main purpose of the export quota and import quota is to limit quantitative indicators:
- Production.
- Consumption.
- Sales.
- Export or import.
Quotas are not introduced on a permanent basis, but for a certain period. Once the goal is achieved, the restrictions are removed.
These restrictions are different, there are the following types:
- Group. They impose restrictions on several states that supply imported goods to the market.
- Global, such import quotas relate to specific goods, without regard to the country of origin.
- Anti-dumping. They determine the size of imports regarding a specific country.
- Compensatory. They impose restrictions on the volumes of goods imported into the country.
- Proportional. When using them, the volume of goods is redistributed between supplying countries in proportion to their share in imports in the previous period.
- Seasonal. Their introduction is associated with the peak production volume in the importing country, that is, at the moment when the price is most favorable.
- Tariffs. The import of a certain volume of goods during a specific period is allowed. In this case, reduced duty rates are used.
- Double sided. Increased quotas are granted to the country that undertakes reciprocal obligations to import goods from Russia.
It is worth understanding that there is a difference between a quota and a tariff. The main thing is that they have different contents of the redistribution effect, in different strengths restrictions they place on imports.
Consideration of import quotas
An import quota is a restriction that applies to goods that are imported into a country. It is typical for international trade relations; control over its implementation falls on the customs authorities. Used to protect the interests of its own producers. The value of the quota is determined by the Government of the country. At the same time, indicators of competitiveness and influence on entrepreneurs in the country are taken into account.
To calculate the import quota, a formula is used that includes the following parameters:
- Share of a country's imports.
- Gross domestic product.
Import quota = (imports in monetary terms / country's GDP) * 100%
The calculated indicator confirms the importance of domestic consumption and production.
There are goods for which only exporting countries have a pre-emptive right to sell. These include: sugar, equipment for the army, etc. Licensing is used to document the process. The number of licenses is limited and they are issued to a specific entrepreneur.
Import quotas are the ratio of the imported product to its cost parameter. The period for which it is often set is 1 year. It is determined for each state from which imports come separately and only after a thorough analysis and consultation with specialists. When calculating, the interests of both parties to the transaction must be taken into account. The actual value of the quota is determined taking into account the volume of the consignment of goods to be imported.
Features of import duties
Import quotas limited the possibilities for filling the state budget. Income in in full transferred to the entrepreneur who purchased the license. At the same time, those who have a license have the exclusive right to:
- Purchase of goods.
- Sales on the domestic market.
- Request a price, which is often higher than the purchase price.
Import quotas affect, among other things, every citizen of the country. After all, what exactly and in what volumes will be released to the market determines what residents of the Russian Federation will be able to consume.
Export quotas
An export quota is a certain volume of production of certain goods and their supply for export. They are established separately for each product in each country, including Russia. Often, export quotas are adopted taking into account international trade agreements. To put it simply, an export quota is the maximum volume of a specific product that is allowed to be exported outside the country within one year.
This parameter is quantitative and demonstrates the importance of exporting a particular type of product or product for the country’s economy and individual industries. These restrictions are also calculated for a certain period.
For participants, this parameter is important. There is even a separate item called “quota” and it is required to be filled out when crossing the border with goods.
The 2018 Russian export quota is established only for those goods that are of strategic importance for the economy. So they exist for food products. At the same time, import restrictions are formed in relation to agricultural products and aquatic and biological resources. This is necessary in order to speed up the sale of similar domestic goods and thereby support their manufacturers.
The export quota indicator indicates the degree of connection of a particular product with the world market, that is, its competitiveness. A striking example: poor countries supply mainly one type of product/raw material to the international market, and they will be indicated in the calculation data as active participants in international trade. If we talk about developed countries that actively export many goods High Quality, then as a result of calculations they will be presented as countries with limited connections with external markets. This is easy to explain - many goods from developed countries are consumed on the domestic market, which cannot be said about the poor.
That is, the export quota indicator determines the welfare and quality of goods produced in the country.
Calculation
The export quota is determined separately for each type of product or product. This takes into account:
- Total production volume.
- The volume of goods exported abroad over a certain period of time.
The calculation result is presented as a percentage ratio of one indicator to the second.
When using the formula for calculating the export quota, the following are taken into account: the list of goods, its parameters, percentage to the volume that is allowed for export with the same indicators relative to national production.
All quota parameters are specified in the license, which can be obtained from government agencies of the Russian Federation. This document helps regulate the import and export of goods.
The essence of voluntary export restrictions
The introduction of voluntary export quota restrictions is one of the methods of non-tariff regulation foreign trade. The essence of the procedure is the conclusion of an agreement between the exporting country (Russia) and the importing country (any other country in the world) to restrict the import of a certain product. That is, it actually sets a quota on it. Voluntary export quotas have a certain procedure that is followed by participants in foreign trade activities, more specifically:
- An intergovernmental agreement is concluded at the official level.
- Producers and consumers from the two countries negotiate informally.
- Next, a multilateral interstate agreement is drawn up and signed, its main purpose is to approve a voluntary export restriction.
As a result, voluntary export restrictions ensure that the interests of producers in one country and consumers in another are respected.
What do export quotas mean?
Control over imported and exported products and supply volumes helps maintain a harmonious industrial structure within the country. The main point is the protection of producers who may cease to exist altogether in the presence of unequal competition. As a result, profitability increases in areas of production where quotas were applied. The increase in the export quota reflects the increased level of competitiveness of specialized products on the international market.
If quotas were not used in a particular industry, this entails:
- Competitive pressure.
- Additional expenses. They are reimbursed at the expense of the consumer, that is, the manufacturer increases the price.
As a result, goods from a domestic manufacturer will cost more than similar imported ones.
Application of quotas: advantages and disadvantages
Quotas are a convenient restrictive and regulatory instrument of the country's foreign trade policy. Moreover, such restrictions are flexible and progressive in nature when compared with tariff methods. Thus, the latter are formed in accordance with laws and international agreements.
As for export and import quotas, they do not allow prices to be reduced due to increased sales volumes. As a result, the state helps its own producers and certain industries.
Other advantages include:
- A convenient regulatory tool in economic relations between countries.
- A tool for exerting direct or indirect pressure on other countries.
- Option for regulating interstate trade relations.
- They guarantee the safety of domestic producers.
- Prevent depletion of mineral resources.
- Maintains the state's balance of payments.
As for the shortcomings, they are felt to a greater extent by the consumer; this applies, among other things, to voluntary export restrictions. Specific disadvantages:
- An artificial shortage of products is created.
- The price of goods from national producers is rising.
- The range of product selection is narrowing.
Another negative result is the inhibition of the development of free competitive relations in the sales market.
Conclusion
Quotas have proven to be an effective tool for non-tariff regulation and influence on other countries. But still, the main task of introducing both export and import quotas is to protect our own producers and resources that are extracted within the country.
Video: Determining the degree of openness of a country's economy
The external economic activity of each country has a direct impact on the state of the international economy. In turn, the international economy affects the efficiency and dynamics of domestic economic systems. Countries experiencing instability national economy, experience difficulties when entering the international arena. In order to assess the level of integration into the economic system international scale, special quotas are used. Foreign trade parameters, by which the country’s economy is assessed, make it possible to determine its readiness to work with foreign companies. In this article, we propose to examine in detail the question of what a quota is and what it is used for.
For the globalization of the international economy, the state of foreign economic activity individual states
What is quotas
Probably every person has heard of such a term as “quota”, however true meaning Not all people know this word. Translated from Latin, this term is translated as “share”. As a rule, a quota is a certain part of a product or a percentage of a service. This indicator is used to limit different actions. Today, many experts consider the meaning of the term quotas as a restriction on the import or export of commercial products from a particular country. These restrictions can be of both quantitative and price nature.
Quota parameters are used to control the legal relations of participants economic activity. The main purpose of using quotas is to limit the indicators of produced and sold products. Quotas can also be used to temporarily limit the quantity of imported and exported products.
Advantages and disadvantages of quotas
Temporary restrictions on the import and export of goods to a specific country are used as the main instrument regulating the relations between several countries. This tool can also be used to put pressure on a country in need of specific goods.
Thanks to the implementation of this system, the world community received an effective tool for regulating market relations.
The use of the tool in question increases the profitability of domestic production. This phenomenon is fully manifested in those areas that are protected by the state. The introduction of quotas makes it possible to increase the demand for local products, which allows manufacturing companies to increase their own capacity. Also, the use of this system makes it possible to exert political influence on foreign countries acting as importers.
Among the advantages of quotas, the following aspects should be highlighted:
- Preservation of national security.
- Reduced consumption of minerals.
- Improving the country's domestic economy.
However, the use of this tool has a number of significant disadvantages that have a direct impact on consumers of goods. An artificial shortage contributes to an increase in prices for domestic products. Buyers also have difficulty choosing the products they are interested in due to the limited range. In this case, consumers have to independently look for alternative solutions to the problem. The use of the instrument in question significantly slows down the speed of development of competition in the domestic market.
To assess the degree of integration into a world-class economic system, it is necessary to calculate the quota parameter Types of quotas
Today there are several different types of quotas. Group quotas imply restrictions on the import of products from several foreign countries. In addition, there are global parameters used to regulate the volume of receipt of specific product groups. In this case, the countries where the products whose import is temporarily restricted are not indicated.
There are also anti-dumping regulations that are used to determine the amount of goods imported into a particular country. The last type is compensatory quotas, which are used to limit the maximum size of a consignment of goods imported into the territory of a particular state.
Import quotas
An import quota is a kind of regulation according to which the import of goods into the territory of a particular state is limited. The restriction control function has been transferred customs authorities. It is important to note that the instrument in question is typical for the international market. The use of import quotas allows the authorities to attract consumer attention to domestic goods. Import standards are set by government agencies. The value of the established threshold allows local manufacturing companies to increase their own competitiveness.
Peculiarities
It is important to note that the use of import quotas deprives the country of one of the additional sources of replenishment of the treasury. Entrepreneurs who have received permission to sell imported products receive all income from the sale of these goods. Entrepreneurs with an import license have the opportunity to sell foreign goods at a high margin. The income received from such operations is called quota rent.
Restrictions on the import of foreign goods make it possible to create a unified structure used to regulate the domestic market. This tool allows each manufacturing company to set a high price for its goods. This factor is explained by the fact that domestic market limited assortment available. Also, owners of large enterprises have the opportunity to reduce production capacity, developing an artificially created shortage and increasing the demand for its supply.
How is it calculated
As a rule, import quotas are calculated on the basis of cost or quantity parameters. In most cases, the quota system is implemented for exactly one year. Before you implement this system, it is necessary to conduct a thorough analysis, studying each state separately. When developing this system, the interests of both participants in international trade are taken into account, but the most important criterion is the personal benefit of the party restricting imports.
To determine the value of quotas, statistical data on the number of goods imported into a particular country over a period of time is used. recent years. It should also be noted that there are product groups with the right to sell, which only exporting states have. The presence of restrictions on the import of products is confirmed by compulsory licensing. Every entrepreneur can purchase permits.
The concept of a quota allows you to allocate a specific share attributable to a specific action or participation in a joint business. Impact on cost
It should also be said that placing restrictions on foreign goods significantly increases their cost. This factor is explained by the fact that transportation costs are added to the original cost of the product. Another reason for rising prices is the need to stabilize the market situation.
Distribution of rights
The procedure for distributing rights to import foreign products allows us to assess the degree of impact of the instrument in question on the well-being of the population. Authorized bodies use the following methods for allocating import rights:
- Based on the competition.
- Based on economic preferences.
- Based on estimated and actual costs.
The competitive basis implies the use of open auctions in which all business entities can participate. During the auction, a certain price is established permitting documents, which is equal to the difference between the cost of goods and the price at which they will be sold this product. The priority system of quota distribution implies taking into account explicit and systemic preferences in the domestic market. Authorities establish quantitative and cost limits for specific entities. By using this system, there is no need to apply for licenses.
Export quotas
An export quota is a certain framework that limits the volume of supplies of products produced on the local market to foreign countries. Control authorities can establish both certain limits and norms according to which the volume of quotas will be regulated. This instrument is often used by those states whose economies depend on the sale of raw materials to other countries. Analysis of the indicator under consideration allows us to determine the level economic development countries and find out the degree of dependence of various industries on exports. As a rule, the export quota is expressed in the form of a quantitative or natural value. Using this indicator, the form of regulation of trade transactions between several states is determined.
Advantages
Quotas are a tool by which foreign trade policy is regulated or limited. It is important to note that this instrument has progressive and flexible characteristics in comparison with tariff parameters. This is explained by the fact that when developing tariff rates, both international agreements and legislative norms are taken into account.
The main advantage of export quotas is the impossibility of reducing prices based on increased sales volumes. This option allows government agencies provide support to entrepreneurs operating in certain industrial areas.
The quota is introduced not for a permanent, but for a certain period Calculation
This type of restrictions is established for each type of commercial product separately. When calculating limits, indicators from previous years on the number of goods exported abroad are taken into account.. In addition, the total volume of goods manufactured during a given time period is taken into account. In order to determine the value of the parameter under consideration, it is necessary to calculate the percentage ratio of the volume of goods sent to foreign countries to the number of products manufactured during a given time period.
There are a number of specific national production standards, according to which a list of marketable products is formed, as well as quantitative export parameters. The license issued by the control authorities contains information about all restrictions and permits relating to exports. It is important to note that this document is valid for a limited period of time.
Export restrictions
The use of voluntary restrictions on the export of goods is considered as one of the options for non-tariff regulation of trade relations between several countries. The meaning of this system is to establish an agreement between two countries on restrictions on the import of specific goods. In simple terms, the heads of several countries select product groups for which a quota is set. The procedure under consideration is carried out according to a special scheme, which must be followed by all members of foreign economic activity:
- Representatives of the two countries enter into a formal agreement.
- Manufacturing companies representing the interests of each country enter into informal agreements.
- Based on the agreements reached, an interstate agreement is drawn up to approve a voluntary export restriction.
The use of this tool allows us to protect the interests of not only local producers, but also foreign consumers.
Embargo
The term "embargo" means that the quota is set to zero. This tool can be described as a prohibitive quota. As a rule, an embargo is used against those countries that have violated international trade relations. This procedure involves the imposition of penalties from one or more states. T Thus, large manufacturing companies stop working with a state that has violated international agreements.
An import quota is a restriction on the import of products into a country. The embargo is expressed in the form of the following legal actions against the violating country:
- A ban on the import and export of commercial products, valuables and other material property.
- Detention of transport.
- Ban on ships entering international ports.
The consequences of imposing an embargo depend on the magnitude of demand for commercial products. In the event that goods prohibited for export cannot be replaced by local production, the countries that have imposed a ban on trade operations begin to incur losses. This fact is explained by the fact that these countries have to purchase goods from other suppliers at a higher cost. In the case where a prohibited product has cheaper analogues, the exporting country begins to lose money due to a narrowing of the sales market.
Conclusions (+ video)
In this article we looked at different kinds quotas, which are an effective tool for political influence on other states. However, the main objective of quotas is to protect local producers and the country's internal resources.
An open economy is considered to be a country where most markets, spheres and sectors of the economy have free access to foreign entities. IN last decades As a result of changes in the global economy, most countries have become open economies.
The most important indicators of the openness of the economy are participation in (the specific value of exports and imports in production, the size of the foreign trade quota), as well as the relative weight of foreign investments relative to domestic ones. Absolute indicators include, for example, the value of exports of goods (services) in monetary terms per capita. In the USA this figure is more than $3,200, in Russia it is about $700.
Given the open nature of the world economy, the state regulates development with the help of the so-called. tariff and non-tariff barriers. Tariffs include increases in size on imported goods. In 1948, an agreement was concluded between the member countries of the World Trade Organization, from the beginning of which to the present day the level of customs duties has decreased on average from 40% to 5-7%. Currently, the leverage is mainly through non-tariff methods.
What it is? First of all - quotas. A foreign trade quota is a restriction imposed on the export or import of goods based on their quantity or total value. Quotas are set for a specific period and can be both general (for government needs) and special:
Natural, bearing restrictions due to capacity, for example, oil pipelines or port terminals;
Exceptional (introduced in emergency cases to protect the domestic market and ensure national security);
Tariff (limitation on the number of goods imported at reduced rates or duty-free. Goods imported in excess of the established limit are subject to duty at full time);
Export and import.
An export quota is a limited volume of export supplies of a particular product. It is usually introduced in countries specializing in the export of specific raw materials as a measure of price stabilization. Thus, the export quota is a quantitative indicator characterizing the importance of exports for the national economy certain type products or raw materials. It is calculated for a certain period as a percentage of the volume of exported products (in quantitative or value terms) to the value of domestic production.
In voluntary export restrictions, the export quota is usually established through a bilateral agreement or international agreement.
Such an agreement may determine each country's share in the export of a specific product (for example, oil). Also, an export quota can be introduced by the government of the country in order to:
Sufficient filling of the domestic market with this type of product;
Restrictions on exports and stabilization of product prices on the domestic market;
Ensuring balance and protection of national production interests;
Regulating the processes of supply and demand in the domestic market;
Conservation of natural resources;
In response to discrimination in the trade policies of other countries.
Import quotas make it possible to avoid dependence on import supplies in the event of a reduction in the supply of necessary products (due to climatic or other conditions) and serves as a tool in negotiations on export supplies of national products.
Quotas are a more flexible and progressive instrument of foreign trade policy than changing tariffs, since the latter is established by the country’s legislation and international agreements, and besides, a quota makes it impossible to increase sales by lowering prices. In addition, through quotas, the state can provide support to certain producers and industries.
Licensing of foreign trade can act as part of quotas or as an independent instrument of influence. A license (permission from government bodies) can be issued to carry out import-export operations or their volume. It is applied for a certain period in relation to goods of general public use and in a number of other cases. In the Russian Federation, the right to export goods under a quota is subject to licensing, as well as the import and export of certain special-purpose goods (military, precious stones and metals, etc.)
In order to reasonably judge the degree of involvement of a country’s resources in the process of the international division of labor, it is necessary, along with the concentration of production, to use information about the development of foreign trade between this country and other participants in the MRI. It is the data on the state of foreign trade that show that the gross domestic product in individual countries is spent not only to satisfy domestic needs, but is also sold on the world market. The question of which side of foreign trade should be taken for analysis - exports, imports or trade turnover as a whole - depends on the specific goals of the study. It seems that when considering the degree of involvement of all the country’s resources in the process of the international division of labor, or, in other words, measuring the foreign trade intensity of countries, all these parameters can be used, although their meanings are different.
In world practice, two types of indicators are used to measure the foreign trade intensity of countries: the volume of foreign trade (or exports or imports separately) per capita of the country and the ratio of exports (or imports, or foreign trade turnover separately) to the gross domestic product (GDP) of the country.
1) volume of exports, imports or foreign trade turnover per capita:
where E d - export per capita;
I d - import per capita;
ZTO d - foreign trade turnover per capita;
E is the value of national exports for the year;
I is the cost of national imports for the year;
ZTO - foreign trade turnover of the country for the year (E + I);
H is the population of the country for the corresponding year.
These indicators are widely used in international comparisons.
Export quota
In international comparisons, the export quota is used not only to characterize the level of intensity of a country’s foreign trade, but also to assess the level of openness of the national economy, participation in international division labor.
It is calculated using the formula:
where E is the country’s annual export volume;
The export quota has important analytical significance. Firstly, it indicates the degree of dependence of the production of the national economy on the sale of its goods in the markets of other countries. Secondly, the share of exports in gross domestic product shows the ability of a given country to produce a certain amount of products for sale on the world market.
3) import quota the share of imports in a country's gross domestic product also characterizes the country's level of dependence on imports of goods and services. It is calculated using the formula:
de K i - import quota;
I is the country’s annual import volume;
GDP is the country's gross domestic product for the same period.
The import quota can be compared with the export quota and thus establish the relationship between exports and imports. They may be equal, but most often these values do not coincide.
4) foreign trade quota:
This quota is calculated using the formula:
de K zt - foreign trade quota;
E, I - the annual volume, respectively, of the country’s exports and imports;
GDP is the country's gross domestic product for the same period.
The foreign trade quota shows the total volume of foreign trade turnover of a given country with a partner country or with the entire world community, but does not give its qualitative characteristics.
In practice, none of the indicated intensity indicators has independent meaning to assess the level of trade intensity of countries. At the same time, there is a close connection between the level of foreign trade intensity of countries and the level of their economic development. Based on the level of foreign trade intensity of a country, one can determine the nature and functions of foreign trade:
Short- the minimum level of imports necessary for the functioning of the economy; exports can only cover critical imports depending on the state of the world market and prices on it.
Average- imports satisfactorily cover not only basic needs, but also allow the purchase of products with a sufficiently high technical level, but without establishing broad international production cooperation; exchange of simple goods for more complex ones mainly on an unequal basis.
High- developed industrial cooperation, high share of components, units, etc. in exchange; foreign trade influences the economy, shaping its structure and increasing efficiency.
5) level of intra-industry exchange in international trade. Intra-industry trade reflects parallel exports and imports of products of the same industry of a given country (or group of countries) over a certain period of time (usually a year). Intra-industry trade indicators are calculated using the Grubel-Lloyd method.
The level of intra-industry trade is defined as the difference between the total turnover of a given industry and the volume of inter-industry trade in this industry:
de H i- level of intra-industry trade;
E i,I i- respectively, exports and imports of the industry " i»;
(E i+ I i) - the cost of foreign trade turnover of the industry " i»;
| E i– I i |- the absolute value of the difference between exports and imports of products of a given industry is equal to the volume of interindustry trade in the industry “ і ».
5. Indicators of economic efficiency of export and import. The calculation of economic efficiency is carried out by comparing the achieved economic result (effect) with the expenditure of resources to obtain this effect. Economic results and resource costs have a quantitative dimension, and therefore economic efficiency can be measured quantitatively.
Each level of assessment corresponds to its own type of economic interests and its own efficiency criterion. Thus, at the macroeconomic (national economic) level, the economic efficiency of foreign trade is understood as the degree of national labor savings achieved by a country as a result of its participation in the international division of labor and foreign trade exchange. The criterion for economic efficiency is the saving of national labor, as an additional source of growth in gross domestic product and other economic and social macro indicators. And at the level of enterprises and other economic entities, the economic efficiency of foreign trade operations is understood as the degree of increase in income from these operations. The criterion for economic efficiency here is profit as the main measure of efficiency.
· macroeconomic indicator of the effectiveness of foreign trade turnover:
where E is the efficiency of foreign trade turnover;
B I - cost savings as a result of imports;
B E - national expenditures on exports.
For the national economy as a whole, it is important that national export costs (B E) are less than the amount of cost savings resulting from imports (B i). Only in this case does the country save national work by participating in international trade.
2) macroeconomic indicator of export efficiency:
where E E is the efficiency of national exports;
V E - foreign exchange earnings from the export of goods and services;
B E - national expenditures on exports.
6. macroeconomic indicator of import efficiency:
where E i is the efficiency of national imports;
B i - cost savings as a result of imports;
V i - foreign exchange costs for imports.
The scope of use of these macroeconomic indicators is only analytical macroeconomic calculations with the aim of developing and justifying possible options for trade and political measures aimed at realizing state interests in the development of the country's foreign trade activities.
6. Dynamics indicators reflect trends and rates of change in international trade indicators over time. These are relative values that are calculated using statistical methods:
1) growth rate indicators:
· export growth rate
T r.e. = E o.g. / E b.g. * 100%,
where T r.e. – export growth rate;
E o.g. – volume of exports in the reporting year;
E b.g. – volume of exports in the base year.
· import growth rate
Three. = I o.g. / I b.g. * 100%,
de T r.i. – import growth rate;
I o.g. – volume of imports in the reporting year;
I b.g. – volume of imports in the base year.
· growth rate of foreign trade turnover
T r.v.v. = WTO o.g. / WTO b.g. * 100%,
where T r.v.v. – growth rate of foreign trade turnover
WTO o.g. – volume of foreign trade turnover for the reporting year;
WTO b.g. – volume of foreign trade turnover for the base year.
The growth (decrease) rate indicator is used to assess trends in international trade volumes over a period of time. Growth rates are presented as a percentage for the period being studied and demonstrate trends in the overall dynamics of growth or decline in indicators, allowing us to determine the amount by which these changes have occurred over time.
· growth rate indicators:
– export growth rate
T e.g. = (E o.g - E bg.) / E bg. * 100%, or T ex.e. = T r.e. - 100%,
de T pr.e. – export growth rate;
Тр.е – export growth rate for the reporting year;
E og – export volume in the reporting year;
E bg. – volume of exports in the base year.
– import growth rate
6) growth rate of foreign trade turnover
similar to the export growth rate
Indicators of growth (decrease) rates are used to assess the rate of change in indicators of the level of international trade per unit time of the study period. Growth rates are presented as percentages and show the amount of increase or decrease in international trade.
3.4. Pricing in international trade.
The national value of goods in each country is determined on the basis of the level of socially necessary labor costs for the production of these goods. When carrying out international trade, national labor acts as a share of total labor in the world economy. Therefore, international trade is based on international value of a product, which is determined socially necessary time for its production under world average socially normal production conditions.
Price- this is the amount of money that the seller expects to receive by offering a product or service, and that the buyer is willing to pay for this product or service.
Prices for goods and services on the world market are set under the influence of certain factors :
1. General economic factors- act regardless of the type of product and the specific conditions of its production and sale:
· the state of aggregate supply and demand;
· inflation.
2. Specific economic factors– are determined by the characteristics of this product, the conditions of its production and sale:
· expenses;
· profit;
· taxes and fees;
· supply and demand for this product or service, taking into account interchangeability;
· consumer properties (quality, reliability, appearance, prestige).
3. Specific factors– valid only for certain types of goods and services:
· seasonality;
· operating costs;
· completeness;
· guarantees and conditions of service.
4. External economic factors- related to the action of foreign economic instruments:
· government regulation;
· exchange rate.
5.Special factors– are associated with the action of special mechanisms:
· political;
· military.
On the world market, different national prices for goods are compared, and world price is formed under the influence of those national prices, which are based on the world average socially necessary production costs on a global scale, that is, as the international price of production. World prices vary depending on the time of year, location, conditions of sale of goods, and the specifics of the contract.
In practice, world prices are taken to be the prices of significant, systematic and stable export or import contracts that are concluded in certain centers of world trade by well-known firms - exporters or importers of the relevant types of goods. For many commodities (cereals, rubber, cotton, cocoa beans, etc.), world prices are set through transactions on the world's largest commodity exchanges.
In the global market, the pricing process has its own peculiarities, associated with the fact that participants in international trade face more competitors in the market than in the domestic market. Therefore, they must constantly work in the mode of comparing their production costs not only with domestic market prices, but also with world ones.
The world market is characterized by a plurality of prices, which is explained by the influence of various commercial, trade and political factors.
Quota - the maximum volume (in value or physical terms) of supplies of a certain product within the agreed regime.
QUOTATION
FOREIGN TRADE REGULATION
ADMINISTRATIVE METHODS OF STATE
In addition to economic ones, the state actively applies administrative measures of non-tariff regulation.
1. QUANTITATIVE RESTRICTIONS ON EXPORT AND IMPORT:
Quotas- foreign trade quota - a quantitative limitation on the volume of exports or imports of certain goods.
An import quota, unlike an import duty, allows you to precisely limit the quantitative volume of imported goods.
The export quota was used in the Russian Federation until 1994 mainly as a tool for export control given the existence of a significant difference between world and domestic (lower) prices for a number of traditional Russian export goods. As domestic prices approached world prices, the number of quota goods decreased. Since July 1, 1994 (Government Decree No. 758) quotas are limited only to the fulfillment of the international obligations of the Russian Federation and are carried out only for the export of a narrow list of goods: raw aluminum, silicon carbide, ammonium nitrate, threads of yarn, fabrics, finished textile products.
Quotas can be classified as follows:
General (for state needs, regional, auction) - determined by the Ministry of Economic Development and Trade;
Natural, associated with the limited capacity of oil pipelines and oil terminals in ports. The mode of their operation is determined by the Government Decree “On the export of oil and petroleum products outside the customs territory of the Russian Federation from January 1, 1995.” Oil producing and refining enterprises receive access to oil pipelines in proportion to the volume of oil production or refining;
Exceptional quotas introduced by the Government in exceptional cases related to ensuring the national security of Russia, protecting the domestic market, and fulfilling international obligations.
Quotas for the import of goods are introduced:
To protect national producers from foreign competition;
To protect the national market from being “eroded” by cheap products from developing countries.
Mostly, import quotas are used by countries with developed market economy. For example, in Japan, import allocation is extended to more than 70 product items, many of them are the main products of Japanese agriculture (milk, dairy products, beef, etc.). And since in this country production costs are agriculture higher than in other countries, then through quotas the government supports its agricultural entrepreneurs.
Export quotas are introduced, firstly, for products that are in short supply national market, and, secondly, in connection with the trade and political measures taken by the government.
Export quotas are used by both developed and developing countries. It is widely used in Russia. The total volume of goods whose exports are subject to quotas was about 70% in the early 90s. The purpose of quotas in relation to raw materials, including energy resources, is to preserve goods for consumption in the domestic market and to support industries that use cheap raw materials.
An example of an export quota would be the quota for the export of ammonium nitrate to the UK: it was established until 1999 in the amount of 100 thousand tons per year
There are also:
Global quotas are set for the import of a certain product from all or from a group of countries (for example, in the United States, quotas are used to regulate the import of certain types of cheese, chocolate, cotton, nuts, ice cream, coffee, etc.
Seasonal quotas
Tariff quotas – i.e. within the established quotas, goods are imported without charging customs duties, and when importing above this limit, high duties are charged. For example, in the USA the import of milk, fish, potatoes, and some types of motorcycles is regulated in this way.
In the Russian Federation Modern order quotas and licensing of foreign trade activities are established by the Law of the Russian Federation “On State Regulation of Foreign Trade Activities”.
Exports and imports in our country are mainly carried out without quantitative restrictions. These restrictions are introduced only in exceptional cases by the Government of the Russian Federation for the purposes of: ensuring the national security of the Russian Federation, fulfilling the international obligations of the Russian Federation, taking into account the situation in the internal commodity market, protection of the domestic market.
Narcotic drugs, potent and toxic substances are subject to quotas for both import and export.
When imported, the following are subject to quotas: ethyl alcohol, vodka, gunpowder, explosives, explosives and pyrotechnic products.
When exporting goods, the following are subject to quotas in accordance with the international obligations of the Russian Federation: silicon carbide and textile goods (threads, yarn, clothing - men's, women's, children's, outerwear, underwear - blankets, rugs, bed linen, kitchen linen, other finished textile goods) in EU countries, as well as goods containing precious metals and stones, amber and products made from it.
The quota for the export of silicon carbide is established annually as a result of negotiations between the Ministry of Foreign Economic Relations (Ministry of Economic Development) of Russia and the EU Commission and is formalized in the form of a decision of the EU Commission. Exports to the EU countries, carried out by Stankoimport under a general license, are subject to licensing in the amount of the established quota. Other supplies of silicon carbide from Russia are not subject to quotas or licensed.
The export quota for textile goods is established by an agreement between the Russian Federation and the EU. The quota is annual and is determined through negotiations between the Ministry of Economic Development and Trade (Ministry of Economic Development) and the EU Commission. Export of textiles to other countries is not subject to quotas or licensing.
In addition, Russia imposes quotas on sugar imports:
In December 2000, tariff quotas for the import of raw sugar were introduced in Russia.. However, now the initiators of the introduction of quotas say that this measure has not justified itself and in order to stabilize the sugar market it is necessary to urgently introduce additional tool restrictions on the import of raw materials - seasonal duties. If the government introduces seasonal duties, the balance of power in the sugar market could change significantly.
The right to import or export a quota-bound product must be confirmed license.