Globalization and International Capital Movement presentation. Presentation on the topic "international capital movement". Features of foreign direct investment

International capital migration is the movement of capital between countries, including the export, import of capital and its functioning abroad. International capital migration is the movement of capital between countries, including the export, import of capital and its functioning abroad. Capital migration is an objective economic process when capital leaves the economy of one country in order to obtain higher income in another country.

The international movement of capital takes a leading place in international economic relations, has a huge impact on the world economy: The international movement of capital takes a leading place in international economic relations, has a huge impact on the world economy: 1. contributes to the growth of the world economy; 2. deepens international capital movement and international cooperation; 3. Increases the volume of mutual trade between countries, including intermediate goods, between branches of international corporations, stimulating the development of world trade.

The main subjects of the world capital market are private business, states, as well as international financial institutions(World Bank, International Monetary Fund). The main subjects of the world capital market are private business, states, as well as international financial organizations (World Bank, International Monetary Fund).

The participants in the international capital market are commercial banks, non-bank financial institutions, central banks, private corporations, government agencies, and some individuals. The participants in the international capital market are commercial banks, non-bank financial institutions, central banks, private corporations, government agencies, as well as some individuals.

The reasons for the export of capital are the ability to monopolize the local market of the receiving party; availability of cheaper raw materials and labor in countries that receive capital; stable political situation in the recipient country; lower, in comparison with the donor country, environmental standards; the presence of a favorable "investment climate" in the host country;

According to the purpose of foreign investment, capital is divided into direct investments and portfolio investments: According to the purpose of foreign investment, capital is divided into direct investments and portfolio investments: Foreign direct investments - capital investment in order to acquire a long-term economic interest in the country of capital investment, ensuring the investor's control over the object of capital placement ... Occurs when a branch of a national firm is created abroad or a controlling stake in a foreign company is acquired. FDI are real investments in enterprises, land, and other capital goods. Portfolio foreign investment - capital investment in foreign securities that do not give the investor the right to control the investment object. Portfolio investments lead to diversification of the economic agent's portfolio and reduce the investment risk. They are based on private entrepreneurial capital, although the state also issues its own and purchases foreign securities. Portfolio investments are purely financial assets denominated in local currency.

The positive and negative consequences of capital migration are rather arbitrary and do not take into account numerous exceptions. Nevertheless, the international movement of capital plays a generally stimulating role in the development of the world economy. The positive and negative consequences of capital migration are rather arbitrary and do not take into account numerous exceptions. Nevertheless, the international movement of capital plays a generally stimulating role in the development of the world economy.

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The international movement of capital takes a leading place in international economic relations, has a huge impact on the world economy: International movement of capital takes a leading place in international economic relations, has a huge impact on the world economy: 1. contributes to the growth of the world economy; 1.Promotes the growth of the world economy; 2. deepens international capital movement and international cooperation; 2. deepens international capital movement and international cooperation; 3. increases the volume of mutual trade between countries, including intermediate goods, between branches of international corporations, stimulating the development of world trade. 3. increases the volume of mutual trade between countries, including intermediate goods, between branches of international corporations, stimulating the development of world trade.

The main subjects of the world capital market are private business, states, as well as international financial organizations (World Bank, International Monetary Fund). The main subjects of the world capital market are private business, states, as well as international financial organizations (World Bank, International Monetary Fund).

The world capital market is part of the world financial market and is conditionally divided into two markets: the money market and the capital market. The world capital market is part of the world financial market and is conditionally divided into two markets: the money market and the capital market. In the money market, transactions are carried out on the purchase and sale of financial assets (currencies, credits, loans, securities) with a maturity of up to one year. The money market is designed to satisfy the current (short-term) need of market participants for loans and borrowings to purchase goods and pay for services. A significant part of transactions in the money market are speculative transactions in the purchase and sale of currencies. In the money market, transactions are carried out on the purchase and sale of financial assets (currencies, credits, loans, securities) with a maturity of up to one year. The money market is designed to satisfy the current (short-term) need of market participants for loans and borrowings to purchase goods and pay for services. A significant part of transactions in the money market are speculative transactions in the purchase and sale of currencies. The capital market is focused on longer-term projects with a duration of one year or more. The capital market is focused on longer-term projects with a duration of one year or more.

The participants in the international capital market are commercial banks, non-bank financial institutions, central banks, private corporations, government agencies, as well as some individuals. The participants in the international capital market are commercial banks, non-bank financial institutions, central banks, private corporations, government agencies, as well as some individuals.

The reasons for the export of capital are the availability of the opportunity to monopolize the local market of the receiving party; the ability to monopolize the local market of the receiving party; availability of cheaper raw materials and labor in countries that receive capital; availability of cheaper raw materials and labor in countries that receive capital; stable political situation in the recipient country; stable political situation in the recipient country; lower, in comparison with the donor country, environmental standards; lower, in comparison with the donor country, environmental standards; the presence of a favorable "investment climate" in the host country; the presence of a favorable "investment climate" in the host country;

The concept of "investment climate" includes such parameters as: The concept of "investment climate" includes such parameters as: economic conditions: the general state of the economy (rise, decline, stagnation), position in the country's currency, financial and credit systems, customs regime and conditions the use of labor, the level of taxes in the country; economic conditions: the general state of the economy (rise, recession, stagnation), the situation in the currency, financial and credit systems of the country, the customs regime and conditions for the use of labor, the level of taxes in the country; state policy in relation to foreign investment: compliance with international agreements, strength of state institutions, continuity of power. state policy in relation to foreign investment: compliance with international agreements, strength of state institutions, continuity of power.

Capital migration can be carried out in the form of entrepreneurial and loan capital. Capital migration can be carried out in the form of entrepreneurial and loan capital. Loan capital funds directly or indirectly invested in production in order to obtain a loan interest from the use of capital abroad. The movement of loan capital is carried out in the form of international credit from public or private sources. Loan capital funds directly or indirectly invested in production in order to obtain a loan interest from the use of capital abroad. The movement of loan capital is carried out in the form of international credit from public or private sources. Entrepreneurial capital is money that is directly or indirectly invested in production for the purpose of making a profit. The movement of entrepreneurial capital is carried out through foreign investment, when individuals, state-owned enterprises or the state invest funds abroad. Entrepreneurial capital is money that is directly or indirectly invested in production for the purpose of making a profit. The movement of entrepreneurial capital is carried out through foreign investment, when individuals, state-owned enterprises or the state invest funds abroad.

According to sources of origin, capital is divided into official and private capital. According to sources of origin, capital is divided into official and private capital. Official (state) capital is funds from the state budget transferred abroad by the decision of governments, as well as by the decision of intergovernmental organizations. It moves in the form of loans, loans and foreign aid. Official (state) capital is funds from the state budget transferred abroad by the decision of governments, as well as by the decision of intergovernmental organizations. It moves in the form of loans, loans and foreign aid. Private (non-state) capital is funds of private companies, banks and other non-governmental organizations that are moved abroad by decision of their governing bodies and their associations. The source of this capital is funds of private firms not related to the state budget. These can be investments in the creation of foreign production, interbank export credits. Despite the autonomy of companies in making decisions on the international movement of their capital, the government has the right to control and regulate it. Private (non-state) capital is funds of private companies, banks and other non-governmental organizations that are moved abroad by decision of their governing bodies and their associations. The source of this capital is funds of private firms not related to the state budget. These can be investments in the creation of foreign production, interbank export credits. Despite the autonomy of companies in making decisions on the international movement of their capital, the government has the right to control and regulate it.

According to the purpose of foreign investment, capital is divided into direct investment and portfolio investment: According to the purpose of foreign investment, capital is divided into direct investment and portfolio investment: Foreign direct investment capital investment in order to acquire a long-term economic interest in the country of capital investment, which ensures the investor's control over the object of capital placement. Occurs when a branch of a national firm is created abroad or a controlling stake in a foreign company is acquired. FDI are real investments in enterprises, land, and other capital goods. Foreign direct investment capital investment with the aim of acquiring long-term economic interest in the country of capital investment, ensuring the investor's control over the object of capital investment. Occurs when a branch of a national firm is created abroad or a controlling stake in a foreign company is acquired. FDI are real investments in enterprises, land, and other capital goods. Portfolio foreign investment capital investment in foreign securities that do not give the investor the right to control the investment object. Portfolio investments lead to diversification of the economic agent's portfolio and reduce the investment risk. They are based on private entrepreneurial capital, although the state also issues its own and purchases foreign securities. Portfolio investments are purely financial assets denominated in local currency. Portfolio foreign investment capital investment in foreign securities that do not give the investor the right to control the investment object. Portfolio investments lead to diversification of the economic agent's portfolio and reduce the investment risk. They are based on private entrepreneurial capital, although the state also issues its own and purchases foreign securities. Portfolio investments are purely financial assets denominated in local currency.

According to the investment term, long-term, medium-term and short-term capital are distinguished: According to the investment term, long-term, medium-term and short-term capital are distinguished: Long-term capital investment for a period of more than 5 years. All investments of entrepreneurial capital in the form of direct and portfolio investments are usually long-term. Long-term capital investment of capital for a period of more than 5 years. All investments of entrepreneurial capital in the form of direct and portfolio investments are usually long-term. Medium-term capital - capital investment for a period of 1 to 5 years. Medium-term capital - capital investment for a period of 1 to 5 years. Short-term capital investment of capital for up to 1 year. Short-term capital investment of capital for up to 1 year.

They also distinguish such forms of capital as illegal capital and intra-company capital: They also distinguish such forms of capital as illegal capital and intra-company capital: Illegal capital is the migration of capital, which bypasses national and international law (in Russia, illegal methods of exporting capital are called flight or leakage). Illegal capital is the migration of capital, which bypasses national and international law (in Russia, illegal methods of exporting capital are called flight or leakage). Intracompany capital transferred between branches and subsidiaries (banks) owned by the same corporation and located in different countries. Intracompany capital transferred between branches and subsidiaries (banks) owned by the same corporation and located in different countries.

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Question 1. Theories of international capital migration

International capital migration is
counter flow capital processes
between different countries of the world
farms
whatever
from
level
their
socio-economic
development,
bringing additional income their
to the owners.
International capital migration theories:
Neoclassical theories
Neo-Keynesian theories of economic growth
Marxist theories of capital export
Concept for the development of international
corporations

Neoclassical theory was based on
views of J.St. Mill:
exported
that part of the capital that
helps to lower the rate of return
capital import improves production
country specialization and promotes
enlargement foreign trade.
capital is mobile in
internationally

Neo-Keynesianism (late 30s - early 50s
years XX century)
An essential reason for international
capital movement is the state
balance of payments. If the balance of payment
balance is positive, then the country can become
exporter of capital. International process
capital flows should be regulated
the state.
F. Machlup: Exporting capital, affecting
domestic investment may limit them. V
countries importing capital is stimulated
investment growth, which increases consumption and
growth of national income.
R. Harrod: If a country's savings exceed
investment, then the rate of economic growth
slow down, the trend towards export increases
capital.
E. Domar: it is necessary to expand the state
foreign investment and regulate the rate
interest on them to ensure a positive
balance of payments.

The Marxist Theory of Capital Export
justified its excess in connection with
by the action of the law of the trend of the norm
profits are down. Capital is exported
abroad because there he may be
placed at a higher rate of return.
V.
I. Lenin linked the export of capital with
unevenness, originality of development
enterprises, industries and countries in conditions
domination of monopolies.
In the evolution of Marxist theory
as reasons for the export of capital
examines the growth of internationalization
production, increased competition between
monopolies, increasing the pace
economic growth.

An important place among modern theories
are occupied by theories of international
corporations:
The theory of "economies of scale".
Technological theory of international
corporations associates their emergence with
technological advantages of head
companies from developed countries.
International organization theory
explores the reasons why
reaching a certain size
national corporations tend to
international organization.
Placement theory explains why
determining the location
production.
Internationalization theory (P. Buckley,
J. McManus, M. Casson, J. Dunning and others),
studies the problem of intercompany relations
international corporations.

Question 2. World investment and savings

The demand for capital as a financial asset exists in
form of world investment. World
savings represent an offer
financial resources.
Capital movements are reflected in the payment
balance sheet in the capital account.
If the capital account is positive, then
the country will become an importer (borrower) of capital.
If the capital account is negative, then the country
exports capital and is a creditor.
The movement of capital is associated with the movement of goods
and services:
They are mutually opposite, therefore, in the payment
balance sheets are accounted for with different signs;
Ideally, they balance each other. This equation
is the main macroeconomic
identity.

The intensity of capital migration to
largely determined
the degree of openness of the country's economy and
the value of the existing rate
percent:
In a country with a closed economy, the influx
capital is zero for any internal
real interest rate.
In a country with a small open economy, an influx of
capital can be anything at
world interest rate (a country that does not
affects the level of world interest
rates)
In a country with a large open economy
there is a positive relationship
between capital inflows and
internal interest rate. That's why
the value of the world interest rate in
will largely be determined
economic
politics.

Question 3. International migration of capital: essence, stages, forms

The first stage in the evolution of international migration
capital (MMK): from the XVII-XVIII centuries. until the end of the 19th century:
"The stage of the emergence of the export of capital." Capital
migrated from metropolises to colonies and wore
limited and casual.
The second stage in the evolution of MMK from the end of the 19th to the middle
XX century: the process of capital export is carried out as
between industrialized countries and between
industrial and developing countries.
The third stage from the mid 50s-60s of the XX century. before
present: Capital export is carried out
industrialized, developing and former
socialist countries. Countries at the same time
become both exporters and importers of capital.

The development of the MMK process is influenced by two
groups of factors, including:
factors
economic nature:
development of production and maintaining the pace
economic growth; deep structural
shifts in the world economy; deepening
international specialization and cooperation
production; growth of transnationalization
the world economy; height
internationalization of production and
integration processes; active development
all forms of MEO;
political factors:
capital export / import liberalization
(FEZ, offshore zones, etc.); politics
industrialization in third world countries;
economic reforms; politics
support the level of employment.

Economic feasibility of export
capital
receiving additional profits;
establishing control over others
subjects;
bypassing protectionist barriers;
access to new sales markets;
access to the latest technologies;
access to cheaper resources;
preservation of trade secrets;
savings on tax payments;
reduction in environmental protection costs
Wednesday, etc.

Economic feasibility of import
capital
possibilities
development of certain new and
old productions;
attracting additional foreign exchange
resources;
expanding scientific and technical potential;
creation of additional jobs, etc.

Participation of the country in the processes of MMK
reflected in a number of indicators.
Absolute figures: export volume
capital, volume of capital imports, balance
export-import of capital, number
enterprises with foreign capital in
country, the number of people employed on them, etc.
Relative indicators:
capital import ratio reflecting
the share of foreign capital in the country's GDP;
capital export ratio reflecting
share of exported capital by
in relation to the country's GDP;
ratio reflecting the share
foreign capital to domestic
investment needs in the country.
1.
2.
3.

Investment resource flows
shuffle into:
macro level: interstate, or
official, capital outflow
(interstate loans, official
assistance, loans from international financial
organizations, etc.)
micro-level: at the level of inter-corporate
and intra-corporate relations,
interbank loans, etc.

Financial flows between lenders and
borrowers are served by the institute
financial intermediaries:
private
national and
international financial and credit
institutions.
state represented
treasury, issuing and export-import banks and other
authorized institutions;
interstate banks and foreign exchange
funds.

By the form of ownership of the migrant
capital
private,
state,
international
(regional),
monetary and financial
organizations
mixed.

By timing of capital migration
super short term
(up to 3 months),
short-term (up to 1-1.5 years),
medium-term (from 1 year to 5-7 years),
long-term (over 7 years and up to 40-45)

By the form of capital provision
commodity,
monetary,
mixed.
By purpose and nature of use
migratory capital
entrepreneurial,
loan.

Among the migrant capital: more
50% owned by private entities -
these are corporations, TNCs, banks, shares,
insurance, investment and pension
foundations, etc.
Trends:
Reduction in the share of banks
Growth in the share of TNK capital
The share of state capital is about 30%
and tends to grow
Share of international monetary and
financial organizations - about 12%, has
upward trend

Private direct investment movement
characterized by movement along the following
directions:
between countries with highly developed
industry where traffic takes place
portfolio investments;
to countries already with significant
industrial potential, where direct investment
more significant than portfolio;
to countries with underdeveloped economies, but
possessing rich raw materials, where
only direct capital
attachments.

Migration of capital in the entrepreneurial
form requires mandatory
the presence of three signs:
firstly, organizing and participating in
production process abroad;
secondly, long-term nature
investments of foreign capital;
third, the ownership of
the enterprise as a whole or part of it for
territory of another state.

Direct
foreign investment is
long-term foreign investments
capital resulting in
an exporter of capital is organized or
production is in progress
host country capital.
Portfolio
investment is a form
export of capital by investing in
securities of foreign companies,
preventing investors from
direct control over their
activities.

Question 4. Migration of capital in a business form

Foreign direct investment concept
includes:
Share capital;
Intercompany transactions;
Reinvested income;
Intangible income.

Foreign portfolio investments
include:
Financial
instruments: bonds,
shares, money market instruments;
Derivatives (financial derivatives
instruments): options, forward
contracts, etc.

The positive impact of FDI on the economy:
Capital investment growth;
Facilitating the transfer of technology;
Expanding access to export markets;
TNCs fully cover the risks of their
branches;
Transfer of practical skills and
managerial skills;
Multiplicative effect;
Increased competition;
Expanding the host tax base
country;
Employment and income growth, etc.

The negative impact of FDI on the economy:
A loss
control by local companies
over national production;
Displacement of national companies;
Negative effect on the state of the payment
balance;
In the long term, it is expensive.

The positive impact of PI on the economy:
Contribution
in financing capital investments;
Promotion of consumption growth;
Stimulating the liquidity of banks and
the economy as a whole;
Help to strengthen financial
infrastructure.

The negative impact of PI on the economy:
High
financing costs;
The possibility of growth in financial speculation;
High risk of instability.

A global market has been formed since the 60s
foreign investment. Prerequisites:
removal by many countries of restrictions on
export-import operations
capital;
privatization of state-owned companies
in Western Europe and Latin America in
60-70s;
privatization of enterprises in former
socialist countries.

Current migration trends
capital in an entrepreneurial form:
capital export dynamics are traditionally
outstripping the dynamics of export of goods;
an increase in the number of mergers and acquisitions of firms;
the growing role of TNCs;
shift in the sectoral structure of foreign
investment from manufacturing
industry and trade to investment in
knowledge-intensive industries and services (more
55%);
a system of international
regulation of foreign investment;
high concentration;
there is a change in geographic
directions of foreign investment.

Question 5. Migration of loan capital

Loan capital is the provision of
loans in cash or commodity form
in order to get a high percentage from abroad. Loan form MMK
implemented in the following operations:
issuance of state
purchase of bonds
and private loans;
another country,
securities, bills;
making payments on debts;
interbank deposits;
interbank and government
debt.

Fast
growth rate of export of loan
capital and significant in volume
recurring transactions internationally
level led to the formation in the late 60s and early 70s of the XX century world
loan capital market.
World
loan capital market (IDGC)
is a system of relations
accumulation and redistribution
loan capital between countries
world economy, regardless of
level of their socio-economic
development.

The global loan capital market has
complex structure and includes:
World
the credit market is special
segment of IDGCs where traffic is carried out
capital between countries on terms
urgency, repayment and interest payments.
World
the financial market is a segment
IDGCs, where the issue and purchase and sale of securities and various
obligations.
In the primary market,
direct issue of bonds, shares and
etc., the sale and purchase of previously issued securities takes place on the secondary market.

Features of the world loan market
capital at the present stage of development:
A high degree of monopolization of this
market.
Concentration of loan capital through
mergers and intertwining of subjects
IDGC.
Borrowers' access to IDGCs is limited.
IDGC has a potential
instability.
IDGC lacks clear spatial
and time limits.
IDGC is closely connected with modern research and development developments.
IDGCs are characterized by their versatility and
unification of operations.

Question 6. Internationalization of the capital market and the problems of its regulation

Strengthening international traffic flows
capital leads to the following results:
The ratio between the centers changes
attraction of world investments. Industrial
countries in the 90s became net exporters of capital.
Developing countries are increasing not only imports,
but also the export of capital
Changes occur in the structure of forms and
investment institutions. In total
investments are dominated by portfolio investments.
The interpenetration of all types of
international investment. Between two
segments of the financial market - currencies and capitals
boundaries are gradually being erased. Thus,
formed extraterritorial in relation to
financial centers of the national economy, or
offshore zones.

The main features of globalization
financial capital are:
Preferential development over
real asset market
Freedom of movement in modern
economic space
Lack of nationality and
predominantly speculative
The global financial market is getting weak
controlled

The activity of participation in the export of capital in any
the country depends on the investment climate in the country,
importing capital.
The investment climate is
a set of economic, political,
legal and social factors, which
predetermine the degree of risk of foreign
investments and the possibility of their
effective use in the country.
One of the main areas of formation
favorable investment climate is
providing foreign investors with legal
regime no less favorable than national
simultaneous protection of the national economy from
unfair foreign investment.

Slide 1

International movement of capital Municipal educational institution "Secondary school No. 1" of the city of Valuyki, Belgorod region Presentation for a lesson-lecture on economics in grade 11 (profile level) Teacher of history and social studies: V.L. Gitelman 2015

Slide 2

Plan: 1). International loan capital market; 2). European market; 3). The external debt of developing countries; 4). International financial organizations; 5). Russia in the world market of loan capital; 6). Export of entrepreneurial capital and the role of TNCs in global capital; 7) Russia as an importer and exporter of entrepreneurial capital.

Slide 3

1. International market of loan capital. Structure: 1) money market (short-term capital - up to one year, loans and borrowings against bills); 2) capital market (medium-, long-term - up to 10 years loans against securities); 3) financial market (issue of securities and transactions with them) Securitization - issue of securities backed by assets

Slide 4

Types of loans: - according to the form: commercial (for foreign trade) financial (other purposes) commodity (in the form of deferred payment) currency (in cash) -by purpose: related (target nature) unrelated (the country determines itself) -by the borrower: syndicated-provided by a group of banks

Slide 5

Slide 6

2.The European market (50-60s of the XX century) - a set of transactions with in cash that function as loan capital outside national borders and are not subject to national financial control countries (currency issuers) -25 world centers (13 European)

Slide 7

Prerequisites for education: Accumulation of foreign currency in accounts abroad (especially in Europe) Attractiveness due to low interest rate Rate = base (London interbank deposit market rate (LIBOR) + spread (fixed premium) The higher the borrower's rating, the lower the% rate

Slide 8

Slide 9

3. External debt of developing countries Features: 1) 80s - debt crisis of more than 70 countries (request for restructuring) 2) External debts began to be converted into stocks, bonds 3) Part of the debt is written off 4) The share of those experiencing difficulties with payment has decreased 5 ) Official development assistance is applied (subsidies, concessional loans, etc.)

Slide 10

Slide 11

4. International financial organizations 1) IMF - only to official state bodies, - for 5-10 years - targeted character - the presence of certain conditions (development program, etc.) "-" - curtailment social programs, subsidies, etc.

Slide 12

2) World Bank. Structure: 1. IBRD (World Bank); 2. International Development Association; 3. International Finance Corporation; 4. Multilateral Investment Guarantee Agency; 5. International Center for Settlement of Investment Disputes.

Slide 13

5. Russia in the world loan capital market Main lenders: Germany, USA, Italy Since 1992 - member of the IMF, World Bank. Reasons for low solvency: 1) Have to pay the USSR's debts 2) Export of capital abroad Sources: Deferred payments Debt claims on developing countries Export of loan capital

Slide 14

Slide 15

6. Export of entrepreneurial capital: 1) foreign direct investment - establishment of an enterprise (or part) abroad (investor has> 10%) 2) portfolio investment - foreign investment in small blocks of shares

Slide 16

TNC-company with branches in five or more countries. Motives for placing direct investments of TNCs abroad: 1) cost savings 2) the desire to gain a foothold in a new market 3) creation of a transnational system of division of labor 4) getting max. profit from minimal taxation 5) striving to use a favorable investment climate

Slide 17

7.Russia as an importer and exporter of entrepreneurial capital Opportunities for attracting direct investment: 1) large domestic market 2) developed scientific and technical potential 3) production base 4) cheap and qualified work force 5) an abundance of natural resources

Slide 18

Reasons for the deficit of direct investment: 1) imperfection of tax legislation 2) underdevelopment of production and business infrastructure 3) weakness of the judicial system