State Regulation of Foreign Trade

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 regulating and developing economic relations with other countries. The main directions of this activity are protectionism and liberalism. They are held not only in the wholesale trade, but also state regulation of retail trade.

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 the opposite in direction policy, the goal of which is to reduce barriers that inhibit 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 pure form. As a rule, the state pursues an economic policy, choosing methods that are necessary to solve specific problems that are being 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 uncontrolled flow of goods and services.

State regulation of foreign trade is necessary to control the employment of the population; Protection of new industries; Prevention of violations in money circulation; Control prices for international exchange goods; Ensuring the defense capability, law and order in the country; Protection of 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 publish laws in the field of foreign economic relations, ratify treaties and agreements of international level.

State regulation of foreign trade is carried out by government agencies: departments and ministries. Various economic and administrative methods are used.

Administrative methods include the publication of legislative acts (customs codes, joint-stock legislation, etc.). Economic methods include such methods of influence on 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-oriented 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 for exporters; Reduction of duties paid for 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 of not the individual business entities, but the central government. Foreign economic activity in the Russian Federation is carried out on the principle of the unity of foreign economic policy as a part of the foreign policy of the state, the unity of control over its conduct, the priority of economic measures, equality of participants, the unity of the customs territory, state protection, rights and interests of all participants in foreign economic activity.