What is foreign trade and what are its main types and forms?

The development of any modern economy is difficult to imagine without activating its ties with other countries. Since 1991, Russia has abandoned the state monopoly on foreign trade, which means that all firms are now aware of what is foreign trade. Today every enterprise has the right to enter the world market of goods and services, and the state no longer acts as an intermediary between it and foreign partners.

Let's look at what is foreign trade. This is the foreign economic activity of any firm or enterprise, which represents a separate sphere of its work, developing in direct interconnection with the world market. Now that you know what the foreign trade is, let's move on to a comprehensive concept - wind farm. Foreign economic relations are the totality of all those relations between national and foreign economic entities that exist at the moment. In addition to clarifying the issue of what are foreign trade activities and WEC, we will consider what is MEO. International economic relations are a system of economic interrelations between individual states that can manifest themselves in a variety of forms. It should be noted that the latter concept is just the broadest, so it is extremely difficult to understand it without knowing the previous ones.

Classification of foreign economic activity involves the allocation of different types and forms of interaction between residents and non-residents of a given country. Economists distinguish five main forms of foreign economic activity: foreign trade, international production, scientific, technical and investment cooperation, as well as international credit and monetary and financial relations. Within the framework of each of the above-mentioned forms, many types of foreign trade activities are singled out.

For example, international scientific and technical cooperation is divided into such types as the sale of patents and licenses for intellectual property; Joint research in the field of science and technology; franchising; Rendering consulting and engineering services; Various kinds of technical assistance. Monetary and financial and credit relations between residents and non-residents of a given country involve provision of loans and credits to each other, making settlements on the international market, buying and selling bonds, shares, derivatives and, of course, currency. International cooperation in the investment plan involves investments with the right and without the right to participate in management, leasing and the establishment of joint ventures with foreign entities. As for trade, everything is simple - export, import and various types of counter-agreements, including barter, which was used by ancient tribes.

Participants in foreign trade activities are a set of legal entities and individuals that carry out foreign economic activities at their own request in accordance with the laws of the country. They are the ones who exchange products of their intellectual activity, produced goods, and also render each other services.