As you know, the international relations in the economic field have a variety of forms, and to treat them exclusively as a relationship of purchase and sale of goods, during which they cross national boundaries, it is incorrect.Experts identify three to eight forms of ERI, and the international movement of capital - one of the most important forms of international economic cooperation.More details we will talk about it in this article.
international movement of capital (MPC) - is an objective economic process.The cause of this movement is the difference between the yield of the capital in different countries.In essence, the capital is the same resource as the rest, but its price is not expressed in monetary terms and in percentage of the yield that could bring his investment.Thus, in developed countries, sooner or later, it accumulates an amount of capital, wherein the interest rates did not satisfy its owners.In this case, they start glancing in the direction of least developed countries in the markets where there is a significant shortage of this resource, which means that the return on investments will be substantially higher.
main forms of international capital movements:
1) export business capital.It takes the form of portfolio (portfolio) or direct (direct) investments abroad.The principal difference between these types of investments is that direct investments are aimed at getting the right business management, and portfolio - only to receive dividends or the purpose of the game on the difference in share prices;
2) export of loan capital.It is similar to the export business capital, but with the difference that in this case complied with all the principles of the loan: payment for the use of borrowed resources (in the form of interest rates), maturity, repayment of the principal and the availability of collateral or guarantee;
3) international economic assistance.It is a donation of financial resources, wealth or debt forgiveness borrowers (private debt issues involved in London, and the state - the Paris Club of creditors).
It should be noted that any country acts as both the exporter and importer of capital.Russia in the international movement of capital is no exception.So, many companies are investing in new facilities in its territory (a vivid example can serve as automakers invest in building their own factories in the Russian Federation).At the same time, and our resident invests in other countries (for example, "Gazprom" to develop its infrastructure in the country, which pass through the territory of transit flows).
international capital flows - is not just a movement of financial and other resources between different countries.It is a powerful automatic control, whereby aligned level of economic development, and drives that the controller is nothing but the situation on the markets of the capital resources of a state.The international movement of capital allows countries with a lower level of development to find investors who are willing to invest in projects with greater risk (due to political instability, imperfect system of legislation, the lack of experience of investing in the State), but at the same time and with greater profitability.Through this process it is possible to create new jobs and production capacity, the population is provided with necessary goods, and the state budget - revenues in the form of taxes from the established enterprises.
