The essence of capital movement is. Question

Export of capital(foreign investment) is the process of removing part of capital from national circulation in a given country and moving it in commodity or monetary form into the production process and circulation of another country.

Exporting countries (where capital flows from) are called home countries. Importing countries are called receiving countries.

The most important reasons for the export of capital are:

1. The discrepancy between the demand for capital and its supply in various parts of the world economy.

2. The emergence of the opportunity to develop local commodity markets. Capital is exported in order to pave the way for the export of goods and stimulate demand for its own products.

3. Availability of cheaper raw materials and labor in the countries where capital is exported.

4. Stable political situation and generally favorable climate in the host country, preferential investment regime in special economic zones.

5. Lower environmental standards in the host country than in the capital donor country.

6. The desire to indirectly penetrate the markets of third countries that have established high tariff and non-tariff restrictions.

Depending on the owner, the export of capital is divided into 3 types:

1) private export of capital (large companies and banks);

2) state export of capital;

3) export of capital by international financial companies.

Depending on the period, export is divided into short-term (up to a year) and long-term (more than a year).

The export of capital can occur in commodity (equipment, patents) and monetary form.

The movement of capital is carried out in 2 forms:

1. Export (import) of loan capital or movement of capital (loans, credits, bank deposits and funds in accounts in financial institutions, payments for transactions with foreign partners);

2. Export (import) of entrepreneurial capital or foreign investment:

2.1. foreign direct investment;

2.2. portfolio investment.

Direct foreign investment(PEIs) represent flows of entrepreneurial capital in a form that combines managerial expertise with lending. This is a form of investment when the investor has management control over the object in which capital is invested.

The main forms of direct investment are: opening enterprises abroad, creating joint ventures, joint development of natural resources, purchase or annexation (privatization) of a private enterprise of the country receiving capital.

The income received by direct investors consists of dividends, interest, royalties and management fees.

Portfolio investment– these are investments in securities of foreign investors (stocks, bonds). They do not provide the opportunity for direct control over the activities of a foreign enterprise.

The movement of capital on the scale of the world economy appears, first of all, in the form of international credit. To show the impact of international borrowing and lending on welfare, consider a hypothetical example of capital flows between two countries - the United States and Mexico (Figure 7.1).

Fig.7.1. Movement of capital between countries

The reasons for the flow of capital from country to country can be varied (including political, especially when it comes to government loans), but we will proceed from the fact that the only reason inducing capital to move from country to country is the difference in income level for capital.

On the graph, the horizontal axis shows the amount of capital invested in two countries, and the vertical axes show the level of income on invested capital (interest rate r). The total capital in the two countries is the value of OO." The MPK us and MPK Mex curves show the dynamics of the marginal productivity of capital, which determines the amount of demand for capital: as the stock of capital increases, the value of the marginal product decreases and, consequently, the level of income on invested capital decreases. Accordingly, the area under the curves of marginal productivity of capital shows the volume of output for different amounts of invested capital.

Suppose the United States has a significant capital stock (segment OA), but opportunities for profitable investment are limited. Therefore, if all capital is invested in the national economy (international financial transactions are prohibited), then with a given capital stock, competition between investors forces them to agree to a relatively low level of income - 4% per annum (point D on the MPK US curve. In this case, the volume of production, produced in the USA corresponds to the area (a + b + c + d + e + f).

In Mexico, the stock of capital is much smaller (segment 0 "A), but there are opportunities for profitable investments, since the marginal productivity of capital is high. With a small amount of investment, competition between borrowers pushes the level of return on capital up to 10% per annum (point F on the MRK Fur curve) . The volume of production in Mexico will be area (i + j + k).

Let us now assume that all restrictions on the international movement of capital are removed. If the degree of risk in lending transactions in both countries is the same, then it will be profitable for owners of capital in the United States to provide loans to Mexico, where the financial market has a higher rate of return on capital. In turn, Mexican borrowers will prefer to take out loans in the United States, since interest rates are lower in the American market. Capital will begin to flow from the US to Mexico, which will lead to a decrease in the interest rate in the Mexican market and an increase in it in the US market. If there are no restrictions on the movement of capital, then its flow from country to country should lead to an equalization of marginal productivity and levels of return on capital in the United States and Mexico (point E). Assume that the new equilibrium rate of return on capital is 7% per annum. The amount of capital invested in the United States will be reduced to OB, and the amount of American capital lent to Mexico will be BA. The combined output of the two countries increased by (g + h). This gain is explained by the fact that part of American capital found more profitable uses in Mexico. How is this gain distributed between countries?

In the US, output from domestic investment is now area (a + b + c + d). In addition, the United States receives income on capital invested in the Mexican economy at 7% per annum, corresponding to the area (e + f + g). Thus, with free capital migration, the United States receives a net gain of area g.

In Mexico, as before, the volume of production due to investment of own capital within the country is the area (k + i + j). However, the country now receives additional income from the use of American capital (area g + h). Mexico pays part of this income to American creditors in the form of interest (area g), but the other part represents Mexico's net gain (area h).

Thus, we see that international lending brings additional benefits to both the creditor country and the borrower country, i.e. is mutually beneficial, which is similar to the conclusion obtained from the analysis of international trade. However, just as with international commodity flows, international capital flows divide society into winners and losers. In the creditor country, the owners of capital win, being able to provide loans at a higher interest rate, but borrowers lose, since they are forced to pay more for the loan taken. The opposite picture is observed in a country where foreign capital flows: borrowers benefit, but lenders suffer losses as a result of more intense competition in the financial market.

» Forms of international capital movement

Forms of international capital movement

In modern economic theory, the movement of capital, as well as the migration of labor, is considered as substitutes for international trade. When trade between countries is caused by differences in the endowment of countries with factors of production, the international movement of factors of production, primarily capital, replaces foreign trade. International capital flows flow to areas where the implementation of investment projects provides greater economic returns. This creates an important source of gains from international capital movements.

In the literature, the following forms of international capital movement are usually distinguished:

1. Based on their sources of origin, public and private capital are distinguished.

Official (state) capital is funds from the state budget moved abroad by decision of governments, as well as by decision of intergovernmental organizations. It makes moves in the form of loans, advances and foreign aid.

Private (non-state) capital is the funds of private companies, banks and other non-governmental organizations, moved abroad by decision of their governing bodies and their associations. The source of this capital is funds from private firms not related to the state budget. This could be investments in the creation of foreign production, interbank export loans. Despite the autonomy of companies in making decisions about the international movement of their capital, the government reserves the right to control and regulate it.

2. According to the placement period, short-, medium- and long-term capital investments are distinguished. Long-term investments usually include investments for a period of more than 15 years. All investments of entrepreneurial capital in the form of direct and portfolio investments are usually long-term. Medium-term capital - investment of capital for a period of 1 to 5 years. Short-term capital - investment of capital for a period of up to 1 year.

3. According to the purposes of lending, direct, portfolio and loan investments are distinguished.

Foreign direct investment is an investment of capital for the purpose of acquiring long-term economic interest in the country of application (recipient country) of capital, ensuring the investor's control over the object of placement of capital. Occurs when a branch of a national company is created abroad or a controlling stake in a foreign company is acquired. FDI is almost entirely associated with the export of private entrepreneurial capital. They are real investments made in enterprises, land, and other capital goods.

Foreign portfolio investment is an investment of capital in foreign securities (a purely financial transaction) that does not give the investor the right to control the investment object. Portfolio investments lead to diversification of an economic agent’s portfolio and reduce investment risk.

They are predominantly based on private entrepreneurial capital, although the state also issues its own and acquires foreign securities. Portfolio investments are purely financial assets denominated in domestic currency.

Direct investment is associated with ownership and control of an enterprise. Portfolios provide only a long-term right to income, mainly associated with the growth of stock prices. Direct and portfolio investments are classified as entrepreneurial capital.

As a rule, they have a favorable effect on the state of the country's balance of payments. Loan investments are associated with foreign loans and credits in various forms that require payment, urgency and repayment. The advantage of loan capital is the relative freedom of their use.

4. There are also such forms of capital as illegal capital and intra-company capital. Illegal capital is the migration of capital that bypasses national and international law (in Russia, illegal methods of exporting capital are called flight or leakage).

Intracompany capital - transferred between branches and subsidiaries (banks) owned by the same corporation and located in different countries.

The main reason and prerequisite for the export of capital is the relative surplus of capital in a given country. A discrepancy arises between the demand for capital and its supply in various sectors of the world economy, and in order to obtain greater business profits or interest, it is transferred abroad.

The most important reasons for the export of capital are:

The discrepancy between the demand for capital and its supply in various parts of the world economy.

The emergence of opportunities to develop local commodity markets. Capital is exported in order to pave the way for the export of goods and stimulate demand for its own products.

Availability of cheaper raw materials and labor in the countries where capital is exported.

Stable political situation and generally favorable climate in the host country, preferential investment regime in special economic zones.

Lower environmental standards in the host country than in the capital donor country.

The desire to indirectly penetrate the markets of third countries that have established high tariff and non-tariff restrictions.

The concept of “investment climate” includes such parameters as:

Economic conditions: general state of the economy (rise, decline, stagnation), situation in the country’s currency, financial and credit systems, customs regime and conditions for the use of labor, level of taxes in the country;

State policy regarding foreign investment: compliance with international agreements, strength of state institutions, continuity of power.

A feature of the movement of capital at the present stage is the inclusion of an increasing number of countries in the process of import and export of direct, portfolio and loan investments. If previously individual countries were either importers of capital or exporters of capital, now most countries simultaneously import and export capital.

2000 - 19%

2005 - 30.5%

As can be seen from the diagram, the modern nature of TNCs is emphasized by the fact that they are more involved in manufacturing and services, rather than in the mining industry or agriculture. Typically, sales of TNC products through their branches exceed the volume of world exports. When creating enterprises abroad, TNCs focus primarily on local markets, and not on exporting products to the mother country. Sales volumes of TNCs outside their home country are growing 20-30% faster than exports. According to the American magazine Fortune, the main role among the 500 largest TNCs in the world is played by four industries: electronics, oil refining, chemicals and automobile manufacturing. Their sales account for about 80% of TNC sales.

There is no single approach to the classification of TNCs. A number of methods are used to rank TNCs on different grounds. Let's look at some of these approaches.

Classification of TNCs by the number of foreign branches (2002):

1st place Coca- Cola- branches in more than 190 countries.

2nd place - Exxon Mobil Corporation– 103 countries have its branches.

3rd place – SwissNestle– 98 countries.

Classification of TNCs by sales volume (2002):

1st place General Motors(approx. $170 billion)

2nd place – Ford Motor Company ($146 billion)

3rd place - M itssubisi Co($140 billion)

Classification of TNCs according to the size of foreign assets:

1st place General Electric

2nd place - Exxon Mobil Co

3rd place - Royal Dutch Shell

Classification of TNCs by share of foreign sales:

1st place NESTLE– it sells 98% of its products abroad

2nd place for the concernPhilips– 88%

3rd place - British Petroleum – 75%

Classification of TNCs by country of origin shown in diagram 9.

Diagram 9.

Finally, there is a composite index of transnationality - TNI , which is calculated using a special methodology, including the ratio of foreign assets to the company’s assets; the ratio of foreign sales to company sales; the share of foreign personnel to all company personnel.

According to this indicator:

1 place – Exxon Mobil Corporation;

2nd place – Royal Dutch Shell;

3rd place – General Electric.

5.4. The main activities of TNK.

What do MNCs do? The main direction of their activity, naturally, isproduction of goods and provision of services.The main concern of TNCs is to expand sales markets and increase the rate and mass of profits. To achieve decisive competitive advantages, TNCs enter into various alliances with each other, resort to a policy of mergers and acquisitions in order to decisively increase their production capacity, offer consumers a more comprehensive set of goods and services, reduce production costs and reach the level of global production. products. (See "Globalization of the world economy").

In the modern world, such forms of TNC activity as licensing. A license agreement is an agreement under which the licensor (owner) transfers certain rights to the licensee (buyer) for a certain period of time. Licensing is especially common in the field of use of new technologies, and is both an intra-company agreement (between the parent company and subsidiaries) and external to the TNC. Has become widespread franchising. The “franchisor” (owner) grants the company, under a contract, the rights to use a trademark, company name, personnel training methods, etc.

By investing in developed and part of developing countries (the most advanced along the path of economic progress), TNCs enter into fierce competition to attract investment from capital-recipient countries. By investing in least developed (poorest) countries, TNCs invest in the extractive industries, intending to gain access to cheap raw materials. In this case, fierce competition develops between TNCs for the market for raw materials and the sales market for the products of the TNC itself.

The assessment of the activities of TNCs in the global economy is ambiguous. On the one hand, there is no doubt their positive role in increasing supply and demand, in promoting the economic development of industries and entire countries (NIS countries), which, from centuries-old backwardness, have made their way to the top of the world rankings in terms of GDP per capita. On the other hand, TNCs actively oppose the implementation of independent economic policies in the countries where they operate (everything must be subordinated to the interests of TNCs). TNCs resort to numerous methods of tax evasion, using transfer pricing mechanisms, transferring the final phase of their activities to countries with a reduced level of taxation. TNCs can grossly violate the laws of the country. Several years ago, Nike became the subject of an international scandal when it became known that it used the labor of 10-12 year old children in Malaysia, which contradicts not only international standards, but also the laws of Malaysia itself. Taking advantage of their opportunities, TNCs often set monopoly prices and brazenly dictate their terms to recipient countries. The practice of luring the best specialists (“brain drain”) from the host country has become widespread these days.

Question 6. Free economic zones. Consequences and trends of international capital flows. Russia on the global capital market.

6.1. Free (special) economic zones.

Free Economic Zone (FEZ) - this is a part of the territory of a state on which a regime of economic activity is established that is more preferential than on the rest of the territory of this state. Up to 30% of global trade turnover passes through FEZs, so TNCs consider their activities in FEZs as one of the most important areas of their activity.

When creating special economic zones, two conceptual approaches can be used: territorial And functional . According to the first approach, preferential treatment is given to enterprises and organizations located in a certain, specially designated territory. In the second case, benefits are established for certain types of business activities, regardless of the location of firms and enterprises engaged in this activity.

The choice of one of these two approaches depends on the specific tasks that the state wants to solve when creating a free economic zone. The territorial approach allows us to solve to a greater extent the problem of the development of any region, and the functional approach allows us to solve the problem of the development of certain industries. In practice, the territorial approach to the formation of SEZs prevails.

Benefits provided to foreign investors in special economic zones can be divided into four main groups:

1. Foreign trade benefits, providing for a simplified procedure for carrying out foreign trade transactions, as well as a reduction or complete abolition of export-import duties.

2. Financial benefits, that is, setting low prices for utilities, reducing rents for land and industrial premises, and obtaining preferential government loans.

3. Fiscal benefits provide for stimulating the influx of foreign capital by reducing or eliminating taxes on profits, income, and property.

4. Administrative benefits , which provide for a simplified procedure for registering companies, the regime for entry and exit of citizens, and the provision of various services related to the registration of companies.

Benefits of various types can be applied in free economic zones in various combinations, depending on the priority goals of the formation of the SEZ.

The creation of free economic zones can pursue various goals. First of all, attracted foreign investments are used to expand the production of goods for export or import-substituting goods. Such productions are developed, as a rule, on the basis of the latest technologies. Some SEZs are created with a focus on the development of foreign tourism in the zone.

In both the first and second cases, the creation of a SEZ contributes to the accelerated development of the economy, the creation of modern infrastructure, improving the skills of local workers, and, ultimately, increasing the inflow of foreign currency into the country.

However, to attract foreign investors, simply proclaiming certain benefits is not enough. Practice shows that the creation of a SEZ will be effective from an economic point of view only when there are the following: conditions:

1. favorable geographical conditions, that is, proximity to the state border, to the main international transport routes;

2. the presence of modern infrastructure on the territory of the zone (electricity, water supply, telecommunications, etc.).

3. the presence of favorable social infrastructure (housing that meets the necessary standards, kindergartens, schools, hospitals, etc.).

4. availability of relatively cheap but skilled labor.

5. a fairly high level of provision of financial services, connections with international financial markets.

6. clarity in legislation, broad powers of local authorities in the management of SEZs.

7. general political stability.

To create the prerequisites for the successful development of the SEZ, the state must make certain expenses for the development of the zone in accordance with these requirements. Practice shows that the government needs to invest approximately $4 for every dollar of initial foreign investment in a SEZ.

However, governments creating SEZs incur these costs on the basis that the positive effect of the functioning of such zones will fully repay them. Attracted foreign capital will create new jobs, organize production using the most modern technologies, and will help improve the qualification level of workers. A large export sector of the economy will be created in the country, due to which foreign exchange earnings into the country will increase. The experience of countries such as South Korea, Malaysia, and the Philippines shows that approximately half of all foreign exchange earnings from SEZs are amounts paid to employees in the form of wages. The second most important source of foreign exchange earnings is the supply of electricity by enterprises of the host country to enterprises operating in the zone.

It should be noted that large expenses can only be recouped if the SEZs operate for a long period with consistently high returns.

The creation of SEZs in developed countries, such as France, the USA, and Great Britain, was aimed primarily at revitalizing the depressed areas of these countries, promoting the development of small and medium-sized businesses in them, without resorting to the services of foreign capital. The creation of SEZs in developing countries pursues somewhat different goals:

© attract foreign capital on favorable terms, create import-substituting industries with its help, and organize the production of export products;

© help reduce unemployment in the host country;

© to create on the basis of the SEZ “growth sites”, models of new techniques and methods of management, in order to then make them the property of the whole country.

Free economic zones can be divided into several types:

1. Free trade zones, free ports, transit zones, duty-free warehouses and customs zones at individual enterprises. These zones, like free trade zones, belong to the first generation zones. They have existed since XVII - XVIII centuries Back in the Kyoto Declaration of 1973, it was established that a free economic zone is a foreign trade enclave in which goods are located outside the customs territory. They are based on the abolition or reduction of customs duties and export-import controls on goods entering the zone and re-exported from it. The organization of such zones is aimed at reducing the cost of transshipment and storage of goods for entrepreneurs. They are transit warehouses for storing, packaging and minor processing of goods intended for export. Such zones are often called bonded warehouses or free customs territories. Non-resident importing enterprises usually open their branches there.

Such zones are most widespread in industrialized countries. One example of such zones is the “foreign trade zones” common in the United States. They were created based on a 1934 US law to enhance foreign trade. Such zones are limited areas of the territory of the United States, within which a preferential regime for economic activity, including foreign economic activity, has been established in comparison with the general one. The law established that one or more foreign trade free zones could be created at each official port of entry. Goods entering these zones are not subject to customs control. But if they move from the zone to the territory of the United States, they are subject to all required customs procedures. By the mid-90s. There were about 500 free trade zones in the United States.

The simplest free trade zones include special duty free shops at major international airports. From the regime's point of view, they are considered to be outside state borders. Free trade zones also include traditional free harbors (ports) with preferential trade regimes.

2. Export industrial zones. They are based not only on the application of preferential trade and customs regimes, but also on preferential financial and tax regimes, incl. for foreign capital; focused primarily on the production of export and import-substituting products.

Initially, such a zone was created at the Irish Shannon Airport, which was built in the late 50s. XX century There was a threat of significant job losses due to the opening of transatlantic lines and the cancellation of stopovers at this airport. Later, the Irish experience became the basis for the creation of SEZs in many developing countries, especially in newly industrialized countries.

The functioning of such zones is based on the fact that equipment and materials are imported into their territory, located near international ports, without customs formalities. Here, production facilities are organized for processing certain products, which are then exported to other countries, also without the intervention of the customs authorities of the receiving territory.

3. Technological implementation zones classified as third generation zones (70-80s of the 20th century). They are formed either spontaneously, as in the USA, or are created specifically with government support around large scientific centers, as in Japan and China. They concentrate national and foreign research, design, scientific and production companies that enjoy a unified system of tax and financial benefits.

In the USA, such zones are called technology parks, in Japan - technopolises, in China - zones for the development of new and high technologies. The most famous technology park in the world and the largest in the USA, Silicon Valley (Silicon Valley), produces 20% of the world's production of computers and components. It employs about 20 thousand workers. In the early 90s. There were about 150 technology parks in the United States. In Europe by the end of the 80s. there were already more than 200 science parks. In Japan, within the framework of special government programs, about 20 technopolises have been created on the basis of leading scientific organizations. In China, such zones are created, as a rule, during the implementation of government plans for the development of science and technology. In the mid-90s. There were more than 50 new and high technology development zones in China. It is characteristic that in Asian “new industrial countries” technology-innovation zones are formed as innovation centers of established export-production zones, which are already at a sufficient stage of development and require reorientation to the production of high-tech products. Since the 80s India, Malaysia, and Thailand joined in the creation of science parks. As a result, in the 90s. There were more than 7 thousand science parks in the world, including science parks themselves, science regions, technopolises and “business incubators”.

3. Integrated economic zones, which combine the features of both free trade zones and export industrial zones. One example of such a zone is the Manaus zone in Brazil. Since its formation in 1967, an economic complex has gradually developed here, which is characterized by rapid rates of economic development. At the same time, only 3-5% of the products produced here are exported, the rest is consumed domestically. Complex SEZs include the five special economic zones of China, the “open areas” of the PRC, the Tierra del Fuego territory in Argentina, and free enterprise zones created by industrialized countries in depressed areas.

4. Banking and insurance zones with preferential treatment for these operations (the so-called offshore centers And "tax havens ").

These are territories where registration procedures for new enterprises have been significantly simplified and broad tax and other benefits have been provided for foreign enterprises. For example, on the islands of Alderney and Jersey (in the English Channel) there is only an income tax of 20%. Foreign companies that are only registered on the island, but do not carry out business activities there, only pay an annual fee of £500 and an annual financial reporting fee of £100. The main requirement for a company registered in an offshore zone is not to be a resident of the country where the offshore center is located and not to make profit on its territory. "Tax havens" differ from offshore zones in that in them all firms (both local and foreign) receive tax breaks for all or some types of activity.

In such territories there are no currency restrictions, financial reporting is simplified, and the confidentiality of the owner’s identity is guaranteed. Offshore territories include Cyprus, Liechtenstein, Malta, Monaco, Channel Islands, Isle of Man (Britain), Antilles, Panama, Madeira, Liberia, Ireland, Switzerland, etc. In the last decade, offshore zones have appeared in Mauritius, Western Samoa, Israel, Malaysia (Labuan Island) and other countries. By the beginning of the 90s. There were more than 400 free economic zones in the world, including about 70 tax havens.

Industrial, trading, banking, insurance and other companies in the OZ are either not subject to taxation at all (Ireland, Liberia) or are subject to a small tax (Liechtenstein, Antilles, Panama, Isle of Man, etc.). In Switzerland, for example, a lower tax is established, which may not be collected under certain conditions. Preferential treatment in offshore zones is also determined by the absence of currency restrictions, free export of profits, low level of authorized capital, absence of customs duties and fees for foreign investors, extraterritoriality, etc.

For countries that organize offshore zones, the benefit is to attract additional foreign capital, receive income from the presence of a registered company in this zone, create additional jobs for local specialists, which generally contributes to the development of the national economy.

Offshore business is concentrated, as a rule, in banking, insurance, maritime shipping, real estate transactions, trust activities, export-import operations, and consulting. According to some estimates, the capital involved in offshore business reaches $500 billion. Almost 2 million investors (legal entities and individuals) participate in it, and every year several thousand new companies are registered, increasing the volume of offshore activities.

The activities of offshore zones are assessed by experts very ambiguously. Recognizing their important role in the international movement of capital, many agree that offshore centers are often a place for laundering “dirty money” and various types of banking scams.

Among developing countries, free economic zones have developed very significantly China. In addition to the most famous free economic zones in the country and abroad - Shenzhen, Zhuhai, Xiamen, Shantou, which have a long history, as well as the Hainan zone, which has existed since 1988, the country has received significant development zones of technical and economic development (more than two dozen) and zones of development of new and high technology - technology parks. A special role is given to the Shanghai Pudong Economic Development Zone. The significance of the project, designed to last several decades, is determined not only by the fact that the Pudong zone should become a major center of industrial production in China in the future, but is also intended to contribute to the transformation of Shanghai into the largest trade and financial center in the Asia-Pacific region.

IN Russia Attempts were made to create free economic zones. A government decree “On the creation of free enterprise zones” was adopted. Documents were adopted on the creation of such zones as the Sakhalin SEZ, the Yantar SEZ (in the Kaliningrad region), Kuzbass and others. However, in practice, these zones have not received proper development, because there were no clear programs defining the required volume of investment for the creation of production and financial-economic infrastructure, the sources for obtaining these investments were not identified, and local authorities were not given sufficient authority to resolve issues related to the organization of such a zone. Essentially, none of the zones received the necessary impetus for development.

3. It has an unfavorable effect on the country's balance of payments.

Positive consequences for the country importing capital:

1) Economic growth is happening.

2) New jobs are being created.

3) New technologies and effective management are coming.

4) The balance of payments is improving.

5) There are additional incentives for the development of competition.

6) The export of capital leads to the deepening and development of the international division of labor, which contributes to the further development of the advantages of international specialization and cooperation.

In modern conditions, host countries (both developed and developing) tend to approve the influx of foreign investment into their territory. The main benefit of the host country is to obtain additional resources at its disposal, not only in the form of capital, but also in the form of the introduction of new technologies, the transfer of management experience and the improvement of the skills of domestic personnel that occur as a result of foreign investment. In this case, the investor bears all the risks, and the countries receive an increase in employment, growth in production and consumption, tax base, etc. benefits.

Negative consequences for the country importing capital:

1. Foreign capital is crowding out local capital from profitable industries.

2. The influx may be accompanied by environmental pollution.

3. Products that have already passed their life cycle or are discontinued due to their poor quality come to the market.

4. The country's external debt is growing (with the import of loan capital).

5. The country's external economic and political dependence is growing.

Host countries fear political pressure from large foreign capital investors, as well as their penetration into industries related to national security. In addition, foreign investors often seek to relocate the most environmentally unfavorable production facilities to the host country. In this regard, host countries issue laws that restrict or outright prohibit foreign investment in certain sectors. The negative value of foreign direct investment occurs when the volume of dividends and interest paid exceeds the influx of new capital investment. The negative value of FDI is also associated with the threat of TNCs taking over certain industries, including the country's commodity exports, or even the entire economy. So, for example, according to the Accounts Chamber of Russia in 2000, out of 242 enterprises in the aviation industry, 94 of Russia did not have a single share, but in the best enterprises in the industry, foreign capital captured 30-40%. At the same time, the volume of production at such enterprises fell 9 times during the post-privatization period. Russian enterprises with a share of foreign capital of more than 25% lost (in accordance with Russian legislation) the right to a license for the development and production of competitive military equipment. It is obvious that such a situation has been created and is in the interests of foreign investors, for example, United Technologies Company , who in this way removed dangerous competitors from the world market. It is much more profitable for them to sell their own products on the market than to promote Russian production.

The main opponents of foreign investment in host countries are local producers of similar goods. They find themselves unable to withstand foreign competition and demand protectionist measures from the government.

However, practice shows that a country that receives foreign investments of entrepreneurial capital generally benefits from their influx. The workers and suppliers who serve the new businesses, and the local and federal governments that receive the taxes, gain more than local firms lose. The possibility of positive technological and personnel changes makes governments eager to stimulate the flow of entrepreneurial capital from abroad, rather than introduce protectionist measures.

In connection with the movement of capital, the concept of investment climate becomes important. Investment climate– the situation in the country from the point of view of foreign entrepreneurs. The main components of the investment climate are:

q Potential dangers (investment risk) associated with political, social, environmental, economic, etc. situations.

q Potential opportunities (investment potential), which evaluates the resource base, labor resources, consumer market, and infrastructure of the country.

q 6.3. Development trend of the world capital market.

Ultimately, international migration of entrepreneurial capital contributes to the growth of global product.

The development of the world capital market is internally contradictory and uneven. On the one hand, the growing internationalization of production contributed to the interpenetration of national capital markets. On the other hand, state intervention in foreign economic activity weakened the role of the market mechanism in the distribution of financial resources between countries, limited or even suspended the export of private loan capital.

In recent decades, the first of these trends has prevailed. Many industrialized countries have pursued policies of gradual liberalization of national financial markets.

Other trends in the development of the world capital market in the 90s. and at the beginning XXI V. become:

1. Growth of productive capital. The global capital market is consistently paying more and more attention to foreign direct investment and abandoning portfolio investment. Although the volume of portfolio investment still exceeds the volume of FDI, the share of the latter is growing steadily. A characteristic feature is also the reorientation of FDI from the mining industry to the manufacturing industry.

2. Increased investment in the service sector, which is associated with an increase in the share of the third sector of the world economy, with the transition to the post-industrial phase of development. In the investments of world leaders - the USA, Japan, Germany, Great Britain, FDI in the service sector exceeds 50%.. At the beginning of the XXI V. The role of government loans has decreased, Russia has successfully repaid the IMF debt, and is paying off other external debts, taking advantage of the favorable environment with oil and gas prices.

After the collapse of the USSR, Russia assumed obligations to pay off the external debt of the entire Union. External debt increased sharply (see table 38).

Table 38.

For the 90s Russia received $13.6 billion in loans from the IMF, $5.6 billion from the IBRD, and $22 billion from OECD member countries. In 2004, $9 billion of the principal debt was paid and $7 billion in interest. As of 2006, the main debt remains: to the Paris Club countries - $24.4 billion, on Eurobonds - $31.2 billion. High prices for oil and gas ensure timely (and even premature) repayment of Russia's external debts. In the summer of 2006, almost the entire debt to the Paris Club countries was paid (almost $23 billion).

90s characterized by rapid outflow (flight) of capital ( capital flight ) from the country, both legally and illegally. Therefore, no one knows the exact numbers. Expert estimates range from 40 billion to 600 billion dollars for 1992-2000. The minimum level of $40 billion is based on Russia's balance of payments. The figure of 600 billion dollars was obtained from data from the Prosecutor General's Office and the Ministry of Internal Affairs. The Ministry of Economy of the Russian Federation estimated capital flight at $230 billion, the Central Bank of the Russian Federation - $130-140 billion, the World Bank - $50-60 billion. Most domestic experts are inclined to the figure of $150-200 billion lost by the Russian economics.

10-15

Tax minimization

Deposits in foreign banks

15-20

Saving

Investments in real estate, opening savings accounts

65-70

As you can see, the main share did not fall at all on business development abroad, but on savings and tax evasion. There are thousands of enterprises founded by Russian citizens operating abroad. They are mainly registered in offshore zones, where funds in the form of loan capital are also placed.

Capital flight in the 90s. was explained primarily not by classical reasons, but two factors:

Firstly, the desire of capital owners to move it to more prosperous, calm countries with a stable economy, clear rules for doing business, and away from the possibility of nationalization.

Secondly, The flight of capital is explained by the fact that the sources of its origin were mainly criminal in nature, and the export abroad, the use of offshore zones, makes it possible to “launder” capital and give it a legitimate character.

Russia, like other countries with economies in transition, acts mainly as an importer of foreign direct investment, as it is necessary for structural restructuring of the economy.

straight

portfolio

other

Total

1995

2020

39

924

2983

1996

2440

128

4402

6970

1997

5333

681

6281

12295

2001

2500

-1100

-6500

5100

However, the scale of foreign investment in Russia is significantly less than in countries such as Brazil ($19,652 million in 1997) and China ($44,236 million). As experts’ calculations show, the maximum that Russia can claim (the “competitive zone” is 5-6% of the world capital market.

Traditionally, factors attractive to foreign investment in Russia include large market capacity, rich natural resources, and cheap and qualified labor. However, in modern conditions, an ambiguous assessment of these factors is given.

The capacity of the domestic market in Russia is rather potential in nature, since the purchasing power of the bulk of the population is low.

Mining and processing of mineral resources are attractive to foreign investors. As for the quality of the workforce, the Swiss Institute of Bury, having studied the competitive advantage of various countries and based on an analysis of labor legislation, tariff agreements, the relationship between wage levels and labor productivity, labor discipline and attitudes towards labor, placed Russia in the group of countries where the placement capital is possible, but the conditions for this are not favorable enough.

An unstable political situation and unclear and frequently changing legislative provisions create unfavorable conditions for foreign investment.

Russia guarantees foreign investors protection from nationalization (according to the Constitution of the Russian Federation, nationalization is possible only subject to full and preliminary compensation for the value of the confiscated property), from unlawful actions of government bodies and officials, and creates a clear and transparent legal investment regime. However, it would be premature to assume that all problems have already been solved.

Currently, in the world economy there is increasing attention to the possibilities of regulating foreign direct investment at the multilateral level. Russia practically does not take part in the formation of such rules. It is not yet a member of the WTO, but this organization is one of the centers for developing rules of conduct for investors and TNCs in the field of foreign investment. At the same time, more important for attracting capital is Russia's membership in the IMF and participation in the 1965 Washington Convention on the Settlement of Investment Disputes.

There are two approaches to interpreting the essence of international capital movements.

For economists, international capital movements- this is the movement of one of the factors of production, based on its historically established or acquired concentration in individual countries, the economic prerequisite for their production of various goods and services more efficiently than in other countries.

For political economists-- this is the placement of relatively surplus predominantly financial resources abroad for the sake of systematically obtaining higher profits in the country where the capital is placed. With this approach, the market is no longer a subject, but an object, a means of achieving certain goals, at the national, regional or international levels.

The differences can be traced further, right down to the understanding of the categories of interest, well-being and security: in the first case, the definition of “national” was attached to each of these key concepts, in the second - “state”. In practice, both approaches are used, and there is even a third one, in which both definitions are equal (as synonyms), but one of them can be placed in brackets. This kind of “decoupling” is rather linguistic in nature. With the first approach, the interpretation characteristic of the “supply side” is clearly visible, i.e. sphere of production, in the second - the “demand side” opposing it, i.e. the sphere of demand with its inherent properties as a result of social (including property) stratification. At the same time, it seems to be relegated to the background that at the present stage the problem of “controllability” has acquired key importance for characterizing the investment process, regardless of which approach is declared decisive, because, ultimately, both can have priority depending on which direction in practice is most important for effectively confronting global challenges of a new (market) origin - economic backwardness or social degradation (up to absolute poverty of the broadest segments of the population).

Accordingly, the theoretical and practical confrontation noted above. It became less obvious both as a result of significant and ongoing reforms in the management of market processes of production, distribution and redistribution in the first case (defined as a capitalist economy), and dramatic upheavals and transformations of a very specific model of economic management based on the second approach, traditionally associated with the socialist production method.

In real (economic) content, the international movement of capital is a determining element in the functioning of the world economy, the development of forms and conditions of international economic relations of all types. Sometimes international investment (including foreign direct investment) is approached in terms of its interstate “migration”. Although this approach can be confirmed by the practice of some (mainly speculative) part of the world market and has corresponding theoretical justifications in this regard, it is not discussed in this chapter, especially since all the actual data and calculations presented here are based on foreign direct investment, for in which the signs of migration incentives in typical FDI motivations are not decisive.

The international movement of capital is carried out through its export and import directly between countries, through international financial markets or international financial institutions.

Capital - this is the most important factor of production; the supply of funds necessary to create material and intangible benefits; value that generates income in the form of interest, dividend, profit.

The essence of the export of capital comes down to the withdrawal of part of the financial and material resources from the process of national economic turnover in one country and their inclusion in the production process in other countries.

The main reason for the export of capital is the advance of the internal economic development of the exporting country compared to the growth of its foreign trade. The export of capital is caused by the formation of excess capital in industrialized countries, which is due to its overaccumulation, that is, when the fall in the rate of profit in the national economy is not compensated by an increase in its mass.

Irrevocable and interest-free funds provided to other countries are not capital or do not generate income for its owners. However, in the host country these funds can be used as capital. And, conversely, funds exported as capital can be spent on consumption in the country of application. An increase in the volume of foreign capital in the national economy may not be associated with a new influx of resources. It can be carried out through borrowing by a non-resident from local public and private sources, as well as converting part of the profit into the capital of enterprises with foreign participation.

International capital movements- this is the placement and operation of capital abroad, primarily for the purpose of its self-expansion. By investing capital abroad, the investor makes foreign investments (investments abroad).

The classification of forms of international capital movement reflects the various aspects of this process. Capital is exported, imported and functions abroad in the following forms. There are such forms of capital as illegal capital and intra-company capital:

Illegal capital is the migration of capital that bypasses national and international law (in Russia, illegal methods of exporting capital are called flight or leakage).

Intracompany capital - transferred between branches and subsidiaries (banks) owned by the same corporation and located in different countries.

• 1. In the form of private or public capital, depending on whether it is exported by private or public organizations and companies. The movement of capital through international organizations is often identified as a separate form.
• 2. In monetary and commodity forms. Thus, the export of capital can be machinery and equipment, patents and know-how, if they are exported abroad as a contribution to the authorized capital of a company being created or purchased there. Another example would be trade loans.
• 3. In the short-term (usually for a period of up to one year), medium-term capital - (investment of capital for a period of 1 to 5 years), and long-term (investment of capital for a period of over 5 years. All investments of entrepreneurial capital in the form of direct and portfolio investments are usually long-term forms. In the world and in Russia, the movement of short-term capital prevails.

Import and export of capital; Short-term capital; Long-term capital; Outflows, inflows of cash; Bank deposits and funds in the accounts of other financial institutions; Short-term loans and credits; Direct investments Long-term loans and credits; Portfolio investment;

Although bank deposits and funds in accounts with other financial institutions can be held for periods longer than one year, they are traditionally classified as short-term capital. Direct and portfolio investments will be discussed below.

4. In loan and entrepreneurial form.

Capital in loan form (loan capital) brings its owner income mainly in the form of interest on deposits, loans and credits, and capital in entrepreneurial form (entrepreneurial capital) - mainly in the form of profit:

The import and export of capital can occur in the following forms[; Short-term capital; Long-term capital; Outflows, inflows of cash; Bank deposits and funds in the accounts of other financial institutions; Loans and credits; Direct investments; Branches; Portfolio investment; Other branches; Associated companies; Affiliated companies.

Capital in loan form (loan capital) brings its owner income mainly in the form of interest on deposits, loans and credits, and capital in entrepreneurial form (entrepreneurial capital) - mainly in the form of profit.

International investments can be different in nature and form.

By source of origin-- this is public and private capital. State capital in international use is also called official capital; it represents funds from the state budget that go abroad or are received from there by decision either directly from governments or from intergovernmental organizations. By form - these are government loans, loans, grants (gifts), assistance, the international movement of which is determined by intergovernmental agreements. This also includes loans and other funds from international organizations (for example, IMF loans). But in any case, it is still taxpayers’ money, although it goes to the recipient in different ways.

Private capital is funds from non-state sources placed abroad or received from abroad by private individuals (legal entities or individuals). These include investments, trade loans, interbank lending; they are not directly related to the state budget, but the government keeps their movements under review and can, within its powers, control and regulate them. In practice, there are very subtle methods of converting public funds into private investment.

By nature of use, international investments can be entrepreneurial and loan.

Entrepreneurial capital is directly or indirectly invested in production and is associated with obtaining a certain amount of rights to receive profit in the form of a dividend. Most often, private capital comes into play here.

Loan capital means lending funds to earn interest. Capital from government sources is active here, but operations from private sources are also very significant.

According to the terms, international investments are divided into medium-term and long-term, as well as short-term. The first includes investments for more than one year. This group includes the most significant investments, since long-term investments include all investments of entrepreneurial capital in the form of direct and portfolio investments (mainly private), as well as loan capital (government loans).

Direct investment involves the placement of capital by a foreign investor in which he acquires control over a domestic enterprise. This usually happens in cases where a foreign company intends to exploit a given company in its own interests (making more profit, penetrating the domestic market bypassing high customs duties, moving its own production to an area with lower wages or close to large markets or sources of raw materials , materials). Direct investments coming from abroad consist mainly of two components: contributions to the authorized capital, both in the form of tangible and intangible assets, and cash and loans from foreign co-owners of enterprises. The third component of increasing direct investment is the reinvestment of profits received by a company with foreign investment in Belarus, carried out in ruble form.

For a Belarusian enterprise or joint stock company, creating a joint venture with foreign partners has two main advantages:

firstly, new material and financial resources are attracted (including in the form of imported equipment, licenses and know-how), which are part of the enterprise’s fixed assets and do not directly require payment;

secondly, the interests of the Belarusian and foreign partners are united, which implies mutual interest in improving production and conquering markets.

However, certain shortcomings of this form of entrepreneurship for Belarus were revealed, which was expressed in the underestimation of the real share of domestic participants in the formation of authorized capital. This was due to the underestimation of the domestic contribution in the form of buildings, technologies, land use rights and inflated prices for equipment and technologies supplied as a foreign partner’s contribution to the authorized capital.

But serious Western investors are interested not so much in partnership with Belarusian organizations as in acquiring reliable elements of production control. In conditions when a significant part of Belarusian enterprises has been privatized, the forms of attracting foreign capital are changing. The main form of creating commercial organizations with foreign investment is not new joint ventures, but the sale of blocks of shares of Belarusian joint-stock companies to foreign investors.

International practice knows such a form of using foreign capital as the creation of contractual joint ventures. An enterprise or firm may enter into an agreement (contract) with a foreign company to carry out certain work to modernize and expand production. A foreign company imports equipment for this purpose, uses its technologies, management experience and, in accordance with the terms of the contract, receives part of the profit from the sale of products produced on the basis of production modernization. In this case, no new company is created; the enterprise remains the property of the company. The foreign partner operates at this enterprise within certain limits specified in the contract.

In modern conditions, attracting foreign investment for the development of mineral deposits and other natural resources on the basis of production sharing agreements (contracts) is of great importance. Most often, the development of natural resources is transferred to foreign companies: minerals, water, forests. The conclusion of such agreements is advisable when a country has significant explored but undeveloped reserves due to a lack of financial and technical resources. In this case, the investor receives the exclusive right to explore and extract the resource at his own risk and at his own expense in the territory allocated to him. He owns the products and can freely sell them after mandatory deliveries to the local market, the amount of which is specified in the agreement. He also owns the equipment, apparatus, installations installed during the extraction of natural resources.

Joint and foreign ventures are created mainly in the fields of trade and public catering, industry, construction, commercial infrastructure, science and scientific services, transport, communications and the financial sector.

Portfolio investment.

An ever-increasing share of foreign capital inflows is made up of portfolio investments. Unlike direct investments, only income matters to the owner of a portfolio investment, and he is not interested in control over the enterprise. Portfolio investments are the purchase of securities (bond shares) that do not provide the opportunity to participate in the management of a commercial organization, as well as government securities.

As a result of privatization, the largest enterprises turned into open joint-stock companies, which will allow them to carry out secondary issues of shares and increase their authorized capital, attracting third-party, including foreign, investors.

Investment funds play a certain role in attracting foreign investment to the Republic of Belarus. By accumulating funds from small investors by issuing their own securities, funds can invest them in large investment projects in Belarus, which will provide them with high profits. Due to the profits, the funds will be able to pay good dividends or interest to those who entrust their money to them.

There are two points in the presented scheme that do not fully fit into modern investment practice.

Firstly, it is quite logical and capable of working from the perspective of monetary relations. But from the depths of trade and economic relations, as is known, numerous forms of operations related to investments also arise. Some are called “trade related investment measures” or TRIMs. Among them are a variety of service, marketing, management, technological and other contracts that lead to the emergence of investment rights, but do not strictly fit into the above classification. They do not provide for the transfer of property rights to a foreigner, but give the right to systematically receive income (royalties, etc.)

Another form of linking investment with trade, formally the opposite of the investment measures just mentioned, are “investment-related trade measures” (or “investment-related trade measures”, abbreviated as “IRTMs”). The essence of this kind of measures is this: through trade measures, create additional incentives to attract foreign investment. It is not surprising that such measures have recently received increased attention in relevant UNCTAD activities. Within the framework of such measures, both “access restriction measures” (quantitative and sectoral restrictions, tariff barriers, anti-dumping regulations, regional schemes to stimulate freer trade, etc.) and various measures to support exports (export-oriented industrial zones, export financing, development and improvement of relevant tax mechanisms).

Some contractual relationships are important when small and medium-sized businesses are involved in international investment activities, when moving from the status of trading partners to the level of trade and investment partner. Some experts include these measures in the area of ​​capital movements, others refrain.

The situation is similar with leasing, which has become an important form of trading activity. At the same time, leasing was on a par with investments; When turning to leasing, investors are lessors, because payments for leased equipment become for them a form of receiving permanent income and fully take into account profitability standards in the market. The situation is similar with regard to the use of Seleng.

Investment opportunities include engineering and other forms of trade in services. The GATT Uruguay Round focused on "trade-related aspects of intellectual property rights" (TRIPS), specifically: copyright and related rights, trademarks, geographical indications, industrial designs, patents, integrated network designs, undisclosed (unpatented) information ( i.e. trade secrets). It is also impossible to ignore these aspects of investment activity.

Secondly, in the diagram outlined, all forms are, as it were, equivalent, placed on the same board. Meanwhile, one can argue which forms of investment are more important from the point of view of managing real production, rather than redistributing previously received and distributed profits. The basis of these disputes, which reach the level of acts of legislative bodies or government regulations, lies, as a rule, in the personal or group interests of the relevant financial and industrial circles. This circumstance is all the more important because in recent years the formation of foreign direct investment to a greater extent (sometimes more than 2/3) occurs through mergers and acquisitions, in which there are no new financial receipts from abroad at all, only the owner changes, including as a result of “swap” (exchange) transactions that transform external debt to foreign countries into investments owned by foreign companies.

Nowadays, the priority importance of direct investment is recognized as the most capaciously uniting the national (or state, if this seems more acceptable to someone for ideological or political reasons) interests of various sectors of society, since they are subordinate to the activities of the real sector in the economy. In addition, such investments are predominantly associated with specific internationally operating firms, financial and industrial groups, and therefore are more manageable, their “rules of the game” are more defined. This is especially important from the standpoint of a managed market economy, ensuring real competitive standards for the national economy.

International capital movements(IBC) is an integral part and form of international economic relations. In the 20th century the export of capital undermined the monopoly of the export of goods: at the end of the last century, the growth rate of foreign direct investment alone was 4 times higher than the growth rate of world trade. The movement of capital differs significantly from the movement of goods. Foreign trade, as a rule, comes down to the exchange of goods as use values. The export of capital (foreign investment) is the process of removing part of capital from circulation in one country and moving it into the productive process and circulation in another country.

Export of capital in domestic literature, it is defined as the movement of capital of legal entities and individuals of one country to other countries in order to make a profit, including interest and dividends, to strengthen positions in foreign economies, fight for markets and sources of raw materials. As a result of the export of capital, the exporter acquires foreign material and financial assets, to which he receives the right to claim. Import of capital- this is the attraction of resources from abroad, which is accompanied by the emergence of obligations of the recipient to the foreign investor. When assets exceed liabilities, there is net export (outflow) of capital, indicating its relative abundance in the country; otherwise it happens net import (inflow) of capital into the country, which indicates its relative lack.

Initially, the export of capital was characteristic of a small number of industrialized countries that exported capital to the periphery of the world economy. Currently, capital is exported by both moderately developed and developing countries, and NIS, i.e. we can talk about international migration capital. International capital migration is a counter movement of capital between countries, bringing their owners corresponding income. Many countries are simultaneously importers and exporters of capital, carrying out the so-called cross investments. For example, 40% of North American foreign investment is settled in Western Europe, and 30% of Western European investment is in North America.

It is characteristic that capital can be exported even if there is a shortage of capital for domestic investment. Consequently, the traditional point of view on the issue of the reasons for the export of capital does not fully explain this phenomenon. The most important reasons for the export of capital are:

• 1) discrepancy between the demand for capital and its supply at various levels of the economy;
• 2) the presence in the countries where capital is exported of cheaper raw materials and labor, lower tax rates;
• 3) stable political situation and more favorable investment climate in the host country, lower risks, etc.;
• 4) lower environmental standards in the host country;
• 5) the export of capital can precede the export of goods, stimulating demand for its own products.

Based on sources of origin, moving capital is divided into private capital and official capital. Subjects international capital movements that determine its origins, speakers:

• - private commercial structures;
• - state organizations;
• - international economic and financial organizations.

From the point of view of MDC subjects, they distinguish between the movement of capital into macro level(interstate capital flow), statistically reflected in the country’s balance of payments, and capital flows to micro level, those. movement of capital through intracorporate channels.

A special role in the MDC is played by international corporations. The movement of capital by international corporations often does not fit into the general scheme of searching for the most favorable business conditions. For example, they transfer capital to subsidiaries, but the question arises: for what? The answer may be different: to absorb local companies (when TNCs buy up existing enterprises abroad rather than build new ones), or to diversify production, or to penetrate certain markets in a roundabout way. For example, Israel and South Korea have imposed high restrictions on the import of cars from Japan, but these restrictions do not apply to cars manufactured in American branches Japanese companies.

In general, the growing complementarity of national economies and the internationalization of production are powerful catalysts for the MDC process. In turn, the export and import of capital stimulate the process of internationalization of production and contribute to its transformation into international production. That is, there is mutual influence of two processes - the international movement of capital and the globalization of the world economy. An important stimulator of IDC is the activity of international financial organizations that direct “excess” capital to other countries.

IDC is the international movement of financial claims, i.e. financial flows between lenders and borrowers in different countries, and between owners and businesses they own abroad. Lenders or owners transfer money (finance) to borrowers or foreign enterprises for use in exchange for obligations or shares that provide them with future interest or dividends. Depending on the nature of use, international capital movements can take forms of loan or entrepreneurial capital.

In its turn, loan capital acts in the form of short-, medium- and long-term loans and credits or bank deposits, trade loans, which bring interest income to the owner of the capital.

Entrepreneurial capital takes the form of direct or portfolio foreign (overseas) investment.

A separate form of MDC is economic assistance, which is provided by developed countries to the rest of the world in the form of soft loans or free of charge.

In world practice, a clear distinction is made between the movement of capital and foreign investment. Transfer of capital includes payments for transactions with foreign partners, transfers, transfers, provision of loans, credits, placement of funds on deposits and current accounts in foreign banks, etc. Under foreign investment understand the movement of capital that serves the purpose of participating in the management of a company in a country receiving foreign capital. Participation in management can be “active” or “passive” depending on the number of shares purchased.

Investments in the host country that allow the owner of the capital to actively participate in the management of the investment object are classified as foreign direct investment(FDI). Direct investment ensures the ownership of such a share of share capital that ensures actual control on the part of the investor over the object of investment. Statistics from the USA, Germany, and Japan consider direct investments to be those that amount to 10% or more (it is believed that owning 10% of shares already makes it possible to control the enterprise).

The objectives of FDI can be very different, and they are described by different models. Among them - model of monopolistic advantages, based on the idea of ​​​​establishing monopolistic influence in a new local market for a foreign investor, where he is in less favorable conditions, or product life cycle model, which considers organizing the production of goods on the foreign market as a way to extend the life cycle of goods and minimize costs by optimizing taxation and reducing customs barriers. Marxist model based on the idea of ​​exporting “excess capital”, and internationalization model is based on the thesis of the movement of direct investment as part of the intra-company operations of TNCs. Eclectic model comes from the idea that a company begins production abroad if three prerequisites coincide: there are competitive advantages in the foreign market; organizing production in a new market is more profitable than exporting goods; productive resources abroad can be used more efficiently than at home. In the IMF's interpretation, the main motive for FDI is the creation of a transnational production structure in order to take advantage of the advantages associated with a more efficient allocation of resources owned by investors in different countries.

From an economic point of view, FDI represents a real investment of money or other valuables into the economy of the recipient country only at the stage of creating an enterprise or additional placement of shares on the international market ( IPO). In addition, non-resident owners can support their enterprise with the help of so-called subordinated loans. FDI also includes reinvestment of profits. Main forms of FDI are:

• 1) opening enterprises abroad (for example, in the form associated company, in which FDI is less than 50%, or subsidiary company in which FDI is more than 50%, or branch - a branch wholly owned by a foreign investor);
• 2) creation of joint ventures on a contract basis;
• 3) purchase or privatization of enterprises in a country receiving foreign capital.

Portfolio investment- these are forms of investment (in the form of purchasing shares, bonds, loans) that do not provide the opportunity for direct control over the activities of a foreign company. An investor can only make a profit in accordance with established securities rules. The movement of portfolio investments is greatly influenced by differences in the rate of interest rates paid on bonds in individual countries. Among portfolio investors, the leading role is played by the so-called institutional investors: pension funds, trust funds, investment companies, insurance companies accumulating huge amounts of money.

The difference between direct and portfolio investing comes down primarily to the issue of control over the firm in which the capital is invested.

Concerning economic assistance, which is provided by developed countries to the rest of the world free of charge or in the form of interest-free or low-interest loans, then the EU takes first place in terms of the volume of assistance provided (in 2004, the union and its member states accounted for 55% of global aid flows), Japan, and the USA.

But economic assistance is provided in a differentiated manner. Thus, the countries of Western Europe (France, Great Britain, Holland, etc.) provide economic assistance primarily to their former colonies. For example, at the beginning of this century, only 3% of all French government aid funds went to developing countries outside France's former colonial empire. In the mid-1990s. More than half of the funds allocated in the US budget for economic assistance went to just three countries (Israel, Egypt and Russia). In addition, the economic conditions for providing American economic assistance are often unfavorable for its recipients. For example, a country that receives grants or loans from the United States is required to spend them almost exclusively on the purchase of American goods, the prices of which may be higher than the world average.

Economic assistance can take different forms: military assistance (supplies of weapons and assistance to the military on preferential terms), technical assistance for development purposes, food assistance, assistance in eliminating the consequences of disasters, cancellation of debt for previously provided assistance, etc. All forms of economic assistance have financial equivalent, so they can be called financial assistance.

To distinguish financial assistance from ordinary commercial loans and advances, the concept “ grant element" So called indicator of the level of concessionality of various borrowings. The grant element shows what part of the payments to repay the debt the creditor does not receive as a result of providing a loan (loan, credit) on terms more favorable than commercial ones. The grant element is calculated using the formula:

Where E, g- grant element;

IN- actual payments to repay the debt in the i-th year;

A- volume of the loan provided; G- interest rate of commercial banks; t- loan term.

Financial assistance includes those loans in which the grant element is at least 25%.

As researchers note, the peculiarity of developed countries allocating huge funds to provide economic assistance to other states is that the benefactor country is unable to control the targeted expenditure of all budget funds officially allocated for assistance. According to a study by the European Parliament, more than 1 billion euros of these funds disappear without a trace every year. According to the European Commission's Anti-Fraud Office, for the years 1999-2003. 5.34 billion euros were missing (of this amount only 1.87%)*.

• It should be noted that the export (import) of capital can be carried out in monetary and commodity forms. The export (import) of machinery, equipment, patents, know how as a contribution to the authorized capital of a company being created or purchased represents the export (import) of capital in commodity form.
• The relative excess of capital in the country and its overaccumulation lead to a decrease in MRPK - the marginal return on the product of capital, which forces one to look for profitable options for using capital in other countries.