In what forms can the export of capital be carried out. The export of capital. Causes, essence, forms. the development and expansion of international credit, currency and stock markets contributes to a large-scale increase in the international movement of capital

06.01.2022

The classification of forms of international capital movement reflects various aspects of this process. Capital is exported, imported and functions abroad in the following forms.

The forms of capital export differ according to the following criteria:

1) sources of origin of capital;

2) the nature of the use of capital;

3) purpose of capital investment;

4) terms of capital investment.

The first group includes the following forms:

1. state capital: the subject of investment is the state, which provides loans, government loans, grants, economic assistance. The movement of state capital is carried out on the basis of intergovernmental agreements;

2. loans and other funds provided by international organizations (IMF, etc.);

3. private capital - funds coming from non-state sources (legal and individuals). Leading TNCs play a significant role here.

The second group (by nature of use) includes:

4. export of entrepreneurial capital;

5. export of loan capital.

Entrepreneurial capital investment in a country can occur both through the creation of a branch and through the acquisition of enterprises already existing in it. Specific forms of export of loan capital include loans, credits, investments in foreign banks, buying bonds and shares of foreign companies, etc.

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.

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 created or bought there. Another example would be commodity loans.

The third group according to the purpose of investment, foreign investments are divided into direct and portfolio.

Foreign direct investment is based on the long-term economic interests of investors. A characteristic feature of direct investment, as defined by the IMF, is that the investor participates in managerial control over the object (enterprise) in which his capital is invested. Usually it is enough to own 10% of the share capital. They give the right of ownership or actual control over the enterprise - the object of investment. For quite a long time, direct investments were classified as investments that make it possible to obtain a block of shares in an enterprise, constituting at least 25% of their total value.

Portfolio investments do not give the right to control the object of capital investment, but only the right to income. By investing in the company's securities, the investor does not seek direct participation in the company's affairs, but prefers to receive dividends or interest. They are usually represented by blocks of shares (or individual shares), which account for less than 10% of the equity of the company, as well as bonds and other securities. IN different countries ah, the formal boundary between direct and portfolio investment is set differently, but usually it is 10%.

The fourth group, depending on the duration of the investment of loan capital, short-term, medium-term and long-term investments are distinguished.

It should be borne in mind that in addition to the actual export of capital, the reinvestment of profits received from foreign investments is becoming increasingly important. Therefore, the concepts of "export of capital" and "foreign investment" do not coincide.

Closely related to the export of capital is the so-called "official development assistance" - financial and technical assistance provided to developing countries in order to overcome their socio-economic lag behind industrialized countries.

There are two main channels for inflow financial resources to these countries: “official development finance” and “official development assistance”. The first concept is broader than the second and includes the amount of "official development assistance" and all other resources allocated through official channels, with the exception of government export subsidies.

Financial assistance includes gifts, loans, credits and grants. Often, the concept of "development assistance" refers to the entire movement of capital to developing countries (in business and loan form). Technical assistance can be provided in the form of the transfer of production experience and scientific and technical knowledge on preferential terms or free of charge. To this end, in developing countries, vocational training centers with equipped laboratories and libraries, etc. are being created to train national personnel. As a rule, this type of assistance involves the dispatch of experts and specialists from donor countries, as well as the provision of scholarships for students from developing countries.

Capital is exported and operates abroad in the following forms:

1. By source of origin:

State (official) capital is funds from the state budget that go abroad or are taken from there by decision either directly of governments or intergovernmental organizations. These include gratuitous subsidies and grants, mainly to the least developed countries; state commercial loans, loans; state guarantees of private loans, etc.;

Loans and other funds international organizations, for example, IMF loans;

Private capital is funds from non-state sources placed abroad or received from abroad by private individuals (legal entities or individuals). These can be investments, trade loans, interbank loans, etc.

2. In monetary and commodity. So, 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 created or bought there. Another example would be commodity loans.

3. By terms: in the short-term (usually for up to one year) form, medium-term (from one year to three to five) and long-term (over five years);

4. By the nature of use:

Entrepreneurial capital, which is directly or indirectly invested in production and is associated with the receipt of one or another amount of rights to receive profits or dividends. Basically it is private capital.

The export of entrepreneurial capital can be carried out either through the creation of companies with 100% foreign capital or the formation of joint companies or enterprises with the participation of local and foreign capital;

Loan capital, which involves the provision of funds in order to obtain loan interest. Its source can be both public and private funds.

5. By goals:

Foreign direct investment is, as defined by the IMF, the acquisition of a long-term economic interest by a resident of one country (a direct investor) in an enterprise resident in another country (an enterprise with direct investment). According to this definition, foreign direct investment includes both the initial acquisition by the investor of property abroad and all subsequent transactions by the investor and the enterprise in which his capital is invested.

Through outward direct investment, investors either establish a new company abroad, or buy a significant stake in a company already operating abroad, or completely buy this company. In accordance with this, enterprises with foreign investments can act in one of the following forms:

a) subsidiary - an enterprise in which a non-resident direct investor owns more than 50% of the capital;

b) associated company - an enterprise in which a non-resident direct investor owns less than 50% of the capital;

c) branch - an enterprise wholly owned by a direct investor.

Portfolio investment is the investment of capital in foreign securities that do not give the investor the right to real control over the investment object. The purpose of portfolio foreign investment is to make a profit in the foreign securities market. They can be nested:

a) equity securities - a monetary document circulating on the market, certifying the property right of the owner of the document in relation to the person who issued this document;

b) debt securities - a monetary document circulating on the market, certifying the relationship of the loan of the owner of the document in relation to the person who issued this document;

c) bonds, promissory notes, promissory notes - monetary instruments that give their holder an unconditional right to a guaranteed fixed cash income or to a variable cash income determined by an agreement, and others.

With regard to the structure of investment, it should be noted that direct investment has increased over a long period of time compared to portfolio investment, but recently there has been a reverse trend.

The sectoral structure of the export of capital has also undergone significant changes. Until the second half of the 50s, capital was invested mainly in the extractive industries, from the second half - in the manufacturing industry and trade, from the second half of the 60s, the latest technology and the service sector became the predominant area for foreign capital investment.

3 . Consequences of Capital Migration for National Economies

The international movement of capital has a huge positive impact on the world economy.
1. The international movement of capital contributes to the growth of the competitiveness of capital exporting companies, and, ultimately, the national economy of the capital exporting country.
2. The migration of capital is the most important condition for the formation and development of the international division of labor, which contributes to the intensification of international specialization and production cooperation.
3. The international migration of capital increases the volume of mutual exchange of goods between countries, including intermediate products within the framework of TNCs, stimulating the development of world trade.
4. Under the conditions of integration of financial markets, the international reproduction of capital is ensured, the efficiency of the mechanism of international economic relations is increased.
Thus, in general, the movement of capital leads to an increase in world production due to its more efficient redistribution and use, but its consequences for countries are not unambiguous. Countries, both exporters and importers, experience both positive and negative effects of capital outflow.

The positive consequences of capital outflow for exporting countries include:

Use of positive economies of scale;

Ensuring cost savings due to cheap raw materials, labor, etc.;

Creation of additional sales markets for domestic goods in the form of supplies by parent companies to their subsidiaries;

Taking advantage of the deepening and development of MRI.

The export of capital leads to the following negative consequences:
- the economy loses part of the resources necessary for economic growth;
- the balance of payments is deteriorating, the task of its equalization is becoming more acute - the government is taking measures to curb economic growth through a deflationary policy, the victim of which is promising science-intensive industries;

The export of capital replaces the export of goods, which leads to the closure of national enterprises and the transfer of production abroad,
- Significant losses are possible as a result of changes in the exchange rate.

The positive consequences of capital imports for importing countries are:

There are additional opportunities for restructuring and modernization of the production apparatus;

There is a transfer of modern technologies, know-how, etc., which in turn leads to the creation of new enterprises and jobs in them;
increased investment in the national economy;

Benefits arise for skilled labor in high value-added industries;

The inclusion of the country in the MRI and the increase in the competitiveness of its products are ensured;

Prerequisites are being created for reducing capital flight and returning capital previously exported abroad, etc.

The inflow of capital leads to :

Loss of control by local companies over national production and choice of national development strategy;
- displacement of national companies by direct investments on the basis of unfair competition;
- possible negative impact on the state of the balance of payments (if the production of branches requires large volumes of imports);
- direct investment can be costly in the long run, as the amounts of repatriated incomes and "royalties" are growing - there is an "aging" of investments, when the volume of exported capital exceeds the volume of imported;
- financing costs may be higher than the benefits received (when buying bonds);

High risk of instability in portfolio capital flows;

Transfer in some cases of obsolete technologies;
- attracting foreign specialists to the detriment of national specialists;
- destructive influence on some strategic industries and enterprises (defense sector, energy, transport);
- exacerbation of environmental problems;

The import of loan capital increases the country's foreign debt.

1.2 Main forms of capital export

Capital is exported in two main forms: entrepreneurial capital (investment in industry, Agriculture, trade, banks, etc.) and loan capital (loans to individual states, cities, banks, industrial and other companies) Entrepreneurial investments, in turn, are divided into direct investments, mainly in shares of industrial, commercial, banking enterprises, plantations, etc., providing full ownership or full control over the activities of this enterprise, and portfolio ones, which do not formally provide their owners with complete ownership and control. The advantage of direct investment for the exporter of capital over other forms of investment is that he fully manages his capital during the entire period of operation of direct investment, while the loan capital for the entire period of the loan is completely transferred to the disposal of the importer. Unlike entrepreneurial capital, the investments of which are not subject to any terms, investments of loan capital can be long-term (over 2 years), medium-term (from 1 to 2 years) and short-term (up to 1 year). Securities when exporting entrepreneurial capital (shares) bring a dividend, and when exporting loan capital (bonds) - a percentage.

State capital is exported in various forms:

grants and grants predominantly to the least developed countries;

state long-term loans for development (for 25-40 years);

government guarantees for private loans.

For the exporting country, the balance of payments worsens, although later (when profits from these investments begin to flow), the balance of payments will improve. The export of capital expands the markets for the exporting country. But at the same time, it narrows the labor market, as jobs go abroad.

For the importer of capital, its import means an inflow of foreign currency, an increase in employment, and the introduction of new technologies. But at the same time, control over certain sectors of the national economy is being lost.

Russia's way out of the economic crisis is unthinkable without attracting foreign capital.

By terms, foreign investments are divided into short-term, medium-term and long-term. The latter include all investments for more than 15 years. This includes the most significant capital investments, as long-term capital includes all investments of entrepreneurial capital in the form of direct and portfolio investments (mainly private), as well as loan capital (public and private loans). Short-term - these are investments for up to 1 - 1.5 years. Medium-term - from 1 to 5 - 7 years.

According to the nature of the use of foreign capital investments are loan and entrepreneurial.

The former means lending money or for the sake of making a profit in the form of interest. In this area, capital from state and investments from private sources are quite active.

Entrepreneurial investments are directly or indirectly invested in production and are associated with the receipt of one or another amount of rights to receive profit in the form of a dividend. Most often it is about investments of private capital.

According to the objectives, entrepreneurial capital investments are divided into direct and portfolio investments.

Foreign direct investment is the investment of capital in order to obtain a long-term interest and secure it with the help of ownership or decisive rights in management. Basically, foreign direct investment is private entrepreneurial capital.

Portfolio investments do not provide control over the object of investment, but give only a long-term right to income, and even a priority in the sense of priority in obtaining such income.

1.3 Historical development of the emigration process of export of capital

On the eve of the 1st World War 1914-18. foreign investments of capitalist countries amounted to 44 billion dollars, incl. Great Britain $18 billion, France $9 billion, Germany $5.8 billion, USA $3.5 billion, Belgium, the Netherlands, Switzerland $5.5 billion, other countries $2.2 billion. the victory of the Great October Socialist Revolution, Russia ceased to be a sphere for the application of foreign capital. Great Britain and France weakened as exporters of capital, while Germany, having lost all its foreign investments, became itself an importer of foreign capital. The United States, enriched by the war, became the center of the financial and economic exploitation of the whole world and began to export capital in ever-increasing amounts.

The new conditions for international market capital after the 2nd World War, entailed structural shifts in overseas investment. If earlier foreign investments were directed mainly to the mining industry, plantation economy, trade and banks, now, when the new, independent states, seeking economic independence, began to develop their own manufacturing industry, electric power industry, etc., foreign monopolies, striving to establish their control, direct an ever-increasing part of their foreign investments into these industries. The integration processes unfolding at the present stage of development of the world capitalist economy had a considerable influence on the post-war increase in the export of capital. The free movement of capital established in the EEC and the EFTA has increased the movement of capital to those states where the costs of production are lower. The creation of the EEC led to an increase in the export of American capital to the Common Market countries. In 1960, direct US investments in the EEC amounted to 2.64 billion dollars, in 1970 they reached 11.7 billion dollars, i.e. increased by 4.4 times, while the total amount of US direct investments abroad over the same period increased from 31.9 billion dollars. to 78.1 billion dollars, or 2.4 times.

After World War II, the export of capital acquired an even more pronounced state-monopoly character, which was due to the further development of state-monopoly capitalism in the largest imperialist countries, the increased instability of capitalism, and the growth of the forces of socialism and the international national liberation democratic movement. International imperialism, by providing loans, subsidies and "aid" under various programs, is trying to strengthen the capitalist system in the most important centers of world capitalism and maintain its influence in the developing countries. At the end of the 60s. the share of state funds accounted for about 70% of all financial resources exported from the most developed capitalist countries to developing countries. Public investment in the form of loans and economic "aid" used for construction railways, infrastructure development, are designed for long periods and are less profitable than private investments. They are aimed at preventing developing countries from embarking on the path of an independent economy and foreign policy. The monopolies use state investment as an important means of expanding foreign expansion and creating favorable conditions for private investment in manufacturing and new branches of production. State guarantees for private foreign investment have been widely developed, in view of the fact that monopolies, in conditions of political and economic instability in the modern capitalist world, are afraid to risk their capital. Therefore, a significant part of the private investments of the largest exporters of capital is now made under state guarantees. State-monopoly forms of export of capital in the form of loans are also carried out through the International Bank for Reconstruction and Development, the International Monetary Fund, and other organizations.

The unevenness in the export of capital has greatly intensified. The balance of power between the two main exporters of capital, the United States and Great Britain, changed especially sharply. In 1938, Great Britain ranked first in terms of the amount of exported capital, and it owned over 40% of the total amount of world capital investment. For 1914-70. US foreign investments increased by about 43 times and in 1970 accounted for about 53% of the total amount of world foreign investments, which is much higher than their share in world industrial production and in the export of goods. British investments abroad at the end of 1970 amounted to 49 billion dollars. In Great Britain itself, American direct investments at the end of 1970 amounted to 8.0 billion dollars. In addition, Britain's foreign debt at the end of 1970 was $5.4 billion, much of which is also Britain's debt to the US. The heightened interest of American monopolies in investing in Great Britain is caused, on the one hand, by traditional economic ties that have developed over many decades, and, on the other hand, by the desire to use the huge markets of the British Commonwealth to sell the goods of their branches in Great Britain. About 80% of the profits taken out of the UK by foreign investors are paid on American investments.

France, despite significant losses during the war, in the post-war years strengthened its position in the international capital market, and its foreign investments at the end of 1970 reached approximately $ 19 billion. If earlier French investments were carried out in the form of loans, then in modern conditions the entrepreneurial form of investment prevails. French capital is directed mainly to Western European, Latin American and African countries, as well as to Turkey and Iran. Foreign investment in France is also significant, reaching $9 billion by the end of 1968. The vast majority of this amount belongs to the United States. Foreign capital is primarily invested in the oil refining industry, aircraft rocket business, radio electronics, metallurgy, machine tool building, chemistry, banks and credit institutions.

As a result of two world wars, Germany almost completely lost its foreign investments. Germany began the export of capital only after 1952; previously the export of capital was not allowed. By the end of 1970, FRG foreign investments had reached $20 billion, most of which belonged to a small group of the largest FRG monopolies. About half of the FRG's investments are in Western Europe, especially in the countries of the "Common Market" - France, Italy and Belgium. The remaining investments are placed in the USA, Canada, Latin America, Asia and Africa. The export of state capital occupies a significant place in the total amount of West German capital exports. Germany is also a major importer of capital. Only direct American investments in Germany in 1970 amounted to 4.6 billion dollars, Italian 4.2 billion dollars. Despite their high industrial potential, the foreign investment of these countries is relatively small, because in these countries large domestic investments are made, yielding high profits, which does not contribute to the accumulation of excess capital. On the whole, foreign investments by the most important exporters of capital at the end of 1970 amounted to $285 billion. In the post-war period, there have been significant changes in the distribution of foreign investments in the capitalist world. If in the prewar years a significant part of private capital from industrial developed countries entered the underdeveloped states, then in the 60-70s. the bulk of private capital is directed to industrialized countries. The reason for this phenomenon lies in major shifts in the structure of the economies of industrialized countries, occurring primarily under the influence of the developing scientific and technological revolution, in the collapse of the colonial system of imperialism. At the end of 1970, American direct investment in Western Europe amounted to $24.5 billion, and Western European direct investment in the United States, $9.5 billion.

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Introduction

The international movement of capital is a defining element in the functioning of the world economy, the development of forms and conditions of international economic relations of all kinds.

The international movement of capital is the export of capital abroad (primarily for the purpose of its "self-growth"). The essence of the export of capital comes down to the withdrawal of part of the capital from the process of national turnover in one country and its inclusion in the production process (or other circulation) in other countries. The export of capital becomes possible when in the industrialized countries the accumulation of capital has reached significant proportions and its relative "surplus" has formed. This "surplus" or discrepancy between the amount of capital accumulation in the industrialized countries and the possibilities of its application in the same countries makes the export of capital necessary.

The chosen topic of the work is sufficiently studied in the literature and is very relevant in modern conditions, when Russian Federation legal reform is being actively carried out, and the foundations of the rule of law are being laid.

The role played by the export of capital is different for countries that export and import capital. It is generally accepted that the export of capital slows down the economic development of the exporting country, but is an effective means of its foreign trade expansion. On the other hand, the import of capital accelerates the economic development of the host countries. In modern conditions, the migration of capital resolves a number of economic contradictions.

First, the problems of domestic production, the problems of limited resources and their efficient use are being overcome.

Secondly, merchandise exports are expanding due to the fact that the export of capital becomes a means of encouraging the export of goods abroad.

Thirdly, the role and place of TNCs is changing and an increasing part of the national economy is included in the international reproduction process, the pace of scientific and technological progress is accelerating.

The purpose of the work is to study the essence and content of the main forms of capital export.

For this, the following tasks are set (the main issues to be developed (research)): the essence of the international movement of capital; forms of export of captal; features of the export of capital.

In the course of the work, an analysis of the current legislation was carried out, the works of domestic scientists were studied, as well as publications in scientific journals and periodicals covering problematic atypical issues related to the export of captal. The works of the following authors can be distinguished: Avdokushina E.F., Pebro M., Crozet I., Shmeleva N.P. and etc.

1. The essence of the international movement of capital

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

Capital is the most important factor of production; stock of funds needed to create material and non-material benefits; value that generates income in the form of interest, dividend, profit. Non-refundable and interest-free funds provided to other countries, strictly speaking, are not capital, because they do not bring income to its owners Shmelev N.P. World economy: trends, shifts, contradictions. -M.: Enlightenment, 2001. S. 56.

.

However, in the host country, these funds may be
used as capital. Conversely, funds exported as capital can be spent on consumption in the country of application. The increase in the amount 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 by converting part of the profits into the capital of enterprises with foreign participation.

Exporters and importers of capital are state and private structures, including central and local authorities, other state organizations; private firms, banks, international and regional organizations, individuals.

The state is responsible to creditors for state borrowings and private borrowings with a state guarantee. Sovereign obligations are prioritized, i.e. obligations of the central authorities.

The main reasons causing and stimulating the international migration of capital are Khalevinskaya ED, Crozet I. World economy. - M.: Thought, 2005. S. 121. :

- uneven development of national economies: capital leaves stagnating economies and is attracted to stable economies with high growth rates and higher profit margins.

- the imbalance of current balances of payments causes the movement of capital from countries with a surplus to countries with a deficit balance according to current calculations;

- the migration of capital between countries is stimulated by the liberalization of national capital markets, i.e. removal of restrictions on the inflow, operation and export of foreign investment;

- the development and expansion of international credit, currency and stock markets contributes to a large-scale increase in the international movement of capital;

- the international migration of capital is closely connected with the revitalization of the activities of transnational corporations and banks; with the inclusion in the financial activities of non-banking and non-financial organizations; with an increase in the number and resources of institutional and individual investors;

- the economic policy of countries that attract foreign capital, creating favorable conditions for it to make domestic investments, to service the external and internal debts of the state.

2. Forms of capital export

Capital, which is in motion in the system of the world economy, takes various forms.

1. The transfer of capital may be carried out in monetary and commodity form. The commodity form is taken by export credits, as well as contributions to the authorized capital of a company being created or bought in the form of machinery, equipment, buildings, vehicles.

2. By terms, capital is short-term and long-term. Short-term capital includes investments for a period of less than a year. These are trade credits, bank deposits, funds in the accounts of other financial institutions, short-term commercial paper and other forms of capital. Long-term are investments of entrepreneurial capital, loans from commercial banks, foreign states and international organizations.

3. Based on sources of origin, capital is divided into state (official) and private. Public capital includes funds from the federal government, local authorities and other government institutions, as well as the capital of international intergovernmental organizations, including the International Monetary Fund (IMF). Official funds are usually provided in the form of loans - government loans, loans, grants (gifts), assistance, loans from international organizations. Non-refundable loans and grants are not capital; in this case, foreign states act as a donor rather than a creditor. Loans can also come to host countries in a tied form, i.e. goods are delivered for the agreed loan amount. Loans from the IMF and the International Bank for Reconstruction and Development (IBRD), which is part of the World Bank, provided to host governments and have special purpose. IMF loans are received by the recipient country (recipient) in installments (tranches). The provision of the next tranche depends on whether the recipient country fulfills its obligations under which the loan was granted. The source of official capital is budgetary funds, i.e. taxpayers' funds. Decisions on the transfer of official capital abroad are made jointly by the government and representative authorities on the basis of intergovernmental agreements. Ibid. S. 128. .

Funds of intergovernmental organizations are formed at the expense of contributions from member countries and are budgetary in origin. Decisions on granting loans are made by the management of the relevant international organizations. Official resources are provided on preferential, non-market terms. The predominance of official funds in inflows financial resources indicates unfavorable economic situation country, which limits its ability to attract private resources. Private capital is funds from non-state sources, i.e. own or borrowed funds of private firms, banks, mainly transnational ones, as well as funds and other non-state institutions. They move abroad on market terms by decision of the governing bodies of the relevant organizations. Private funds come to foreign countries and through international organizations such as the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD), on the basis of agreements concluded by these organizations with private firms. The main source of obtaining private funds in the form of a loan is international financial market, which transforms dormant currency funds into capital and redistributes it among issuers and borrowers in different countries. The structure of borrowings of disadvantaged countries is dominated by the official resources of a country with a developed economy, and other countries without payment problems attract loan capital mainly from private sources.

4. By purpose or by the nature of the use of capital is divided into loan and entrepreneurial. Loan capital is a returnable, loaned for a certain period of time in order to receive interest on deposits, loans and credits. Loan capital acts in the form of short-term bank deposits, funds in the accounts of other financial institutions, short-term and long-term loans and credits. Loan capital can be public (official) and private. It is granted for an agreed period, during which the entire borrowed amount with interest must be gradually, in installments, returned to the lender. Payments in full (amortization plus interest) are due upon completion grace period during which only interest is paid. Developing and transition economies with payment difficulties turn, first of all, to IMF loans, an agreement with which is a prerequisite for obtaining resources from other sources. Loan capital is attracted by government agencies from official and private sources to replenish foreign exchange reserves, cover budget deficits, service external and domestic debt obligations, implement macroeconomic stabilization and structural adaptation measures, social payments, purchases of goods and other needs. Loan capital in the form of short-term and long-term syndicated loans provided by a syndicate of lending banks is also used by private borrowers. Entrepreneurial capital is funds invested directly or indirectly in the production of goods or services, in business in general, with the aim of generating income mainly in the form of profit. The international flow of entrepreneurial capital is dominated by TNC funds; they are the main exporters and importers of capital. Funds from state institutions and international organizations can also be used as entrepreneurial capital abroad.

Entrepreneurial capital is represented by:

direct investment;

portfolio investment.

Foreign direct investment (FDI) is the investment of capital abroad for long-term income. Distinctive feature direct investment is that a direct investor is the owner or controls the object (enterprise) in which his capital is invested.

The share of a direct investor in the capital of the company, which gives control over the enterprise, can be different. Formally, in the United States, 10% consider such a border. Establishing a quantitative boundary between direct and portfolio investment is rather conditional. In equity dispersion, managerial control can yield a firm's shareholding below 10%.

Foreign direct investment includes:

First, the investor's initial acquisition of overseas property;

Secondly, all subsequent transactions between the investor and the enterprise in which his capital is invested.

Through outward FDI, investors establish new firms abroad on their own or with a local partner; buy a significant stake in a company already operating abroad; completely absorb (buy) an existing firm.

FDI enterprises can take various forms:

This may be a branch or branch that is wholly owned by the parent firm (TNC) acting as a direct investor and is not legal entity;

This is a subsidiary company that is a legal entity with its own balance sheet, but is controlled by a parent company that is a non-resident direct investor and owns more than 50% of the capital in shares and shares;

In an associate, a non-resident direct investor owns less than 50%, and may have effective control depending on the distribution of capital to shareholders;

Finally, affiliated enterprises associated with a direct investor also include enterprises in which the parent company does not have shares or shares, but it exercises managerial control through the conclusion of contracts for the management of the enterprise, for joint production through the supply of raw materials, technology, etc. , for the joint extraction of raw materials and others. In this case, control is exercised on the basis of non-stock ownership.

The reasons for importing capital in the form of foreign direct investment are manifold. Host countries may be guided by the following motives:

Foreign direct investment compensates for the lack of savings for domestic investment;

With direct investment comes new technology, management, employment increases, national personnel are trained;

New products appear on the market, foreign enterprises pay taxes;

FDI contributes to government structural adjustment programs and economic development, creation of competitive import-substituting and export-oriented production,

FDI reduces the need for borrowed capital,

Reasons for the export of capital in the form of foreign direct investment.

The export of direct investment is stimulated by the desire of a direct investor, which is primarily TNCs, to maximize profits by reducing production costs in the host country as a result of using cheap labor, raw materials, energy, low environmental standards and payments, low taxes, savings on transport and other expenses.

The export of FDI is carried out with the aim of conquering sales markets, maintaining control over the key technology that gives competitive advantages.

Foreign direct investment allows the creation of wholly foreign or joint ventures in other countries. They stimulate the growth of international production and the deepening of the division of labor, primarily within the framework of transnational corporations; contribute to the development and strengthening of industrial and technological relations between countries.

Foreign portfolio investment is an important way to attract foreign capital and provide finance to foreign borrowers. Portfolio investments are investments in foreign securities that do not give the investor the right to real control over the investment object.

They are divided into investments:

In debt securities, certifying the debt relationship between the borrower who issued the document and the creditor who bought it;

In property titles, i.e. into equity securities certifying the property right of the owner of the document in relation to the person who issued the document.

Debt securities confirm the creditor's right to collect debt from the borrower. These are fixed income securities, they are more reliable and less profitable than investing in property can give. Debt securities are an important source of external borrowing. They are divided into long-term and medium-term bonds (bonds), promissory notes, promissory notes (notes), commercial paper, as well as short-term debt securities (treasury bills, certificates of deposit, banker's acceptances).

Investments in title deeds. In the international market of property titles, the most common shares, shares, American Depositary Receipts (AOK), which confirm the participation of the investor in the capital of the enterprise.

Shares are securities that confirm the right of their owner to a share in the company's capital and give him the right to vote at annual meetings of shareholders, elect directors and receive a share of the company's profits in the form of dividends. Shares are preferred and ordinary.

Depositary receipts are securities issued national bank and confirming his ownership of shares of foreign companies. The most common are American Depositary Receipts (AOR) and Global Depositary Receipts (GDRs), each of which can be equated to several foreign shares and sold on the stock market as an independent title of ownership.

The incentive for foreign portfolio investment through shares and other titles of ownership is the desire to maximize profits through the growth of market value and dividends at an acceptable level of risk. In addition, the investor hopes to protect money from inflation; receive speculative income; provide yourself with highly liquid funds that can be quickly converted into cash currency. Stocks do not provide a fixed income, are not redeemable, they are less reliable than bonds, but stocks can give a high return.

5. Capital is borrowed, i.e. debt-forming, and unborrowed or non-debt-forming. Non-borrowing funds include direct investments and portfolio equity investments. Borrowed funds include credit forms of raising capital - loans, credits, debt securities. According to the balance of capital inflow and outflow, countries are divided into net importers and net exporters of capital. According to the balance of international assets and liabilities, i.e. the accumulated foreign capital in the country's economy (liabilities) and the accumulated national capital abroad (assets) determine the balance of the country's external debt. The excess of assets over liabilities characterizes the country as a net creditor; the excess of liabilities over assets - as a net debtor. Debtor countries are solvent, timely fulfilling their debt obligations to foreign creditors, and insolvent, i.e. violating their obligations and accumulating late payments. According to the IMF classification, non-paying countries or those with debt service difficulties include countries that have had overdue debts and / or whose debts have been restructured over the past 5 years, i.e. re-registered.

3. Features of the export of capital

In modern conditions, the export of capital has a number of features.

First, the movement of private capital between industrialized countries has intensified. So, the share of only five countries - the USA, Great Britain, Japan, Germany, France accounts for over 70% of the export of private capital Pebro M. International economic, currency and financial relations .-- M .: Progress-Univers, 2004. S. 312. .

Secondly, since the mid-70s. capital is exported from the countries of the Near and Middle East - major oil exporters, as well as from the industrialized countries of Asia and Latin America (Taiwan, South Korea, Singapore, Brazil). In general, developing countries account for about 3.0% of total foreign investment.

Thirdly, in connection with the development of integration processes and the growth of TNCs (if in 1970 there were approximately 7 thousand TNCs, and in 2004 their number exceeded 50 thousand), the forms of capital movement have changed. This is, first of all, the intensive interpenetration of entrepreneurial capital in developed countries (USA and Canada - 35%, Western European countries - 29% of the total amount of foreign investment in the world). About 17% of foreign direct investment is invested in developing countries. This allowed such developing countries as South Korea, Singapore, Malaysia to become world leaders in the field of electronics, mechanical engineering, and informatics.

Fourth, in recent decades, the export of capital has created conditions for the intensive introduction of foreign capital into the reproduction process of many countries. For example, the share of enterprises controlled by foreign capital in the total volume of manufacturing in Canada, Australia, South Africa exceeds 33%, in the leading Western European countries it is 21-28%, including in the UK, Germany - over 21%, in Italy - over 23%, in France - over 27%. Foreign capital plays an even greater role in the economies of developing countries. In them, companies with foreign participation account for 40% of industrial production. It dominates in some countries. Enterprises controlled by foreign capital produce about 97% of electronic and electrical products in Singapore, 82% in Taiwan, and 75% in South Korea. In the first half of the 2000s the share of foreign investment in gross capital investment in Asian countries was 4.8%, in Latin America 3.8%, in African countries - 4.0%. S. 313. .

Conclusion

The export (import) of capital is divided into three types - depending on who owns the property for the exported capital. On this basis, they distinguish:

private export of capital, carried out mainly by the largest industrial companies and banks;

state export of capital carried out by the government at the expense of the state budget or state organizations and companies;

export of capital by international monetary and financial companies and organizations.

These types of capital movements can be carried out in two forms:

The export of loan capital, which is divided into loans, credits, bank deposits and funds in accounts with other financial institutions (deposits, as well as securities transferred for storage to credit institutions). The export of loan capital is carried out by providing public and private external loans in order to receive income in the form of interest, the level of which is fixed in advance. This export of capital is carried out either by placing foreign bonds in the country exporting capital, or by directly lending funds to foreign private or public organizations.

A feature of the export of loan capital is that this capital is sent to another country for a predetermined period, and the creditor retains the ownership of the capital presented in the loan, but the right to use this capital passes to the borrower, governments or entrepreneurs of foreign states;

The export of entrepreneurial capital, which is divided into foreign direct investment and "portfolio" investment. Depending on the term, the export of capital is divided into short-term (usually for up to one year) and long-term (more than one year).

The entrepreneurial form of the export of capital involves its investment in industrial, agricultural, financial and commercial enterprises. Moreover, it can be both independent enterprises and branches, departments or subsidiaries of firms exporting capital. The export of capital in an entrepreneurial form preserves for its owner the right of ownership of the capital exported to another country and the possibility of direct control over its use. The purpose of the export of entrepreneurial capital is to obtain entrepreneurial profit on the basis of the advantages obtained in the country of investment of capital.

Foreign direct investment (FDI) is the flow of entrepreneurial capital in a form that combines managerial expertise with lending. According to the IMF definition, FDI is a form of investment when the investor owns managerial control over the object in which the capital is invested.

The reasons for preferring the export of capital in the form of FDI are:

a) striving for the best profitable investment capital;

b) creation abroad of its own infrastructure of foreign economic relations (ie warehouses, transport companies, insurance companies, distribution networks, etc.).

The income received by direct investors consists of dividends, interest, royalties and management fees. FDI grew rapidly in the early post-war years, when the United States was the largest investing country.

Portfolio investments are capital investments, stocks, bonds and other forms of “participation” that do not give the possibility of direct control over the activities of a foreign enterprise.

It should be noted that in modern conditions the line between countries exporting and importing capital is becoming more and more conditional, since each country is both an exporter and an importer of capital. Therefore, today it is more correct to speak of a new phenomenon in the movement of capital, of its "migration". Capital migration should be understood as the interpenetration of capital from industrialized countries, developing countries and countries with a "transitional" economy.

Various forms of capital export - direct private investment, government loans, loans from international financial institutions- have become today the most important driving force, developing and deepening world economic ties.

List of used sources and literature

1. Avdokushin E.F. International economic relations. - M.: IVTs Marketing, 2002. - 693 p.

2. Lindert P. X. Economics of world economic relations. - M.: Progress-Univers, 2002. - 504 p.

3. Pebro M. International economic, currency and financial relations. - M.: Progress-Univers, 2004. - 556 p.

4. Spiridonov I.A. World economy. - M.: Enlightenment, 2002. - 934 p.

5. Khalevinskaya E.D., Crozet I. World economy. - M.: Thought, 2005. - 609 p.

6. Shmelev N.P. World economy: trends, shifts, contradictions. - M.: Enlightenment, 2001. - 524 p.