By the middle of the 20th century, the market economy had essentially become international, and the economies of the vast majority of countries became open. The key characteristics of the international economy include the developed sphere of international exchange of goods and factors of production, the emergence of international forms of production, the acquisition of independence by the international financial sector, the emergence of mechanisms for international economic regulation and the economic policies of states based on the principles of an open economy.

The main forms of international economic relations within the framework of the international economy are international trade (goods and services), international movement of production factors (capital, labor, technology), international trade in financial instruments (currency, securities, derivatives and loans) and international payments.

Basic elements of international economics:

1. Accelerating the pace of economic development under the influence of scientific and technological progress
2. Formation of the information economy, transition to the post-industrial stage of development

3.Growth of socio-economic differentiation of countries

4.Globalization of socio-economic processes

5.Increasing the role of human resources

6. Internationalization of economic life - rapprochement and interpenetration national economies at all stages of the reproductive process. International specialization and production cooperation are actively developing
7. Liberalization of foreign economic relations - increasing the degree of openness of national economies, which is manifested, first of all, in the reduction of customs barriers, the creation of a favorable investment climate, the easing of migration policy, the evolution of most national economies from closed type to open.

8. Regional economic integration - economic and political unification of countries based on the development of deep sustainable ties and the international division of labor (IDL).

9. Unification of the rules of economic life, creation of a system of interstate regulation of world economic relations (regulation of international currency, settlement, credit, trade relations).
10. Transnationalization of capital and production - the creation by companies combining capital and representatives of several countries of economic units outside their countries.

11. Globalization of the world economy, which includes:
involvement of almost all countries of the world in global economic processes;
creation of inclusive markets for goods and factors of production;
creation of a global infrastructure of world economic relations;
recognition by all countries of market principles of management as the most effective form of economic development;

Universalization of the rules of economic life and international economic relations, creation of an international regulatory framework for the implementation of foreign economic cooperation in the world economy;

The emergence of international production aimed at consumers of any country in the world at the level of the standard of a citizen of an industrial country
the global nature of international competition;
convergence of the sectoral structure of the economies of different countries.

PLAN. Introduction…………………………………………..……………………………2 1. Mechanisms for the implementation of international economic relations………..3 2. Mechanisms formation of the international value of goods………..…3 3. Monetary and financial conditions international finance y contracts……4 4. World securities market…………………..…………………………….5 5. Problems of including the Ukrainian economy in the economic system..…………. .7 6. The system of economic contradictions of the world economy………………...8 List of used literature………………………………………………………...11 Introduction. The development of the countries of the world community is characterized by the constant expansion of their mutual economic ties. This process led to the creation of the international economy - a multifaceted and complex phenomenon that expresses the highest stage of development of social production and functions as a systemic entity at the international level. Countries participating in the development of the international economy naturally play different roles in this process and solve different problems. However, in this case, as a rule, the main goal is pursued - to make maximum use of the advantages of the total economic potential of the world community. The most important processes affecting the world economy and radically changing it are the processes of internationalization and globalization of world production and capital, the main types of human life and society. The fundamental pattern of world development is the steady increase in interconnectedness and integrity of the world economy as a self-developing system. At the same time, individual parts of this system are included in world economic relations in different ways in volumetric and structural terms. The international significance of a country or its individual region (city) is determined by their economic potential, place in the global system of commodity production, technology, finance, and general economic dynamics. 1. Mechanisms for the implementation of international economic relations International economic relations are carried out mainly through the participation of their subjects in the international division of labor. The implementation of IEO is also influenced by political, socio-economic, legal and other factors. The mechanism for implementing IEO at the macro level includes organizational, legal norms and instruments for their implementation (international economic treaties and agreements, international trade organizations, etc.), relevant activities of international economic organizations aimed at achieving goals for the coordinated development of international economic relations. International practice shows that modern IEOs require significant, permanent supranational, interstate regulation. The mechanism for implementing IEO at the micro level includes a system of international marketing and organization and technology of foreign economic activity. Despite all the external similarities with general (domestic) marketing, international marketing is a specific tool for managing entrepreneurship at the international level. Its specificity is manifested primarily in the methods of studying the characteristics of national markets, as well as world markets of certain goods and services. 2. Mechanisms for the formation of the international value of goods. The traditional and most developed form of international trade is foreign trade. According to some estimates, trade accounts for about 80% of the total volume of international economic activity. The term “foreign trade” refers to the trade of a country with other countries, consisting of paid import (import) and paid export (export) of goods. Since the Middle Ages, economists in many countries have sought to find out the reasons for foreign trade and the role it plays in the economic life of the country. At one time, D. Ricardo showed why nations trade, to what extent the exchange between two countries is most profitable, highlighting the criteria for international specialization. It is in the interests of each country, D. Ricardo believes, to specialize in production in which it has the greatest advantage or the least weakness, and for which the relative benefit is the greatest. Ricardo's reasoning found expression in the theory of comparative advantage. D. Ricardo proved that international exchange is possible and desirable in the interests of all countries. He determined the price zone within which the exchange is beneficial for everyone. J. S. Mill in his “Principles of Political Economy” (1848) showed at what price international commodity exchange takes place. According to Mill, the price of exchange is set by the law of supply and demand at such a level that the total exports of each country make it possible to cover its total imports. The formulation of the Law of International Value, or the “theory of international value,” is an important achievement of J. S. Mill. International value theory shows that there is a price that optimizes the exchange of goods between countries. This market price depends on supply and demand. Domestic prices are not always able to serve as a measure of the equivalence of exchange when buying and selling on the world market. The world market, balancing supply and demand, forms its prices, usually in the most recognized, hard-convertible currency. The formation of world prices is based on international value. World prices are regulated, on the one hand, by production conditions in the countries in which the bulk of goods supplied to the world market are produced, and on the other hand, by the supply and demand of goods in this market. In modern conditions, an individual country is practically unable to produce all the products it needs at a high technical level and the required quality. In many countries, 20-30% of production is exported. In some countries with insufficient resources, this figure can reach even higher values. For example, in Holland and Belgium 60-70% is exported. Import figures are very close to these figures. 3. Monetary and financial terms of international financial contracts. Monetary and financial conditions represent the procedure for determining currency and payment, settlement systems, and currency clauses. The legislation of Ukraine provides for certain requirements for the form and content of international contracts. Some of them relate to the monetary and financial conditions for the execution of contracts, which are provided for by the legislation of Ukraine on the system of currency regulation and currency control. The contract must necessarily stipulate: the currency of the price of goods, works, services and the total cost (price) of the contract; payment currency; terms and forms of payments; financial sanctions in case of violation of contract terms; force majeure circumstances. Price currency (transaction currency) is the currency used to express the price in a contract. It can be expressed in the currency of the exporting country, the importing country, or in the currency of a third country with the consent of the parties. In practice, the US dollar is most often used as the price currency, since it is in this currency that the majority of prices are fixed on commodity exchanges in the countries of the world community. Payment currency is the currency in which payment for goods and services under the contract is made. The payment currency may differ from the price currency. In this case, the rate is indicated (the rate on the day of payment or the average rate for a specified period) at which the price currency is converted into the payment currency. Payment terms depend on the countries participating in the contract, trade customs, type of goods, commodity market conditions, intergovernmental agreements, etc. Depending on the chosen forms of payment, the terms of bank transfer, the terms of a documentary letter of credit or collection, as well as the terms of the guarantee, its type are indicated , conditions and validity period. The International Chamber of Commerce has developed rules for conducting settlements through documentary letters of credit and collection - “Uniform Rules for Collection” and “Uniform Rules and Customs for Documentary Letters of Credit”. In order to avoid losses from possible changes in exchange rates, contracts with long delivery times for goods usually contain currency clauses, i.e. linking the exchange rates of prices and payments to the rate of a stable currency, to the average rate of several currencies, to the rates of the international currency unit SDR and the regional one - ECU. In a separate section of the contract, the parties agree on the procedure for applying penalties and compensation for losses in connection with the failure of one of the counterparties to fulfill its obligations. At the same time, the amount of penalties must be clearly defined (as a percentage of the cost of goods not delivered or the amount of unpaid funds, deadlines for paying the fine, etc.). The section “Force Majeure” stipulates unforeseen conditions (natural disasters, military actions, etc.) of failure of one of the parties to fulfill obligations under the contract, which are not accompanied by financial penalties. Force majeure events must be confirmed by the Chamber of Commerce and Industry of the relevant country. All monetary and financial terms of contracts are specified by the parties based on agreements. 4.World securities market. The international market for loan capital (international financial market), being a reflection of the real reproduction process on a global scale, at the same time lives a relatively independent life, subject to its own special laws. It has a huge reverse impact on production processes both at the national and global economic levels. The international market for loan capital, carrying out the international circulation of loan capital, contributes to the continuity of the circulation of industrial and commercial capital in different countries. From a functional point of view, the international market for loan capital is a system of market relations that ensures the accumulation and redistribution of loan capital between countries; from an institutional perspective, it is a set of credit and financial institutions through which the market movement of loan capital occurs between countries depending on the supply and demand for it. With the development of world economic relations and the interweaving of cash flows between countries, the differences and connections between such concepts as global, international and national markets for loan capital become important. The widest of them is the world market for loan capital. It is a collection of national and international markets for loan capital, each of which has its own characteristics, certain independence and isolation. It should therefore be noted that the world market for loanable capital does not exist in the form of a single market, just as a collection of houses creates a city, but not a giant house. Sometimes they do not distinguish between the concepts of the global market for loan capital and the international market for loan capital. Indeed, the international market for loan capital, being a system of market relations isolated from national markets, at the same time closely connects them and intertwines mutual cash flows. The single mechanism in the field of international credit is the European markets. Among them, the markets for euro deposits, euroloans and eurobonds stand out, which are closely interconnected by the movement of funds and constitute the eurocurrency market. The Eurocurrency market is a universal international market that combines elements of foreign exchange, credit and commission transactions. Deposit and loan operations carried out on it are often accompanied by the transfer of resources from one currency to another. Almost at the beginning of its existence, the Eurocurrency market was part of the foreign exchange market. The Eurocurrency market has a relatively independent and extremely flexible system of interest rates, which differs significantly from those existing on national markets and covers a wide range of lenders and borrowers in different parts of the world. While differing from national markets for loan capital, the Eurocurrency market is at the same time closely related to them, since it uses almost the same types of banking transactions and monetary documents, and also intertwines cash flows. The processes occurring in capitalist reproduction are reflected in the sphere of international monetary and credit relations, which in turn has an increasingly reverse impact, including through the migration of loan capital. The spread of the viruses of the economic disease of capitalism from country to country is facilitated by the international market for loan capital. The international loan capital market, as an integral part of the world loan capital market, is closely interconnected with national economies and loan capital markets of individual countries. These two sectors of the single world market of loan capital are simultaneously isolated and interact with each other. Moreover, like international economic relations in general, the international market for loan capital is derived from the national economies of individual countries. The international market for loan capital interweaves the capital of the vast majority of countries, which weakens the ability to control this process due to the inability to provide the necessary interstate regulation. The functions of the international capital market arise from the functions and role of credit. Credit under capitalism performs three functions: redistribution, saving distribution costs, accelerating the concentration and centralization of capital. The international market for loan capital is of particular importance when credit performs a redistributive function, since in modern conditions the flow of capital is carried out not only from industry to industry, but also from country to country. European banks accumulate huge amounts of funds on a global scale and transform them into loan capital, which is redistributed between countries through the credit mechanism, helping to equalize the rate of profit and synchronize the world cycle. By accumulating and redistributing loan capital between countries, the international loan capital market acts in the form of an international money market and an international capital market. It is known that within the country, the supply and demand for loan capital takes place in the loan capital market, which is usually divided into the money market and the capital market. The global money market covers short-term deposit and lending operations and the Eurocurrency market. The global capital market includes two components: medium- and long-term foreign loans and European loans. The global market for loan capital has recently acquired rapid development. 5. Economic problems of incorporating the Ukrainian economy into the economic system. Ukraine is one of the founding countries of the UN. It maintains economic ties with most countries of the world community. The integration of Ukraine into the ME system is a process of bringing the country’s economy closer to the national economies of the countries of the world community. Three main prerequisites can be identified, the implementation of which creates favorable opportunities for the inclusion of the Ukrainian economy in the economic system: - systemic market transformation; - economic restructuring; - openness of the economy. The main thing in this triad is, obviously, the first block, which provides for a systemic transformation of the economy from a totalitarian-directive to a market one, from isolationism to openness, from a command-administrative to a liberal-social model of society. A number of laws have been adopted in Ukraine that create nominal opportunities for the inclusion of its economy in the world economy, in the international division of labor. These are, for example, the laws “On Foreign Economic Activity”, “On the Foreign Investment Regime”, “On Special (Free) Economic Zones”, etc. There is every reason to assert that economic, material, institutional and other prerequisites for the gradual inclusion of its economy into global economic processes. What outputs, fundamental provisions and principles should form the basis for the development of a strategic program for joining the ME system? First of all, it is about self-sufficiency of Ukraine’s sovereignty, global economic ties, and guaranteeing its national foreign economic security. Secondly, the entire ramified set of foreign economic relations should be based on strictly equivalent, mutually beneficial exchange, international division and labor cooperation. Thirdly, interaction between economic worlds should be based on a comprehensive, flexible and dynamic state foreign economic policy, at the forefront of which is the economic maximum freedom of direct producers and experts of goods and services - enterprises, firms, banks, corporations, legal entities and individuals. Fourth, the openness of the economy for broad and mutually beneficial participation in regional and global economic, monetary and financial systems and structures. The main task is to determine the stages, directions, forms and methods of implementing the foreign economic strategy. An important problem in deepening the interaction of the Ukrainian economy with the world economy is the harmonization of its foreign trade rules with the requirements and norms of GATT-SOT. Ukraine's accession to the GATT and accession to the World Trade Organization requires significant refinement of foreign economic legislation, bringing it into line with generally accepted procedures in the world community, quantitative and qualitative relationships. We are talking about improving the trade, tariff, tax, financial, investment base in Ukraine in accordance with international norms and standards as a prerequisite for the organic, most complete inclusion of the Ukrainian economy in international economic relations. The problem of balancing the trade and payments balance, improving the terms of trade, and the outflow of foreign currency outside the borders of Ukraine remains difficult. The transformation of the trade regime of Ukraine should be carried out, on the one hand, in the direction of greater approximation to the parameters that follow from the decisions of the Uruguay Round of GATT, EU trade law, on the other, taking into account the characteristics and level of economic, scientific and technological development of individual regions and sectors of the Ukrainian economy , competitiveness of goods and services in international markets. Given the general level of development, Ukraine fits into general economic processes and over a period of time can quite successfully adapt to international structures. 6. The system of economic contradictions in the world economy. The processes taking place in modern international trade allow us to conclude that liberalization is becoming its main trend. This is indicated by the increasing openness of national economies, the reduction of customs duties, the abolition of many quotas and restrictions, and the intensification of competition in the world market. Along with the obvious and multilateral process of liberalization of international trade, there is also a protectionist tendency counteracting this process. This trend indicates the presence of deep-seated political and economic interests, aspirations to protect domestic producers by all means, preserve jobs, and maintain the competitiveness of national goods and industries. The most widespread protectionist policies are implemented by those countries where structural changes in the economy are underway, where there is economic depression and import competition is growing rapidly. International practice shows that both trends are inherent characteristics of international trade. And the main problem in resolving the contradiction between these trends is finding their rational combination. When the balance of interests is disturbed, a rational combination turns into its opposite, and contradictions arise. Infringement of the national trade, economic, and social interests of a country by another country or group of countries often leads to the emergence of trade conflicts, “trade wars.” The immediate cause of trade conflicts is a variety of factors: customs, territorial, price, sanitary, environmental, etc. “Trade wars” are a fairly stable “tradition” of modern international relations. They are typical both for individual countries and for trade and economic groupings. Growing competition in world markets, protection of domestic markets, the need to ensure employment, etc. also force foreign states to actively protect their producers and merchants and enter into political and economic conflicts. At the same time, the formation of free trade zones and customs unions does not introduce fundamental changes to the structure of the world economy. The unification of countries into economic blocs does not mean unconditional progress in the implementation of free trade ideas or capitulation to protectionist principles. For example, a customs union is a contradictory combination of free trade and protectionism. The dilemma of “free trade or protectionism” does not cease to exist. It is transferred to another level of foreign trade relations, at which the decision on the choice of economic policy of a group of states in relation to third countries is determined. Even within the framework of trade and economic groupings, contradictions arise between individual countries, developing into trade conflicts. Moreover, the measures taken by governments to protect national producers are sometimes close to very “hot” actions. Despite the fact that within the EU there is freedom of movement of goods between member countries, various types of food wars regularly occur there. As a rule, countries participating in trade conflicts do not seek to take them to extremes; they are resolved through lengthy negotiations, consultations, and filing complaints with international organizations. List of used literature. 1. Collection of normative materials on the regulation of foreign economic activity of Ukraine. - K., 1998 2. Avdokushin E.F. International economic relations. Textbook. M. –1999 3. Kireev A. International economics. T. 1,2.–M., 1998. 4. Ruth F. F., Filipenko A. E. International trade and investment. 5. Rumyantsev A.P., Rumyantseva N.S. International economics, - Lectures. MAUP. 1999 6. Prokushev E.F. Foreign economic activity. Tutorial. M. - 1999 7. Kuznetsova N.V. Regulation of foreign economic activity in Ukraine. Pract. Benefit. K. – Spline. 1998

Discipline that studies the interaction of financial entities different countries.

The world economy cannot function without a single mechanism, so transnational corporations began to develop at the micro level, and at the macro level - the World Bank, WTO, IMF and other organizations. Today, states are actively involved in investment activities and monetary and financial transactions. Such relations are the subject of international economics. The theory consists of two parts, macroeconomics and microeconomics.

The discipline studies the patterns of development of the world market, supply and demand for goods and services of international trade, international financial markets, exports and imports, development trends and possible ways of improvement.

A national economy becomes international if there is a foreign element in it. For example, when a consumer buys a product abroad, the entrepreneur leases the property to a foreign legal entity, or a citizen of any country gets a job abroad.

Signs of an international economy:

• developed international trade;
• international movement of factors of production;
• economic policies of countries, which include the development of international relations and trade;
• enterprises operating in several countries (TNCs);
• development of mechanisms for regulating economic relations.

Structure of the international economy

International economics manifests itself in the following forms: state (domestic) regulation, international economic relations and international regulation. The basis for the emergence of the world market was the division of labor between countries, which led to the movement of capital and labor. An example would be a large automobile company: auto parts are produced in different countries; employees and customers may be foreign citizens.

The economic policy of a country plays a great role in the development of the international economy. These include favorable conditions for foreign investors, a soft exchange control regime, and the development of free economic zones.

International economic relations include trade in financial instruments (stocks, derivatives), international payments, international movement of capital and technology, trade in goods and services.

International economic organizations are involved in regulating and regulating processes. For example, the WTO resolves disputes arising in international trade and regulates it using tariff methods, or the IMF regulates the international monetary system and the stability of exchange rates.

The socio-economic structure implies the division of countries into developed (Japan, Canada, USA), with transition economies (Lithuania, Georgia) and developing (Indonesia, Argentina).

The sectoral structure implies the division of industries into the primary sector (industry and agriculture), secondary (construction, electricity) and tertiary (finance, healthcare, insurance).

Among the main trends in the international economy are globalization, integration of the economies of neighboring countries (for example, NAFTA, ASEAN), transnationalization (development of TNCs and MNEs) and liberalization (indirect economic regulation, reduction of customs duties).

Book:

International Economics (KNEU lecture notes)

The subject of the course is “international economics”. International economic system: essence and structure. International economic relations. International economic activity. The set of national economies. Classification of countries by level of socio-economic development. Internationalization of economic life. International division of labor: essence, forms and factors. Features of the current stage of development of the world economy. Basic forms of international economic relations. MEV level. Principles of IEO. Main subjects of IEO. IEO development environment. The subject of the course is “international economics”.

The subject of the course “international economics” is a multi-level complex of economic relations between countries and their groupings. International economics also studies the relationships between individual economic entities located in different countries: individuals, households, businesses, government and civil institutions.

Particular attention is paid to the study of the economic mechanism of the functioning of the international economy, that is, international legal norms, economic agreements, and the activities of international economic organizations.

The object of studying international economics is not isolated, random phenomena, processes in the international sphere, but those that are constantly renewed and repeated. That is, patterns of interaction between economic entities of different states in the international exchange of goods, the movement of production factors, and the formation of international economic policy are revealed.

When studying international economics, they use the achievements of various directions of economic thought: Marxist, classical, neoclassical, neo-Keynesian, monetarist. Scientists hold different views regarding the factors that determine a country’s place in the system of international division of labor and the role of state policy in regulating the foreign economic sphere.

The theoretical basis for the study of international economics is political economy, micro- and macroeconomics. Combining these disciplines with the theories of international business, international marketing and management, and international finance made it possible to create a theory of international economics.

The main concepts of the theory of international economics are: world market, world economy, openness of the national economy, liberalization of foreign economic relations, international division of labor, international trade, international capital movement, international labor migration.

International economic system: essence and structure.

The international economic system (IES) is a set of elements of the world economy with the characteristics inherent in each of them; in the process of action of elements of the world economy, integrative qualities, characteristics, and patterns of functioning of this system arise.

The main elements of the MEU are individual countries and groups of countries. The MEU can be divided into groups such as highly developed countries (G7 countries, the European Union, the Organization for Economic Cooperation and Development), moderately developed countries, developing countries, countries with economies in transition.

At the present stage, the functions of the core of the global economy are transferred to a number of developed countries, which are distinguished by developed social market economies; the greatest combination of sources and factors of industrial development; a leading role in the global economy, which makes it possible to actively involve one’s own and other people’s resources in economic circulation.

In addition, the MEC consists of a subsystem of various international markets and a subsystem of national and international institutions that regulate the MEC; subsystems of international economic relations.

International economic relations.

There are various relations between countries: political, scientific, cultural. The countries cooperate in various fields: they organize international exhibitions of paintings, exchange artists, scientists, experience in the field of technology, and environmental protection. International economic relations (IER) is one of the forms of international relations. IEOs mediate the implementation of other forms of international relations. For example, for the normal functioning of scientific and technical ties between countries, an international market for scientific and technical products is necessary. In addition, IEO is a system of economic relations regarding the production, distribution, exchange and consumption of products that go beyond national borders (Fig. 1).

A product can be produced on the basis of cooperation of production resources of two or more countries. Entities from different countries can exchange goods, as a result of which the production and consumption of a certain product will be located in different countries. International relations of distribution are relations that arise regarding a) the distribution of factors of production (means of production, labor) between countries; b) distribution of products of economic activity among entities from different countries; c) distribution of income between IEV participants.

Depending on the object of the international economic relations, they are divided into trade, monetary and financial, production, scientific and technical, etc. These relations will be discussed in more detail in the following lectures, but now we note that all of them together form a system. One of the systemic characteristics of this system is the interconnection of its individual elements. For example, the joint production of complex equipment by economic entities from different countries (production relations) may be accompanied by trade in individual components, parts between them (trade relations), and scientific and technical exchange (scientific and technical relations).

IEOs between individual European states, as well as within individual regions (Europe - North Africa, Europe - Middle East, etc.) arose relatively long ago. These relations were initially exclusively bilateral, highly regional. Economic relations become truly international with the emergence of the world economy and the emergence of interdependence of national economies.

In the process of development of the international economic system, economic relations between countries expand and deepen; groups of countries; enterprises and organizations located in different countries. It is characteristic that the processes of interaction between countries and their cooperation are of a contradictory nature. The dialectic of IEO is that the desire of states for economic independence and strengthening of national economies ultimately determines increasing internationalization economic life countries

The core of modern IEO is the international economic activity of economic entities, primarily enterprises. The activities of the latter are aimed at obtaining certain economic results, primarily profit.

There are enterprises whose activities are primarily focused on the national market. Foreign economic relations for such enterprises in the system of priorities of their activities are of secondary importance. Other enterprises consider foreign economic activity as a necessary factor in their normal functioning. Some of them consider orientation to the world market to be the initial principle of their activities. And finally, there are companies that “work” exclusively for the foreign market.

International economic activity.

The activities of enterprises on the international market are carried out in the following forms:

1. Export and import of goods and services. This is often the first foreign trade transaction of the company. This operation, as a rule, involves minimal obligations and the least risk for the company's production resources and requires relatively low costs. For example, firms can increase product exports by using their excess capacity, thereby minimizing the need for additional capital investment.

2. Contract, cooperation agreements (licensing, franchising). In licensing, a company (licensor) enters into a relationship with a foreign company (licensee), offering the rights to use a production process, trademark, patent, know-how in exchange for a license fee. Franchising is one of the methods of cooperation (primarily international) in the sale of goods and services of a fairly well-known company (franchisor) through a sales organization (franchisee) specially created with its participation thanks to the franchisee’s right to use the trademark and know-how of the franchisor.

Thus, the well-known manufacturer of copying equipment, the Xerox company, having a reliable reputation, is creating a network of sales enterprises in various countries to jointly market various services for copying printed materials. “Xerox” requires national partners to strictly adhere to the technology for providing services; finances the purchase or rental of premises by partners; trains local staff; controls the proper use of the brand name by partners.

Franchising of goods and services is also used by well-known companies: McDonald's, Singer, Coca-Cola, Hilton. Franchising is most widely used in the service sector, tourism, household appliance service, fast food, and auto repair.

Often, enterprises buy foreign licenses and turn to franchising after they have achieved success in exporting their products to foreign markets.

3. Economic activities abroad (research and development, banking, insurance, contract manufacturing, rent). Contract manufacturing involves a company entering into a contract with a foreign manufacturer, which can produce goods that the specified company can sell. A lease involves the provision by the lessor of property for temporary use to the lessee for an agreed rent for a specified period in order to obtain a commercial benefit.

The range of goods leased is quite wide: cars and trucks, aircraft, tankers, containers, computers, communications equipment, standard industrial equipment, warehouses, i.e. movable and real estate, which refers to fixed assets.

In international practice, three types of lease are distinguished depending on its duration:

Short-term rental - rental, the duration of which can range from several hours to one year;

Medium-term lease - hiring, which provides for the rental of property for a period of 1 to 3 years;

Long-term lease - for a period of more than three years.

4. Portfolio and direct investment abroad. Investment activity abroad may be associated with the creation of an enterprise's own production branch; investing in shares of an existing foreign company; investing in real estate, government securities.

The above classification of forms of international business activity is quite conditional. For example economic activity abroad (3) is almost always accompanied by the flow of investments there (4).

At different stages of IEO development, one form of international economic activity predominates. At the present stage, for many developed countries, the leading form is transnational production activity, which is based on the foreign investment activities of enterprises.

The set of national economies.

The entire set of national economies in the world is about 200 states. The United Nations, the International Monetary Fund, the World Bank give the most full description of this aggregate. At the same time, the UN focuses on the social and demographic aspects of the development of countries. For the World Bank, it is important to assess the degree of economic development of countries.

To understand and assess the differences between national economies, determine their place and development prospects in the world economic system, an urgent problem in the theory and practice of IEO is their systematization [see: 12] according to various criteria (Fig. 2).

Rice. 1.2. Signs of systematization of countries Countries can be systematized on a regional (geographical) basis: European (western, eastern, southern, northern); North American (USA, Canada, Mexico), South American, countries of the Middle East, East, Southeast and South Asia, African (north, central, south, west), etc. But such systematization yields groups of countries that are quite diverse in composition.

Systematization of countries by organizational basis distributes countries into groups depending on participation in international organizations, conferences, meetings, etc. The most influential organizations are:

· Organization for Economic Co-operation and Development (OECD) - created in 1960, unites 24 countries with high income and level of development (19 countries in Europe, USA, Canada, Japan, Australia, New Zealand). The organization's goals are to achieve rapid economic development, maintain financial stability, free trade and ensure favorable conditions development of “third world” countries;

· General Agreement on Tariffs and Trade and the World Trade Organization (GATT/WTO) - unites more than 120 countries of the world, with the main goal of developing trade liberalization. Since the inception of the GATT in 1947, a reduction in international tariffs has been achieved from 40% to 4%. The WTO began functioning in 1995 as a more institutionalized structure for regulating international trade.

· The Bretton Woods institutions - the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD) have ensured the functioning and development of the modern world monetary system since 1944. 169 countries of the world are members of the IMF.

Classification of countries by level of socio-economic development.

The most important is the principle of classifying countries and their groups according to the level of socio-economic development. The approach of B. Gavrilyshyn is fruitful, when the types of socio-economic systems are characterized through their comparison according to a number of the following characteristics: the main motive of the activity of the main economic entity, the nature of property, the nature of the market, the role of the government in socio-economic life, the root cause and main goal of the functioning of the social economic system (see: Table 1).

Table 1.1.

TYPES OF SOCIO-ECONOMIC SYSTEMS

Main features	Types of systems
	Free entrepreneur (capitalism)	Consensus free enterprise	Administrative command system	Distributive socialism	Market socialism
1. Main motive and/or criterion of activity	Profit maximization	Maximizing growth and profit	Maximizing production		Viability
2. Nature of ownership			State		Collective
3. Nature of the market	Free	Free	Managed	Free	Controls
4. Role of government	Limited by the above mentioned characteristics	Harmonize economic activity	Decision making; planning, management	Resist distributional injustices	Setting goals; coordination; regulation
5. Root cause and main goal	Economic: efficient production	Economic and political; improving the situation of the country, meeting individual needs	Political; Creation material base communism	Social; efficient production; fair distribution	Socialist economic democracy through self-government

The division of countries into three groups is also used, such as:

1. Industrialized countries - 24 highly developed countries. A powerful group among these countries are the countries of the so-called “Big Seven”. Great Britain, Italy, Canada, Germany, USA, France, Japan, producing the largest volumes of GDP in the world and concentrating in their hands a significant part of international trade.

2. Countries with economies in transition - 28 countries of Central and Eastern Europe and the former Soviet Union that are making the transition from an administrative-command to a market economy: Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Armenia, Georgia, Estonia, Kazakhstan, Moldova, Poland, Russia, Romania, Uzbekistan, Ukraine and others. There is a subgroup in this group that has significant achievements in reforming national economies. This subgroup includes: Poland, Slovakia, Slovenia, Hungary and the Czech Republic.

3. Developing countries - 132 countries in Asia, Africa, Latin America. Due to their large number and the peculiarities of the socio-economic development of national economies, these countries are usually systematized by region, taking into account their geographical location.

1.	International Economics (KNEU lecture notes)
2.
3.	TOPIC 1. INTERNATIONAL ECONOMIC SYSTEM. Part 3.
4.	TOPIC 2. INTERNATIONAL TRADE. Part 1.
5.	TOPIC 2. INTERNATIONAL TRADE. Part 2.
6.	TOPIC 2. INTERNATIONAL TRADE. Part 3.
7.	TOPIC 3. INTERNATIONAL INVESTMENTS. 1. Reasons and essence of international capital movement.
8.	TOPIC 3. INTERNATIONAL INVESTMENTS. 2. Forms of foreign investment.
9.	TOPIC 3. INTERNATIONAL INVESTMENTS. 3. Transnational corporations and their role in the modern development of international economic relations
10.	TOPIC 3. INTERNATIONAL INVESTMENTS. 4. The state and problems of foreign investment in Ukraine.
11.	TOPIC 3. INTERNATIONAL INVESTMENTS. GLOSSARY
12.	TOPIC 4. INTERNATIONAL CREDIT. 1. International credit and its role in international economic relations.
13.	TOPIC 4. INTERNATIONAL CREDIT. 2. Forms and types of international credit.
14.	TOPIC 4. INTERNATIONAL CREDIT. 3. Global financial market.
15.	TOPIC 4. INTERNATIONAL CREDIT. 4. International monetary and financial organizations.
16.	TOPIC 4. INTERNATIONAL CREDIT. 5. The problem of debt and possible ways to solve it.
17.	TOPIC 4. INTERNATIONAL CREDIT. GLOSSARY.
18.	TOPIC 5. INTERNATIONAL LABOR MIGRATION. 1. ESSENCE, STRUCTURE AND MAIN FEATURES OF THE WORLD LABOR MARKET.
19.

Today its importance is steadily growing. Both consumers and producers in all countries are increasingly beginning to feel their own involvement in the large-scale global economy, as evidenced by statistical data over the past few years. International trade in 1996 exceeded $10.6 trillion. The growth rate for each year significantly exceeds the growth of production. Nowadays, every sixth product reaches consumer hands through global trade.

Interpretation of the concept in question

World economy- this is a certain set of all national economies that are united different types so-called world economic relations. Here the emphasis is mainly on the more or less total level of development of all production forces for humanity, the division of labor determined by it (worldwide), in which all peoples are involved to one degree or another; it also affects both the sphere of circulation and the field of production.

World economy and international relations

We are talking about internal and external transactions. Essentially, the latter continue the logic of the former; they have one goal, which is to maximize income for all producers and utility for all consumers. However, there are still significant differences between them, which are due to state borders between countries that are economically interconnected, and national sovereignty.

We are talking about the following important points:

1. International transactions require settlements in foreign currency, convertible into domestic currency at the appropriate rate. The exchange process itself is fraught with risks and complications that are not typical for domestic transactions, since exchange ratios are subject to various types of fluctuations.

2. National governments have the right to introduce any kind of restrictions on all international transactions, but cannot use them in relation to domestic ones. The so-called trial restrictions include tariffs, export incentives through subsidies, various import quotas, voluntary export limits, and restrictions on the conversion of national currency. These measures have a profound impact on the entire economy, but they primarily concern not domestic economic processes, but international ones.

3. Each country has a monetary and fiscal policy that affects economic growth, inflation rates, employment levels, etc. Most often, this kind of policy, total for the regions of one country, varies significantly from one state to another. For example, if in France the inflation rate is similar in all its regions, the differences between Germany and France in this indicator may well be quite significant, and this will immediately affect the competitiveness of goods and services of one country in the markets of another or third countries.

So, most changes in international financial and trade transactions are initiated precisely by the state of domestic environmental policy, which is carried out by one or another power.

4. As a rule, each state is aware much more about the volume, structure, and directions of foreign trade than about the indicators of domestic transactions. For example, in the USA, no one knows what goods and in what volumes the city of New York and the state of California trade with each other. Such information is not recorded at administrative boundaries. Things are completely different with foreign trade. At the time a merchant ship leaves a foreign port, or upon arrival at it, buyers or sellers are required to fill out an import or export declaration, which informs about the nature of the cargo being transported, its value, weight, sender, recipient, and other information. From there it is possible to obtain, to a certain extent, accurate information regarding international trade and other world economic transactions, which is usually not enough for the study of foreign trade and other economic transactions.

5. Factors of production are much more mobile within the country itself than between states. There is little that can prevent the movement of labor between states (English counties). But various kinds of immigration restrictions and socio-cultural differences are serious barriers to movement between countries.

6. To penetrate foreign markets, all exporters need to adapt their own products to both the standards and preferences of foreign consumers.

Once we have figured out what the world economy is and international relationships, it’s worth moving on to the economic components.

Sections of the world economy

The following areas of economics (theories) are known:

1. The so-called net international trade and the benefits derived from it.
2. Commercial policy. This theory studies the causes, as well as the results, of various limits on commodity exchange, the movement of factors of production, etc.
3. Balance of payments, where an analysis is made of the ratio of total income and total expenses of the country in question relative to another state, its current exchange rate.
4. Unbalanced balance of payments, methods of their operational equalization under different monetary systems (international).

The first and second sections are international economics (world economy), more precisely, its microeconomic aspect, due to the fact that they consider a number of patterns in the implementation of economic relations between two specific entities (a company, a state, an individual) using such an example as the movement of goods, factors production, their market characteristics, such as supply, demand, price, etc.

If we consider real life, we will see that states exchange a large number of goods, services, and factors of production. As part of the balance of payments, total income and expenses from international transactions are summed up. The total amount from international trade and the need for its regulation most often reflect, so to speak, the aggregate volumes of production, income, and the general price index of trading nations, which is why the 3rd and 4th sections, which also make up the world economy, are the sphere macroeconomic analysis.

From the perspective of analysis methodology, sections of international economics do not have a clear division. Regarding international trade, the research process is abstract and theoretical. The study of international finance becomes practical and politically oriented. Subsequently, a synthesized macro- and micro-toolkit for the process of analyzing existing world economic relations is formed.

The world economy is the support of scientists in an attempt to explain the structure and volume of international transactions, assess their impact on the domestic economy, and recommend such national policies regarding global economic relations that maximize national welfare.

Basics of Economics

International economics has been studied for quite some time, but at all historical stages of its development, scientists have put completely different content into the concept under consideration. For a long period of time, the following approach dominated: the world economy is the sum of national economies that have, to a certain extent, contact with each other within the economic field. In the justifications for this type of contact, which occasionally acquired the character of relatively long-term, even stable relationships, the prevailing point of view was always that they have more advantages than disadvantages. The simplest, unpretentious model of an identical kind is presented as a kind of “rags”, which in size relatively correspond to the share of individual countries according to a certain criterion.

The international economy has undergone processes of large-scale and in-depth integration, as well as internationalization. Thus, integration is a form of internationalization of the economic side of life, so to speak, an objective process of crossing national economies and pursuing clearly coordinated economic policies - both at the national and international levels - in different forms: as free trade, common markets, political and monetary economic, customs and economic unions.

Internationalization is a process aimed at developing the world economy, namely economic relations between national economies, while the economy of one state acts as an element of the global economic process, deepening on the basis of scientific and technical cooperation, specialization, and the international division of labor.

The above processes really changed the face of the entire world economy, making them participants in both countries, regions, and autonomously operating entities in the form of individual firms, which subsequently acquired a transnational character.

So, the modern world economy is a series of national economies that interact in various forms of market activity at both the macro and micro levels in accordance with the rules and standards of competition. At the same time, fundamental national interests and priorities must be ensured.

From this side, the world economy is synonymous with the world economy, and the macro level is the interaction of national states, subregional, regional, national economies as a single whole - the international economy, and the micro level is the interaction of business units, i.e. individual firms, households, state-owned enterprises and private sector, TNCs, financial industrial groups. The interaction of individual markets also occurs at this level.

At this stage, we have examined the basics of the economy; now we will move on to studying its structure and models.

Structure of the international economy

To understand the topic we are considering, it is important to imagine a clear structure of the entire world economy. Thus, the world economy is a complex dynamic system that consists of numerous, closely related macroeconomic elements. It has a complex territorial-production, functional structure, which includes industry, inter-industry units, complexes, associations, regions, and enterprises. The relationship between these parts is the structure of the world economy. The latter, together with its optimality, is of great importance for the sustainable, effective development of the international economy.

The structure of the world economy and national economies is the most important proportions within the framework of production and consumption of GNP. Changes in the system occur primarily under the influence of changing social needs and capital accumulation.

So, structural adjustments can be interpreted both in a broad sense and in a narrow sense. In the latter case, they represent some shifts within the product-industry structure, and in the first, component changes in the production and consumption of funds are added: fixed capital, investments, material, labor, and energy resources.

The structure of the international economy includes:

• industrial economics;
• reproductive;
• territorial;
• socio-economic.

Models of international economics

So, with the relative unity of the world economy, everything is more or less clear. At the same time, we note that some differences between certain parts of it cannot but exist. They can be established through spatial models. So, let's consider 2 models of the world economy:

• binomial;
• three-term.

Let's take a closer look at each of them.

Binomial model of the world economy

It implies the division of states into 2 large groups:

1. Economically developed.
2. Developing.

In accordance with the specifics of the geographical location, the first group is conventionally called the North, the second - the South. In addition to the fact that over the past few years, in most countries of the South, growth rates (economic) are higher than in the North, the countries of the second group are beginning to lag significantly behind in the main indicators of socio-economic development.

A number of states are very far behind development, which is why they received the nickname “uncoupled carriage of the world economy,” for example, Afghanistan, Nepal, the countries of Central Africa, North Korea, etc.

In the three-member model of the world economy, the following powers are usually distinguished:

• the most economically developed;
• developing;
• with a transition economy.

Over the past few years, a special three-member model has been formed, subdivided into the Center, Semi-Periphery, and Periphery.

Post-industrial countries, or countries of the “center”

This includes economically developed powers that establish global scientific and technical progress. The countries of the world economy of this model are 25-30 states of the North (total population of approximately 1 billion people - the “golden billion”), its main cores are the “Big Seven”, the European Union (here high level unity of trade, production, financial relations, the transition to a post-industrial type of society has been accomplished).

Agrarian countries, or countries of the “periphery”

This includes approximately 100 countries, most often located in the tropics. They usually live by using natural resources. Most countries are overpopulated. In some, zones of political instability and conflicts remain.

Industrial countries, or countries of the “semi-periphery”

This includes the newly industrialized countries of Asia and states with a transitional type of economy. Some powers are engaged in oil exports.

International economic relations

In the course of labor, on the basis of the relationship between humanity and nature, certain relationships are formed between people, conditioned by the production of material goods and services, which are referred to as economic relations. They have a complex hierarchical system. Economic relations can be viewed from different angles based on the purpose of the study and the criteria for classifying the elements that are included in it. Here the relationships of a reproductive nature are highlighted, more precisely, production, distribution, as well as exchange and consumption.

They are also classified based on their forms of ownership:

• private;
• state

Russia within the global economy

Our country has a fairly powerful economy. Based on GDP, it is one of the ten largest EDCs in the world. In addition, Russia is the world's largest exporter (in 2003, exports amounted to more than $1,333 billion). Even despite a sufficient degree of industry differentiation, export orientation consists mainly of sales and export of raw materials. Russia is a “raw materials superpower” in the world economy. Russian industry manages to produce competitive products within the technology sector. First of all, this applies to weapons; they are exported to 55 countries, amounting to over $5 billion.

Our country has established the production of high-quality power equipment, which is in demand in most foreign countries. An important point there is a high degree of development of the nuclear and space industries. A number of experts predict rapid development of the timber industry complex and offshore programming.

As mentioned earlier, Russia is a raw materials superpower in the world economy, which is why the basis for precise trade growth is the raw materials industries. This primarily applies to the oil sector, non-ferrous and ferrous metallurgy. They are called the “whales of the domestic industry,” collectively providing up to 70% of state foreign exchange earnings. There is a constant increase in their share. At the same time, sales and growth occur in fierce competition. Our oil industry competes with OPEC countries.

Global problems of international economics

Today the following problems of the global economy are known:

1. Resource depletion- a growing shortage of soil, plant, climatic, animal resources, minerals, which act both as raw materials and as the basis of the production process.
2. The economic development of countries is characterized by such quality as multi-vector(state division into 3 categories: “third world” countries, developing and highly developed). This creates inefficiency in global trade.
3. NTR- ill-conceived, irrational use of scientific and technological advances.
4. Serious food crisis.