Section 2.
Ticket No. 1 Foreign trade transactions for the purchase and sale of services. Main types of services and their characteristics.
There are two groups of transactions for the purchase and sale of services: basic and servicing the purchase and sale of goods.
The main transactions include: a transaction for the provision of production and technical services, rental transactions, transactions for the export and import of tourism services, transactions for consulting services in the field of information and management improvement.
Production and technical services, which in international practice are called engineering, are a set of commercial services for the preparation and support of the production process and sales of products, maintenance of the construction and operation of industrial, infrastructure, agricultural and other facilities. Providing, on the basis of an engineering contract, a full range of services and supplies necessary for the construction of a new facility, called. comprehensive engineering, including 3 types of engineering and technical services: consulting engineering, process engineering, construction and general engineering.
Engineering and consulting services are provided in the form of technical documentation, research results, initial data for construction, economic calculations, diagrams, recommendations.
Rental transactions – rental of goods to a foreign counterparty. One of the parties to the transaction - the lessor - provides the other party - the lessee - with a leased item for exclusive use for a specified period for a certain fee. The most widespread in international commercial practice is long-term lease, called. leasing (it can be financial and operational).
Tourist services, their types: services for accommodation of tourists, services for moving tourists to the destination country and around the country to the tourism object by various types of passenger transport, services for providing tourists with food, services for tourists in preparing documentation, etc.
Tourist services are provided either by individual types of choice, or in combination, within the so-called. inclusive tours or package tours.
Another group of transactions for the purchase and sale of services incl. operations for servicing trade turnover (for international transportation of goods, for storage of goods, for cargo insurance, for international payments, etc.)
Ticket No. 2 Foreign trade sales contract. Contents of the articles “Quality of goods”, “Quantity of goods”, “Price and total amount of the contract”, “Packaging and labeling”, “Insurance”.
Foreign trade sales contract is an agreement between Russian entrepreneurs and foreign counterparties, according to which one party (seller) undertakes to deliver goods within a certain time frame and of proper quality, and the other party (buyer) undertakes to accept and pay.
The main functions of the contract k-p – This is the registration of the transfer of property from the property of one person to the property of another.
For a contract to be recognized as international, it must have a trace. signs: 1) the parties to the contract must be located in the territories of different states. Foreign trade Dr. k-p, concluded between companies of different state located on the territory of one state. accessories not m.b. recognized internationally, however, the doctor was concluded by firms of one state. which are geographically located in different states will be recognized as international. 2) The goods are located on the territory of a foreign state. 3) When the doctor is executed, the product crosses the territory. one/several foreign state-in.
Forms of foreign trade contract k-p: 1) ext. the contract for goods must be made in Russia. entrepreneurs in simple written form. 2) written evidence (correspondence, invoices) to confirm the conclusion of the transaction is not allowed. 3) The Vienna Convention also does not require obligations. written form, but when the USSR acceded to it, a reservation was made about the inapplicability of this provision of the convention.
Methods of conclusion contracts k-p: 1) a document signed by both parties, i.e. contract. 2) in the form of a firm offer from the seller, accepted by the buyers. 3) in the form of an order made by the buyer to the seller and confirmed by the seller. 4) emphasis to the seller and confirmed by the seller. 4) the seller’s emphasis on the buyer’s counteroffer. 5) acceptance by the seller of the letter. the buyer's consent to the terms of the free offer.
Signing the contract: If the seller and buyer are in the same place, they sign the contract at the same time. If they are located in different geographical locations, then at the beginning all copies are signed by one party, sends them to the other party, then returns the agreed number of copies with two signatures to the first party.
In international practice, standard contracts are widely used - this is a contract containing approximate examples of wording of conditions a certain type Dr.
Basic conditions, because if one party does not comply with them, the other party has the right to terminate the contract and demand compensation for damages
Main deals:
1. Production and technical (engineering) – a range of commercial services for preparing and supporting the process of production and sales of products, servicing the construction and operation of industrial and other facilities.
This type of service has the following varieties:
Integrated engineering – provision of a full range of services and supplies;
Consulting engineering – intellectual services on design of facilities, development of construction projects and control of work;
Technological engineering – providing the customer with technology for construction and operation, development of heat and power supply projects, etc.
Construction and/or general engineering - supply of equipment, machinery and installation of plants;
2. Lease transactions - leasing of goods to a foreign counterparty. Long-term lease has become most widespread in international practice - leasing .
Types of leasing:
Financial – a rental transaction for a period close to the service life of the equipment, during which all the lessor’s expenses are fully reimbursed and he is provided with profit through the lease. A feature of financial leasing is the impossibility of terminating the contract during the main lease period (until reimbursement of the lessor's expenses);
Operating leasing – a transaction that does not involve compensation for the lessor’s costs associated with the acquisition of leased equipment during the main lease period. The rental period is short (shorter than the period of physical equipment services), which implies repeated rental. In operational leasing, rental rates are higher than in financial leasing.
3. Tourist services:
Inclusive – tours– used for air transportation, and the cost of transportation is determined on the basis of specially developed tariffs, usually lower than usual (all-inclusive)
Package – tours– providing the client with a full range of services, without including transportation costs.
4.Trade turnover maintenance operations:
International cargo transportation
Freight forwarding
Cargo storage
Cargo insurance
International payments
Stages of preparation of international trade transactions.
Preparation of a specific transaction includes both the study of general issues and information directly related to the subject of the future agreement.
General information includes information:
On the state and prospects for the development of the domestic economy;
On the development of the industry whose goods are traded;
About the position of your company relative to other manufacturers or buyers of products;
On commercial and industrial conditions, trade customs, transport conditions of those countries with whose counterparties the company has entered into or intends to enter into business relations;
About the specific trading conditions that exist on the market for a certain product in the partner’s country.
The most important elements of preparing foreign trade transactions include analysis of current world market prices and determination of the level of contract prices.
Depending on the presence of intermediate links on the way from manufacturer to consumer, there are manufacturer prices, wholesale and retail prices.
Depending on whether the product is sold in the domestic or foreign markets, there are domestic and export prices. Export prices are usually lower than domestic market prices (due to competition)
When analyzing price dynamics and determining their level, a number of price indicators are used:
Contract prices– reflect the actual price level for goods of a certain quality under appropriate conditions of delivery and payment;
Stock quotes– the prices of goods traded on these exchanges are the prices of real contracts concluded on standardized terms in relation to quality, volume and delivery time, payment currency, etc.
Auction prices– close to exchange prices, as they reflect the prices of real transactions;
Reference prices– prices published by commodity sellers. They do not reflect the real level of contract prices, as they differ from them by the amount of discounts provided to buyers (the real price level is somewhat lower).
Price lists and price tags– an indicator of prices for finished products for consumer and industrial purposes.
Offer prices– negotiated prices arising in the process of negotiations between the seller and the buyer.
Price indices– relative indicators that reflect price dynamics, but do not give an idea of their level.
When preparing transactions to determine the current price, it is necessary to analyze the prices prevailing in at the moment in the market for a specific product.
Comparative and calculation methods are used to analyze prices.
The comparative method involves the following operations:
Analysis of stock quotes;
Analysis of auction prices;
Analysis of reference and list prices.
The calculation method includes two directions of analysis:
Unit cost method;
Approximate calculation method.
The use of the comparative method is possible if there is sufficient price information that allows one to make a reasonable conclusion about the price level at the time of conclusion and execution of the transaction.
The calculation method is used when there is a lack of information and consists of calculating the possible price level using special formulas, taking into account prices for similar products, production costs and other indicators.
Most simple method price analysis is studying the level of stock quotes and their dynamics for a certain period (to identify trends for the future).
Exchange quotations are used not only to check the prices of exchange-traded goods, but also to evaluate finished products produced from exchange-traded goods.
For this, the formula is used:
X = Ci(Pi –K)/100 – Sp
Where X is the determined price;
Ci – Average price of 1 ton of pure product on the London Stock Exchange for a certain period (from 6 months to 1 year);
Pi – Percentage of metal, etc. in ore;
K – loss coefficient;
Sp is the cost of processing one ton of raw materials into pure material.
Task: The exporter offered zinc concentrate with a zinc content of 69% at a price of 120 US dollars per 1 ton. At the same time, the loss rate is 9%, the cost of processing is $60, the London Exchange price for 1 ton of pure zinc is $250. Determine the reasonableness of the asking price.
250(69 – 9)/100 -60 = $90.
The calculation shows that the proposed price is too high.
By auction goods reference material is information on prices at relevant auctions
If the product is not sold in special markets, then as a method of price analysis in preparation for transactions, reference prices.
When analyzing prices according to list prices you need to have information about the relationship between the level of list prices and the level actually fixed in contracts for real transactions.
Of the calculation methods, the most commonly used methods are unit cost And approximate costing.
Unit cost – the cost of a technical and economic unit of a product: unit of weight, power, etc. The indicator is very approximate and cannot be based only on it. It can only serve as a preliminary comparison of prices, mainly for equipment that has similar comparative characteristics.
Approximate costing method– this is the determination of the cost of a product by summing the costs of its individual elements (materials, salary, etc.) at the world average cost.
Depending on the subject of the transaction, there are:
transactions for the purchase and sale of goods;
transactions for the purchase and sale of services;
transactions for the purchase and sale of intellectual property.
The classification of foreign trade transactions can also be carried out depending on the distribution channels and the nature of the relationship between them. In this case, a distinction is made between direct transactions (between producers and consumers of goods and services) and indirect transactions (i.e., with the participation of a third party - an intermediary).
Transactions for the purchase and sale of goods
According to a transaction for the purchase and sale of goods, the seller undertakes to transfer the goods into the ownership of the buyer within the specified time frame and under certain conditions, and the buyer undertakes to accept the goods and pay the agreed amount of money for it. Transactions for the purchase and sale of goods may be present as the main element in other types of cooperation. The main types of operations in the trade of goods are export and import operations.
At the same time, export operations imply activities related to the sale and export of goods abroad for their transfer into ownership of a foreign counterparty, and import operations are activities related to the purchase and introduction of foreign goods for their subsequent sale in the domestic market of their country.
Types of export:
- 1. export of goods produced in a given country;
- 2. export of goods and semi-finished products for processing abroad under customs control with appropriate refund;
- 3. re-export;
- 4. temporary export abroad national goods(exhibitions, fairs, auctions) with subsequent return or export of previously imported foreign goods (exhibitions, fairs, auctions)
- 5. export of products through direct production links (in mechanical engineering), as well as deliveries within TNCs.
Types of import:
- 1. import of goods and technologies from abroad for sale in the importer’s domestic market;
- 2. import of raw materials, semi-finished products for processing in a given country and subsequent export abroad;
- 3. re-import;
- 4. temporary import of goods (exhibitions, fairs, auctions);
- 5. import of products within TNCs.
Export deliveries are accounted for in FOB prices; accounting for import supplies - in CIF prices.
Re-export is the export abroad of goods previously purchased on another market; most often it occurs as part of a more complex operation or is carried out to make a profit on the difference in prices. In the first case, it is more often used when implementing large projects, for example, during the construction of facilities using foreign companies. If the cost of an additional operation for processing a product exceeds 50% of the export price, then the product is no longer considered re-exported, and operations for its sale are converted into export ones.
Re-import operations are associated with the import from abroad of previously exported domestic goods that have not been processed there.
Goods are objects of commodity exchange transactions that involve the exchange of various goods between the parties to the transaction.
Barter transactions or counter transactions are divided into barter or non-currency transactions, trade-compensation and industrial-compensation transactions.
Barter and compensation transactions on a non-currency basis involve payment for supplies in commodity form, when the sale of one or more goods is simultaneously linked to the purchase of another product and settlements in cash are not made. Such transactions vary in terms of the duration and nature of deliveries and can be carried out at a time or with a long execution period.
Compensation transactions on a commercial basis involve counter-delivery of goods within deadline based either on the purchase and sale contract alone, or on the purchase and sale contract and the counterpurchase or advance purchase agreements attached thereto. These transactions have an agreed mechanism for financial settlements in the presence of commodity and financial flows in each direction.
Compensation transactions based on industrial cooperation agreements assume that the supply of industrial equipment will be paid for with counter deliveries of goods produced using the purchased equipment. There are several types of such transactions.
Transactions for the purchase and sale of services
IN modern conditions Transactions for the purchase and sale of services are in most cases independent operations, separate from transactions for the purchase and sale of goods.
There are two main groups of transactions for the purchase and sale of services:
1. main transactions:
transactions for the provision of production, technical or engineering services;
rental transactions, including leasing (financial or operational), tourism services;
deals on consulting services in the field of information and management improvement.
2. transactions servicing the movement of trade turnover:
international cargo transportation;
transport and forwarding services;
cargo storage services;
cargo insurance and international payment services.
1) essence and classification of services, state of the global services market
Service– this is an activity aimed at meeting the needs of other individuals or organizations on the basis of contractual relations between the producer and the consumer of services.
A service, unlike a product, cannot be accumulated. The service is always directly related to production.
International trade in services- This is a form of world economic relations for the exchange of services between sellers and buyers of different countries.
12 groups of services. More than 160 types of services.
The International Monetary Fund (IMF) classifies services as follows(in accordance with the instructions for compiling the balance of payments):
1) transport:
Passenger
Cargo
2) trips:
3) communication services:
Postal
Courier
Telephone
4) construction
5) insurance
8) royalties and license fees
9) other business services:
· - intermediary services
· - search for partners
· -market research
· -leasing
10) personal, cultural and recreational (organization of recreation and leisure) services
11) government services:
· -supply of goods to governments and so on
For statistical accounting in the Republic of Belarus, services are classified as follows:
2) trips (tourist only)
3) communication services
4) construction services
5) insurance services
6) financial services
7) computer and information services
8) other business services
Features of international trade in services:
· Services are regulated not at the border, but within the country.
· Services are not subject to storage and are provided through direct contacts between the manufacturer and the consumer.
· Not all types of services can be subject to international trade.
· Production and sale of services have greater government protection.
The General Agreement on Trade in Services GATS highlights 4 ways of international trade in services:
1) Cross-border trade. It means the supply of a service to a foreign consumer from the territory of one country to the territory of another country.
2) Consumption abroad. That is, the buyer moves to the country where the service is produced.
3) Trade (commercial) presence. This is the provision of services abroad in host countries through the creation of commercial structures.
4) Presence individuals providing the service. In this case, the service lies directly in the activities of people who come from the country exporting the service to the buyer.
Geographical distribution of services. 75% of the volume of services is exported developed countries. 24% of the volume of services comes from developing countries and countries with economies in transition. 1% comes from international organizations. The leading region is western Europe, its share is 45%, followed by Asia 26%, North America– 14.9%, and the US share is about 12% of trade in services. In terms of countries, the US leads, followed by Germany and the UK.
The share of CIS countries is 2.7%. The leader is Russia – 62.3% among the CIS countries.
The share of highly developed countries in international trade in services is gradually decreasing, while volume growth in China and Singapore is increasing.
India occupies a leading position in IT services.
The share of exports of tourism services is gradually decreasing by about 2% per year. Commercial services are actively growing. The greatest growth comes from financial services, up 16% over the year. In general, the growth of computer and information services is 13% per year. Cultural services are growing by 12% per year.
2) regulation of international trade in services
In world practice, 3 are used groups of measures to regulate transactions in the service sector:
1)National legislation establishing certain modes of activity for foreign companies.
National legislations use 2 groups of methods:
Measures to regulate market access. These include restrictions on trade in services, the introduction of quantitative quotas on the import of foreign services, restrictions on the creation of branches of foreign companies providing services in the domestic market, and restrictions on the movement of service providers.
Withdrawal from national regime. This includes providing price advantages to local service providers and providing foreign producers with less favorable conditions than local producers.
2)Bilateral agreements between countries.
Agreements are: sectoral and trade-economic. Sectoral ones concern individual sectors of the service sector. They establish the conditions for foreign trade exchange of services on the territory of both countries and the conditions for the activities of foreign companies in domestic markets.
3)Conventions and decisions of international organizations.
Regulation can be carried out within the framework of specialized international organizations, for example, the world tourism organization. Regulation can be carried out within integration associations of states. GATS provides for 3 types of agreements:
- framework agreements defining general principles and rules for regulating trade services
· -special agreements relating to certain service sectors
· -list of obligations of national governments to eliminate restrictions on trade in services
3) types of services in international trade
4) foreign trade in services in the Republic of Belarus (independently)