диплом (1223701), страница 11
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– availability of commercial qualification and wide trade experience (Otherwise finance costs not only will not be reduced, but can increase considerably);
– availability of the multidivisional structure of a firm abroad;
– availability of large initial investments.
Intermediaries are used:
– in case of a standard industrial plant equipment’s sale;
– in case of consumer goods’ sale;
– in case of implementation of minor goods’ realization;
– in individual difficult markets and small market;
– in case of new goods’ sale for the market;
– in case of small export turnover;
– in case of goods’ sale by small and medium producers;
– in an unavailability of own sales network;
– in case of trade’s monopolization by large trade intermediary firms.
If the industrial enterprise is independently engaged in foreign trade activity, the structure of its expenses changes, as a part of resources of production process is diverted and redistributed to the sale of goods.
The foreign trade expenses of an enterprise are:
– transaction costs (costs for the conclusion of agreements, negotiating, etc., representation’s expenses);
– pure costs of circulation (expenses for purchase and sale of goods, their pattern of ownership’s change, sales and distribution costs);
– incremental costs of circulation (the costs of the organization connected with process of production in the distribution, for example packing, marking, packaging);
– the expenses for transport service of foreign trade activity (Incoterms);
– the expenses for customs escort;
– the expenses associated with the active legislation: receipt of the passport export (import, barter) transactions, licenses and certificates;
- management expenses;
– expenses of foreign trade activity’s financial assurance (purchase and sale of currency, insurance, lending activities, conducting international payments);
– expenses for introduction of goods into the foreign market (marketing researches of the target markets, advertizing);
– transport-forwarding expenses;
– expenses for support service [11, page 5-6].
Foreign trade in goods is import and (or) export of goods. Goods are any movable property, being the object of foreign trade activity, which is subsumed under the category of immovable property and also aircraft, sea-going ships, inland and mixed navigation (river – sea) ships and spacecrafts, as well as electricity and all other types of energy. Means of transportation used under a contract on international transportation shall not be considered as goods.
Russian participants of the foreign trade activity specify the name of each commodity heading according to Foreign Trade Goods Classification of the Customs Union to unify commodity classification in international trade.
In accordance with the legislation of the Russian Federation under the export of goods refers to the exportation of a commodity from the customs territory of the Russian Federation abroad without the obligation to transport it back. Import of goods is the importation of a commodity to the customs territory of the Russian Federation from abroad without the obligation to transport it back.
Foreign trade in services is the supply, including the production, distribution, marketing, sale and delivery, service (the execution of work), exercised through the modes:
1) from the territory of the Russian Federation into the territory of a foreign State;
2) from the territory of a foreign State into the territory of the Russian Federation;
3) in the territory of the Russian Federation to a foreign service consumer;
4) in the territory of a foreign State to a Russian service consumer;
5) by a Russian service supplier not constituting a commercial presence on the territory of a foreign State through his presence or the presence of persons authorized to act on his behalf on the territory of a foreign State;
6) by a foreign service supplier not constituting a commercial presence on the
territory of the Russian Federation through his presence or the presence of persons authorized to act on his behalf on the territory of the Russian Federation;
7) by a Russian service supplier through commercial presence on the territory of a foreign State;
8) by a foreign service supplier through commercial presence on the territory of the Russian Federation.
The definition of commercial presence refers to any organization’s form of business or other economic activity of a foreign person on the Russian Federation’s territory or of a Russian person on the foreign State’s territory, allowed by the legislation of the Russian Federation or the legislation of the foreign State, for the purpose of supplying services, including through the constitution of a juridical person, a branch or a representative office of a juridical person, or by participation in the authorized (share) capital of a juridical person. A Russian juridical person who exercises commercial presence, shall be considered as a foreign service supplier, when a foreign person (foreign persons), either have a dominant participation in its authorised (share) capital, or have the possibility of exerting a decisive impact on the decisions taken by such a juridical person, in accordance with a contract concluded between them or in any other way.
According to the World Trade Organization (WTO) services are classified into:
1. business services - 46 groups.
2. communication services - 25 groups.
3. construction and related engineering services - 5 groups.
4. distribution services - 5 groups.
5. educational services - 5 groups.
6. financial services, including insurance - 17 groups.
7. environmental services - 4 groups.
8. health related and social services - 4 groups.
9. tourism and travel related services - 4 groups.
10. recreational, cultural and sporting services - 5 groups.
11. transport services - 33 groups.
12. other services not included elsewhere
Foreign trade in intellectual property is the transfer either by a Russian person to a foreign person or by a foreign person to a Russian person, of the exclusive rights to intellectual property’s objects, or of the rights to use intellectual property’s objects [2].
The concept "intellectual property" assumes that the right holder may dispose an exclusive right to a result of his intellectual activity. In accordance with the Civil Code of the Russian Federation under the definition of "intellectual property" are exclusive rights on works of science, literature, and art; computer programs and any database; the neighboring rights to inventions, industrial designs, utility models, and also equated to intellectual activity’s results of individualization’s means of the legal entity (trade names, trademarks, service marks) and other results of intellectual activity which protection is provided by the law.
Trade in intellectual property is performed through trade in patents, licenses, trademarks, transfer of a know-how.
Foreign trade in information shall be considered as the foreign trade in goods if the information forms an integral part of these goods, or as the foreign trade in intellectual property if the information is transferred as the result of the rights’ transfer to the intellectual property to this information; in all other cases it shall be considered as the foreign trade in services.
Information can be as independent foreign trade activity’s object, or as the integral addition to other objects. As the independent object information can be available on business, production, scientific and technical and other matters. The exact and immediate information of special nature should be regarded as one of the most expensive foreign trade’s objects. Information which is necessary to use delivered goods, is called as the relevant information [20, page 7].
Pursuit of foreign trade activity assumes implementation of the foreign trade operations. The foreign trade operations represent a complex of the main and the auxiliary (providing) types of a commercial activity, i.e. a set of techniques which consistent application provides implementation of the sale contract.
Main operations are:
– an exchange of goods in a material form (on the basis of the conclusion of the sale contract., dealing on counter trade: contra deal, agreement on turn-in buying, compensation agreement);
– an exchange of technical science knowledge in the form of trade in patents, licenses and a know-how (on the basis of the conclusion of license agreements, sale of patents, transfer agreements of a know-how);
– exchange of technical services (consulting and construction engineering);
– lease;
– intermediate trade, etc.
The providing operations are individual operations on packaging, storage of cargo in case of international carriages, quality survey, certification, a customs clearance, forwarding services, insurance of goods, payments and crediting, advertizing, registration of trademarks, rendering information and consulting services, and also international cargo carriages, etc. [11, page 13-14].
The foreign trade operations are divided into types:
• in the trade’s directions (export, reexport, import, reimport);
• on trade organization’s methods (barter transactions, turn-in buying, compensation deal, toll treating, the redemption of mature product, industrial cooperation);
• on trade methods (direct methods, through intermediaries);
• by types of goods and services (raw materials, food products, consumer goods, machine-technical production, purchase and sale dealing of intellectual activity’s results, services);
• on degree of fabrication (finished commodity, miscellaneous equipment, complete set of equipment);
• in a form of trade organization (competitive dealings – exchanges, auctions, tenders; not competitive).
The state regulation of foreign trade activity is based on the Constitution of the Russian Federation, and exercised in accordance with the Federal Law on the Fundamentals of State Regulation of Foreign Trade, other federal laws and normative legal acts of the Russian Federation, as well as by generally recognised principles and rules of international law and international treaties of the Russian Federation.
The basic principles of the State regulation of foreign trade activity are:
1. the protection by the State of the rights and legitimate interests of the persons engaged in foreign trade activity, as well as of the rights and legitimate interests of Russian producers and consumers of goods and services;
2. the equality and non-discrimination unless otherwise provided by a federal law, of persons engaged in foreign trade activity;
3. the reciprocity in relation to another State or group of States;
4. the ensuring of the execution of the Russian Federation’s obligations under the Russian Federation’s international treaties and the exercise of the Russian Federation’s rights arising from such treaties;
5. the choice of measures of foreign trade activity’s state regulation is not more burdensome on the persons engaged in foreign trade activity, than necessary to secure an effective achievement of the objectives pursued by the application of measures of foreign trade activity’s state regulation;
6. the transparency in the development, adoption and implementation of the measures of foreign trade activity’s state regulation;
7. the reasonableness and objectivity in the implementation of foreign trade activity’s state regulation;
8. the exclusion of unjustified state interference and its bodies in foreign trade activity and of incurring damage to the persons engaged in such an activity and the economy of the Russian Federation;
9. the securing of the defence and safety of the State;
10. the ensuring of the right to challenge in a court of law or through any applicable complaints procedure any unlawful action or inaction by the State bodies or their officials as well as to challenge any normative Russian Federation’s legal acts that directly affect the right of the person engaged in foreign trade activity to carry out foreign trade activity;
11. the unity of the state regulation system of foreign trade activity;
12. the unity of application of state regulation methods of foreign trade activity on the whole territory of the Russian Federation.
The most important for legal foreign trade activity’s regulation are the following laws: Federal Law No. 164-FZ of December 8, 2003 ‘On the Fundamentals of State Regulation of Foreign Trade’, Federal Law No. 173-FZ of December 10, 2003 ‘On currency regulation and currency control’, Federal Law No. 311-FZ of November 27, 2010 ‘On Customs regulation in the Russian Federation’, ‘The Customs code of the Customs union’, Federal Law No. 184-FZ of December 27, 2002 ‘On technical regulation, Federal Law’ No. 160-FZ of July 9, 1999 ‘On foreign investments in the Russian Federation’, Federal Law No. 183-FZ of July 18, 1999 ‘On export control’, Federal Law No. 4-FZ of January 4, 1999 ‘On coordination of the international and foreign economic relations of subjects of the Russian Federation’, Federal Law №164-FZ of October 29, 1998 ‘On finance lease (leasing)’, Federal Law No. 114-FZ of July 19, 1998 ‘On military and technical cooperation of the Russian Federation with foreign states’, Federal Law No. 132-FZ of November 24, 1996 ‘On bases of tourist activities in the Russian Federation’, Federal Law No. 225-FZ of December 30, 1995 ‘On agreements and the section of production’, Federal Law No. 101-FZ of July 15, 1995 "On international treaties of the Russian Federation’, Federal Law No. 5003-1 of May 21, 1993 "On a customs tariff’, Federal Law No. 165-FZ of December 8, 2003 ‘On special protective, anti-dumping and countervailing measures in case of commodity import’, etc.
1.2 Management of foreign trade activity on an industrial enterprise
The foreign trade management is a special type of management connected with the use of managerial tools in foreign markets for ensuring effective participants' relations and competitive advantages of a firm.
Distinction between the foreign trade management and in-house management is that in one's zeal to bolster one's profit margins at the expense of a business exit to the foreign markets. The foreign trade management focuses on the efforts to use additional economic opportunities due to large-volume foreign markets.















