Functions of the direct method in international trade. Classical forms of foreign trade transactions. Services of the class "international tourism"
The method of international trade is a way of carrying out trade exchange ( commodity operation or trade transaction) between its participants, who are residents of both different countries (direct method) and one (indirect and cooperative methods) country. Usually in international trade practice, the classical basis of which is export and import, two methods of trade are distinguished, however, we propose to consider six methods: direct, indirect, cooperative, counter, institutional, electronic.
The first two methods are called the main (classical) trading methods:
- 1) direct export (import) - the conclusion of an international trade transaction directly between the manufacturer/seller and the buyer/consumer/user;
- 2) indirect export (import) - making an international trade transaction through an intermediary.
Realities of modern international business talk about the need for another method, which, originating in the field of small and medium-sized businesses, can be said to occupy a middle position between the classical ones:
3 ) cooperative export (import) - the completion of an international trade transaction through a special intermediary - some organizational form a business created by a group of initiators of this transaction, the completion of which by each individual participant of the specified group seems impossible, too risky and / or economically inefficient.
The isolation of these three methods is due to the degree of involvement in the direct execution of export-import operations or how these main operations are carried out - on their own, by an intermediary, or by the combined efforts of interested parties, and to highlight next method another sign is used:
4) counter method, distinguished due to the peculiarities of the preparation, maintenance and completion of such international commercial transactions that are paid in (hard) currency or only partly covered by currency, i.e. differs markedly and stands apart in the way and procedure for the implementation of international transactions.
The history of international (and domestic) trade has proven the viability of the following method:
5) institutional-competitive, which involves the conduct of operations through special institutions - international auctions, exchanges and bidding, and is so named because the listed institutions have a unifying function of establishing the quality and price of goods sold through them based on the ratio of supply and demand and the assessments of the participants buyers.
In the last decade of the XX century. developed the following method:
6) electronic commerce (e-commerce), which became possible when such a main resource and a sufficient condition for globalization as global communication systems, the information part of which was realized in the creation of the World Wide Web - the Internet, matures and undergoes qualitative changes.
E-commerce as an immanently international or global trade can exist not in theory, but in practice if and only if its virtual environment corresponds to the real infrastructure and logistics environment. In other words, the effective and efficient execution of virtual transactions (conclusion of a contract and payment, ensuring the title transfer of ownership) is possible only if there is a real world adequately to the reciprocal part of these transactions (i.e., when the goods are physically delivered from the seller to the buyer). If the virtual space of international trade is boundless by definition, then the real space is limited by the levels of socio-economic development of those countries (regions, districts, cities), whose physical residents are sellers and buyers.
Forms of international trade as diverse as the content of international trade as a whole, since form is a way of existence and expression of content (in this case, the content of a commercial transaction). An international transaction is considered as an object, and its content depends not only on the will of the parties to the transaction and the subject of this transaction. Since everything economic systems are interconnected with each other, largely realized through international trade, then the acts of international trade always affect the national or cosmopolitan interests of various forces (for example, small, medium and big business, governments, political parties and movements). The participants in the transaction must always take into account these interests, the political expression of which informally or legitimately takes the form of certain restrictions imposed on the transaction.
For a better understanding of the relationship between the main methods and forms of international trade in Fig. 4.1 shows a diagram linking the objects of traditional international trade and converted forms of international commercial transactions. This scheme does not reflect combinations of other forms and methods of international commercial transactions, the isolation of which is caused by the methods / means of payment and procedures for conducting transactions, i.e. Counter and electronic trade, as well as converted international commercial transactions other than export-import (traditional) are excluded.
By international commercial transactions we mean the whole range of commercial exchanges (outside of export/import) - from forms of permanent international transfer of production/marketing knowledge and production/marketing activities to a similar temporary transfer (for example, in the form leaseback or management contract).
Rice. 4.1. Relationship of types of international trade objects with three traditional methods of their implementation
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The trading style for each trader is unique. The trading style of a trader on the stock exchange depends on his initial money management experience and the meaning of money in his life.
There are many trading styles, but this does not mean that traders are unable to go against their natural preferences, nor does it mean that choosing one trading style over another does not allow one to change it.
There are many ways to characterize trading style. Some people define it by the markets they trade or the currencies and commodities they trade. Others use a fundamental or technical division, others characterize it with trading types like spreads or options. The following are the different styles and methods of trading:
scalping method
Trading on impulses
technical method
Trading on the intermarket spread
Arbitrage trading
scalping method
The scalping method consists of buying and selling a market instrument many times during the day with a small surplus that adds up to a huge profit. This method is not based on random profits, at the same time the possibility of losses is much less, so it is a fairly safe method.
Traders scalping increase profits on small movements and trade by analyzing one to five minute intraday charts, with position durations of several minutes, and very small profits per trade. Open positions never roll over to another day.
Trading on impulses
The basic idea behind momentum trading is that an uptrend will continue to rise and a downtrend will continue to fall. Momentum trading requires some of the most general analytical skills.
The basic principle is that you will not buy a stock at the low, but sell at the high. If you don't buy an instrument until you see it start to go up, then you missed the opportunity to buy it at the very bottom. Similarly, if you don't sell an instrument until you see it go down, then you've missed your opportunity to sell it at the very top.
The main technical indicators are dynamic indicators that accumulate the net change in the instrument's closing prices from a series of specific time periods. The impulse line is drawn as a tandem line to the price chart and shows the zero axis. Positive values indicate a supported upward movement, and negative values show a potentially supported downward movement. The ascending or descending direction of the indicator indicates the “strong movement” of the instrument.
When a trader is sure that he has identified a strong movement in a market instrument, he makes a deal. Missing the first one or two ticks of the move doesn't matter as long as he is ready to buy (or sell) during one of the next momentum periods.
Momentum trading is also fraught with dangers that can easily destroy even a well-disciplined and knowledgeable trader. With a proper understanding of the technique, sufficient knowledge of the risks, and a willingness to accept the occasional loss, momentum trading can be attractive to aggressive traders who like to teeter on the edge.
technical method
The technical method applies to all market instruments and is aimed at making quick profits. Technical traders evaluate the history of a company (in the case of stocks), analyze charts and price movements, evaluate trading patterns in the past and on this basis predict what may happen in the future and can even trade volume over a period of time.
The technical method involves studying price action and trading volumes to identify head and shoulder patterns and other formations. Other indicators include support and resistance levels, moving averages, etc.
The main disadvantages of the technical method
The main disadvantages of this trading method are:
- Too much dependence on the past behavior of a market instrument.
- Lots of technical indicators. There is no perfect indicator for every market instrument.
Trading on the intermarket spread
Trading on the intermarket spread consists of a long position on one market instrument and a short position on another instrument, which are closely related to each other. The logic of working on the intermarket spread is that buying and selling two different instruments effectively uses the correlation between them. Trading on the intermarket spread is considered very difficult, as it requires transactions on different exchanges. It is mainly used for commodity futures contracts.
Arbitrage trading
Also known as "risk-free profit", the arbitrage trading system is done through the simultaneous buying and selling of a market instrument in order to profit from a price differential. This trading system usually used on different exchanges or trading floors. An investor can earn on the difference in prices of a market instrument on two different exchanges due to exchange rate fluctuations.
Another way to trade on arbitrage is that the investor wants to sell a market instrument at a certain price. He places a sell order at that price and simultaneously places a buy order at a higher price. As a result, other investors may then buy the instrument at the first price, tempted by the higher price offered in the second order. As soon as the first sell order is filled, the investor cancels his second buy order. Thus, he not only gets rid of his illiquid asset, but also makes good money on it.
Arbitrage trading is usually practiced by large institutional investors with multi-million dollar assets. Arbitrage trading is most effective in low-liquid markets.
Basic methods of international trade.
Method- this is a way to carry out a trade exchange (trade operation or trade transaction) between its participants, who are residents of both different (direct method) and one (indirect and cooperative methods) countries. Despite the fact that two basic methods of trading are usually distinguished in international trading practice, six methods are usually considered.
Direct export (import)- making an international trade transaction directly between a producer/seller and a buyer/consumer/user. Its advantages: 1.reduces production costs; 2. reduces the risk and dependence of the results of activities on the possible dishonesty and incompetence of intermediaries; 3. allows the manufacturing company to constantly be in the foreign market, take into account its changes and respond in a timely manner.
Indirect export (import)- making an international trade transaction through an intermediary. Its advantages: 1. the intermediary has a higher commercial qualification; 2. It is not essential to concentrate financial and intellectual resources at the first stage of entering a foreign market.
At the same time, taking into account the reality of modern international business, one more method is added, third, which, having originated in the field of small and medium-sized businesses, occupies a middle position between the first two (classical).
Cooperative export (import)- the completion of an international trade transaction through a special intermediary, which is a certain organizational form of business created by a group of initiators of this transaction, the completion of which by each individual member of this group seems impossible, too risky and / or economically inefficient.
Counter trade- stands out as a method due to the peculiarities of the preparation, support and completion of such international commercial transactions, the payment for which is carried out without the use of (hard) currency or is only partially covered by the currency, i.e., it differs markedly and is isolated by the method and procedure for the implementation of international transactions.
International auctions, exchanges and trades- involve the conduct of trade operations through special institutions. Given the fact that all of the listed institutions have a unifying function of establishing the quality and price of the goods sold through them, based on the ratio of supply and demand and the assessments of the buyers, some authors propose to call this method institutional competitive.
The sixth method was developed only in the last decade of the 20th century, when such a main resource, or a sufficient condition for globalization, as global communication systems, the information part of which was realized in the creation of the World Wide Web - the Internet, matures and undergoes qualitative changes. This - electronic commerce, or e-commerce.
Basic methods of international trade. - concept and types. Classification and features of the category "Basic methods of international trade." 2017, 2018.
By trading methods foreign trade operations subdivided into:
Indirect;
Competitive transactions.
Indirect trading methods include the following types of trading through intermediaries:
commission transactions;
Trading firms and houses;
agency operations;
Brokerage.
Transactions of an adversarial nature according to the conclusion technique provide for the following procedures:
Commodity exchanges;
Auctions;
International competitive bidding (tenders).
Direct trading method (direct selling method) involves the establishment of direct, direct links between the producer and consumer of goods (or services), bypassing any intermediary links. In this case, the exporter himself finds a market for his product and enters it directly, without intermediaries. As a rule, this happens in cases where the number of consumers and suppliers is limited, and the demand for goods is not massive.
In international practice, the direct sales method is used:
During the construction of a large industrial facility, when contractors are known and the customer himself is able to establish contact with one of them;
Implementation industrial cooperation between two or more enterprises for joint release finished products;
Sale of industrial raw materials in large quantities on the basis of long-term contracts (supply of wool, oil, gas, etc.);
Purchases of large lots of agricultural raw materials directly from manufacturing companies;
Sale of standard large-scale equipment through its own distribution network (export sales services directly at enterprises, as well as branches, subsidiaries in the buyer's country).
Advantages direct method trade:
Closer ties with foreign consumers, direct contact with which contributes to a better mutual understanding in matters related to the substance of the transaction;
Possibility of better and faster market research, and consequently, the ability to quickly adapt production to changing conditions.
Indirect trading methods. The indirect method of selling involves the implementation commercial activities through an intermediary. It applies in cases where:
The product is in mass demand, i.e. there are many consumers and the manufacturer is not able to reach the optimal buyer on his own;
The product is at the final stage of its life cycle and the assistance of a national facilitator is needed for its implementation;
The market for this product is characterized by serious foreign trade restrictions or national peculiarities, and it is also not possible to enter it without national intermediary firms.
Advantages of the indirect trading method:
The possibility of selling goods in more short time and for more favorable conditions than the manufacturer of the goods himself could do;
Obtaining through a local intermediary the necessary information about the state and prospects of the market;
Organization of after-sales Maintenance goods at a higher quality and operational level (for the same reasons);
Obtaining additional benefits and increasing the competitiveness of the goods sold by attracting funds and knowledge of the intermediary.
Disadvantages of the indirect method:
Gap feedback between the producer and the consumer due to the presence of an intermediary;
Strong dependence of the image of the seller in the sales market on the behavior of the intermediary.
Trading and intermediary firms act in order to make profit, the sources of which may be:
Remuneration for the services provided for the promotion of goods on foreign markets (a fixed amount of remuneration, commissions, accrual of interest on export prices, reimbursement of expenses based on supporting documents and other types);
Margin is the difference between the prices at which goods are purchased from exporters and the prices at which these goods are sold to buyers.
Depending on the nature of the legal relationship between the principal (exporter or importer) and the reseller in the indirect method of trade, several system-forming factors classification of trade and intermediary operations:
On whose behalf the intermediary acts (on its own behalf or on behalf of the principal), i.e. for whom, as a result of the intermediary's operations, legal consequences arise: for him or for the principal served by him;
For whose account the intermediary operates (at its own expense or at the expense of the principal), that is, on whose account the expenses or income arising from the operations of the intermediary are attributed: to the account of the intermediary itself or to the account of the principal served by him.
Classifying trade and intermediary operations in terms of these system-forming factors, the following are distinguished: kinds:
The mediator acts on his own behalf, but at someone else's expense - commission transactions performed by commission firms;
The intermediary acts on his own behalf and at his own expense - dealer operations or resale operations performed by trading (dealer) firms - sales intermediaries;
The intermediary acts on someone else's behalf and at someone else's expense - agency operations performed by sales agents;
The intermediary acts neither on his own nor on behalf of others, neither at his own expense, nor at the expense of others - brokerage performed by brokerage firms - simple intermediaries.
Commission transactions. Commission transactions are carried out by commission export and import firms under a commission (consignment) agreement. By the nature of the relationship with the represented party, commission export firms may act as a seller's representative, a buyer's representative, or a confirmation house (a commission export firm that assumes the risk of loans presented to buyers on behalf of the exporting manufacturer).
Parties in a commission transaction are the committent and the commission agent. The commission agent does not buy goods, but only makes transactions at his expense. Thus, the commission agent is an intermediary only on the part of the committent. For a third person with whom a transaction is concluded on behalf of the committent, the commission agent is a party to the contract of sale.
The commission agreement usually stipulates the procedure for determining the price at which the commission agent sells the goods of the consignor (minimum and maximum), the powers and functions of the parties, as well as the obligations of the commission agents to provide a number of additional services associated, for example, with marketing research, providing economic information, holding joint promotions, maintenance organization, etc.
Since the commission agents are responsible for the safety of the goods of the committent at their disposal, they must insure the goods in favor of the committent. The commission agent is not responsible for the fulfillment by the committent of payment obligations (except in cases where such liability is provided for in commission agreements).
The commission agent receives a commission for his intermediary services. In the practice of industrialized countries, it ranges from 3.5 to 10%.
A type of commission agreement is an agreement consignments. Under this agreement, suppliers (consignees) deliver goods to the warehouses of intermediaries (consignees), who sell them to buyers.
Consignment agreements establish the terms for the sale of goods, after which the unsold goods are returned to the consignees or redeemed by the consignees.
Distinctive feature consignment is that the goods are sold at prices that are set by the consignees.
The consignment agreement is not specifically regulated by Russian civil law, therefore, the rules of the commission agreement apply to such legal relations.
Dealer operations. Dealer operations are carried out by numerous sales intermediaries - trading companies under a distribution agreement. Such firms include trading houses (large firms, often conglomerate-type TNCs, which include, in addition to a powerful foreign trade company, manufacturing, banking, insurance, transport, retail and wholesale and other firms), export-import companies, retail and wholesale trade, distributors, stockists (a company in the importing country that carries out export-import operations on the basis of a consignment agreement, has its own warehouses, buys and sells goods on its own behalf and at its own expense).
Trade firms and houses are engaged in resale of goods: they buy or sell goods on their own behalf and at their own expense. Trading firms or houses become owners of goods for a time and have the right to sell them as they wish: at any time, in any market and at any price.
Another option for establishing contractual relations with agents that promote the promotion of the exporter's goods to foreign markets is distribution agreement(Distributorship Agreement) - a sales agreement or a distribution agreement. Under such an agreement, the exporter (manufacturer) grants the distributor (agent, importer) an exclusive (exclusive), monopoly or priority right to place and sell the agreed goods (contractual goods) in a certain territory (contractual territory), and the distributor (agent, importer) accepts an obligation to purchase contractual goods exclusively from the exporter with whom the agreement is concluded. When granting an exclusive right to an agent, the principal undertakes not to sell the goods on the territory other than such an agent. If the contract is concluded with a monopoly agent, the principal retains the right to directly sell goods in the contract territory and undertakes not to enter into agreements with other agents or distributors. When given to an agent priority right the principal, first of all, offers the contractual goods in the contractual territory to the distributor with whom such an agreement has been concluded; if for some reason this distributor does not undertake the sale and placement of such goods, the principal may independently offer them to buyers in the contractual territory.
A distribution agreement is intended for the relationship of the parties in international commercial relations, when distributors act as buyers - wholesalers and importers - and organize the placement of goods on the contractual territory (this is their difference from dealers who sell goods at the level retail). The exporter and the distributor act as parties under the distribution agreement and independent contracts for the international sale of goods concluded in its execution.
Distributor is an economically and legally independent agent who buys goods for resale on his own behalf and at his own expense, is able to freely build his relationships with domestic consumers, establish a sales network in cooperation with many exporters, organize pre-sales advertising and after-sales service at the lowest cost, and form profit from the difference in purchase and resale prices. In this regard, the distributor only indirectly mediates between the exporter and consumers, acting in the economic interests of the exporter to promote the product to the market.
Despite its wide distribution, the distribution agreement is not specifically regulated by either Russian civil law or the laws of most other countries. The rules aimed at protecting the distributor are contained in the legislation of Belgium, Lebanon, a number of countries in Central America and the Middle East. For example, in Saudi Arabia, Jordan, Yemen and some other countries in the Middle East, this type of activity is allowed only to citizens of these countries, in other words, without a local agent, market penetration is impossible. In some countries, distributor protection is provided judicial practice by applying to them, by analogy, the rules of an agency agreement, according to which the distributor acts in the status of a commercial agent. However, we have to admit that there are no uniform rules for agreements of this type, therefore, in order to regulate the relationship between the parties to the relevant contractual relations, the recommendations of the International Chamber of Commerce (ICC) for standard distribution contracts are important.
The ICC Guidelines for Drafting International Distribution Agreements highlight the following: specific traits of this agreement:
As a reseller, the distributor carries out the promotion or organization of sales in the territory assigned to him;
The manufacturer loses a privileged position in the territory of the distributor, who is often given the exclusive right to sell;
Relationships are established for an agreed period; this is the basis of cooperation, which cannot be episodic;
In the course of such relations, close trusting ties develop between the parties. The sale of finished products is usually accompanied by restrictions on the freedom of action of the distributor, in particular the obligation to refrain from competition;
Almost always, the distributor sells goods under the appropriate trademarks, trade names and other designations, using instructions for use, catalogs, price lists and other materials.
A typical distribution contract highlights the need for annual sales agreement and a guaranteed minimum sales for the coming year, and recommends that the consequences of not achieving such sales in the relevant year be considered.
It is expedient to provide for provisions regarding the possibility of appointing sub-distributors or dealers in the contract area.
Agency Operations. Under an agency agreement (agency agreement), one party (agent) undertakes, for a fee, to perform legal and other actions on behalf of the other party (principal) on its own behalf, but at the expense of the principal or on behalf and at the expense of the principal.
In a transaction made by an agent with a third party on its own behalf and at the expense of the principal, the agent acquires rights and becomes obligated, even if the principal was named in the transaction or entered into direct relations with the third party to execute the transaction. In a transaction made by an agent with a third party on behalf and at the expense of the principal, the rights and obligations arise directly from the principal (clause 1, article 1005 of the Civil Code of the Russian Federation).
Agency is a combination of agency and commission agreements. From the meaning of Art. 1011 of the Civil Code of the Russian Federation, which expressly states that the rules stipulated by Ch. 49 "Order" or Ch. 51 "Commission", it follows that the agency agreement is designed to combine and expand the possibilities of commission and commission agreements.
Differences between contracts of agency, commission and agency is as follows:
Firstly, the attorney under the agency agreement acts only on behalf of the other party (principal), the commission agent - only on his own behalf, and the agent can act both on behalf of the principal and on his own behalf.
Secondly, the agency agreement covers a wider range of relations than agency and commission agreements. If the commission agent concludes only transactions, the attorney can perform other legal actions, then the agent is also entitled to perform actions of an actual nature (actions that do not create legal relations between the principal and third parties). For example, an agent may advertising campaigns, inform the principal about the situation commodity markets etc.
Thirdly, relations under an agency agreement are usually of a continuing nature and may be limited to the contractual territory.
A type of agency agreement is an agreement commercial concession or franchising. Under this agreement, one party (right holder) undertakes to provide the other party (user) for a fee for a period or without specifying a period, the right to use in entrepreneurial activity user a set of exclusive rights belonging to the copyright holder, including the right to trademark, service mark, as well as the rights to other objects of exclusive rights provided for by the agreement, in particular, to a commercial designation, a secret of production (know-how) (clause 1 of article 1027 of the Civil Code of the Russian Federation).
The subject of this agreement is the use of a set of exclusive rights, business reputation and commercial experience of the right holder in the agreed scope, with or without indication of the contractual territory. Remuneration under a commercial concession agreement can be paid by the user to the right holder in the form of fixed one-time or periodic payments, deductions from revenue, margins on wholesale price goods transferred by the right holder for resale, or in any other form, stipulated by the agreement(Article 1030 of the Civil Code of the Russian Federation).
Brokerage- this is the establishment through an intermediary - a broker ( broker- this is a person who facilitates the sale or purchase of goods, but is not considered a party to the contract either from the position of the seller or from the position of the buyer) of contact between the seller and the buyer.
The role of the broker is to bring together the parties who assume obligations under the transaction concluded with the participation of the broker. Unlike an agent, a broker is not a representative of anyone and is not in a contractual relationship with any of the parties. It operates on the basis of individual orders. He is given the authority to select a counterparty for each specific transaction, and he is obliged to strictly follow the client's instructions on the quantity, quality and price of the goods.
Commodity exchanges. A commodity exchange is the most developed form of a regularly functioning wholesale market for goods sold according to standards and samples. In essence, commodity exchanges are commercial intermediaries that do not themselves participate in transactions, but facilitate their conclusion.
The following can be distinguished main functions commodity exchange:
Provision of intermediary services for the conclusion of trade transactions and organization of tenders (selection of qualified personnel drawing up a trading plan);
Preparation of exchange contracts;
Streamlining wholesale trade, regulation of trade operations and placement of trade disputes, i.e. exchange arbitration;
Information function: collection and publication of information about prices and factors that affect prices (state of production, yield forecasts, expected agreements between countries in economic sphere);
Pricing: by comparing supply and demand;
Price quotation - a method of registering exchange prices according to exchange rules with their subsequent publication;
Hedging is risk insurance against possible price changes.
Exchanges can be:
Universal, in which operations are carried out on a wide range of heterogeneous goods;
Specialized, on which transactions are made for a particular product.
Commodities are traditionally:
Non-ferrous metals;
Raw and manufactured goods of agricultural origin, such as grain, coffee, sugar, cotton, natural rubber, natural silk, etc.
According to the field of activity and role in world trade, exchanges are divided into:
International;
National.
International exchanges serve specific global trading markets, representatives of business circles of different countries participate in exchange operations. The international nature of the exchanges is ensured by the appropriate currency, trade and tax regime of the countries where they are located.
Transactions are concluded on the basis of standard exchange contracts that strictly regulate the quality and delivery time. The seller on the exchange sells to the buyer not a product, but a document confirming the ownership of the product. Such a document is warehouse certificate (warrant), certifying the delivery by the seller of the goods to the exchange warehouse. Against such a document, the buyer can receive the goods from the exchange warehouse.
The peculiarity of exchange transactions is that here transactions are concluded for standard lots of goods that have certain qualities for each type and variety. This makes it possible to make transactions on the stock exchange not only without examining the goods, but also for goods that do not currently exist.
In this regard, there are:
Exchange transactions for real goods;
Futures (futures).
Transactions for real goods can be:
With immediate delivery ("cash" or "spot"). In this case, the goods are in the warehouse of the exchange and are transferred to the buyer within 1 to 15 days after the conclusion of the transaction;
For a real product with delivery in the future. Such transactions are called transactions for a period (forward). In a forward transaction, the goods are delivered within the time specified in the contract and at a price fixed on the day the contract is concluded.
Forward (future) transactions do not provide for obligations to deliver or accept real goods, but only involve the purchase and sale of rights to goods. A futures contract cannot simply be canceled (liquidated); if it is concluded, then it can be liquidated:
Or by concluding an opposite transaction for an equal amount of goods;
Or delivery of the stipulated goods within the period stipulated in the contract.
In urgent transactions, the buyer does not expect to receive the purchased material assets. The result of such transactions is not the transfer of real goods, but the payment or receipt of the difference between the price of the contract on the day of its conclusion and the price on the day of execution.
The conclusion of a transaction on the exchange, their participants can pursue the following goals:
Buying and selling real goods;
Carrying out speculative operations;
Hedging.
Transactions for the purchase and sale of real goods are committed by producers in order to sell the goods they produce, by consumers in order to provide themselves with the necessary goods (mainly raw materials for further processing), by merchants in order to further resell the goods to consumers. These transactions are carried out both for cash goods and for a period.
Speculative transactions are made on the exchange in order to receive profit from the sale and purchase of exchange contracts, which may arise for one of the parties (seller or buyer) as a result of the difference between the price of the exchange contract on the day of its conclusion and the price on the day of its execution, with a favorable change for one of the parties prices.
The following can be distinguished methods of speculative stock trading:
A game to raise or lower prices in the future. In this case, contracts are bought with the aim of selling them later at a higher price or sold in anticipation of a subsequent price decrease. Such operations are carried out both with real goods and with futures contracts. Speculative transactions in futures contracts are more widespread. Speculators who play on the derivatives exchange for an increase are called "bulls", for a fall - "bears".
Playing on the difference in prices (for cash goods and for a period in transactions with real goods). In this situation, two cases are possible:
- in the first case, prices in the real market are higher than in the forward market (situation " backwardation"). A similar situation occurs when there is a reduction in the supply of a commodity, a decrease in the flow of goods to the exchange warehouse (i.e. goods are in short supply), and buyers need the goods for current production and are willing to pay a higher price in order to receive goods with immediate shipment. Then, as a result of an increase in demand for a cash commodity over supply, the price rises. The situation of "backwardation" also occurs when producers refrain from supplying goods or buy goods on the exchange in order to increase prices. In a "backwardation" situation, the seller who has the goods in stock, which he sells for immediate delivery, wins. At the same time, he buys the same number of contracts for a period (for example, with delivery in 2 months);
- in the second case, prices in the real market are lower than in the forward market (situation " contango" or " forwardation"). This is a situation where the supply of stock goods in the warehouses of the exchange increases, and the overhead costs in connection with its storage are high. Then the seller seeks to sell the goods and puts pressure on the price level for the cash goods. It is also possible to increase prices for delivery on time in cases where there is reason to believe that supplies will decrease in the future. In such a situation, speculators buy a cash commodity and sell it on the date if the difference in prices is greater than the cost of overhead.
Usually futures transactions are used for hedging, i.e. to insure financial risks against possible losses in case of changes in market prices when concluding transactions for real goods.
The essence of this operation is that the company, selling a real product on the exchange or outside it with delivery in the future, wishing to use the price level that exists at the time of the transaction, simultaneously performs a reverse operation on the futures exchange, i.e., buys futures contracts for that the same period and for the same quantity of goods. After the delivery (or acceptance) of the goods under a transaction with a real product, the sale or redemption of futures contracts is carried out.
The principle of insurance here is based on the fact that if in a transaction one party loses as a seller of real goods, then it wins as a buyer of futures for the same amount of goods, and vice versa. Therefore, the buyer of the real good hedges with a sell, and the seller of the real good hedges with a buy.
auction trading. Auctions are a turn-based sale based on a competition of buyers of a real product with strictly individual properties.
International commodity auctions- these are specially organized, periodically operating in certain places markets, in which, through public auctions at a predetermined time and in a specially designated place, goods previously inspected by the buyer are sold, passing into the ownership of the buyer who offered the highest price.
Auctions are held at fixed or pre-designated locations at traditional or pre-designated times. Auction trade is used to sell a relatively limited list of goods, mainly of animal and vegetable origin (furs, furs, tea, tobacco, wool, spices, etc.).
Auction trade is convenient for suppliers and buyers because it reduces distribution costs and ensures the sale of goods at prices close to world prices, as it concentrates large masses of goods and attracts many competing buyers.
International auctions operate, as a rule, in large shopping malls and ports, in particular in London, New York, Amsterdam.
The procedure for conducting auctions includes four stages:
Auction preparation;
Inspection of goods;
Auction trade;
Registration and execution of the auction transaction.
Auction preparation starts 2-3 months before the upcoming auction and includes the following:
The owner, who wants to sell his goods at auction, delivers it to the warehouse of the auction company;
Specialists of the auction commission carry out the necessary sorting and selection of goods according to possibly homogeneous qualitative characteristics;
The sorted goods are divided into batches, which are called lots;
Each lot is assigned a number, under which it is entered in the catalog of this auction, indicating the type and number of units of goods in this lot. Several lots with the same quality indicators form the so-called thong. A characteristic sample is selected from each lot or string and exhibited in a special hall for inspection.
The catalog contains the date of the opening of the auction and its duration, the place of the auction, the time set for the inspection of goods, the time of the auction, the last day of payment for the purchased goods. Potential buyers are notified about the place and time of the auction, the quantity and range of goods offered at the auction.
Inspection of goods buyers usually starts a week or 10 days before the opening of the auction, is carried out in special rooms where samples of goods selected from each lot are placed. Samples must fully reflect all the features of the goods in the lot they represent. Auction organizers are responsible for this. During the inspection, buyers can purchase samples of the batches they like for additional quality control.
auction opens on a pre-arranged day and hour and is usually held in a special auction room. The auction process is as follows:
The auctioneer announces the number of the next batch of the lot offered for sale and names the initial selling price;
If none of the buyers gives him a sign of their agreement to buy the article, he lowers the price until one of the buyers expresses his desire to buy it;
If one or more buyers give a sign of their desire to buy this lot, the auctioneer raises the price;
If after asking the auctioneer three times “Who is bigger?” there is no new offer to increase the price, then the auction of this lot is over, and it is considered bought by the buyer who offered the highest price;
In case of disagreement, the administration of the auction retains the right to resell any lot;
The auction administration has the right to remove any lot from the auction until it is sold, without explanation;
After the sale of all lots, unsold lots may be put up for sale again.
Pace auction sales is very high and requires maximum attention and quick response from buyers and the auctioneer. On average, it takes less than 50 seconds to sell one lot. In some countries, auctions use exclusively the method of lowering the price. This method is called " dutch auction» (Dutch auction), as it is widely used in this country. Its essence lies in the fact that at first the auctioneer appoints maximum price, which is displayed on the scoreboard installed in the auction room. If none of the buyers expresses a desire to purchase a lot at this price, then the auctioneer begins to reduce the price. The buyer of the goods is the one who first presses the button in front of him, which stops the price change on the scoreboard. After that, the number under which this buyer is registered with the organizers of the auction lights up on the scoreboard. He is considered the buyer of this lot. This method of holding an auction significantly speeds up the pace of the auction and makes it possible to sell up to 600 lots per hour.
Registration and execution of the auction transaction. Payment for the goods sold at auction is usually made in installments: 30-35% is paid upon signing the contract, and the remaining amount - upon receipt of the goods or after shipment, but no later than the deadline. The terms for the export of goods from the auction warehouse depend on the type of goods. Perishable goods (flowers, vegetables, fish) are exported immediately after the execution of the contract, other goods - depending on the conditions of the auction trade.
Depending on the nature of the activity Firms engaged in auction trading can be divided into three groups:
specialized firms;
Brokerage and commission firms;
Auction firms owned by cooperatives or farmers' unions.
Specialized firms are engaged in organizing auctions and selling auction goods at them, both at their own expense and on a commission basis. Firms take over all the functions of preparing and conducting auctions, often they issue loans to sellers against their goods transferred to the auction firm for sale at auction.
Brokerage and commission firms have become widespread in the trade in fur goods, wool, tea, tobacco, etc. Usually they organize auctions and sell goods on a commission basis on behalf of their clients. brokerage firm conducting auctions may act simultaneously as a representative of the seller and the buyer. At the same time, she receives a commission from both the seller and the buyer.
Auction firms owned by cooperatives or unions (associations) of fur farmers, became widespread in the Scandinavian countries. To conduct auctions, firms from different countries unite and organize the sale of their goods at auctions.
International competitive bidding(tenders). International competitive bidding is a method of concluding a contract of sale or contract, in which the buyer announces a tender for sellers for a product with predetermined characteristics. After comparing the received offers, the buyer signs a contract with the seller who offered the goods on more favorable terms.
The buyer, who has decided to place an order through an auction, creates a tender commission. The commission includes technical and commercial experts, as well as representatives of the administration from the side of the buyer. As a rule, the chairman of the tender commission is the head of the buyer's organization.
The task of the competition committee is to:
Spend organizational work for conducting auctions;
Inform potential sellers about the conditions of bidding;
Analyze incoming proposals;
Make an informed decision to place an order.
Bidders by the closing date, which is set by the tender committee, prepare and submit their proposals in an envelope. After the closing of the auction, they do not have the right to change the terms of their offers and, if they receive an order, they must fulfill it in strict accordance with the submitted offers. Most often, through tenders, orders are placed for the supply of machinery and equipment, the implementation of design and survey work for the construction (construction) of various objects.
This method allows you to attract the most qualified suppliers and contractors to the competition and select the best option both financially and technically.
In international practice, the following types of auctions are distinguished:
Vowels;
Unspoken;
open;
Closed.
Vowel bidding- these are such auctions, during which the tender commission opens envelopes with proposals and announces their main conditions in the presence of representatives of firms participating in the auction. The result of public auctions is, as a rule, the publication of information about which company received the order, indicating the volume of the order and the total amount of the signed contract.
Secret auction- this is an auction during which the tender commission does not open the submitted proposals in the presence of bidders and does not publish from the results.
Bidding open(public) - this is an auction in which all interested firms can participate. This usually attracts more participants, intensifies competition, which creates the opportunity to place an order on more favorable terms.
TOPIC 2. INTERNATIONAL TRADE
Place of international trade in the IEO. The world market of goods and services and features of its development in modern conditions. Indicators of the scale, structure, dynamics and performance of international trade. Evolution of theories of international trade.
Types of international trade. Trade in goods and services. Traditional trade, trade in products within the framework of cooperation, counter trade. Trade in scientific and technical products and services.
Methods of international trade. Trade directly and through intermediaries. Exchange trading, international auctions and tenders.
Pricing in international trade. Tariff and non-tariff regulation of international trade and economic relations. World trade Organization(WTO). Ukraine in the world market of goods and services.
The essence of international trade and its role in the system of world economic relations
Foreign trade (BT) is an important and historically the first form of international economic relations. It represents the exchange of goods and services between state-registered national economies. This is the trade of one country with other countries of the world. It consists of import (import) and export (export) of goods. Together, the foreign trade of different countries forms international trade.
international trade services
All areas international cooperation require advanced services, which is a continuation and development of modern production.
The main difference between trade in services and trade in goods is that services do not tend to accumulate. The volume of the services market is approximately 25% of the world commodity circulation, and the growth rate of this sector of the world economy significantly exceeds the growth rate of world commodity circulation. Trade in services also affects employment. national economy to a much greater extent than the commodity market.
The specific features of international trade in services can be defined as follows:
the place of production and consumption of services coincides - the export of services necessarily implies their production abroad;
close connection of the service market with the market of goods, capital and labor;
the degree of concentration in the market of modern services is much greater than in the market of goods;
the national service sector is more strongly protected;
A number of services are practically not included in the international turnover.
international market services consists of: freight services; others transport services; tourism; other services that provide state organizations(banking, insurance, exchange, intermediary, export of technologies, etc.); other services by the private sector.
Tourism and transport services play a major role in international trade in services.
The assessment of a country's development is often reduced to an assessment of the profitability of the service sector. There are countries in which the service sector provides up to 60% of GDP and more. For example, in the USA - 67%, in France - 63%, in Japan - 56%, in England - 56.5%, in Germany - 58%, in Italy - 56%. The financial and credit sphere is the leading one for all developed countries. The movement of capital and its maintenance is always in the first place. According to this indicator, three centers are distinguished: the USA, Japan, Western Europe.
International Trade Indicators
International trade is characterized a large number of indicators that can be systematized according to the following criteria:
a) volume indicators;
b) indicators of the structure;
c) indicators of dynamics;
d) performance indicators.
Rice. 2.1. International Trade Indicators
MT volume indicators:
1) export is the sale of goods and services abroad. Exports include:
Goods produced, grown or mined in the country;
Goods previously imported from abroad were processed, as well as goods whose processing was carried out under customs control.
Re-export- sale and export from the country of goods previously imported into its territory that have not been processed.
2) import- importation of goods and services into the country.
Imports include:
Goods of foreign origin from the country of origin or the country of intermediary;
Goods for further processing under customs control.
Reimport- import of goods previously exported abroad that have not been processed, i.e. These are export operations that did not take place. This includes the return by the buyer of defective goods, the return of goods that were not sold through an auction, the return of goods that were not sold through consignment warehouses. The main sign of re-import operations is the crossing of customs by domestic goods twice: when importing and exporting. Goods returned from exhibitions and fairs are not re-imported.
Exports and imports are calculated by each country in physical and cost terms. Cost indicators are calculated in national currency and converted into US dollars for international comparison. A small group of countries, especially countries with high inflation, calculate export and import destinations in US dollars.
3) foreign trade turnover is the sum of the value of a country's exports and imports over a given period of time
WTO \u003d E + I
4) the physical volume of trade- assessment of exports or imports at constant prices of one period (usually a year);
5) general(general) trade- accepted in statistics foreign trade determination of foreign trade turnover with the inclusion of transit goods;
6) special trade- net foreign trade turnover, that is, products imported into the country or exported from it
ST = WTO - re-export - re-import
Structure indicators :
1) commodity structure- these are indicators of the distribution of exports and imports by main commodity items;
2) geographical structure- distribution of commodity flow by countries, groups of countries and regions of the world;
3) institutional trading- distribution of trade by subjects and methods of commodity exchange;
4) species structure- distribution of trade by types of commodity exchange.
Dynamic indicators:
1) Growth rate:
Tr \u003d Y2 / Y1 x 100%, where Y1 is the initial level of the value, Y2 is the final level.
2) Growth rates:
T pr. \u003d Tr.o. / Tr.b. х 100%, where Тр.о. - the growth rate of the indicator for the reporting period, Тр.b. - the growth rate of the indicator for the base period.
Results indicators:
1) balance trade balance - is the difference between the value of exports and imports of goods of a particular country;
2) balance of services is the difference between the value of the services a country provides and the value of the services it imports;
3) balance of non-commercial operations is the difference between income from investments, remittances, deposits, movement Money by inheritance, in solving family problems. For each of these areas of cash flow, a balance is drawn up;
4) current account balance- this is the sum of the trade balance, balance of services, non-commercial operations;
5) index "terms of trade"- the ratio of the index of average export prices of a certain product, the country as a whole, a group of countries to the index of average import prices for a certain period of time.
Methods of international trade
Trading Method- this is a way to carry out a trade exchange (trade operation or trade transaction). In international trading practice, two main trading methods are used:
1) trade direction (transactions directly between the producer and the consumer)
| AND |
| AT |
2) through intermediaries
| AND |
| AT |
| P |
P - intermediary
When trading in a direction, a certain financial benefit arises, since expenses are reduced by the amount of the commission fee to the intermediary, the risk and dependence of the result of commercial activity on possible negligence or insufficient competence of the intermediary organization are reduced. This method also allows you to constantly be in the market, take into account its changes and respond to them in a timely manner. At the same time, the use of a trade direction presupposes the presence of commercial qualifications and trading experience. Otherwise, financial costs will not only not be reduced, but may increase significantly. In addition, international trade is more risky than domestic trade due to economic, political, legal and social conditions in different countries, their traditions and customs, as well as large distances between partners. As a result, it is often expedient and sometimes necessary to use intermediaries to conduct international trade transactions.
As a result, it is often advisable, and sometimes necessary, to use intermediaries to conduct international trade transactions.
Benefits of using intermediaries :
Increase the efficiency of sales;
Increasing profits by accelerating the turnover of capital;
Intermediaries are closer to the buyer, so they quickly respond to changes in market conditions, this allows you to sell the goods on more favorable terms for the exporter;
The competitiveness of goods increases due to the possibility of after-sales service;
Are the source primary information on the level of quality and competitiveness of goods.
In the framework of trade through intermediaries, such types of intermediary operations and corresponding types of transactions:
Resale operations (contract of sale). When an intermediary buys goods from the manufacturer and signs agreements on his own behalf and at his own expense (merchants, distributors, dealers);
Commission transactions (commission agreement, consignment agreement). When an intermediary does not buy goods from the manufacturer, but signs agreements on his own behalf, but at the expense of the manufacturer, and receives a reward for this (up to 10% of the transaction amount). Intermediaries are called - commission agent, consignee;
Agency operations (agency agreements). The purpose of the agreement is that one party instructs the other (the agent) to perform actions related to the sale (most often) or purchase of goods, as well as the search for customers and contractors to provide certain services in the agreed territory within the agreed timeframe at the expense and on behalf of the manufacturer ( principal). And intermediaries are called - agents-attorneys, sales agents;
brokerage operation. An intermediary is a specialized professional agent who works in one segment and carries out a contract between the seller and the buyer and receives a remuneration of up to 2-3% for this service. There is no right to sign the agreement. Title - representative agent, broker, broker.
As a rule, certain intermediary operations are performed by certain intermediary firms. Among them:
export firms;
Imported;
wholesale;
retail firms;
Distributors;
Commission;
Agency;
Brokerage, etc..
Modern features of the activities of intermediary firms in MT are:
Consolidation, transnationalization;
Specialization (by goods, activities, services, agreements);
Subordination of small intermediary firms big producers;
Subordination of small and medium-sized producers to large trading and intermediary corporations.
Among the intermediaries, one can single out the so-called institutional intermediaries, which include commodity exchanges, auctions and international bidding (tenders).
