Such an Office in the regions is a body of state executive power.
Management of foreign economic activity at the enterprise largely depends on what conditions will be created in the country for the development of its activities in the external sphere, on the role of the state in regulating and supporting the development of foreign economic activity at the national level … Therefore, the study of foreign trade management at the enterprise level is preceded by an analysis of foreign trade regulation at the state level.
In all countries without exception, and especially in countries with economies in transition, where economic relations are unstable, government intervention in the development of foreign economic activity is an objective necessity. This is mainly due to the protection of national interests in the implementation of foreign economic activity, the fuller use of foreign economic activity as a factor of economic growth.
In the period before perestroika, the country’s economy was autarkic (closed). Management of the economy (including foreign economic activity) was based on state monopolies and mainly on administrative management methods. In such circumstances, the direct producer was not interested in the development of export activities https://123helpme.me/write-my-lab-report/. There were no direct links between producers and consumers. There was no clear concept of foreign trade, which would reflect its purpose, priorities and methods of achieving them.
Under market conditions (transition to them), the nature of the state’s influence on the country’s economy, including foreign economic activity, is radically changing. This influence takes the form of state regulation, which means the creation of appropriate conditions conducive to the effective development of the economy as a whole and its components.
Thus, the state regulation of foreign economic activity of the enterprise in the transition to a market economy should be to create conditions and promote the development of its relations with foreign partners.
It should be noted that the term "regulation" of the economy, including foreign economic activity, is mainly used in the CIS countries. In Western countries and GATT / WTO documents, the term "regulation" is used in relation to foreign trade. We use both of these terms hereinafter.
State regulation is a system of legislative, executive and regulatory measures designed to improve foreign economic activity in the interests of the national economy.
State regulation of foreign economic activity is carried out by the method of development and implementation of state foreign economic policy. In modern conditions, foreign economic policy is a system of measures aimed at the most favorable development of economic, scientific, technical, industrial relations with foreign countries, deepening and expanding participation in MRI to address strategic objectives of socio-economic development.
Foreign economic policy is an integral part of the domestic economic policy of the state. Of course, the solution of general problems of foreign economic policy in each country has its own specific features.
The main components of Ukraine’s foreign economic policy:
foreign trade policy; investment policy; policy of scientific and technical cooperation; monetary and financial policy; labor migration policy, etc.
Each of the areas of foreign economic policy solves problems taking into account the stage of development of the country and current trends in the world economy.
Regulation of foreign economic activity in Ukraine is carried out taking into account the following purpose:
ensuring the balance of the economy and the balance of the domestic market; stimulating progressive market structural changes in the economy; creating favorable conditions for Ukraine’s economy to enter the system of international division of labor.
State regulation should provide:
protection of economic interests of Ukraine and legitimate interests of subjects of foreign economic activity; creation of equal opportunities for subjects of foreign economic activity for the purpose of development of all types of business activity, irrespective of patterns of ownership; development of competition and elimination of monopoly.
There are two types of foreign trade policy of the state:
Free trade or free trade. Protectionism.
Free trade policy is a minimal state intervention in foreign economic activity, unlimited access to domestic markets for foreign goods.
The policy of protectionism provides for state intervention in foreign economic activity, the introduction of various restrictions on foreign goods in order to support the national producer.
Despite the benefits of free trade policy, all states use protectionism to some degree. In reality, in its pure form, none of these approaches is used, but in one or another combination
It is not enough to recognize the need for state regulation of foreign economic activity in a market economy. The scale and effectiveness of foreign economic activity significantly depends on the organization of its regulation and management, both at the state level (region) and at the enterprise level.
The system of foreign trade bodies in the countries of the world has some common features:
First, in each country, the highest legislative body is primarily involved in the regulation of foreign economic activity. In the United States, it is Congress; in France – the National Assembly; in Japan – the Parliament, etc. In Ukraine, such a body is the Verkhovna Rada.
Regardless of the name, these bodies perform the following functions:
adopt laws regulating foreign economic activity; ratify the relevant agreements; allocate funds for the effective development of foreign economic activity.
Second, each country has a higher executive body that:
issues orders on the basis of adopted laws on the development of foreign economic activity; monitors the implementation of these laws; shows concern for the rational use of allocated funds for the development of foreign economic activity. In Ukraine, such a body is the Cabinet of Ministers.
Third, the greatest influence on the regulation and development of foreign economic activity is exerted by the ministries that are directly involved in economic relations with foreign countries and the implementation of state foreign economic policy. In the USA it is the Ministry of Trade and the State Department, in Great Britain – the Ministry of Trade and Industry, in Japan – the Ministry of Foreign Trade and Industry and the Ministry of Foreign Affairs, in Ukraine – the Ministry of Economy, within which 4 departments directly regulate foreign economic activity.
1. Department of State Policy in the field of foreign trade, which includes three departments:
Foreign Policy Department; Foreign Trade Monitoring Department; Department of Customs and Tariff Policy and Internal Market Protection.
2. Department of International Trade and Economic Cooperation, has 5 departments:
Department of Multilateral Economic Cooperation; Management of foreign missions; Department of Trade and Economic Relations with European Countries, USA; Canada; Department of Trade and Economic Relations with Asia and the Pacific; Africa and Latin America; Department of trade and economic relations with the CIS countries.
3. Department of Trade Restrictions and Control over Foreign Economic Activity, which has 3 departments:
Department of Tariff Regulation and Contract Accounting; Department of control over foreign economic activity; Office of Trade Restrictions and Unfair Competition.
4. Department of International Development and European Integration, which has 5 departments:
Department of International Credit Cooperation; Office of European and Atlantic Integration; Department of Bilateral Cooperation in the Field of Coordination of International Technical Assistance; Office for Cooperation with the EU and Multilateral Cooperation in the Field of Coordination of International Technical Assistance; Management of international investment programs and projects.
Fourth, other ministries and government agencies, such as the Ministry of Finance, the Ministry of Agriculture (or agro-industry), are involved in the regulation of foreign economic activity, in the development and implementation of foreign economic policy in the world. Ministry of Defense (if the country participates in the export-import supply of weapons), customs structures, etc.
Fifth, the development and regulation of foreign economic activity is facilitated by various non-governmental and semi-governmental organizations. These are chambers of commerce and industry, unions of entrepreneurs, associations of exporters, importers, investment funds, etc.
Sixth, in each state there are certain bodies of local (regional) management of foreign economic activity.
In modern conditions, the course of economic reform in Ukraine is characterized by the fact that the center of gravity is transferred to places, ie to the regions. The rights of regions in solving socio-economic problems, taking into account the external sphere, are expanding more and more. At the regional level, as well as at the state level, there is a formation of the management system in general and foreign economic activity in particular.
The local government bodies of foreign economic activity in Ukraine include:
local Councils of People’s Deputies of Ukraine and their executive and disprare bodies; territorial subdivisions (branches) of bodies of state regulation of foreign economic activity of Ukraine.
The competence of local councils, their executive and administrative bodies is determined by the Law of Ukraine "On Foreign Economic Activity" "On Local Councils of People’s Deputies of Ukraine and Local Self-Government", etc. Normative acts of local Soviets of People’s Deputies of Ukraine and their subordinate executive and administrative bodies regarding the regulation of foreign economic activity are adopted only within the limits provided by law.
Currently, the main governing body of foreign economic activity at the local level is the Department of Foreign Relations and Foreign Economic Activity of the Kyiv and Sevastopol City State Administration. Such an Office in the regions is a body of state executive power. It is created as a part of regional (city) state administration for the purpose of performance of its powers in the field of the international relations and cooperation, foreign economic relations and foreign investment activity. The department is subject to the regional (city in Kyiv and Sevastopol) state administration. To the Ministry of Economy, the Ministry of Foreign Affairs of Ukraine and the Regional Council of People’s Deputies within the limits of delegated powers.
The main tasks of this Office are:
formation and implementation at the regional (city) level of a unified state policy in the field of international relations and cooperation, foreign economic relations and foreign investment activities; promoting the development of international cooperation in the field of economy, protection of human rights, fight against terrorism, economic security, health care, science of education, culture, tourism, physical culture and sports; participation in drawing up agreements with foreign partners in cooperation within the competence defined by law; promoting the intensification of foreign economic activity of enterprises and organizations located in the region (city), regardless of ownership; promoting the development of the export potential of the region (city); promoting the creation of appropriate conditions for the organization of border and coastal trade; promoting the activities of local authorities and border services for their proper functioning; introduction in the constituent order in the corresponding bodies of offers on attraction of foreign investments for development of economic potential of area (city).
Management in accordance with its tasks performs a number of specific functions aimed at activating and improving the efficiency of foreign economic activity in the region (city) and its fuller use for socio-economic development of the region and the country as a whole.