Foreign economic relations include various international economic, political and trade relations, such as the exchange of goods, cooperation and specialization of production, the provision of technical and economic assistance, cooperation in the scientific and technical sphere, the creation of joint ventures of various forms. Such relations become possible as a result of the development of commodity production.
State regulation of foreign trade is an activity aimed at the regulation and development of economic relations with other countries. The main areas of this activity are protectionism and liberalism. They are carried out not only in the field of wholesale trade, but also state regulation of retail trade is carried out .
Protectionism, as an economic policy of the state, is aimed at protecting the national market from the competition of foreign goods or even capturing new foreign markets. Liberalism is an opposite policy direction, the purpose of which is to reduce the barriers that hinder the development of foreign economic relations and create conditions for free trade.
State regulation of foreign trade in the form of protectionism and liberalism almost never exists in its purest form. As a rule, the state pursues an economic policy, choosing such methods as are necessary to solve specific problems that are solved in the country at a certain stage of development.
State regulation of Russia's foreign trade is due to a number of reasons, since it is aimed at solving problems of an economic, social and political plan throughout the state. Therefore, the state, despite all the benefits of free trade, should not allow an uncontrolled flow of goods and services.
State regulation of foreign trade is necessary to control employment; protecting new industries; prevention of violations in cash circulation; price controls on international exchange goods; ensuring defense, law and order in the country; protecting the environment, life and health of the population; ensuring the viability of international organizations.
Foreign economic relations are controlled by the highest legislative bodies of the state: national assemblies, parliaments, congresses. They determine the direction of foreign economic policy and issue laws in the field of foreign economic relations, ratify treaties and agreements at the international level.
State regulation of foreign trade is carried out by government bodies: departments and ministries. In this case, different economic and administrative methods are used.
Administrative methods include the publication of legislative acts (customs codes, stock laws, etc.). Economic methods include those methods of influencing the economy that create the best conditions for the development of foreign economic relations and the balance of payments. Such methods include direct financing of export production (subsidies from the budget), subsidies for research and development, indirect financing through banks, to which the state provides special subsidies to reduce lending rates to exporters; reduction of duties paid on the purchase of raw materials; tax cuts for exporters.
In Russia, the state’s monopoly on foreign economic relations ensures their development under the influence not of individual business entities, but of the central government. Foreign economic activity in the Russian Federation is carried out on the principle of the unity of foreign economic policy as part of the state’s foreign policy, the unity of control over its implementation, the priority of economic measures, the equality of participants, the unity of the customs territory, the protection of the state, the rights and interests of all participants in foreign economic activity.