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Foreign economic activity. Composition of exporter-manufacturers operating in the foreign market without intermediaries (the most important)

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12. The composition of exporters-manufacturers operating in the foreign market without intermediaries

Exporters-manufacturers operating on the foreign market without intermediaries include industrial enterprises (associations), production cooperatives, consortiums and joint ventures that ensure the production of export products and the provision of various kinds of services.

The main group of participants in foreign economic activity is formed by manufacturers of export competitive products (petrochemical, machine-building, timber processing, metallurgical, etc.) that provide the entire technological cycle for the production and sale of goods (including works and services) - research and production, storage, marketing, transport and sales and accounting and financial. Being producers and owners of export products, they independently sell it on the foreign market, becoming also the owners of foreign exchange funds received as a result of an export operation, which are evaluated based on specific prices. Their foreign economic activity is built on the basis of currency self-sufficiency

Consortia - a form of association of enterprises with a production and foreign economic profile of activity, directly operating in the foreign market. They are formed on a bilateral and multilateral contractual basis by several partners to achieve certain results through coordinated actions. They are created for the implementation of large-scale projects that require the pooling of financial, technical means and organizational efforts of foreign economic activity participants. The participants of the consortium are manufacturers and suppliers of export products, design and financial organizations. They have their own foreign trade divisions in their structure. The action of the consortium can be of a one-time nature (during the construction of a specific facility), short-term (if it is necessary to implement any foreign economic program) and long-term.

Joint ventures, part of the group of exporting manufacturers, have been operating in Russia since 1987. Many joint ventures conduct foreign trade intermediary activities. However, the share of joint ventures in the manufacturing sector is very low, which is due to the lack of a market for raw materials and means of production, the backward production base of domestic enterprises and their lack of large initial capital investments. The most active investors in Russia are companies from the USA, Germany and Italy.

Production cooperatives to sell their products on the foreign market, they mainly attract their foreign porters from related enterprises and firms through coastal and border trade with the countries of Eastern Europe, Finland, Mongolia, China, and the DPRK, most often using barter operations. The foreign economic activity of production cooperatives is being activated through the establishment of direct ties, compensatory and production cooperation. At present, numerous unions and associations have been formed by production cooperatives in order to protect their interests and facilitate the further development of foreign economic activity.

Transport act as active participants in foreign economic activity, ensuring the export of road, rail, sea (river) and air transportation services. International transport services are the most profitable direction of foreign economic activity in the following reasons:

▪ do not require significant investments;

▪ have a short payback period;

▪ not related to the sale abroad of material assets and irreplaceable raw materials.

The share of Russian road transport services in international transportation is constantly growing. As part of international transportation, Russian carriers account for 28,5% of the physical volume of cargo.

Author: Bobkova O.V.

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