Presentation of the state impact on the international movement of capital. Presentation on the topic "International capital movement"

slide 2

International capital migration is the movement of capital between countries, including the export, import of capital and its functioning abroad. Capital migration is an objective economic process when capital leaves the economy of one country in order to obtain a higher income in another country.

slide 3

The international movement of capital occupies a leading place in international economic relations, has a huge impact on world economy A: 1.promotes the growth of the world economy; 2.deepens international movement capital and international cooperation; 3.increases the volume of mutual trade between countries, including intermediate goods, between branches of international corporations, stimulating the development of world trade.

slide 4

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

slide 5

The global capital market is part of the global financial market and is conditionally divided into two markets: the money market and the capital market. In the money market, transactions are carried out for the purchase and sale of financial assets (currencies, credits, loans, securities) with a maturity of up to one year. The money market is designed to satisfy the current (short-term) need of market participants for credits and loans to purchase goods and pay for services. A significant part of transactions in the money market are speculative transactions for the purchase and sale of currencies. The capital market is focused on longer-term projects with a maturity of one year or more.

slide 6

The participants of the international capital market are commercial banks, non-banking financial institutions, central banks, private corporations, government bodies and some private individuals.

Slide 7

Reasons for the export of capital

the ability to monopolize the local market of the host country; the availability in capital-receiving countries of cheaper raw materials and work force; stable political situation in the recipient country; lower environmental standards compared to the donor country; the presence of a favorable "investment climate" in the host country;

Slide 8

The concept of "investment climate" includes such parameters as: economic conditions: the general state of the economy (rise, decline, stagnation), the situation in the currency, financial and credit systems of the country, the customs regime and conditions for the use of labor, the level of taxes in the country; state policy regarding foreign investment: compliance with international agreements, the strength of state institutions, the continuity of power.

Slide 9

Capital migration can be carried out in the form of entrepreneurial and loan capital. Loan capital - cash, directly or indirectly invested in production in order to obtain a loan interest from the use of capital abroad. The movement of loan capital is carried out in the form of an international loan from public or private sources. Entrepreneurial capital - funds directly or indirectly invested in production for the purpose of making a profit. The movement of entrepreneurial capital is carried out through foreign investment, when private individuals, state enterprises or the state invests abroad.

Slide 10

According to sources of origin, capital is divided into official and private capital. Official (state) capital is funds from the state budget that are transferred abroad by decision of governments, as well as by decision of intergovernmental organizations. It moves in the form of loans, loans and foreign aid. Private (non-state) capital is the funds of private companies, banks and other non-governmental organizations that are moved abroad by decision of their governing bodies and their associations. The source of this capital is the funds of private firms not related to the state budget. These may be investments in the creation of foreign production, interbank export credits. 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.

slide 11

According to the purpose of foreign investment, capital is divided into direct investment and portfolio investment: Direct foreign investment - capital investment with the aim of acquiring a long-term economic interest in the country of capital investment, ensuring investor control over the object of capital placement. They take place in the case of the creation of a branch of a national company abroad or the acquisition of a controlling stake in a foreign company. FDI is real investment in businesses, land, and other capital goods. Portfolio foreign investment - capital investment in foreign securities, which do not give the investor the right to control the investment object. Portfolio investments lead to the diversification of the portfolio of an economic agent, reduce the risk of investment. They are based on private entrepreneurial capital, although the state also issues its own and acquires foreign securities. Portfolio investments are purely financial assets denominated in local currency.

slide 12

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

slide 13

They also distinguish 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 ways export of capital is called flight or leakage). Intra-company capital - transferred between branches and subsidiaries (banks) owned by the same corporation and located in different countries.

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Prepared by Mozhayskaya
Natalia
Group: 25TDd14201.
2.
3.
4.
5.
6.
Theories of international migration
capital
World investment and savings
International capital migration:
essence, stages and forms
Migration of capital to
entrepreneurial form
Migration of loan capital
Internationalization of the capital market and
problems of its regulation

Question 1. Theories of international capital migration

International capital migration is
processes of counter movement of capital
between different countries of the world
farms
regardless
from
level
them
socio-economic
development,
generating additional income
owners.
Theories of international capital migration:
Neoclassical theories
Neo-Keynesian theories of economic growth
Marxist theories of capital export
The concept of international development
corporations

Neoclassical theory was based on
views of J.St. Mill:
exported
that part of the capital which
contributes to lowering the rate of profit
capital import improves production
specialization of countries and promotes
expansion of foreign trade.
capital is mobile in
internationally

Neo-Keynesianism (late 30s - early 50s
years .. XX century.)
An important reason for the international
capital flow is a state
balance of payments. If the balance of payments
balance is positive, then the country can become
capital exporter. The international
capital movements should be regulated
state.
F. Machlup: Export of capital, influencing
domestic investment may limit them. AT
capital-importing countries are stimulated
growth in investment, which increases consumption and
growth in national income.
R. Harrod: If a country's savings exceed
investment, the rate of economic growth
are slowing down, the tendency to export is increasing
capital.
E. Domar: it is necessary to expand state
foreign investment and regulate the rate
interest on them to ensure a positive
balance of payments balance.

Marxist theory of capital export
justified its excess in connection with
by the law of tendency of the norm
profits to decline. Capital is exported
abroad because he may be there
placed at a higher rate of return.
AT.
I. Lenin associated the export of capital with
unevenness, peculiarity of development
enterprises, industries and countries in the conditions
the dominance of the monopolies.
In the process of evolution of Marxist theory
as reasons for the export of capital
considered increasing internationalization
production, increased competition between
monopolies, increasing the pace
economic growth.

Among modern theories important place
occupy the theory of international
corporations:
The theory of economies of scale.
Technological theory of international
corporations associates their emergence with
technological advantages of head
companies in developed countries.
International Organization Theory
explores the reasons why
reaching a certain size
national corporations tend to
international organization.
Placement theory explains why
determining the location
production.
Internationalization theory (P. Buckley,
J. McManus, M. Casson, J. Dunning and others),
studies the problem of intercompany relations
international corporations.

Question 2. World investment and savings

The demand for capital as a financial asset exists in
form of global investment. World
savings is an offer
financial resources.
The movement of capital is reflected in the payment
balance sheet in the capital account.
If the capital account is positive, then
the country will become an importer (borrower) of capital.
If the capital account is negative, then the country
exports capital and is a creditor.
The movement of capital is connected with the movement of goods
and services:
They are mutually opposite, therefore, in the payment
balance sheet are taken into account with different signs;
Ideally, they balance each other. This equation
is the main macroeconomic
identity.

The intensity of capital migration to
largely determined
the degree of openness of the country's economy and
the value of the existing rate in it
percent:
In a country with a closed economy, the inflow
capital is zero for any domestic
real interest rate.
In a country with a small open economy, inflows
capital can be anything
world interest rate (country, not
affects the level of world interest
rates)
In a country with a large open economy
there is a positive relationship
between the inflow of capital and the value
domestic interest rate. So
the value of the world interest rate in
will be determined to a large extent
the economic
politics.

Question 3. International migration of capital: essence, stages, forms

The first stage in the evolution of international migration
capital (MMK): from the XVII-XVIII centuries. until the end of the 19th century:
"the stage of the birth of the export of capital." Capital
migrated from metropolises to colonies and wore
limited and random.
The second stage in the evolution of MMK from the end of the 19th to the middle
XX century: the process of export of capital is carried out as
between industrial countries and between
industrial and developing countries.
The third stage from the mid-50s-60s of the XX century. before
present: The export of capital is carried out
industrialized, developing and former
socialist countries. Countries at the same time
become both exporters and importers of capital.

The development of the MMK process is influenced by two
groups of factors, including:
factors
economic nature:
development of production and maintaining the pace
economic growth; deep structural
shifts as in the global economy; deepening
international specialization and cooperation
production; growing transnationalization
world economy; growth
internationalization of production and
integration processes; active development
all forms of MEO;
political factors:
liberalization of export/import of capital
(FEZ, offshore zones, etc.); politics
industrialization in the countries of the "third world";
carrying out economic reforms; politics
employment support.

Economic feasibility of export
capital
obtaining additional profits;
establishing control over others
subjects;
bypassing protectionist barriers;
access to new markets;
access to the latest technologies;
access to cheaper resources;
keeping trade secrets;
savings on tax payments;
reduction in environmental protection costs
environments, etc.

Economic feasibility of import
capital
opportunities
development of certain new and
old productions;
attraction of additional foreign exchange
resources;
expansion of scientific and technical potential;
creation of additional jobs, etc.

Participation of the country in the CMI processes
reflected in a number of indicators.
Absolute indicators: export volume
capital, volume of capital imports, balance
export-import of capital, number
enterprises with foreign capital
country, the number of people employed, etc.
Relative indicators:
capital import ratio reflecting
the share of foreign capital in the country's GDP;
capital export ratio reflecting
share of exported capital by
relation to the country's GDP;
ratio reflecting the share
foreign capital to domestic
investment needs in the country.
1.
2.
3.

Investment resource flows
mix to:
macro level: interstate, or
official, capital overflow
(interstate loans, official
assistance, loans from international financial
organizations, etc.)
microlevel: at the level of intercorporate
and intra-corporate relations,
interbank loans, etc.

Financial flows between creditors and
borrowers are serviced by the institution
financial intermediaries:
private
national and
international financial and credit
institutions.
state represented
treasury, issuing and export-import banks and other
authorized institutions;
interstate banks and foreign exchange
funds.

According to the form of ownership of the migrating
capital
private,
state,
international
(regional),
monetary and financial
organizations,
mixed.

By timing of capital migration
ultra short term
(up to 3 months),
short-term (up to 1-1.5 years),
medium-term (from 1 year to 5-7 years),
long-term (over 7 years and up to 40-45)

According to the form of capital provision
commodity,
monetary,
mixed.
Purpose and nature of use
migrating capital
entrepreneurial,
loan.

Among the migrant capital: more than
50% owned by private entities -
these are corporations, TNCs, banks, shares,
insurance, investment and pension
funds, etc.
Trends:
Reducing the share of banks
Growth in the share of capital of TNCs
The share of state capital - about 30%
and tends to increase
The share of international monetary and credit
financial organizations - about 12%, has
upward trend

Private equity movement
characterized by moving along the following
directions:
between highly developed countries
industry where there is movement
portfolio investment;
to countries that already have significant
industrial potential, where direct investment
more significant than portfolio;
to countries with underdeveloped economies, but
rich in raw materials, where
only direct capital
investments.

Migration of capital in business
form implies a mandatory
the presence of three signs:
First, the organization and participation in
production process abroad;
second, long term
investments of foreign capital;
Third, the ownership of
the company as a whole or part of it
territory of another state.

Direct
foreign investment is
long-term foreign investments
capital, as a result of which
the exporter of capital organizes or
production is carried out in the territory
host country.
Portfolio
investment is a form
export of capital by investing in
securities of foreign companies,
not giving investors the opportunity
direct control over them
activity.

Question 4. Migration of capital in the entrepreneurial form

The concept of foreign direct investment
includes:
Share capital;
intra-company transactions;
Reinvested income;
intangible income.

Foreign portfolio investment
include:
Financial
instruments: bonds,
shares, money market instruments;
Derivatives (derivative financial
instruments): options, forward
contracts, etc.

Positive impact of FDI on the economy:
Growth of capital investments;
Promoting technology transfer;
Expanding access to export markets;
TNCs fully cover the risks of their
branches;
Transfer of practical skills and
management skills;
Multiplier effect;
Activation of competition;
Expanding the host tax base
countries;
Growth in employment and income, etc.

Negative impact of FDI on the economy:
Loss
control by local companies
over national production;
Crowding out of national companies;
Negative effect on the state of the payment
balance;
In the long run, it's expensive.

The positive impact of PI on the economy:
Contribution
in the financing of capital investments;
Promoting consumption growth;
Stimulating the liquidity of banks and
the economy as a whole;
Contribute to the strengthening of financial
infrastructure.

The negative impact of PI on the economy:
High
financing costs;
The possibility of increasing financial speculation;
High risk of instability.

Since the 1960s, a global market has been formed
foreign investment. Prerequisites:
removal by many countries of restrictions on
management of export-import operations
capital;
privatization of state companies
in Western Europe and Latin America in
60-70s;
privatization of enterprises in the former
socialist countries.

Current migration trends
capital in the entrepreneurial form:
the dynamics of capital exports traditionally
ahead of the dynamics of exports of goods;
an increase in the number of mergers and acquisitions of firms;
the growing role of TNCs;
shift in the sectoral structure of foreign
investments from manufacturing
industry and trade to investment in
knowledge-intensive industries and services (more than
55%);
a system of international
regulation of foreign investment;
high concentration;
there is a change in geographic
directions of foreign investments.

Question 5. Migration of loan capital

Loan capital is the provision
loans in cash or commodity form
in order to receive a high percentage from abroad. Loan form MMK
implemented in the following operations:
issuance of state
purchase of bonds
and private loans;
another country
securities, bills;
making payments on debts;
interbank deposits;
interbank and government
debt.

Fast
loan export growth rate
capital and significant in volume
recurring transactions internationally
level led to the formation in the late 60s and early 70s of the XX century of the world
loan capital market.
World
loan capital market (MRSK)
is a system of relationships
accumulation and redistribution
loan capital between countries
world economy, regardless of
level of their socio-economic
development.

The global loan capital market has
complex structure and includes:
World
the credit market is a special
IDGC segment where traffic is carried out
capital between countries on the terms
urgency, repayment and interest payments.
World
financial market is a segment
IDGC, where the issue and purchase and sale of securities and various
obligations.
In the primary market,
issuance of bonds, shares and
etc., in the secondary market there is a purchase and sale of previously issued securities.

Features of the global loan market
capital on present stage development:
High degree of monopolization of this
market.
Concentration of loan capital through
mergers and interweaving of subjects
IDGC.
Borrowers' access to IDGCs is limited.
IDGC has potential
instability.
IDGCs lack clear spatial
and time limits.
IDGC is closely associated with modern research and development.
IDGCs are characterized by universality and
unification of operations.

Question 6. Internationalization of the capital market and problems of its regulation

Strengthening international traffic flows
capital leads to the following results:
The ratio between the centers changes
attracting global investment. Industrial
countries in the 1990s became net exporters of capital.
Developing countries are increasing not only imports,
but also the export of capital
There are changes in the structure of forms and
investment institutions. In total
investments are dominated by portfolio investments.
Increasing interpenetration of all types
international investment. Between two
segments of the financial market - currencies and capitals
boundaries are gradually blurred. Thus,
extraterritorial in relation to
national economy financial centers, or
offshore areas.

The main features of globalization
financial capital are:
superior development over
real asset market
Freedom of movement in modern
economic space
Lack of nationality and
predominantly speculative
The global financial market is getting weak
controlled

The activity of participating in the export of capital to any
country depends on the investment climate in the country,
importing capital.
The investment climate is
set of economic, political,
legal and social factors, which
predetermine the degree of risk of foreign
investment and the possibility of
efficient use in the country.
One of the main directions of formation
favorable investment climate is
providing foreign investors with legal
treatment no less favorable than national
simultaneous protection national economy from
unscrupulous foreign investment.

International capital migration is the movement of capital between countries, including the export, import of capital and its functioning abroad. International capital migration is the movement of capital between countries, including the export, import of capital and its functioning abroad. Capital migration is an objective economic process when capital leaves the economy of one country in order to obtain a higher income in another country.

The international movement of capital occupies a leading place in international economic relations, has a huge impact on the world economy: The international movement of capital occupies a leading place in international economic relations, has a huge impact on the world economy: 1. contributes to the growth of the world economy; 2.deepens the international movement of capital and international cooperation; 3.increases the volume of mutual trade between countries, including intermediate goods, between branches of international corporations, stimulating the development of world trade.

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

The global capital market is part of the global financial market and is conditionally divided into two markets: the money market and the capital market. The global capital market is part of the global financial market and is conditionally divided into two markets: the money market and the capital market. In the money market, transactions are carried out for the purchase and sale of financial assets (currencies, credits, loans, securities) with a maturity of up to one year. The money market is designed to satisfy the current (short-term) need of market participants for credits and loans to purchase goods and pay for services. A significant part of transactions in the money market are speculative transactions for the purchase and sale of currencies. The capital market is focused on longer-term projects with a maturity of one year or more.

Participants in the international capital market are commercial banks, non-banking financial institutions, central banks, private corporations, government agencies, as well as some individuals. Participants in the international capital market are commercial banks, non-banking financial institutions, central banks, private corporations, government agencies, as well as some individuals.

Reasons for the export of capital - the possibility of monopolizing the local market of the host country; availability in countries receiving capital, cheaper raw materials and labor; stable political situation in the recipient country; lower environmental standards compared to the donor country; the presence of a favorable "investment climate" in the host country;

The concept of "investment climate" includes parameters such as: the use of labor force, the level of taxes in the country; state policy regarding foreign investment: compliance with international agreements, the strength of state institutions, the continuity of power.

Migration of capital can be carried out in the form of entrepreneurial and loan capital. Migration of capital can be carried out in the form of entrepreneurial and loan capital. Loan capital - funds directly or indirectly invested in production in order to obtain loan interest from the use of capital abroad. The movement of loan capital is carried out in the form of an international loan from public or private sources. Entrepreneurial capital - funds directly or indirectly invested in production for the purpose of making a profit. The movement of entrepreneurial capital is carried out through foreign investment, when individuals, state-owned enterprises or the state invest abroad.

According to sources of origin, capital is divided into official and private capital. According to sources of origin, capital is divided into official and private capital. Official (state) capital is funds from the state budget that are transferred abroad by decision of governments, as well as by decision of intergovernmental organizations. It moves in the form of loans, loans and foreign aid. Private (non-state) capital is the funds of private companies, banks and other non-governmental organizations that are moved abroad by decision of their governing bodies and their associations. The source of this capital is the funds of private firms not related to the state budget. These may be investments in the creation of foreign production, interbank export credits. 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.

According to the purpose of foreign investment, capital is divided into direct investment and portfolio investment: According to the purpose of foreign investment, capital is divided into direct investment and portfolio investment: Foreign direct investment is an investment of capital with the aim of acquiring a long-term economic interest in the country of investment of capital, ensuring investor control over the object of placement of capital . They take place in the case of the creation of a branch of a national company abroad or the acquisition of a controlling stake in a foreign company. FDI is real investment in businesses, land, and other capital goods. Portfolio foreign investment - capital investment in foreign securities that do not give the investor the right to control the investment object. Portfolio investments lead to the diversification of the portfolio of an economic agent, reduce the risk of investment. They are based on private entrepreneurial capital, although the state also issues its own and acquires foreign securities. Portfolio investments are purely financial assets denominated in local currency.

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

They also distinguish such forms of capital as illegal capital and intra-company capital: They also distinguish such forms of capital as illegal capital and intra-corporate capital: . Intra-company capital - transferred between branches and subsidiaries (banks) owned by the same corporation and located in different countries.

The positive and negative effects of capital migration are rather conditional and do not take into account numerous exceptions. Nevertheless, the international movement of capital plays a generally stimulating role in the development of the world economy. The positive and negative effects of capital migration are rather conditional and do not take into account numerous exceptions. Nevertheless, the international movement of capital plays a generally stimulating role in the development of the world economy.

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PLAN:
1. Essence, causes of international movement
capital and its main forms
2. The impact of international capital flows
on the world economy

international movement of capital
4. Features of direct foreign
investment

attractiveness of the country

1. Essence, causes of the international movement of capital and its main forms

Capital is one of the factors
production and represents the entire
accumulated stock of funds
productive, monetary and commodity
forms needed to create
material wealth.

The movement of capital abroad (export
capital) is a process in the course of
in which part of the capital is withdrawn
from the national turnover of one country and
placing it in various forms
(commodity, monetary) into production
process and treatment of another host
countries.

The international movement of capital means
migration of capital between countries,
which generates income for their owners.

Distinguish:
countries-exporters or donors of capital;
importing or recipient countries
capital.
Each country can be both
capital donor and recipient.

FACTORS CONTRIBUTING AND
EXPORT PROMOTIONAL
CAPITAL:
1. Internationalization of production.
2. International industrial cooperation,
investments of transnational corporations in
affiliated companies.
3. Economic policy of the industrialized
countries, aimed at attracting significant
volumes of capital to maintain the pace
economic growth, employment, development
advanced industries.

4. Economic behavior of developing countries,
seeking by attracting
foreign capital to give a significant boost
for your economic development, break out of
"vicious circle of poverty".
5. Important stimulators are international
financial institutions that send and
regulating the flow of capital.
6. International avoidance agreements
double taxation of income and capital
between countries contribute to the development of trade,
scientific and technical cooperation, attracting
investment.

At the present stage, international
the movement of capital is the determining factor
element in the functioning of the world
economy, development of other forms
international economic relations.

The subjects of the movement of capital in the world
farm are:
private commercial structures (TNCs, banks,
share, insurance, investment and
pension funds, etc.);
government organizations (central and
local authorities, other state
organizations);
international economic and financial
organizations (IMF, IBRD, International
financial corporation (IFC), UN, etc.);
individuals.

CLASSIFICATION OF INTERNATIONAL FORMS OF MOVEMENT OF CAPITAL

According to sources
origin:
State
Private.
By deadline
accommodation:
The nature
usage:
Short term
medium-term
Long term
Loan
Entrepreneurial
By goals
investments:
Direct
investments
Portfolio
investments

Government investment is
funds from the state budget that are sent abroad
or taken from there by decision either
governments directly, or
intergovernmental organizations.
Private capital is funds from non-state
sources placed abroad or received from abroad
abroad by private individuals (legal entities or
physical).
Direct investment is an investment of capital that
allow you to participate in the management of the attachment object.
Portfolio investment does not provide control over
object of investment, but give only a long-term right to
income from investments in foreign securities.

Illegal capital - capital migration,
which bypasses the national and
international law.
Intracompany capital - transferable
between branches and subsidiaries
(banks) owned by the same
corporations and located in different
countries.

Rice. 1. Main forms of international movement of capital

Rice. 2. Causes of international capital migration

2. The impact of international capital movements on the world economy

INTERNATIONAL CAPITAL MOVEMENT:

1. Contributes to the growth of the global economy. Capital
crosses borders in search of favorable spheres
its application and growth on a global scale.
2. Deepens the international division of labor and
the 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.

Consequences for exporting countries
capital:
export of capital abroad without adequate
attracting foreign investment leads
to a slowdown in economic development
exporting countries;
capital outflow has a negative impact on
the level of employment in the exporting country;
movement of capital abroad
adversely affects payment
country balance sheet.

Positive consequences for countries
importing capital:
regulated capital imports contribute to
economic growth of the recipient country
capital;
attracted capital creates new workers
places;
foreign capital brings new technologies,
effective management, promotes
acceleration in the country of scientific and technical
progress
capital inflow contributes to the improvement
balance of payments of the recipient country.

Negative Consequences of Attracting
foreign capital:
influx of foreign capital, "crushing" the local
capital, either taking advantage of its inaction, displaces it
from profitable industries, which leads to one-sidedness
development of the country and the threat to its economic security;
uncontrolled import of capital may be accompanied by
environmental pollution;
capital imports are often associated with pushing
the market of the recipient country of goods that have already passed their
life cycle, as well as discontinued in
as a result of the identified substandard properties;
import of loan capital leads to an increase in foreign
the debt of the country;
use by international corporations
transfer prices leads to losses for the recipient country in
tax revenue and customs fees.

3. Modern features and trends in the international movement of capital

In the initial period, the export of capital came from
industrial countries into agrarian, dependent.
England and France invested in India,
Egypt, Algeria, Syria and other colonies, USA - in
Latin America, Germany - to Southwest
Africa.
At the same time, capital was flowing from industrialized countries at a slower pace.
economic growth to countries with higher
the pace of development. For example, from England to the USA,
or from England and France to Germany; at the same
the United States has been actively investing in the economy
England.

In the total volume of capital export, the role and
the share of the export of state capital (about 25%).
Among the total volume of exported capital in
developing countries 90% is public
capital.
More than 50% of migrating capital in the world economy
owned by private entities (corporations, TNCs,
banks, investment, pension, insurance
funds, etc.).
In recent decades, there has been a trend
reducing the share of banks from 50 to 25% and
simultaneous growth of the share of TNC capital. grow up
volumes of private capital migrating between
industrialized countries (about 75%).

Sectoral directions of foreign investments
determined by the level of economic development
receiving states.
There is a shift in the sectoral structure of foreign
investments from the manufacturing industry and
trade to investments in knowledge-intensive industries and
services (more than 55%).
In industrialized countries - in production
finished products (high technology).
In developing countries, capital was directed to
mining, mining, metallurgical industries,
credit system, infrastructure, for their development
natural wealth.

4. Features of foreign direct investment

Direct investment implies the presence of either
foreign control over 10 or more
percentage of ordinary shares, or "effective
voices" in enterprise management.

Equity share can be obtained
through:
1) acquisition of shares abroad;
2) reinvestment of profits;
3) intercompany loans or
intercompany debt.

The main forms of direct investment
are:
opening enterprises abroad;
creation of joint ventures on
contract basis;
joint development of natural
resources;
purchase or annexation ("privatization")
enterprises of the host country
foreign capital.

Organizational forms of foreign enterprises with
foreign investment:
The branch is registered abroad, but is not
an independent company with its own balance sheet and
wholly (100%) owned by the parent
firm.
Subsidiary is registered abroad as
an independent company, that is, it is a legal
person with own balance. But control over her
carried out by the parent company due to the fact that
it owns the majority of the shares of a subsidiary
or all its capital.
An associate differs from a subsidiary in that
that is not under control, but under the influence
parent company due to the fact that it owns
a significant (but not the main) part of the shares.

Reasons for importing capital in the form of direct
foreign investment:
foreign direct investment compensates
savings deficit for domestic
investments;
with direct investment comes new technology,
management, increasing employment, learning
national personnel;
new products appear on the market
businesses pay taxes;
foreign direct investment (FDI) promotes
implementation of government programs
structural transformation and economic
development, creation of a competitive
production;
FDI reduces the need for borrowed capital.

Reasons for the export of capital in the form of direct
foreign investment:
a) the export of direct investment is stimulated
the desire of the direct investor to obtain
maximize profits by reducing costs
production in the host country (cheap labor,
raw materials, energy, low environmental standards and
payments, low taxes, etc.);
b) FDI exports are carried out with the aim of conquering
markets, maintaining control over a key
technology that gives competitive advantages.

Rice. 3. Dynamics of Ukraine's direct investments in 1998-2012

60000
50000
40000
Direct investment in
Ukraine
Direct investment from
Ukraine
30000
20000
10000
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
0

Rice. 4. Direct investments in Ukraine by types
economic activity (million USD)

125 countries act as investors. The first three countries of investors: Cyprus, Germany, the Netherlands, then the Russian Federation,
USA.
Industrial enterprises are concentrated
22.3% of total investments, of which 21%
belong to food enterprises
industry. In addition, in the financial
investors invested 20.4%, in the sphere of rent and
engineering - 10.5%, trade - 10.3%.
The main obstacles to investing money in Ukraine
foreigners call a high level of corruption,
indirect subsidies, as well as weak
legal protection of property rights.

5. Instruments for ensuring the investment attractiveness of the country

The most important factor in the last third of XX
century is the liberalization of conditions
international capital migration,
characteristic of both industrialized
countries, and to a greater extent
developing countries.

State policy regarding
capital movements in the form of loans,
portfolio investment is built on
basis of eliminating all possible
restrictions on his movement.
For direct foreign
investments the state reserves
the right to accept any restrictions,
aimed at protecting national
interests in the economy.

Ways to regulate foreign investment:

national legal
based on
use of standards and
institutions
traditional industries
national system
law (administrative,
civil, etc.).
In most countries
developed a set of laws
foreign
investments.
international legal
made up of special
interstate
agreements, subject
regulation of which
are the relationships
traffic related
foreign investment
private capital.
There are bilateral and
multilateral
international agreements.

Main provisions of investment laws:

1) Conditions as well as legal guarantees
foreign investment in the host
country. The purpose of these guarantees is to ensure
mutual interests of the host country and
foreign investors.
2) Provision to foreign investors
benefits and privileges, as foreign
investments are associated with increased
political and commercial risks,
additional transport costs
communication and more.

The most common benefits include:
a) exemption for a different period from taxes
income, profits and dividends of foreign
investors;
b) granting preferential treatment for
taxation of reinvestments,
tax exemption wages and others
types of remuneration for work paid
foreign specialists;
c) release from customs duties temporarily or
permanently imported property, equipment, raw materials
and materials that are not available on the local market
and go to the production of export products;

d) protection from political risks.
In the legislation on foreign investments
usually stipulated that nationalization
foreign private property
carried out only in exceptional cases
with a guarantee of fair and equitable
compensation;
e) regulation on the permission of investment
disputes. Previously, they were considered on the basis of
national arbitration institutions and rules,
today there are changes in favor of
international arbitration institutions and
rules.

Incentive policy has an effect on attraction
investment less influence than market factors.
Economic freedom, unfettered action
market mechanisms are essential
criteria for attracting foreign investment.
Designed by American Economists
integral indicator of economic freedom
is an aggregate characteristic
ten different private indicators of
how much in a given country the state
actively intervene in business relations
subjects.

Particular indicators reflect the situation in the following
areas where such intervention is possible:
trade policy;
taxation;
monetary policy;
functioning of the banking system;
legal regulation of foreign investments;
ownership;
the share consumed by the state in the total volume
goods and services produced in the country;
economic incentive policy;
the extent of the black market in the country;
pricing and wage regulation.

For each of the ten indicators, a country can
get a score from 1 to 5 points,
corresponding to the smallest and largest
degree of government intervention in the economy.

Questions for workshop 7:
1. Forms and causes of the international movement
capital.
2. The impact of international capital migration on
world economy.
3. Modern Features and trends in
international movement of capital.
4. Features of foreign direct investment.
5. Instruments for ensuring investment
attractiveness of the country.
6. Investment attractiveness Donbass.