One of the characteristic phenomena of the modern world economy is the movement of capital between countries.

The international movement of capital is based on its international division as one of the factors of production - the historically established or acquired concentration of capital in various countries, which is a prerequisite for their production of certain goods, which is more economically efficient than in other countries.

The international division of capital is expressed not only in the different endowments of countries with accumulated reserves of material resources necessary for the production of goods, but also in differences in historical traditions and production experience, levels of development of commodity production and market mechanisms, as well as simply monetary and other financial resources. Having sufficient savings (capital in in cash) is an essential prerequisite for investment and expansion of production.

Capital is a self-increasing value found in productive and monetary forms.

International movement (migration) of capital- movement of capital belonging to legal and individuals one country to other countries in order to make a profit (income), strengthen their position in a foreign economy, to fight for markets and resources.

Movement of capital significantly different from movement of goods:

Foreign trade comes down to the exchange of goods as use values.

The export of capital 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.

At first, the export of capital was characteristic of a small number of industrialized countries. Now the process of capital export is becoming a function of any successfully developing country. Capital is exported by leading countries, moderately developed countries, and developing countries. Especially NIS. The reason for the export of capital is the relative excess of capital in a given country, its overaccumulation.

The most important of them are:

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

2) the opportunity to develop local commodity markets;

3) the presence in the countries where capital is exported of cheaper raw materials and labor;

4) stable political situation and a generally favorable investment climate in the host country, preferential investment regime in special economic zones Oh;

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 or non-tariff restrictions on the products of a particular international corporation.

Factors, facilitating the export of capital and stimulating it:

1) growing interconnection and interconnection of national economies;

2) international industrial cooperation;

3) the economic policy of industrialized countries, seeking to, by attracting foreign capital, give a significant impetus to their economic development;

4) important stimulants are international financial organizations that direct and regulate the flow of capital;

5) international agreement to avoid double taxation income and capital between countries, promotes the development of trade, scientific and technical cooperation.

Subjects the movement of capital in the world economy and the sources of its origin are:

2) state, international economic and financial organizations.

The movement of capital and its use is carried out in the following forms:

1. According to the sources of origin, capital in motion on the world market is divided into official And private.

- Official (state) capital - funds from the state budget moved abroad or received from abroad by decision of governments, as well as by decision of intergovernmental organizations.

The source of official capital is funds from the state budget, that is, ultimately, taxpayers’ money.

Therefore, decisions on the movement of such capital abroad are made jointly by the government and representative authorities (parliament).

Capital that is managed by international organizations on behalf of their members (credits from the IMF, World Bank, UN expenses for maintaining peace, etc.) is also considered official.

- Private (non-state) capital - funds of private companies, banks and other non-governmental organizations, moved abroad or received from abroad by decision of their governing bodies and their associations.

The source of this capital is funds from private firms that are not associated with the state budget.

But, despite the relative autonomy of firms in making decisions about international movement capital they own, the government usually reserves the right to regulate and control it.

2. By nature of use they distinguish:

- Entrepreneurial capital is funds directly or indirectly invested in production for the purpose of making a profit.

Private capital is often used as entrepreneurial capital.

- Loan capital is funds lent to earn interest.

Internationally, official capital from government sources is mainly used as loan capital.

3. According to the investment period, they are distinguished:

- Medium-term and long-term capital - capital investments for a period of more than 1 year.

All investments of entrepreneurial capital in the form of direct and portfolio investments are usually long-term.

- Short-term capital - capital investments for a period of less than 1 year.

4. According to the purpose of investing capital, the following are distinguished:

- Direct investments(direct investments) - investing capital in industrial, commercial and other enterprises for the purpose of managing them.

They form the basis of the dominance of international corporations in the world market. Distribution foreign investment by country and industry largely determines the structure of the modern world economy and the relationships between individual parts of the world economy.

- Portfolio investment (portfolio investments) - investment of capital in foreign securities that do not give the investor the right to real control over the investment object.

Such investments are also predominantly based on private entrepreneurial capital, although the state often issues its own and acquires foreign securities.

- International loans- provision of loan capital based on the principles of repayment, urgency and payment.

- Economic assistance- free of charge and in the form of preferential loans (interest-free, low-interest).

The forms of international capital movement that are recognized by each particular country are usually established in its investment and banking legislation.

When comparing the relative preference of raising capital in various forms, it should be emphasized that direct investment has a number of advantages.

First of all:

1) the activity of the private sector is intensifying,

2) access to foreign markets is expanding,

3) access to new technologies and management methods is facilitated.

In this case, there is a greater likelihood of reinvesting profits within the country than exporting them to the home country.

Besides:

4) the influx of entrepreneurial capital does not increase the size of external debt.

In world practice, the movement of capital differs significantly from foreign investment.

Transfer of capital contains: payment receipts for transactions with foreign partners, provision of loans, etc.

Under foreign investments refers to the movement of capital with the purpose of establishing control and participation in the management of a company in the country receiving the capital

International capital movements occupy a leading place in IEO and have a huge impact on the global economy:

1) contributes to the growth of the global economy;

2) deepens the international division of labor and international cooperation;

3) increases the volume of mutual trade between countries, including intermediate products, between branches of international corporations, stimulating the development of world trade.

Consequence for countries exporting capital, is the export of capital abroad without adequately attracting foreign investment, which leads to a slowdown in the economic development of exporting countries.

The export of capital has a negative impact on the level of employment in the exporting country, and the movement of capital abroad has an adverse effect on the country's balance of payments.

For countries importing capital, the positive consequences may be the following:

1) regulated import of capital (promotes economic growth of the capital recipient country);

2) attracted capital (creates new jobs);

3) foreign capital (brings new technologies);

4) effective management (contributes to the acceleration of scientific and technological progress in the country);

5) capital inflow (helps improve the balance of payments of the recipient country).

There are also negative consequences of attracting foreign capital:

1) the influx of foreign capital displaces local capital or takes advantage of its inaction and pushes it out of profitable industries;

2) uncontrolled import of capital may be accompanied by environmental pollution;

3) import of capital is often associated with pushing into the market of the recipient country goods that have already passed their life cycle, as well as those discontinued due to identified poor-quality properties;

4) import of loan capital leads to an increase in the country’s external debt;

5) the use of transfer prices by international corporations leads to losses for the recipient country in tax revenues and customs duties.

Macro level of capital flow— interstate capital flow. Statistically, it is reflected in the balance of payments of countries.

Micro level of capital flow— capital movement within international companies through intracorporate channels.

Countries participating in world trade exchange among themselves both goods and services and the resources necessary for their production, i.e. factors of production. The most mobile factor of production is capital, although, as a rule, its movement is subject to more stringent regulation by the state. Capital is actively invested abroad, and also comes from abroad as investments in the national economy. International migration (movement) of goods and factors of production are interconnected, they complement and replace each other. A country with relatively abundant labor resources and lack of capital can import capital-intensive goods and export labor-intensive goods. Or it can attract foreign capital and create capital-intensive production on its territory. At the same time, surplus labor can emigrate to those countries where there is not enough labor and the level wages much higher. A country with a relative surplus of capital and a shortage of labor may export capital-intensive goods and import labor-intensive goods, or export capital to countries with higher interest rate and profit margins (for example, due to cheap labor, raw materials, energy resources), and can also attract immigrants from countries with surplus labor.

The following definition of capital movement is found in the literature: Capital movement is the migration of capital between countries, generating income for their owners. In turn, international capital migration includes the export, import of capital and its functioning abroad.

World capital flows in modern conditions serves as a factor in enhancing the internationalization of production, increasing the pace economic growth and the level of employment, the development of advanced industries and turns financial markets into the most important stimulus for the development of the world economy.

International capital movements have a huge impact on the global economy. This is manifested, first of all, in the fact that international capital transfer contributes to the growth of the world economy. This is due to the fact that a country endowed with capital or capital-intensive goods can establish production abroad through investment. Receive a greater economic effect than as a result of foreign trade. This is due to the fact that the country receiving capital may have cheaper labor, raw materials, or a more favorable investment climate, such as the presence of free economic zones or low environmental standards.

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 capital. Generally public policy has become more liberal in attracting foreign capital. Since the early 1990s, the desire to attract foreign investors has become one of the most important trends economic policy most countries of the world.

International capital movement does not imply physical movement from country to country of industrial buildings and structures, equipment and other investment goods. However, if machinery and equipment are transported into a country as a contribution to authorized capital company being created or acquired there, then in this case the transaction will be considered as an export of capital.

There are fewer barriers and restrictions on the international movement of capital than on the route of migration flows of labor. But capital flows are associated with considerable risks. Credit information may be misleading. There are political risks. Moreover, while expropriation of foreign property is a rare occurrence, discriminatory foreign taxes are quite common. Finally, the foreign investor faces the problem of fluctuations exchange rates.

The main subjects of the global capital market are private business, states, as well as international financial organizations (World Bank, International Monetary Fund).

Forms and causes of international capital movement

In modern economic theory capital movements, as well as labor migration, are seen 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 rush to where the implementation 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 acquired controlling stake shares of a foreign company. 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 - investment of capital in foreign securities (purely financial transaction), not giving 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, expressed in national 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 loans 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 the 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 economy (rise, decline, stagnation), situation in monetary, financial and credit systems countries, 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.

Export and import of capital

The development of global production requires the constant use of significant amounts of capital. The lack of internal funds and the desire of capital for self-expansion cause the movement of huge masses of capital between countries. A powerful impetus for capital movement is imbalance public finance in many countries. International capital movement is one of the most important tools in the competitive struggle of companies and countries. Goods or tools international market capital is any financial claim denominated in foreign currency: currency, shares, bills, etc. These and other financial instruments represent certain forms of capital movement - loan or business.

The dynamics of global imports of foreign direct investment indicate a significant growth and increase in their volume from $200 billion in 1990 to 1 trillion in 2000, that is, no less than 5 times in 10 years. Most of the investments attracted are associated with the concentration of capital in the form of international mergers and acquisitions of foreign companies (cross-border mergers). These processes occurred most intensively in such sectors of the world economy as Financial services, telecommunications, chemical and pharmaceutical industry, energy.

As world experience shows, attracting foreign investment can have a positive impact on the economy of both sending and receiving countries. However, there are objective contradictions between the interests of exporters and importers of capital. The former are interested in the most profitable placement of their free funds, the latter strive to obtain them as cheaply as possible, at preferential terms or free of charge.

For recipient countries, capital imports have the following positive consequences:

• problems of domestic production, problems of limited resources and their effective use are overcome;
• new jobs are created;
• foreign capital brings new technologies and effective management;
• the pace of scientific and technological progress is accelerating;
• Merchandise exports are expanding, because the export of capital becomes a means of encouraging the export of goods abroad;
• capital inflow helps improve the country's balance of payments.

Negative consequences of capital imports:

• the influx of foreign capital displaces local capital from profitable industries. This can lead to one-sided development of the country and a threat to its economic security;
• uncontrolled import of capital may be accompanied by environmental pollution;
• import of capital is often associated with pushing into the market of the recipient country goods that have already completed their life cycle, as well as those discontinued due to poor quality properties;
• import of loan capital leads to an increase in the country's external debt.

The motives for exporting capital from one country to another were defined by the classics political economy capitalism. The main motive for export is a higher rate of profit. Currently, a company or firm, when deciding to export capital, takes into account many factors, but the main motive remains the same. Meanwhile, the consequences for countries exporting capital include the following:

• the export of capital abroad without adequate attraction of foreign investment leads to a slowdown in economic development;
• the export of capital has a negative impact on employment;
• the movement of capital adversely affects the country's balance of payments.

The main exporters of capital are traditionally industrialized countries (USA, UK, Germany, France, Japan, the Netherlands, Switzerland). Institutional investors added to the bank capital - Insurance companies, pension, investment, trust funds. An important area of ​​capital export has become “ official assistance development", i.e. providing free economic and technical assistance and various types of loans to developing countries.

However, these same countries are also the main importers of capital. They use it to solve their economic problems (modernization of industry, creation of new industries), as well as macroeconomic problems (covering the budget deficit and balance of payments, fighting inflation).

Especially widely financial resources The West is attracted to developing countries. They achieved high rates of development in the 90s. XX century primarily by turning the task of overcoming backwardness into the main goal of economic policy.

In the structure of investment flows, the trend towards an increase in the share of reinvestments in the total volume of new capital investments continues. According to studies, during the last decade of the last century, about 75% of new capital investments abroad were carried out through the reinvestment of profits. The remainder came from intercompany loans, the supply of investment equipment and gratuitous investments.

The sectoral structure of capital exports shows a steady trend towards a consistent reorientation from the extractive industries in the 1950s to the manufacturing industries already in the 1960s–70s and to the service sector in the 1980s–90s.

World financial crisis

Development of world financial relations accompanied by outbreaks of financial crises. Already in the last century they began to acquire an international character. The pronounced international nature of financial crises emerged in the twentieth century, which was a reflection of the ongoing structural changes in the world economic system. Possibilities financial crisis embedded in the nature and forms of capital movement. Capital Markets Transactions Mean Financing future value, which has yet to be created. The gap between future income and the search for liquidity creates the risk of non-repayment of funds to the lender.

The global financial crisis is understood as a deep disorder of credit and financial systems in a number of countries, leading to sharp imbalances in international monetary systems.

The center of financial crises is money capital, and the immediate sphere of manifestation is credit institutions and public finances.

The financial crisis includes the following phenomena:

• a landslide fall in exchange rates and their sharp jumps;
• rising interest rates;
• withdrawal by banks of their deposits in other credit institutions, restriction and termination of cash withdrawals from their accounts (banking crisis);
• disruption of the normal settlement system between companies through financial instruments(calculated crisis);
• monetary crisis;
• debt crisis.

As a rule, the conditions for financial crises are violations in the ratio various types assets in certain parts of the financial system. Thus, if there are signs of trouble in the company, shareholders begin to sell shares, which can cause a downward trend in exchange rates. When doubts arise about the reliability of banks, depositors tend to withdraw their deposits, and since banks have limited liquid funds, they cannot immediately return a significant part of the deposits.

Due to the interconnectedness of the elements of the economic system, a chain reaction may begin, leading to a financial crisis. Foreign capital begins to leave the country. National capital is also leaving. Capital flight from the country leads to an increase in the demand for foreign currency. Even the country's high level of foreign exchange reserves may be unable to meet growing demand. The widespread use of information technology has led to the fact that crises arising in national financial markets, are quickly becoming international.

In recent decades, the internal preconditions for financial crises have been superimposed on external ones associated with huge flows of capital across borders, which can undermine financial position countries due to weakening government regulation. This has increased the possibilities for purely speculative transactions in the global financial system. There are 4 thousand “hedge funds” in the world that specialize in speculative operations. The majority of these funds' assets are located in the United States. They concentrate hundreds of billions of liquid funds that can be used to make speculative profits. According to the IMF, the largest funds are capable of mobilizing huge assets to attack one or another national currency or the stock market.

Financial crises are a reflection of the instability of the world economy and the result of massive attraction of foreign capital, especially in short-term loan form. Large external imbalances make the country's economy sensitive to external changes in exchange rate structures. Financial crises show the need to restructure the global financial system, introduce greater openness, improve reporting, and strengthen national economic policies.

The global financial crisis of 2008 (sometimes called the “great recession”) is a financial and economic crisis that manifested itself in September - October 2008 in the form of a very strong deterioration in fundamental economic indicators in most developed countries, and the subsequent global recession later that year.

The precursor to the 2008 financial crisis was the mortgage crisis in the United States, the first signs of which appeared in 2006 in the form of a decline in home sales and in early 2007 developed into a high-risk crisis. mortgage loans. Quite quickly, reliable borrowers also felt problems with lending. In the summer of 2007, the mortgage crisis gradually began to transform into a financial crisis and affected not only the United States. Bankruptcies of large banks began, banks were bailed out by national governments. Stock market prices fell sharply during 2008 and early 2009. For companies, the opportunities to obtain capital during placement have been significantly reduced valuable papers. In 2008, the crisis acquired a global character and gradually began to manifest itself in a widespread decrease in production volumes, a decrease in demand and prices for raw materials, and an increase in unemployment.

Source - World economy: tutorial/ E.G.Guzhva, M.I.Lesnaya, A.V.Kondratiev, A.N.Egorov; SPbGASU. – St. Petersburg, 2009. – 116 p.

Keywords:international capital movement, capital migration, capital export, capital import

The international movement of capital as a factor of production takes on various specific forms.

By source of origin of capital , which is in motion on the world market, is divided into official and private.

. Official (state) capital - funds from the state budget transferred abroad or accepted from abroad by decision of governments, as well as by decision of intergovernmental organizations. The source of official capital is funds from the state budget, that is, ultimately, taxpayers’ money. Therefore, decisions on the movement of such capital abroad are made jointly by the government and representative authorities (parliament).

. Private (non-state) capital - funds of private companies, banks and other non-governmental organizations moved abroad or received from abroad by decision of their governing bodies and their associations. The source of this capital is the funds of private firms that are not associated with the state budget.

But, despite the relative autonomy of firms in making decisions about the international movement of their capital, the government usually reserves the right to regulate and control it.

By nature of use they distinguish:

. Entrepreneurial capital - funds directly or indirectly invested in production for the purpose of making a profit.

. Loan capital - funds lent for the purpose of obtaining interest.

According to the investment period, they are distinguished:

. Medium and long-term capital - capital investments for a period of more than 1 year. All investments of entrepreneurial capital in the form of direct and portfolio investments are usually long-term.

. Short-term capital - capital investments for a period of less than 1 year.

According to the purpose of investing capital, the following are distinguished:

. Direct investments(direct investments) - an investment of capital for the purpose of acquiring long-term economic interest in the country where capital is invested, ensuring the investor’s control over the object of placement of capital. They are almost entirely associated with the export of private entrepreneurial capital, not counting the relatively small-scale foreign investments of state-owned firms.

. Portfolio investment(portfolio investments) - investment of capital in foreign securities that do not give the investor the right to real control over the investment object. Such investments are also predominantly based on private entrepreneurial capital, although the state often issues its own and acquires foreign securities.

The forms of international capital movement that are recognized by each specific country are usually established in its investment and banking legislation.

When comparing the relative preference of raising capital in various forms, it should be emphasized that direct investment has a number of advantages. First of all, the activity of the private sector is intensifying, access to foreign markets is expanding and access to new technologies and management methods is being facilitated. In this case there is a greater likelihood of reinvesting profits within the country than exporting them to the home country . Besides,

the influx of entrepreneurial capital does not increase the size of external debt.

It should be emphasized that, despite the constant decrease in the share of direct investment in the total amount of foreign investment in the Russian economy from 70% in 1991-1995. up to 40% in 2000, this form of raising capital remains the most important for the country's economy. The volume of direct investment in 1999 amounted to 4.26 billion dollars, and in 2000 - 4.43 billion dollars. According to condition at the end of March 2008 accumulated foreign capital in the Russian economy amounted to 221.0 billion US dollars , which is 45.9% more compared to the corresponding period of the previous year. Largest specific gravity in accumulated foreign capital accounted for other investments made on a repayable basis (loans from international financial organizations

, trade loans, etc.) - 48.8% (at the end of March 2007 - 50.0%), the share of direct - 48.2% (48.2%), portfolio -3.0% (1.8% ). Main investor countries in the first quarter of 2008

- Cyprus, the Netherlands, the United Kingdom (UK), Germany, Switzerland, USA, France, Ireland. These countries accounted for 71.2% of the total volume of accumulated foreign investments, 84.3% of the total volume of accumulated foreign direct investments. In the first quarter of 2008, the Russian economy received 17.3 billion dollars of foreign investment

, which is 29.9% less than in the first quarter of 2007. The process of privatization of state property, corporatization industrial enterprises led to the formation in Russia stock market

, created objective preconditions for foreign investors for portfolio investments. At the end of 1997, the outflow of non-resident funds from the Russian stock market amounted to about $7.5 billion. At the same time, portfolio investments, until the collapse of the GKO market, remained one of the most profitable forms of investment in individual industries

1. and spheres of the Russian economy.
2. Functional purpose: loan capital, entrepreneurial capital.
3. Purpose: direct investment, portfolio investment. Affiliation: private capital, public capital, capital.
4. international organizations

Capital moves in two main forms: entrepreneurial and loan.

The movement of loan capital is carried out in the form international credit, and entrepreneurial - through foreign investments.

Loan capital brings income to its owner in the form of interest on deposits, loans and credits. Entrepreneurial capital generates income primarily in the form of profit.

Entrepreneurial capital is divided into direct and portfolio investments. Characteristic direct investment is that the investor has management control over the object in which his capital is invested. Portfolio investments do not provide such control. They are usually represented by stakes that represent less than 10-25% of the firm's equity.

There are two ways to regulate foreign investment: national legal and international legal. National legal regulation is based on the use of norms and institutions of traditional industries national system rights (administrative, civil, etc.). Most countries have developed a set of laws on foreign investment - investment laws.

Key points:

1) Conditions, as well as legal guarantees of foreign investment in the host country. The purpose of these guarantees is to ensure the mutual interests of the host country and foreign investors. Essentially we're talking about about the absence of discrimination against foreign investors compared to local ones.

2) Providing foreign investors with benefits and privileges, since foreign investments are associated with increased political and commercial risks, additional costs for transport, communication and much more.

International legal regulation of foreign investments consists of special interstate agreements, the subject of regulation of which are relations related to the movement of foreign investments of private capital. There are bilateral and multilateral international agreements.

The following interstate agreements have been adopted and are in force:

1. Washington Convention of 1965 “On the Settlement of Investment Disputes between Host States and Foreign Private Investors at the International Center for the Settlement of Investment Disputes (ICSID) at the IBRD.” The rules in this Convention for regulating the dispute resolution procedure can be divided into two groups: those relating to the conciliation procedure; regulating the procedure for arbitration proceedings.

Moreover, in the event of a conciliation procedure, the parties retain the right at any time to resort to the arbitration procedure for resolving the dispute. Unlike the decision of the conciliation commission, arbitration decisions are binding on both parties.

2. Seoul Convention of 1985 on the establishment of the International Agency for the Insurance of Foreign Private Investments (MASICHI) under the IBRD.

Forms. The international movement of capital is realized in different forms, while the types and forms of movement of foreign capital provided for by national legislation do not always coincide with those that appear in the international sphere itself, which must be taken into account in practice.

According to their sources of origin, capital moving on the world market is divided into two categories: official, i.e. state and private capital.

Official (state) capital- these are funds from the state budget provided for by its relevant articles and transferred abroad or accepted from abroad by decision of the government in accordance with bilateral or multilateral agreements. Private capital These are funds from corporations and private investors.

Kinds state capital. First of all, these are all government loans, loans, gifts (grants), assistance, etc., which are provided by one country to another country on the basis of intergovernmental agreements. Another type of official capital is capital that is provided from the funds of international organizations - loans from the IMF, IDB, UN agencies, etc.

Source of official capital are funds from the state budget, ultimately it is taxpayers’ money, and, accordingly, decisions on this kind of movement of capital from country to country are made with the participation of the highest representative authorities (in some states parliaments are required to make appropriate decisions, in others they express approval through committees or commissions of parliament, and in authoritarian states these decisions are made by the highest executive branch).

Private (non-state) capital – funds of individuals, firms, banks and other non-governmental organizations. These funds are moved from one country to another by the decision of individuals or organizations, more precisely, their owners or entities empowered to dispose of these funds.

Types of private capital. This category of international capital movement is also distinguished by its diversity: investments (capital investments) abroad by individuals and firms, provision of loans (trade, interbank, for project implementation, etc.), loans.

All these forms and types of capital are included in the concept of “net capital movement”. Certain forms of transfer (export) of financial capital:

• net dividends and interest;
• net transfer of resources on a formal basis;
• net transfer of resources on an expenditure basis;
• use of official resources.

Source of origin Such capital is the funds of private firms - their own or borrowed. However, governments quite tightly control and regulate the intercountry movement of capital, and individuals rarely ignore one or another course of their government. But there are exceptions: in authoritarian countries, owners of this kind of capital “solve” the issue of moving capital through “kitchen diplomacy.”

Capital structure. Capital includes complex structural parts and forms of functioning.

Entrepreneurial capital – funds that are directly or indirectly intended for investment in production for the purpose of making a profit. This type of capital appears in the form of private capital, although there are cases of use and public funds for the same purposes (the most typical cases are oil-producing Arab countries).

Loan capital– funds lent for the purpose of obtaining profit in the form of interest. In international practice, mainly official capital from government sources is used as loan capital; International (multinational) lending is used on a somewhat smaller scale.

By investment term capital is divided into short-term, medium-term, long-term.

Long-term(more than five years) are all investments of entrepreneurial capital in the forms of direct and portfolio investments, as well as loan capital in the form of government loans (and loans), since loan funds are always provided for fairly long periods.

Medium-term capital– funds provided, as a rule, for a period of one to three years.

Short-term capital is provided for a period of up to one year and usually acts as loan capital in trade loans.

In the analysis of international capital flows, it is usually considered in two forms: direct and portfolio capital investments (investments).

Direct investments– an investment of capital that ensures the investor’s control over the object of placement of capital in order to acquire long-term economic interest in the country of investment of capital. Such investments, as a rule, are of private origin and are associated with the export of entrepreneurial capital. Rarely, state capital is also used through state-owned firms and banks carrying out foreign financial transactions.

Portfolio investment - investments of capital in foreign securities that are not associated with the possibility of real control over the objects of investment (investment). These types of investments are also fundamentally private, although states can also use investment points.

Division of international capital movements. International statistics considers international capital movements in its following forms:

• direct investments; the place of application is abroad, they are defined as the movement of capital between a resident and a non-resident, giving rise to long-term economic interests and permanent connections between them;
• portfolio investments, assets and liabilities; capital movements associated with the purchase and sale of securities;
• other investments, assets and liabilities; capital movements associated with interstate loans and bank deposits;
• reserve assets: coin gold, SDR, reserve position in the IMF, foreign currency- all these are capital movements associated with assets that can be used by governments to cover the balance of payments.

Capital export is also carried out in different forms: export of state capital, export of private capital, export of international organizations.

Export of state capital. State export (export) of capital since the 1960–1970s. has become one of the main instruments for asserting the national interests of countries abroad. Since the early 1980s. there has been some weakening of this function, since the export of capital in large volumes is carried out through international or national banks. The new increase in the role of state capital export is associated with the collapse of the communist system. Since world powers are directly interested in a certain evolution of new states, they use the export of capital as a powerful political means of putting pressure on them, and only then consider it as economic assistance. It is known that the export of state capital is carried out not for profit reasons, but largely based on political and ideological interests; it, as a rule, is sent to those countries and sectors of their economy (including raw materials), where it is necessary from the point of view of the interests of leading donor countries.

The share of state and mixed capital in the total export of capital was approximately 30% in 1988 (in the 1970s - 40–42%) and about 35% in 1990–1995. (fast growth); over the next 12 years it decreased and in 1995–2007. did not exceed 30%, and in the period 2008–2012. increased slightly – to 32%, mainly due to developing and transition countries. The vast majority of capital (about 90%) has traditionally flowed to developing countries in the late 1990s and early years of the 21st century. the geography of capital export began to change - about 30% accounted for Eastern Europe and the CIS – countries that have firmly taken the path of transformation economic system. Exporting states, as a rule, created a system of guarantees for private foreign investments and loans, a favorable climate investment activity for private firms (this is the most important function of the export of state capital). There are several types of this kind of incentive operations:

• free subsidies and subsidies;
• state long-term loans for development (25–40 years);
• state commercial loans;
• state guarantees of private export loans.

Thus, state export of capital, firstly, is a form of state regulation in the international financial and economic sphere, compensating for the lack of efficiency market mechanism in the field of international capital inflows. Secondly, it acts as an instrument of state and international policy. financial institutions. This is evidenced by the export of capital carried out through international organizations: its share in 2001–2012. amounted to about 16% of the total export of capital (in 1990–1999 - 12%).

Export of capital is a rapidly growing function of TNCs, TNBs and international organizations, explained by increasingly large-scale failures in the international financial system, which is becoming extremely sensitive to local financial and economic crises (the Asian crisis of 1997, the crises of the 1990s in Argentina, Chile, Brazil, Mexico, Russia; global crisis of 2001–2002, global crisis 2008–2010). The importance of forms especially increases state transfer financial resources due to the aggravation of the problem of poverty and misery in the countries of Asia, Africa and Latin America - a problem that is objectively becoming more urgent in connection with new threats to peace as a result of the transition to armed forms of struggle of representatives of disadvantaged segments of society in many developing countries Oh.

From the point of view of the volume of capital outflow, the situation is similar to the capital inflow in terms of the concentration of the main volumes in developed countries peace. There is only one, but significant feature: despite the lack of investment capital, there is an intensive process of capital outflow from developing countries, as well as from new transforming states (in particular, the CIS), sometimes the outflow of capital exceeds the volume of FDI inflow. Note that the United States is the world's largest recipient and second largest payer (after Japan) in terms of international transfers in the field of technology transfer: in 2007–2012. 54% of funds were used to pay international bills and 24% of royalty and license payments were made.