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In the Act of 2003, there are four groups of objects (subjects) ITD: goods, services, information and intellectual property. This classification of objects of trade is quite applicable for both external and internal trade. The Act specifies the content of external trade for each of the listed objects.

It’s important to distinguish «foreign trade activity of the country» and «foreign trade activity of the organization».

Based on the earlier definition of foreign trade, one can say that foreign trade of any country is a part of the reproductive process, thatensures the functioning of the national economy. This can be achieved as a result of economic relations of individual subjects of foreign trade activities with foreign partners. Therefore, foreign tradeactivities of a particular country is a combination of various types of foreign trade activities of subjects of that state.

When we give a definition tothe trade organization, it is advisable to proceed from the general definition of foreign trade activity in respect to the subject organization. In a narrow sense, this term can be understood as a set of specific relations of the organization with the subjects of foreign trade activities of other countries in the process of entrepreneurship. Foreign trade can be described as a set of forms and methods of exchange of goods and services between parties from different countries.

The subjects of foreign trade activities of the country are not only organizations (private enterprises, joint stock companies, etc.), but also public authorities (state authorities of the Russian Federation, bodies of state power of subjects of the Russian Federation in the field of foreign trade), international organizations (international banks, the international monetary Fund, the United Nations, specialized international intergovernmental organizations, etc.), individuals, etc. All Russian entities have the right to engage in foreign trade, foreign individuals may conduct it in the Russian Federation in accordance with the legislation of the Russian Federation.

Modern global trade is characterized not only by the dynamics of its physical volume growth, but also by a large variety of commercial patterns, trends and principles of sales on foreign markets, as well as methods of foreign trade transactions registration, requiring the foreign economic activity participants of the corresponding operational-commercial work. Therefore, in addition to knowing the information about the conditions of interstate and national regulation of export-import flows, the access to foreign markets is also associated with the study of the possible forms and ways of a specific product realization and appropriate registration of foreign trade transactions and operations.

Foreign trade is a form of communication between producers of different countries and caters for the sphere of goods circulation (including services and mediators) through foreign trade transactions which are commercial. Thus, foreign trade transaction is a set of counterparties, i.e. foreign partners in the process of foreign trade operations, in order to commit and provide goods exchange. A full range, characterizing foreign trade operation, includes: market research for a specific product, its advertising, creating distribution network, elaboration of commercial proposals, negotiation, conclusion and execution of contracts.

Foreign trade can be described as a complex of methods and forms for the exchange of goods and services between parties from different countries. The rules, which occur on such exchange, are based on historically established principles of international labor division.

Modern forms and methods of foreign trade operations are part of international economic relations. In international practice there are the following criteria for the classification of foreign trade operations:

1. According to the directions of trade:

1. Export

2. Reexport

3. Import

4. Reimport

1. 2. According to the types of trade:

   1. Goods

   2. Services

2. 3. According to the type of goods and services:

   1. Goods: industrial raw materials, food and consumer, technical and scientific products.

   2. Services: consulting, engineering, financial, travel, etc.

3. 4. According to the degree of readiness of the goods:

   1. Trade in finished products

   2. Trade in products unassembled

   3. Trade in complete equipment

4. 5. According to the methods of trade in goods and services:

   1. Direct

   2. Indirect

   3. The competitive nature of the transaction

5. 6. According to the forms of trade organization:

   1. Barter transactions

   2. Counter purchases

   3. Compensatory transaction

   4. Operations on tolling

   5. Redemption of obsolete products.

Along with the international trade of goods (in the real sense of the word),trade in services is also widely developed. International trade in services has a number of features in comparison with traditional merchandise trade.

Services usually do not have reified form, although a number of services acquires it in the form of computer programs on magnetic media, films, various documents, etc.

Services, unlike goods, are produced and consumed in the main at the same time and cannot be stored. Therefore direct service providers or foreign consumers are needed to present abroad in the country of production services.

Not all types of services, unlike products, are suitable for a wide involvement in international trafficking. For example, such as utilities.

Comparison of the main characteristics of goods and services is presented in the table 1.1.

Table 1.1 Distinctions of goods and services

Because the majority of services trade is intangible and invisible,service trade is sometimes called invisible exports and imports. Unlike goods, services are often combined with their exports within the framework of one contract and require a direct meeting between seller and buyer. However, in this case, there are numerous exceptions.

For example, some services are quite tangible (paper, computer program), it is quite visible (cosmetic procedure or theatrical performance), amenable to storage (facilities of a telephone answering machine) and do not always require direct interaction between the buyer and the seller (the automatic payment of the money in the Bank card accounts).

International trade in services compared to trade in goods has the following features:

1. non-regulated at the border, but inside the country by the relevant provisions of domestic law;

2. services are usually not subject to storage, they are produced and consumed simultaneously;

3. international trade in services is closely linked to the trade of goods and exerts a strong impact;

4. not all services unlike goods can be traded.

A key inservices tradeis that in most cases aphysical contact of buyer and seller must occur. Only in this case, the international transaction of purchase-sale services will be held.

There are several mechanisms of transactions in international trade in services:

1. mobility of the buyer. Customers from one country come to the seller from another country. Mobility of the buyer is usually based on the fact that abroad he will be able to get a service which is either not available in his country (tourism), or the quality of the service is higher (education, medical care), or the price is lower (warehousing of goods, ship repair).

2. mobility of the seller. The seller from one country comes to the customer from another country. The mobility of the seller is usually based either on the fact that the recipient is abroad and cannot move to the seller (auditing and accounting services for enterprises) or on the specific nature of the service (construction).

3. simultaneous mobility of the seller and the buyer or the mobile nature of the service itself. Both the seller and the buyer simultaneously use the service (international call) or get together in a third country (international conference), or the seller provides the buyer service through representation in a third country.

A service is a specific product of labor, which doesn’t becomematerial and its value is in the beneficial effect of living labor (unlike proprietary product). These are, for example, the services of transportation companies, construction firms, communication companies, news agencies, etc. Their work produces a certain product in a tangible form, which may be the object of sale, the object of consumption, etc. Thus, the service as a specific product of labor, which exists not in the form of material goods, but the labor, that performs specific functions in the modern society.

A service is an activity, directed to the satisfaction of requirements of the third parties on the basis of the contractual relationship between the producer and the consumer of services, except for activities carried out on the basis of labor relations. The export is providing the non-resident with different types of services, and the import is receiving different types of services from non-resident.

In contrast to the proprietary product of labor, a service cannot be accumulated, and the processes of production and consumption coincide in time. However, the effects of the use of services may have a material and permanent character: the cargo is transported, the information is received by the consumer, communication between partners is ensured, etc.

The services market includes a significant sector of the world trade. According to the classification of the GATS, there are 160 types of services, divided into 12 major sections:

1. Business services – 46 industry services.

2. Communication services – 25 types.

3. Construction and associated services – 4 types.

4. Distribution services – 5 species.

5. Educational services – 5 species.

6. Services of environment protection – 4 types.

7. Financial services, including insurance – 17 types.

8. Services of health protection– 4 types.

9. Travel and tourism – 4 types.

10. Services in the field of leisure, culture and sport – 5 types.

11. Transport services – 33 types.

12. Other services.

Classification of services is based on the International standardized industrial classification, adopted by the United Nations and recognized in most countries of the world.

There is a classification of services under which the services are divided into:

1. not traded,

2. traded.

Most services are produced and consumed only within a national framework, which means thatthey are not traded from the point of view of the international economy. This classification includes utilities, education, health services, social and personal services, restaurants, hotels, etc.

Classification of traded services in accordance with the guidance for compiling the balance of payments the international monetary Fund (IMF) is presented in table 1.2.

Table 1.2 Classification of services

Termination of the table 1.2

All of these diverse activities are united by the fact that they are inherently involved in international trade, in other words they can be defined as payments for non-marketed commercial transactions concluded between nationals of two or more independent countries and reflected in the balance of payments.

Характеристики

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