The legal regime of foreign investment in foreign economic activity. International legal regime of foreign direct investment
Due to the established international practice, foreign investments can be granted one of the following legal regimes: national treatment, most favored nation treatment, fairness, transparency.
When granting national treatment to foreign investments, national and foreign entrepreneurs act on the market, with some exceptions, as equal subjects, which does not infringe on the interests of foreign investors. It follows that "national treatment" means a regime in which the rights of foreigners in the territory of the host state are determined mainly by local (national) laws, and not by the laws of the country of origin of capital. At the same time, the regime of foreign investment cannot be less favorable than the regime provided to national legal entities (national capital). The principle of national treatment may provide for certain exceptions and exemptions. These are, for example, the requirements of the country of reciprocity, that is, the issuance of permits for foreign investments only if the country of origin of these investments allows similar activities of investors from the first country. Restrictions on the activities of foreign investors are made to establish state control behind the development of individual industries in order to prevent the weakening of the competitiveness of national legal entities. In different countries, the range of these industries is different, but, as a rule, these are mining and military industries, as well as service industries (banking and insurance). Some of these industries are completely closed to foreign investment, and access to some is allowed only after obtaining special permission.
For many decades, the most favored nation regime has been regarded as one of the most important legal instruments for the normal implementation of international trade and economic relations. States interested in equal and mutually beneficial economic cooperation seek to build it on the basis of reciprocity.
The National Regime can be established by both bilateral and multilateral international treaties. These are, first of all, the Paris Convention for the Protection of Industrial Property of 1883, the Berne Convention for the Protection of Literary and Artistic Works of 1886, the World (Geneva) Convention for the Protection of Copyrights of 1952, the essence of which is largely ensured precisely by the consolidation of the principle of National Regime.
The principle of national treatment in relation to foreign trade in services is enshrined in Art. XVII General Agreement on Trade in Services. Thus, in accordance with the specified article in certain sectors, under the stipulated conditions and requirements, each member of the WTO provides services and service providers of any other member of the WTO, in respect of all measures affecting the supply of services, treatment no less favorable than that which it provides to similar domestic services or service providers.
This requirement is met by granting the services and service providers of any other WTO member either formally the same treatment or formally different treatment from that which it provides to its own similar services or service providers. .
The most favored nation principle means that one contracting state grants to another contracting state (its legal entities and individuals) in one or another agreed area of their relations the same favorable treatment as that which it provides or will provide in the future to any third state, its legal entities. and individuals.
The most favored nation, the treaty regime and the determination of its scope is the business of the contracting parties themselves. The Parties may extend this regime to the area economic relations, can limit its effect only to issues of trade, navigation, can agree on its application only to certain areas of regulation of their economic relations (for example, to customs taxation).
Having concluded an agreement with the condition of the national favored nation regime, the state can be sure that the conclusion by its counterparty of a preferential agreement with a third state will entail the application of the same benefits in relation to itself. To create the most favorable regime for international trade, it may not be enough to conclude a bilateral agreement on nationally favored nation treatment; a multilateral agreement or a system of bilateral agreements that would bind a whole group of countries may be required. Thus, a single trade regime would operate for the whole region (an example is a trade regime between EU member states or a regime established by the WTO). In fact, in this case, a kind of community of states arises, trading among themselves according to the same rules.
In international practice, the features of the most favored nation treatment find their textual consolidation in Art. II GATS. Within the framework of this document, the principle under consideration is formulated as follows: "Each member of the WTO immediately and unconditionally provides the services and service providers of any other member with treatment no less favorable than that which it provides for similar services or service providers of any other country". At the same time, exceptions to this rule are possible, that is, a WTO member can introduce any measure that does not meet the most favored nation principle, only if such a measure is included in the list of exemptions and meets the conditions of the Annex to the GATS on exemptions from Article II of the General agreements on trade in services. .
As the analysis of bilateral agreements shows, the establishment of national treatment or the most favored nation treatment is of a "mixed nature". In one agreement, investments may be subject to most favored nation treatment or national treatment. Other agreements guarantee most favored nation treatment and national treatment for investment and income. In this regard, the GATT example is adequate.
Fair and equitable treatment is one of a number of common standard regimes enshrined in international agreements to encourage and protect foreign investment. The predecessors of this standard were the provisions of the 1948 Havana Charter of the International Trade Organization. Fair and equitable treatment provides for the full and permanent protection and security of foreign investment and non-discriminatory measures in this area. Due to the fact that within the framework of the WTO the problem of foreign investment is indirectly present in the definition of the third mode of supply of services (Commercial presence), and also due to the fact that the Committee on Trade and Investments operates in the WTO, the question of the possible application of this regime periodically arises in the course of formal and informal discussions on the problem of "trade and investment".
These several investment regimes used in state and interstate practice to regulate capital flows stimulate the investment process in the world. These regimes, enshrined in law, contribute to attracting investment. Against this background, the most favorable examples are the investment climates of the United States, as well as the EU, where these regimes are fully represented. When considering the EU, the main centers of attraction for foreign investment here are Britain (almost 1/3), followed by France (20%) and Belgium (14%). In terms of their technological structure, foreign investments by EU companies are not classified as high-tech (office equipment, radio engineering - 1.1% of the total). The main share of foreign direct investment falls on the service sector (54.2%), where the bulk is concentrated in the credit sector and trade. That is, we see that legal regimes fixed by law or by means of agreements and not contradictory in national legislation are also one of the attractive aspects that affect the activities of foreign investors and the entire investment process. So, without such an additional incentive lever, the investment of the EU countries would not have achieved such positive results.
The cross-border movement of capital occurs mainly in two forms: the movement of capital and the investment of capital (investment).
The movement of capital includes: short-term loan and commodity credits; clearing and other financial transactions.
Capital investment abroad (foreign investment) is carried out either in the form of foreign direct investment or in the form of "portfolio" investment.
Special forms of capital investment include:
- ? long-term loans;
- ? financial leasing operations;
- ? economic aid, i.e. provision of material or intellectual resources on a gratuitous or preferential basis.
Foreign direct investment is understood as the participation of a foreign legal entity and individual - through its property or intellectual values - in the authorized (share) capital of an economic entity in order to make a profit, with full or partial control over these values.
Placement of capital by purchasing securities on the stock market of a foreign state or the national stock market of securities foreign company represents "portfolio" foreign investments.
An initial public offering of capital through the purchase of an issue or an additional issue of an issuer's securities at a public auction in a foreign stock market or a national securities market by a foreign person is a type of "portfolio" foreign investment called an initial public offering, or "1RO" (Initial Public Offering). Under certain circumstances, such an initial offer may be considered as a foreign direct investment, primarily if the share of the initial acquisition of a foreign entity is such an amount that allows the acquirer, by virtue of the relevant national legislation, to establish full or partial control over the issuer.
In "portfolio" foreign investment, the control and management of the company is separated from the fractional ownership of this company. A foreign investor is not so much interested in direct participation in the management of the investment subject through his rights expressed in shares - the investor is mainly interested in forming his investment portfolio so that it brings him more profitability and less risk.
With "portfolio" foreign investment, the investor has to take on all political risks associated with investment. When a "portfolio" investor feels a risk to his investment, he can quickly withdraw it and transfer it to other stocks that are more attractive to him.
Foreign direct investment, unlike "portfolio" investment, is quite difficult to withdraw, since they are usually calculated for the medium or long term. Such investments are practically unthinkable without the constant "economic" presence of a foreign investor (its managerial component) in the host country. Therefore, the protection of management personnel, as well as the production facilities and equipment of the investor, is vital for the functioning of foreign capital.
Foreign direct investment also differs from the movement of capital expressed in other forms. Such movement is carried out, for example, in the form of payments for export-import transactions, when the seller receives the price of the export-import transaction, and the buyer pays it. The legal support of the export transaction is being worked out in such a way as to free it as much as possible from possible risks. Some progress has already been made in the field of creating international norms governing relations related to such transactions. The successful signing of the 1980 UN Convention on Contracts for the International Sale of Goods, mentioned above, became possible largely due to the search for such approaches where the interests of the trading parties would be balanced.
In the field of foreign direct investment regulation, it is taken into account that there are many contradictions between the investor and the host country. Also, investments objectively imply closer cooperation between the foreign investor and the host state. The direct managerial "business" presence of the foreign investor in the host country and the important role he plays in the economy of that country, give such investments more importance than just a trade transaction. Foreign investments seem to "flow" into the national economy of the country, thereby contributing to its development, playing an important economic and sometimes political role.
Lawyers also distinguish international financial transactions that do not involve the movement of capital across borders. For example, in the case when a sovereign state-borrower does not transfer the received credit funds to its territory, but carries out financial transactions with their help in the territory of the creditor state. As a rule, in such cases, transactions are governed by the law of the state-creditor.
Translations Money deposits in foreign banks are also considered most often investments. Relationships related to bank deposits general rule subject to national weight gain, unless the states concerned agree otherwise.
The theory argues that foreign direct investment needs more detailed regulation under international law. As already noted, the investment process determines the movement of those involved individuals, capital from one state to another. The "introduction" of a large foreign investor into the national economy of the host state makes the investor's participation in domestic economic, even political affairs inevitably significant, which can also lead to contradictions with the local economic elite. Accordingly, international law, developing in the direction of investor protection, provided for such an institution as diplomatic protection, known from the course of general international law.
6. Legal regime foreign investment
Foreign investment - these are tangible and intangible assets owned by legal entities and individuals of one state and located on the territory of another state for the purpose of making a profit.
One of the bases on which investments can be classified is property ornon-property their character. Under non-property investments should understand the rights to inventions, industrial designs, layouts of integrated circuits; as well as specific technological information (know-how), production secrets, confidential commercial information, trademarks, service marks, trade names, i.e. everything that is included in the concept of intellectual property . All other categories of investments are classified as property investments. Their hallmark is an material expression: finance, material values.
Another basis for classifying investments can be considered participation or non-participation of the investor in the management of the investment object. On this basis, investments can be divided on thestraight andindirect (portfolio) investments. Direct investments are carried out in the form of joint ventures and enterprises, with this form of investment, foreign investors "directly and directly" participate in the management of the enterprise (company). Indirect investments do not provide for direct participation in the management of an enterprise (company), but require foreign investors to receive dividends on shares and securities, i.e. on the capital invested in these enterprises in the form of money.
Depending on the source of funding foreign investment can be divided into state, which are carried out in the form of loans and loans provided by states and international organizations (IBRD, IMF, EBRD, etc.), and private , carried out by foreign legal entities and individuals. The object of legal regulation of international private law are legal relations, arising from private foreign investment.
In the structure of legal regulation investment relations can be distinguished two levels: 1) international legal formed by the conclusion of international treaties and 2) domestic which is based on the national legislation of the host State.
International treaties on foreign investment can be divided into three groups: multilateral international treaties, the main purpose of which is the protection of foreign investment at the interstate level (for example, the Convention on the Procedure for Settling Investment Disputes between States and Foreign Persons, 1965; the Convention on the Establishment of a Multilateral Investment Guarantee Agency, 1985); regional international treaties (for example, agreements of the CIS countries) and bilateral agreements(here we can talk about both agreements between states on the protection of foreign investments, elimination of double taxation, and agreements between states and international organizations - IBRD, EBRD, EU).
To date, the most effective mechanism for protecting foreign investment is insurance. In September 1985 in Seoul was signed Convention Establishing the Multilateral Investment Guarantee Agency(hereinafter referred to as the Agency) (entered into force on April 12, 1988). Main the idea of the convention- provide foreign investors financial guarantees against non-commercial risks through investment insurance.
Depending on which non-commercial risks are covered by the Agency, the following types of insurance mentioned in the Convention can be distinguished.
1. Currency transfer. This type of insurance protects the investor from losses associated with the inability of the investor to convert funds into local currency(income, repaid debt, interest on debt capital and other payments) to take them out of the country. At the same time, however, it should be taken into account that this type of insurance does not cover the devaluation of the local currency.
2. Expropriation or similar measures. This type of insurance protects the investor against "any legislative or administrative action or omission by the host government that would deprive the holder of the guarantee of ownership of, control over, or substantial income from such investment." These actions do not include decisions of the judiciary, as well as generally applicable bodies of a non-discriminatory nature (measures related to taxation, compliance with environmental and labor laws, measures to maintain public order, etc.).
3. War and civil unrest. This type of insurance protects the investor from damage, destruction or disappearance of fixed assets as a result of war or civil unrest. The above provision, as a general rule, should not apply to acts of terrorism directed directly against the holder of guarantees.
4. Violation of the terms of the contract(contract). This type of insurance guarantees the investor protection against losses associated with violation of conditions or termination of the contract by the government of the host state. Compensation is provided only in cases where: 1) there is no body to which the investor could apply with a claim under an agreement (contract) against the government of the host state; 2) such authority is prevented by unreasonable delay as defined in the guarantee agreement; 3) after the final decision in his favor, the foreign investor cannot achieve its implementation. In the presence of any of the three conditions, the Agency pays compensation.
An example of regional agreements in the field of foreign investment is Agreement of the CIS countries "On cooperation in the field of investment activity" dated December 24, 1993. In accordance with this agreement, the parties undertake obligations cooperate in the development and implementation of investment policy; take action to convergence of its legislation on investment activities and other measures. The agreement applies not only to private foreign investment, but also to the state.
For foreign investors The agreement guarantees payment adequate, prompt and effective compensation in the event of nationalization(Art. 7); unhindered transfer to member states arrived received from investment activities (Article 8); exemption from customs duties on property taxes, imported from other states as a contribution to the authorized capital of the enterprise and intended for its own material production (Article 15); the right to use land, including its lease, and other natural resources (Article 20).
In development of the Agreement on cooperation in the field of investment activity March 28 1997 within the framework of the CIS, the Convention on the Protection of the Rights of the Investor is adopted, which determined the legal framework for the implementation of various types of investments and guarantees of the rights of investors to make investments and the income received from them.
Currently on the territory of the Russian Federation there are agreements with foreign states, both concluded by the USSR and Russia.
The agreements draw attention to the following points: adoption of a regime for foreign investment; providing guarantees to protect the interests of foreign investors; resolution of investment disputes.
According to agreements the investment or income of the investors of each party shall at all times be accorded fair and equitable treatment in accordance with the principles of international law - most favored nation treatment. The system of guarantees is generally similar to those provided for in multilateral conventions.
The current international treaties create a unified mechanism aimed at protecting foreign investment and proceed from certain unified principles of legal regulation of investment relations.
A feature of the national investment legislation is that it does not apply the conflict method of regulation and its norms directly regulate the relationship between a foreign private investor and the state.
In host states, foreign investment may be granted national treatment, most favored nation treatment or privileged treatment.Under the national regime foreign investors carry out their activities on the same terms as domestic investors, with some exceptions. Under the most favored nation foreign investors are provided with equal conditions for the implementation of investment activities without providing any advantages to some of them. Privileged Mode (preference regime) is to provide certain benefits for the import of raw materials and equipment, exemption from customs duties and taxes, etc.
Host states may take measures to restrict foreign investment, which are as follows: 1) prohibition of the activities of a foreign investor in certain sectors of the economy; 2) establishment of special state control over the admission of a foreign investor to the development of subsoil and natural resources; 3) mandatory share participation of the state in enterprises created by a foreign investor; 4) establishment of a special fiscal regime; 5) determination of the concession policy.
The legal framework for foreign investment in the Russian Federation is primarily represented by special laws: "On investment activity in the RSFSR" 1991, "On Production Sharing Agreements" 1995 G., "On Foreign Investments" 1999 In addition, there are separate sectoral laws, as well as decrees of the President and resolutions of the Government,
The Foreign Investment Law of July 14, 1999 understands under foreign investment investment of foreign capital in an object entrepreneurial activity on the territory of the Russian Federation in the form of objects civil rights belonging to a foreign investor, if such objects of civil rights are not withdrawn from circulation or are not limited in circulation in the Russian Federation in accordance with federal laws, including money, securities (in foreign currency and the currency of the Russian Federation), other property, property rights having a monetary value of exclusive rights to the results of intellectual activity (intellectual property), as well as services and information (Article 2).
The legal regime of foreign investments, as well as the activities of foreign investors in their implementation, in accordance with Art. 4 Laws, could not be less favorable than the regime for property, property rights and investment activities of legal entities and citizens of the Russian Federation, with only a few exceptions. Limiting exceptions for foreign investors may be established by federal laws only to the extent necessary to protect the foundations of the constitutional order, morality, health, rights and legitimate interests of others, to ensure the defense of the country and the security of the state. Exemptions of a stimulating nature in the form of benefits for foreign investors can be established in the interests of the socio-economic development of the Russian Federation. At the same time, the types of benefits and the procedure for their provision are established by the legislation of the Russian Federation.
The law provides for a whole range of measures that are guarantees for foreign investors' investments. The list of these measures has expanded significantly compared to 1991, when the first Russian law about foreign investment. Among them are guarantees: legal protection activities of foreign investors on the territory of the Russian Federation; use by a foreign investor of various forms of investment on the territory of the Russian Federation; transfer of rights and obligations of a foreign investor to another person; compensation for nationalization and requisition of property foreign investor or commercial organization with foreign investments; protection from adverse changes in legislation RF; ensuring proper resolution of a dispute arising in connection with investment activities; use on the territory of the Russian Federation and transfer outside the Russian Federation of income, profits and other legally received amounts of money; the right to unhindered export outside the Russian Federation of property and information in documentary form or in the form of a record on electronic media that were originally imported into the territory of the Russian Federation as a foreign investment; rights to purchase securities; participation in privatization; granting the right to land plots, other natural resources, buildings, structures and other real estate (Articles 5-15).
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SEI HPE "RUSSIAN LEGAL ACADEMY OF THE MINISTRY OF JUSTICE OF THE RUSSIAN FEDERATION"
POVOLZHSKIY (Saratov) LEGAL INSTITUTE (branch)
DEPARTMENT OF CIVIL LEGAL DISCIPLINES
LEGAL REGIME OF FOREIGN INVESTMENTS
Course work
Rozhko Svetlana Alexandrovna
5th year student
SARATOV 2010
WORK PLAN
Introduction
1.2 Importance of foreign investment
2. Conditions for the implementation of foreign investment
3. The main forms of foreign investment in the modern world economy
Conclusion
Bibliography
INTRODUCTION
There are many definitions of investment in the scientific literature. The following definition is generally accepted in the scientific literature: investments are investments in any economic objects and processes: means of production, stocks, reserves, informational resources, securities (target bank deposits, shares, shares), cash, movable and immovable property, property rights, experience arising from copyright know-how, the right to use land and other natural resources, technologies, machinery, equipment, licenses, including trademarks, loans, intellectual values invested in objects of business and other activities, "human capital".
Most authors, defining foreign investments, agree that they are the property of foreign investors, acting in various forms and types, exported from one state and invested in any business on the territory of another state, and investments are considered in the broadest sense. It is not only the funds invested in capital construction, into securities of enterprises and governments, but also loans in various forms and even gratuitous transfers of funds aimed at achieving a positive social effect.
The subjects of foreign investment can be: investors, customers, contractors, users of investment activities, suppliers, foreign countries, international organizations, foreign legal entities (banking, insurance and intermediary organizations, investment exchanges) and individuals; citizens of host countries with permanent residence abroad.
As objects of foreign investment, the Investment Code in Article 4 names: real estate, including an enterprise as a property complex; securities; intellectual property.
Legislative acts of the state usually define objects that are only in state ownership, which does not exclude investment activities in relation to these objects: shares, bonds, bank deposits, insurance policies and other securities; enterprises and organizations of the host country; buildings, structures, property of local legal entities and individuals; scientific and technical products; rights to intellectual property; land use rights natural resources and the earth itself; other property, as well as property and non-property rights.
Investment (from the Latin investire - area) - all types of property and intellectual values invested in objects of entrepreneurial and other activities, as a result of which profit (income) is formed or a social effect is achieved.
The issues of foreign investment in the economic literature are presented ambiguously. So in most Soviet economic literature foreign investments were presented as the export of capital by the monopoly of one country to other countries with the aim of its most profitable application. Now such ideas have changed significantly, since any entrepreneurial activity is associated with obtaining a certain profit.
The problem of investments in our country is so urgent that talk about them does not subside. This problem is relevant, first of all, because investments in Russia can make a huge fortune, but at the same time, the fear of losing the invested funds stops investors. The Russian market is one of the most attractive for foreign investors, however, it is also one of the most unpredictable, and foreign investors are rushing from side to side, trying not to lose their piece of the Russian market and, at the same time, not to lose their money. At the same time, foreign investors are guided, first of all, by the investment climate in Russia, which is determined by independent experts and serves to indicate the effectiveness of investments in a particular country and which is very unfavorable in our country. Russian potential investors have not trusted the government for a long time, this distrust is due, first of all, to the prevailing stereotype of attitude towards power among Russians - "the government works only for itself." However, the state investment policy is now aimed precisely at providing investors with all the necessary conditions for working on the Russian market, and therefore in the future we can count on a change in the situation in Russian economy for the better.
Therefore, our state faces a complex and rather delicate task: to attract foreign capital to the country, and, without depriving it of its own incentives, direct it through economic regulation measures to achieve social goals.
The relevance of the issue under study follows from the fact that the modern world economy cannot develop successfully without foreign investment. Many countries of the world are actively investing their funds in the economy of other countries, receiving a certain income and developing certain sectors of the national economy of these countries. The role of foreign investment is very important for many countries: they are intended to raise and develop production, increase its capacity, technological level, they are also created favorable conditions, on the basis of received loans, to update and develop all the necessary sectors of the national economy, increase production efficiency and produce competitive goods. And that's not all.
The purpose of my course work is to determine the significance of foreign investment and to reveal their legal regime.
The objectives of this work are: 1. Disclosure of the essence of foreign investment, namely: ● to give the concept of foreign investment; and
● determine their importance in the global economy.
2. Identify the conditions for the implementation of foreign investment.
3. Describe the main forms of foreign investment.
4. Approve the role of foreign capital in the formation of the world market economy and the Russian economy.
The practical significance of the work lies in the possibility of its use in the educational process when studying this topic.
Research methods for course work. In the process of doing the work, I used systematic, logical and dogmatic methods.
1. The essence of foreign investment in the global economy
1.1 The concept of foreign investment
Foreign economic relations include the import and export of not only goods, but also capital. The export of capital is the purposeful movement of funds from one country to another to invest them in a profitable business. Foreign investment is mainly carried out by the largest, primarily transnational companies. The export is carried out in the form of entrepreneurial and loan capital. The export of entrepreneurial capital is a long-term foreign investment in industrial, commercial and other enterprises.
Foreign investments serve as a source of monetary and sometimes property investments in the development or development of new production of goods and services, the improvement of technology, the extraction of minerals, and the use of natural resources.
Foreign investments are long-term investments of capital by foreign investors (- subjects of investment activity that invest their own, borrowed or borrowed funds in the form of investments and ensure their intended use), as well as foreign owners in objects of entrepreneurial and other types of activity (industry, Agriculture, transport and other sectors of the economy). The export of entrepreneurial capital is carried out mainly through the creation by monopolies of branches or subsidiaries abroad, including in the form of joint ventures with the participation of national capital. That is, foreign investment is the export of domestic capital to other countries.
The most famous classification identifies two main forms of foreign private investment: direct and portfolio. Direct investments (both in hard currency and in national currency) are:
Investments in the authorized capital of an economic entity in order to generate income and obtain rights to participate in the management of this economic entity.
Loans received from foreign co-owners of enterprises.
- the acquisition of a long-term interest by a resident of one country (direct investor) in an enterprise - a resident of another country (an enterprise with direct investment).
They also represent a way to increase the productivity and technical level of Russian enterprises.
Direct investments most often include investments of such a volume, in which a foreign investor controls at least 20-25% of the capital of the company in which he invested. This value is different in different countries.
Portfolio investment means:
Portfolio formation by purchasing securities and other assets. Portfolio - a set of various investment values brought together, serving as a tool for achieving a specific investment goal of the investor. The portfolio may include securities of the same type (stocks) or various investment values (stocks, bonds, savings and deposit certificates, pledge certificates, insurance policies, etc.).
Investments in shares of foreign enterprises, in bonds and other securities of a foreign state and international monetary and financial organizations, carried out with the expectation of obtaining high profits and do not give the right to control the investment object, that is, in which the investor does not have a goal (as opposed to direct investor) - direct participation in the management of the enterprise or the impact on the country's economy (in most cases, such investments are made in the market of freely traded securities).
It should be noted that portfolio investments are made, as a rule, in cash, while direct investments are also made in the form of the supply of goods, raw materials, equipment, technologies, in the form of managerial experience, etc.
There are also real investments. These are capital investments in land, real estate, machinery and equipment, spare parts, etc. Real investments include the costs of working capital.
Other investments include deposits in banks, commodity loans, loans from foreign governments, etc. Their exclusion from the analysis is primarily due to the heterogeneity of the group, as well as the difficulty of obtaining reliable statistical information about many of them. The allocation of other investments is connected with the specifics of the investment (not in the authorized capital).
The boundary between the first two types of investments is rather conditional (it is usually assumed that investments at the level of 10-20 percent or more of the share (authorized) capital of an enterprise are direct, less than 10-20 percent are portfolio), however, since the goals pursued by direct and portfolio investors differ somewhat, such a division seems to be quite appropriate.
In world practice, there are three main forms of investment:
1. Direct or real investments (placement of capital in industry, trade, services - directly in enterprises).
2. Portfolio or financial investments (investments in foreign shares, bonds and other securities).
3. Medium and long-term international credits and loan capital loans to industrial and commercial corporations, banks and other financial institutions.
Investments by international organizations and foreign governments are usually made in the form of loans and credits (both related and unrelated).
The German professor Weinrich classifies investments according to the object of application and the nature of the use.
Regarding the application object:
1) Investments in property (material investments). Material investments are understood as investments that are directly involved in the production process (for example, investments in equipment, buildings, stocks of materials).
2) financial investments- investments in financial property, acquisition of rights to participate in the affairs of other firms and business rights (for example, the acquisition of shares, other securities).
3) Intangible investments - investments in intangible assets (eg, investments in personnel training, research and development, advertising, etc.).
By nature of use:
Primary investment, or net investment, made when establishing or purchasing a company;
Expansion investments (extensive investments) directed towards expansion production potential;
Reinvestment, i.e., the use of free income received as a result of the implementation of an investment project, by directing them to the acquisition or procurement of new means of production in order to maintain the composition of the fixed assets of the enterprise;
Replacement investment, which replaces existing equipment with new equipment;
Rationalization investments directed to the modernization of technological equipment or technological processes;
Investments to change the production program;
Investments in diversification associated with changing the product range, creating new types of products and organizing new sales markets;
Investments to ensure the survival of the enterprise in the future, directed to R&D, training, advertising, environmental protection;
Gross investment, consisting of net investment and reinvestment.
Investments in property and intangible investments should be combined into one group, since both of them are investments in production, or so-called direct investments.
Within the framework of the classification proposed by the author, the allocation of extensive investments and reinvestments is not justified. They pursue the same goals, but the sources of capital are different. Consequently, the bases of classification are used here differently.
One of the representatives of the French economic school- Henri Kuhlmann - considers the problem of classifying investments in a completely different aspect. It considers indirect investment (using cash) and direct investment (without using cash).
Attracting foreign investment, any state should try to harmoniously include them in the overall investment process so that they work effectively together with domestic investment, the country's domestic production potential. This goal is served by the investment policy of the state. It is based on optimizing production to meet human needs and minimizing the use of natural resources and has both internal and external sources.
1.2 Importance of foreign investment
results fundamental research foreign scientists unequivocally testify that the processes of economic renewal and growth are determined by the size and structure of investments, the quality and speed of their implementation. Moreover, researchers record that without investment savings and corresponding material resources, there are no positive changes in investment at all.
Without investment, the modern creation of capital and the competitiveness of commodity producers in foreign and domestic markets are impossible. The processes of structural and qualitative renewal of world commodity production and market infrastructure occur exclusively through and through investment. The more intensively it is carried out, the faster the reproduction process takes place, the more actively effective market transformations take place.
At present, more than ever, many countries of the world are faced with the objective need to intensify investment activities to create competitive economic systems, modernize and reconstruct existing structures, ensure the diversification of capital in the direction of socially oriented structural transformations.
Foreign investment is becoming one of the decisive factors of the whole economic policy many states. Without them, it is impossible to quickly overcome economic crises and reach the frontiers of economic growth, ensure an increase in the social effect, balance the macrostructure, increase wages to the level of stimulating its high productivity and market solvency, which acts as a powerful catalyst for general economic recovery and progressive shifts.
In the strategy of investment activity, an important role is played by a reasonable choice of investment directions - to what extent it will meet the future national interests of a certain state. Implementation of long-term investment projects, as you know, forms a promising macroeconomic structure of the country, changes in the internal (regional and sectoral) and external division of labor, the definition of the corresponding niche of the country in the world market structure. Future economic development countries of the world should be considered in the context and trends of the world economy. The era of peoples entering the new century is characterized by tectonic shifts in the socio-economic and technological structure with a corresponding transformation of the institutional foundations of the entire modern economy. The local economies of individual countries are gradually losing their potential for self-development, integrating into a planetary economic organism with a universal system of regulation. Even now transnational corporations (TNCs) and other powerful economic structures play a decisive role in world development. According to foreign researchers, the totality of 37 thousand TNCs with 200 thousand of their branches covered almost the entire planet.
This is a kind of economically stable and dynamic economic system of the planetary type, which concentrates a third of all production assets planet, produces about 40% of the planetary product, carries out more than half of the foreign trade turnover, over 80% of the trade in the latest technologies and controls more than 90% of the export of capital.
If we add to this the national forms of big business of each economically developed country, then it becomes quite clear what keeps and what drives the modern world economy at a fast pace. These are not small or even medium-sized businesses that occupy their market niches, but are neither significant investors nor big capital creators.
It should also be noted that global world markets of a closed type are now being actively formed, covering groups of countries in vast regions of the world. Among them are the EU single market, the markets of the American continent, led by the United States, and the countries of the Pacific basin, led by Japan and China.
At the same time, technological leadership is the determining factor of progress. According to this evaluation criterion, the countries were divided into groups:
a) rapidly progressing, labor productivity in which is the highest;
b) countries with an average level of technological development and labor productivity;
c) technologically backward countries with low scientific and technological development and labor productivity;
In most cases, they act as raw material appendages economically. developed countries, falling out of leadership prospects, and sometimes out of regional world markets for final consumption products due to lack of competitiveness.
Thus, capital is predominantly concentrated in economically developed countries with high labor productivity. It is here that a significant part of the financial capital of economically backward countries, their natural resources and talents, comes.
foreign investment economy
2. Conditions for the implementation of foreign investment
Foreign investment occurs in the presence of two main factors: incentives and regulation. Each investment process is carried out and developed in specific and in many respects unique internal and external socio-economic and political conditions. Its impulses and stimulants are determined by a range of factors, which, depending on the combination, determine the methods of capital investment.
The complexity of the action of the most important motives of modern foreign investment requires the use of a multifactorial approach to its study. This is due to the fact that, firstly, the dynamics of the receipt of external funds is simultaneously influenced by several main factors: political, economic (currency, inflation, cost, market), social, technological, etc. Secondly, the effect of different factors does not appear in isolation, but in interaction.
The practical unlimitedness and significant variability of their range of action objectively determine the use of a selective approach to identifying the most important of them in the analysis of incentives for foreign investment. The qualification of the latter and the presence of a clear interdependence with the basic economic parameters(political and macroeconomic stability, economic growth, scientific and technological progress, portfolio investment, economic structure, employment, exports, balance of payments, exchange rate, interest rates, inflation, etc.) require their consideration in the implementation of foreign economic policy.
Foreign investment is accompanied by an increase in the openness of the economies of countries for foreign investors. At the present stage of internationalization of economic processes, the regulation of foreign investment is being liberalized everywhere: in 1991, 35 countries introduced liberal changes to their investment regimes, in 1992 - already 43, in 1993 - 57, in 1994 - 49 and in 1995 - 64 countries. The number of changes related to the liberalization of foreign investment in these years, respectively: 80, 79, 101, 108, 106. In their structure for 1995, 32% of the changes were related to the provision of incentives, 30% - conditions for productive functioning, 15% - terms of participation in ownership, 9% - an increase in guarantees and 4% - a weakening of control.
A natural factor in the implementation of external investment is economic stability. There is a clear relationship between economic growth and the rate of inward foreign direct investment; some researchers consider the growth in the economy of the host countries to be a decisive factor for the positive dynamics of their flows. In particular, an average 1% increase in the gross national product of developing countries stimulates an increase in FDI flows by about $10 billion.
The evolution of foreign investment has led to the creation of international production. Under him, there is a tendency for the concentration of national enterprises within the territories of their regions, i.e. to grouping foreign investment around the home country. In particular, the US is investing in Central and South America, European firms are investing in other European countries, including Eastern Europe, and Japanese investors are deployed in a number of Asian countries. In addition to reducing transportation costs, this is also determined by certain advantages, such as linguistic and cultural ties, the similarity of mentalities, as well as the possibility of closer contacts by saving travel time.
When investing, especially in high-tech industries, one of the most important factors is the use of internalization. The latter, first of all, practices in the conditions of intra-company international production of transnational corporations and to some extent can serve as a renewal of their creation and the principle of organization and growth of any company. Within its framework, the foreign economic operations on an internal basis - without changing the ownership of the transferred resources. Internalization Represents the best way in a rapidly changing technology. Advantages in the latter and sales determine the range of industries and firms that will carry out investment activities.
In fact, no firm could bear additional expenses in operations without any proprietary advantage over its competitors. The increase in FDI in this aspect is determined by the existence of a number of intangible advantages that can be transferred abroad at low cost; this allows to ensure the profitability of such investments. Thanks to similar intangible assets some firms are increasing their activities and creating concentrated industrial structures.
Along with objective factors, the development of foreign investment is also significantly influenced by subjective factors, including the activities of people, social groups, political forces, and links in the state apparatus. They also include current legislature in the sphere of entrepreneurial activity, state means of regulating the economy and general political stability. The level of the latter directly determines the increase or decrease in foreign investment. First of all, this concerns developing countries and countries with economies in transition. It is considered possible to state the existence of a long-term relationship between the political stability of the host country and the rate of inflow (outflow) of foreign investment. A real example in this context could be South Africa, which at one time achieved significant success in attracting FDI, but due to the long-term practice of apartheid and, as a result, social instability, it lost foreign capital, the outflow of which continued until 1994.
The choice of investment location in the host country is determined on the basis of taking into account such parameters as market size, supply of factors of production, costs, degree of infrastructure development, trade policy, competition, entry and exit regime, property, employment, etc. The investor chooses the place of investment also taking into account the nature of the relevant technology, the strategy of the company and its representatives regarding the degree of risk and possible profits.
Attempts by national firms to move activities beyond national borders can be explained by aggressive or defensive reasons: increasing or protecting profits, holding a market or penetrating it.
One of the main driving forces of foreign investment is the cost factor. Its skillful use causes a significant profitability of investing funds for the country of capital investment.
It should be noted that the availability of cheap unskilled labor and the possibility of reducing taxes paid are important for choosing a place for foreign investment.
Pragmatic motives lie at the heart of investment implementation. Therefore, it is also taken into account that the income from investing in developing countries at this stage is much higher (generally by 10-12%) than in developed countries.
Another feature of the modern period is that one of the driving forces that determine the levels and proportions of foreign investment has become the currency factor. Its meaning on each commodity market purely individual. However, empirical observations show that markets that are characterized by a relatively homogeneous and stable nomenclature are especially exposed to the influence of the currency factor.
Thus, it is possible to formulate the condition according to which the strengthening national currency home country causes an increase in its foreign investment. Investors in countries with an overvalued currency tend to send their money to countries with an undervalued exchange rate.
Of considerable importance in the implementation of foreign investment is the presence of a stable monetary and financial system in the capital-importing country.
The dynamics of foreign investment largely depends on the relations of the recipient country with non-state international organizations. A study of world practice makes it possible to derive an informal dependence, according to which investments in a particular state begin to flow after signing an agreement with the International Monetary Fund and carrying out insurance. An important role in this context is also played by the presence of external debt: its significant amount determines the lower level of inflow of external funds.
You can also highlight the factors in which foreign investment is not carried out. Underdevelopment of infrastructure, underdevelopment of the raw material base, external debt, low credit rating, depreciation of the national currency, low income consumers, problems with repatriation of profits, political instability, etc. reduce the activity of foreign investors. At the same time, this is determined by the specifics of the country's economic policy.
Importance for the implementation of foreign investment, as well as systemic transformation and movement towards market economy represents privatization. It is taking place against a backdrop of simultaneous recognition of the need for further deregulation of economic activity and liberalization of the private sector.
FDI investment through purchase or privatization is more common than new business creation and is among the most common and efficient forms of foreign investment. The vast majority of national firms become more competitive after absorbing FDI; the sale of assets to foreigners conditions the immediate flow of funds and, ultimately, leads to further investment, reinvestment of profits, etc.
V modern conditions privatization processes are carried out mainly in countries with economies in transition and developing countries.
One more point can be noted, according to which the increase in the volume of privatization (and, accordingly, the openness of the economy) is accompanied by an expansion of participation and an increase in the share of foreign direct and portfolio investors in it.
V Lately in the process of foreign investment, it is necessary to single out the occurrence of a circumstance of a subjective plan - an international increase in corruption. This point was especially emphasized during the work of the Global Investment Risk Management Section at the World Economic Congress in the USA in September 1996. Bribery of foreign officials who decide the fate of loans, international tenders and aid programs tends to spread in international economic relations.
There are a number of negative circumstances that significantly deter foreign investors from investing capital. These include the weak convertibility of the national monetary unit; low solvency of enterprises and their practice of barter, which in many cases is not needed by a foreign partner; slow pace of privatization, as well as the presence of a significant number of objects prohibited for privatization; underdevelopment stock market; growth of corruption and crime in the economy; low purchasing power of the population; the policy of national entrepreneurs who, out of fear of losing their money, try to place it in foreign banks; lack of domestic real productive investment (which is an important indicator for foreign investors); outflow of national capital abroad; lack of private ownership of land and the impossibility of buying the latter.
When exporting state funds, the task of obtaining high profits is not always set. First of all, the placement of state capital abroad pursues political goals - the creation of a favorable climate for the subsequent export of private capital and its goods, the formation of a sales market. When exporting state capital, governments that provide subsidies and loans often dictate certain conditions to the countries to which the exported capital is directed: providing guarantees that enterprises and other property owned by companies of the country exporting capital will not be nationalized, creating preferences for investor firms etc.
In turn, the host country, as a condition for foreign investment, puts forward such requirements as the participation of local entrepreneurs in the activities of enterprises, the training of local personnel, the implementation scientific research and development, as well as ensuring the export of manufactured products by the investing party.
In order to encourage each other's investments, give them fringe benefits and guarantees, states enter into relevant agreements among themselves that affect foreign investment:
Trade agreements;
Taxation agreements;
Treaties and agreements on foreign investment.
Trade agreements today play a major role in the regulation of international trade, and are also largely used as a form of regulation of relations related to the export-import of capital. The treaties are aimed at developing and strengthening friendly relations between peoples, promoting mutually beneficial trade and investment. But due to the weakness of investment sources in developing countries, the principle of reciprocity and mutual benefit is respected only in relations between developed countries, and it is predominantly developed states that benefit from agreements between developed and developing countries.
Trade agreements define the principles and norms for regulating issues in relation to capital investment. They establish the general legal regime provided by the parties to each other when investing, the admission of foreign individuals and legal entities into the country, give them freedom of movement in each other's territory, mutual recognition of foreign legal entities, the right of foreign legal entities and individuals to apply to the courts for protection, the regime and guarantees of foreign private property on each other's territory, issues of taxation, transfer of profits and capital abroad, acquisition of movable and immovable property. These agreements often form the basis for regulating relations related to foreign investment.
Disputes between the contracting parties must be resolved through diplomatic channels, but if this fails, then the dispute may be referred to the International Court of Justice.
Taxation agreements are concluded between states in order to regulate the issues of taxation in the export-import of capital between them. The states that have signed such an agreement undertake to completely or partially exempt enterprises controlled by foreign capital from taxation.
Many developing countries that are interested in the inflow of foreign capital provide it with tax incentives by virtue of the provisions of national legislation on foreign investment, i.e. there seems to be no need to conclude agreements on taxation. But despite this, such agreements are concluded in order to avoid double taxation investors.
The main goal of bilateral investment agreements is to ensure relative stability of reproduction and freedom of movement of capital in the conditions of the socio-economic and political crisis, to ensure the inflow of foreign private capital into the country, providing it with guarantees against political or non-commercial risks.
The concept of "guarantees against non-commercial risks" includes:
A. guarantees against nationalization and expropriation of enterprises with foreign capital;
B. from the non-convertibility of currencies in the transfer of capital and profits;
V. from damage to investments in the event of wars, revolutions, and other social upheavals.
As for investment agreements (they are also called agreements on the promotion and mutual protection of investments), they are concluded for the development of economic cooperation, the creation of favorable conditions for increasing investment in the territories of the contracting states.
The agreements contain definitions of such concepts as "investment", investor, "territories", etc. Further, it is stipulated that each party creates favorable conditions for the investments of the other party, provides them with protection and guarantees.
Investments and incomes are treated no less favorably than domestic or third-party investments, i.e. most favored nation treatment and national treatment. But there can be exceptions to the most favored nation treatment: it does not necessarily extend to the investments of the other party the benefits arising from any international treaties and domestic laws, the customs union, etc. Next is determined general order compensation for losses to foreign investors (in what cases and how). Foreign investments are not subject to nationalization and expropriation except in the interests of the state, associated with emergency needs and provided timely and adequate compensation is provided. The agreement further defines the procedure for the repatriation of investments and income.
3. The main forms of international investment in the modern world economy
A promising direction for the integration of countries into the world economy and the development of international investment activity is the creation of special (special) economic zones (SEZ). This is one of the most attractive forms of interest for foreign investors, which makes it possible to intensify entrepreneurship, increase export potential, form a market infrastructure, and accelerate the development individual regions and sectors of the economy.
The motives for establishing SEZs vary greatly from country to country. They can be created as free trade zones in their pure form, or as special zones where not all aspects of economic activity are regulated. In countries whose policies are oriented towards the domestic market, SEZs are tightly regulated, have little freedom in the investment sphere, and develop with less activity; if the economic policy of the country is focused on the external economy and attempts are made to interfere as little as possible in the management of the SEZ, favorable conditions are created for the inflow of foreign investment.
The experience of China is very relevant for us, where the introduction of market elements in the economy and openness towards foreign partners have become the most important goals of the PRC government. By the beginning of the 80s, 4 SEZs were created - Shenzhen, Juhai, Shanzhou and Xianmen, in the mid-80s 14 coastal cities and Haimen Island became economically open. Later, areas in the Yangtze and Jujiang valleys, the Fujiam Peninsula were transformed into open economic regions, the Shandong and Laodong peninsulas also became open economic regions, and by the end of the 80s, decisions were made to make Haimen Island a province and turn it into the largest in China The SEZ, Guangdong, Fujian, Jiangsu provinces were merged into one of the largest experimental economic zones, while the coastal development strategy was re-formulated in order to further expand economic opening. Thus, an experimental economic area with a population of more than 100 million people was created, which in China is figuratively called the “open window”. The goal is the use of foreign capital and modern foreign technology, the creation on this basis of a large export sector of the economy. According to experts, the experience of creating a SEZ in China can be regarded as very successful, because. in the 10 years that have passed since the decision to establish them (1979), foreign investment in SEZs amounted to $2.5 billion. That corresponds to ¼ of all foreign investment in China for the specified period.
Recently, such a form of foreign investment as the creation and operation of joint ventures (JV), especially in the CIS countries, has become widespread. A joint venture is a form of cooperation between partners from several countries who pool their capital to carry out joint production and economic activity, management and distribution of profits in proportion to the invested capital. The creation of a joint venture is aimed at the production of goods in order to replenish the consumer market, the introduction of advanced achievements in science and technology, progressive technology, management experience, attracting additional material and financial resources, accelerating the development of achievements of domestic science and technology, expanding the export base and optimizing import deliveries. Today's joint ventures are created for future investments. In order for the latter to take place and be effectively implemented, it is necessary to deepen and activate economic reform to conduct a carefully substantiated and consistent state internal policy.
Other diverse forms of investment are also known in world practice: ♦ leasing; ♦ licensing (selling know-how to a foreign partner); ♦ franchising; ♦ joint production; ♦ subcontracting; ♦ construction of factories, turnkey facilities.
Foreign partners have advantages in terms of profit when using non-equity forms of investment in comparison with the creation of a joint venture due to the collection of various fees for the provision of services. The range of these services is very wide: marketing, purchasing, transportation, insurance, instructions and manuals for the use of equipment, advertising, maintenance, etc.
4. The role and specifics of foreign investment in the development of the world economy and in particular Russia
Among the important development factors market relations in Russia, the attraction of foreign capital occupies a significant place. Under the conditions of the administrative-command economy, the country was completely separated from capital flows. Meanwhile, in Western countries, the international migration of capital has led to a deepening of the internationalization of economic life. This was most clearly manifested in the mutual movement of capital between industrialized countries.
Investment is a relatively new term for our economy. Within the framework of the centralized planning system, the concept of gross capital investments was used, which meant all the costs of reproducing fixed assets, including the costs of repairing them. Investment is a broader concept. It also covers the so-called real investments, similar in content to our term "capital investments", and "financial" (portfolio) investments. Financial investment can be additional source capital investments, and the subject of an exchange game in the securities market. But part of portfolio investment - investments in shares of enterprises of various branches of material production - by its nature does not differ in any way from direct investment in production. The Economist magazine defines the main directions of investment policy. The following main objectives of the investment policy were identified: creating a favorable environment conducive to increasing the investment activity of the non-state sector, attracting private domestic and foreign investments for the reconstruction of enterprises, as well as governmental support the most important life-supporting industries and the social sphere while increasing the efficiency of capital investments.
Our country appears on the world economic stage as an exporter of raw materials and products of the first stage and as an importer of foreign high-tech products and services designed for consumer demand.
The investment policy pursued by the state has a huge impact on the development of capital investment in the country, both private and public. It is she who forms the so-called investment climate of the country (a set of political, socio-economic, financial, socio-cultural, organizational, legal and geographical factors inherent in a particular country, attracting or repelling investors), so the Russian government pays great attention to it.
Until recently, the investment policy in our state was not given enough attention, but now the state has begun to understand the importance of a correct investment policy and, most importantly, has begun to take steps in the right direction.
The growth in the export of capital from some industrialized countries to others reflects the deepening of the international division of labor and the internationalization of production. Modern production under the pressure of the scientific and technological revolution is becoming more and more complex.
The need to export investment capital by a particular donor country is associated with the following factors: the relative overaccumulation of capital, the growing needs of the monopoly to expand the overall scale of accumulation, the strengthening of sectoral monopolization in the national economy, and the development of internationalization of production.
Consider the reasons that push a foreign entrepreneur to invest. This decision is driven by a wide range of motivations, such as:
1. Host government policy towards foreign investment.
2. Geographic conditions of the host country.
3. The desire to obtain a higher rate of profit, thanks to the use of the difference in national levels of production costs.
4. Distribution and redistribution of the production of goods between foreign branches, depending on the economic situation in individual countries.
5. Transfer from country to country of production and marketing of goods as they are generally developed in order to preserve the “youth” of products for as long as possible.
6. Providing a financial base for a variety of schemes of international specialization and cooperation, providing a comprehensive solution to the problems of location and complementarity of industries.
7. Access to technical, technological, managerial innovations, to trademarks, signs, etc.
8. Maneuvering the costs of research and science-intensive work by placing them in the most advanced research centers and laboratories abroad.
9. Savings on transport costs and on bypassing customs barriers.
10. Access to the capital markets of many states, which makes it possible to carry out capital investments abroad at minimal own costs.
11. Stability of profit due to the game on the differences in the economic situation of individual industries and countries; in the scientific and technical policy of governments, trade and political regimes, in currency and tax legislation.
12. Taking into account the social climate in the host countries, the stability of their economies and political regimes.
The number of types and subtypes of industries is growing, and their development is not economically feasible within individual countries. The development of international specialization and cooperation of industries is intensifying. The production of the final product is divided into separate sections of production, which are located in different countries.
Following the development of production, capital is also internationalized. The flow of capital from one country to another reflects the desire of companies to concentrate in their hands the individual stages of the production of a product that ended up in different countries. Companies in industrialized countries, especially large ones, are becoming increasingly transnational, transcending national boundaries. The formation of large multinational companies that have enterprises located in different countries leads to the acceleration of international specialization and cooperation, since one owner of the enterprise has the opportunity to develop production ties more sustainably. Thus, the mutual movement of capital, its formation on the basis of transnational companies are the most important factor in deepening the economic interdependence of countries in the world economy.
For Russia, which has embarked on the path of integration into the world economy and the transition to an open economy, it is strategically essential to participate in the processes of capital migration both as an importer and as an exporter of capital. And then it will be more actively involved in the internationalization of production. Russia, on the other hand, occupies a very modest place in the world in terms of capital imports.
Turning to foreign sources of capital for Russia is largely associated with the need to solve both strategic and current tasks. In the current economic situation, the issue of attracting foreign investment is very acute: economic crisis, a sharp reduction in investment resources make it inevitable to turn to foreign sources of financing. However, the need to attract foreign investment resources is determined not only by purely financial aspects. The sharp backlog of domestic engineering, which in recent decades has been largely focused on the production of military products, has led to a situation where equipment is purchased from abroad for foreign currency for many sectors of the economy.
To improve production efficiency in some industries, the use of foreign technologies is essential. This applies, for example, to the main export industry - oil production and oil refining.
Attracting foreign investment can help increase the output of certain types of products (and especially consumer goods), expand exports with the help of foreign partners, etc. All this is of no small importance, and if foreign investment succeeds in solving these problems, it will be significant. contribution to the creation of a modern economy. And to attract them in Russia, “free economic zones” (FEZ) are being created - these are territories with a special legal and political status that create favorable conditions for this attraction with the help of a number of benefits. For example, the largest free economic zones are: Nakhodka (Primorsky Territory), Yantar (Kaliningrad Region), Eva (Jewish Autonomous Region). There are other ways to attract.
The legal regime and conditions of economic activity on the territory of the SEZ should be determined by the law on the SEZ.
Cooperation with foreign partners can have a positive effect in terms of mastering foreign experience in management, marketing, training, etc.
Attracting national and foreign investments on a large scale to the Russian economy pursues long-term strategic goals of creating in Russia a civilized, socially oriented society, characterized by a high quality of life of the population, based on a mixed economy, involving not only the joint effective functioning of various forms of ownership, but also internationalization market for goods, labor and capital.
Foreign capital can bring to Russia the achievements of scientific and technological progress and advanced management experience. Therefore, the inclusion of Russia in the world economy and the attraction of foreign capital - necessary condition building a modern civil society in the country. Attracting foreign capital into material production is much more profitable than obtaining loans to buy necessary goods, which are still wasted haphazardly and only increase public debt. The influx of investments, both foreign and national, is also vital for achieving medium-term goals - overcoming the current socio-economic crisis, overcoming the decline in production and the deterioration in the quality of life of Russians. At the same time, it must be borne in mind that the interests of Russian society, on the one hand, and foreign investors, on the other, do not directly coincide. Russia is interested in restoring and updating its production potential, saturating the consumer market with high-quality and inexpensive goods, developing and restructuring its export potential, pursuing an anti-import policy, and introducing a Western managerial culture into our society. Foreign investors are naturally interested in a new springboard to profit from Russia's vast domestic market, its natural resources, skilled and cheap labor, the achievements of domestic science and technology, and ... even its environmental carelessness.
When attracting foreign capital, one should not allow discrimination against national investors. Should not be provided to enterprises with foreign investment tax incentives, which Russians, employed in the same field of activity, do not have. As experience has shown, such a measure has practically no effect on the investment activity of foreign capital, but leads to the emergence on the site of former domestic production enterprises with formal foreign participation, claiming preferential taxation.
It is important to note that the Russian state has created legal guarantees for the protection of foreign investment. Foreign investments on the territory of the Russian Federation enjoy full and unconditional legal protection, which is provided federal law"Foreign investment in Russian Federation”, Decrees of the President of the Russian Federation and other legislative acts and international treaties.
The legal regime of foreign investments, as well as the activities of foreign investors in their implementation, cannot be less favorable than the legal regime of investment activities of legal entities and citizens of the Russian Federation, with the exceptions provided for by federal laws.
CONCLUSION
Summarizing the above, we can conclude that foreign investment plays an important role in the successful development of the world economy. FDI is most actively used in such promising sectors of the economy as energy, telecommunications, pharmaceuticals, and financial services.
The development of foreign investment is significantly influenced by the conditions of organizational and economic activity in the host countries. It is very relevant to analyze the various types of foreign investors present on the investment market today, in accordance with their economic and political interests, forms and methods of business organization.
Foreign investments are of great importance for the development of the national economy of countries with economies in transition. The volume of foreign investment coming to these countries does not meet their needs, and measures are being taken to attract additional funds.
Most foreign investment is private investment. As a rule, these are profitable companies for which the national market has become too small and, in an effort to expand, they are taking root in the markets of other countries. Naturally, the lack of profits or losses scare away such companies.
A significant part of foreign investment comes in the form of various loans, as well as through the creation of special and free economic zones and joint ventures.
Foreign investors seek to get as much profit from their activities as possible.
The largest foreign investors are the USA, Great Britain, Germany, Japan, France, where the economic result from their activities is the highest. The capitalist system does not provide for the gratuitous investment of capital. The main goal of an investor is to make a profit. There are a number of reasons why it is much more profitable to export capital than to work in the domestic market. These are mainly tax incentives and the domestic market of the country into which capital is imported. If a country needs investment, it needs to create as many attractive conditions for capital investment as possible.
As the main conditions for attracting foreign capital for Russia, the following can be indicated: the creation of a stable and developed regulatory framework for the activities of investors in Russia; reforming tax system; strengthening institutions of property; formation of an insurance system and pledge forms for foreign investments; creation of information and advisory systems that ensure the adoption investment decisions; development of investment cooperation with international banks and financial organizations.
At the moment, Russia needs investments, and it would be good if funds were invested in those sectors that are experiencing the greatest crisis. In practice, investors are attracted by the raw materials base of our country and some not very significant industries. The most important thing is to extract as much benefit for the country as possible, and lose economic independence as little as possible.
Foreign investments coming to Russia, of course, do not decide main problem recovery of the investment process. Without significant domestic investment, it is impossible to move to economic growth. But foreign investments are needed by the Russian economy, as they bring new technologies, marketing and management experience, and create the necessary competitive environment.
At the beginning of the 21st century, the predominant number of countries participate in the processes of international investment as importers and exporters of capital, exchanging the latest technology, increasing labor productivity and the level of their development.
The possibility of attracting foreign investment is an issue on which many conflicting opinions are expressed: some believe that foreign investors are afraid of Russia, others - “if allowed”, everyone Russian enterprises will be bought up by foreigners. The truth is in the middle.
One of the main reasons for the low activity of foreign investors is the state policy that does not promote foreign investment, the absence of the most favored nation treatment for them, which has been created in many developing countries and has a high effect. Foreign investors are deterred by the inconsistency of the state's economic policy, the constant change in the "rules of the game".
One feature that scares foreign investors away from Russia is the Russian way of thinking. It is very difficult to reorient people to a market economy that was unusual for Soviet Russia (albeit in the past).
It can be said that, in my opinion, the main problem preventing the active attraction of foreign investment in the Russian economy is the lack of a clear and effective state investment policy in practice.
Interesting is the opinion of Russell Meade, who believes that Russia is not able to control its territory. ""Each time I return from Russia, I become more and more convinced: no billions invested by the West in the Russian economy will benefit it. It's like spitting in a fire. "" The most crushing and hopeless trait in Russia, as obvious in Vladivostok as in Tyumen and Moscow, is the lack of a work ethic. "Everyone steals here. Workers steal. Therefore, they are not interested in production efficiency and raw material savings. The waiters steal, so they are not interested in customers. Army officials steal, so they are not interested in improving military discipline and establishing order in the army. Within the framework of the Russian system, no free economy will work."
Thus, the restoration of investment activity in the country and the transition to economic growth is a complex, multifaceted problem that requires the combined efforts of all participants in this process, led by the state.
As for other countries, world experience shows that attracting foreign investment has a positive effect on their economy. The rational use of foreign investment contributes to the development of production, the transfer of advanced technologies, the creation of new jobs, the growth of labor productivity, the increase in the competitiveness of products on the world market, and the development of backward regions.
In addition, the attraction of foreign capital and the creation of joint ventures expand tax base and can become an important additional source of formation of the revenue part of the state budget.
It should also be noted that foreign investment is by no means a panacea for all ailments of the world economy. The use of foreign capital is an ambiguous process in terms of its consequences for the recipient country, manifested through the complex interaction of a set of positive and negative trends at the macro, meso and micro levels.
The introduction discusses the relevance of the research topic. Chapter I reveals the concept and defines the significance of investment activity in the modern world economy. Chapter II indicates the conditions for making investments, with examples of practice. Chapter III is devoted to two forms of foreign investment in the world economy. Finally, Chapter IV characterizes the specifics and role of investment in the development of the world economy. In conclusion, conclusions are drawn from the study.
The paper uses the main legislative documents, the Constitution of the Russian Federation, as well as other sources that give a detailed consideration of this topic. When writing the work, the current legislation, literature on international law and special literary sources were used.
BIBLIOGRAPHY
Regulatory sources
1. Federal Law "On investment activity in the Russian Federation, carried out in the form of capital investments" dated July 25, 1999 No. 39-FZ.
2. Federal Law of July 9, 1999 No. 160-FZ “On Foreign Investments in the Russian Federation” (with amendments and additions of March 21, July 25, 2002, December 8, 2003) // Collection of Legislation of the Russian Federation. 1999. No. 28. Art.3493.
3. Federal Law of July 22, 2005 No. 116-FZ “On Special Economic Zones in the Russian Federation”.
4. Decree of the President of the Russian Federation of July 26, 1995 No. 765 "On additional measures to improve the efficiency of investment policy in the Russian Federation".
5. Decree of the President of the Russian Federation of January 25, 1995 "On additional measures to attract foreign investment in the material production of the Russian Federation."
6. Decree of the President of the Russian Federation of June 4, 1992 No. 548 "On Certain Measures for the Development of Free Economic Zones (FEZ) on the Territory of the Russian Federation".
7. Decree of the Government of the Russian Federation of September 29, 1997 No. No. 1108 "On the intensification of work to attract foreign investment in the economy of the Russian Federation". Collection of legislation of the Russian Federation. 1994 No. 24. Article 2637.
8. Decree of the Government of the Russian Federation of September 8, 1994 No. 1033 “On Certain Measures for the Development of the Nakhodka Free Economic Zone”. Collection of legislation of the Russian Federation. 1994. No. 20. Art.2279
9. Decree of the Federation Council of July 3, 1997 No. 259 - SF "On Free Economic Zones".
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The legal regime of foreign investments in our country is determined by the Federal Law "On Foreign Investments in the Russian Federation". The subjects of the Russian Federation also have the right to adopt laws and other regulations on the regulation of foreign investment in the relevant part.
The legal regime for the activities of foreign investors and the use of profits received from investments cannot be less favorable than the legal regime for the activities and use of profits received from investments provided to Russian investors. Restrictions for foreign investors may be established by federal laws to the extent necessary to protect the foundations of the constitutional order, morality, health, rights and legitimate interests of others, to ensure the defense of the country and the security of the state.
A foreign investor has the right: to make investments in the territory of the Russian Federation in any form not prohibited by law; transfer your rights and obligations to another person; freely use income and profits on the territory of the Russian Federation for reinvestment and freely transfer income, profits and other legally received amounts of money in foreign currency outside Russia; freely export property and information previously imported as foreign investment; to acquire shares and other securities of Russian commercial organizations and government securities; participate in the privatization of objects of state and municipal property by acquiring ownership rights to state and municipal property.
A foreign investor has the right to compensation for losses caused to him as a result of illegal actions government agencies, bodies local government or officials of these bodies. The investor is obliged to comply with the antimonopoly legislation of the Russian Federation, to prevent unfair competition and restrictive business practices.
The property of a foreign investor is not subject to compulsory seizure, including nationalization, requisition (with the exceptions provided by law). Regulations adopted during the implementation of an investment project that worsen the legal regime for foreign investment in Russia are not applied to a foreign investor during the payback period of the investment project, but not more than seven years from the date the project was launched.
Disputes of a foreign investor arising in connection with the implementation of investments and entrepreneurial activities in Russia are resolved in accordance with international treaties and federal laws in court or arbitration court or in international arbitration (arbitral tribunal).
When implementing priority investment projects, a foreign investor and commercial organization with foreign investment, benefits can be provided for the payment of customs duties. Subjects of the Russian Federation, local governments, within their competence, may provide a foreign investor with additional benefits and guarantees.
With regard to investment in form of capital investment the Federal Law "On investment activity in the Russian Federation carried out in the form of capital investments" is in force. The subjects of these legal relations are investors, customers, contractors, users of capital investment objects and other persons. Relations between them are regulated on the basis of an agreement and (or) a state contract. All investment projects, regardless of sources of financing and forms of ownership of capital investment objects, are subject to examination in accordance with the legislation of the Russian Federation.
The direct participation of the state in investment activities carried out in the form of capital investments is provided for in the following forms: development and financing of investment projects; formation of a list of objects for state needs; examination of investment projects; development of rules; issue of bonded loans, guaranteed targeted loans; granting concessions to investors based on the results of tenders.
The sphere of circulation of securities is regulated in Russia by the Federal Law "On the Securities Market". The organizers of trade in this market are stock exchanges in the form of a non-profit partnership or a joint-stock company. The procedure for admission to participation in the auction and exclusion from the number of participants are determined by the rules established by stock exchange th. The stock exchange exercises constant control over transactions made on the stock exchange. Trading participants are obliged to provide the stock exchange, at its request, with the information necessary for the implementation of such control. State registration issuance of emissive securities is carried out by the federal executive body for the securities market at the request of the issuer.
Russian issuers are entitled to place securities outside of Russia only with the permission of the federal executive body for the securities market.
