What is a foreign economic activity and what are its main types and forms?

The development of any modern economy is difficult to imagine without intensifying its ties with other countries. Since 1991, Russia has abandoned the state monopoly on foreign trade, which means that all firms now know what foreign economic activity is. 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.

what is foreign trade activity

Let’s see what FEA is. This is the foreign economic activity of any company or enterprise, which is a separate area of ​​its work, developing in direct connection with the world market. Now that you know what FEA is, let's move on to the complex concept of wind farm. Foreign economic relations are the totality of all those relations between national and foreign business entities that exist at the moment. In addition to clarifying the issue of what are foreign economic activity and a wind farm, let us consider what is an MEO. International economic relations is a system of economic relationships between individual states, which can manifest themselves in a wide variety of forms. It should be noted that the latter concept is precisely the broadest, therefore, it is extremely difficult to understand it without knowing the previous ones.

foreign trade classification

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

foreign trade participants
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; provision of consulting and engineering services; various kinds of technical assistance. Monetary-financial and credit relations between residents and non-residents of this country involve providing loans to each other, making settlements on the international market, buying and selling bonds, stocks, derivatives and, of course, currency. International cooperation in the investment plan involves investments with and without the right to participate in management, leasing and the creation of joint ventures with foreign entities. As for trade, everything is simple here - export, import, and various types of counter agreements, including barter, which was used by ancient tribes.

FEA participants are a set of legal entities and individuals who carry out foreign economic activity at their request in accordance with the legislation of the country. It is they who exchange products of their intellectual activity, manufactured goods, and also provide services to each other.

Source: https://habr.com/ru/post/A11986/

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