Foreign economic activity. The need for state regulation of the national economy, its essence and prerequisites (the most important)

Lecture notes, cheat sheets
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Foreign economic activity. The need for state regulation of the national economy, its essence and prerequisites (the most important)

Lecture notes, cheat sheets

Directory / Lecture notes, cheat sheets

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23. The need for state regulation of the national economy, its essence and prerequisites

In the conditions of market relations, the totality of the economic functions of the state is implemented through the mechanism of state regulation, which is the intervention of administrative bodies in entrepreneurial activity through the use of various forms and methods of a predominantly economic nature.

The main prerequisite for the need for state regulation is the high degree of maturity of the industrial market system in Western countries and the need for its regulation in order to eliminate monopoly.

The main reason for the development of the means of production (automation of technological processes) and qualitative changes in the qualifications of the labor force (increasing the role of scientific intellectual labor) is becoming demonopolization of the system of economic relations with its tools and institutions.

The joint-stock form of relations between many independent, independent commodity producers has become widespread, which has changed many processes - the development of organizational forms of ownership and the production system, long-term cooperative ties, the management of large complexes, etc. However, their competitive behavior is distinguished by sovereign, isolated, often inconsistent, largely unpredictable actions aimed at ensuring their own interests. Here, the necessity and role of state regulation of the entire set of economic functions was manifested in order to regulate behavior and a certain uniformity of actions in the market.

State regulation is carried out through legal regulators, administrative and economic.

Legal regulation establishes the rules for the functioning of the market, economic relations, ensures the protection of the activities of the subjects of society as a whole and its individual members. It covers all areas of the market space (commodity, financial, labor), as well as those relations that develop in this space.

The reason for the implementation of the legal regulation of the economy is such a lack of a market system as the desire to make a profit without taking into account possible negative consequences. The purpose of legal regulation is to ensure civilized market relations, the observance of the interests of their participants.

Administrative regulation is based directly on the power of state power and includes measures of prohibition, permission, coercion. Administrative measures significantly limit the freedom of choice in decision-making for subjects of market relations. Administrative regulation is recognized as necessary in those areas where the complete economic freedom of some subjects of market relations turns into serious consequences for others or society as a whole. Administrative methods: control over compliance with standards for manufactured products; the establishment of quotas, customs duties on imports or exports of products in order to protect domestic producers; determination of priority areas for grants and investments; development of local self-government functions, etc.

Economic regulation is based on the impact on the economic interests of domestic producers and material incentives for the development of certain types of activities in accordance with the needs of society.

Economic regulation includes:

1) measures of direct impact on the economy, which include targeted financing, incl. regional and targeted programs; as well as the public procurement system;

2) indirect regulators, which include fiscal, monetary, depreciation, currency, customs policies.

Author: Bobkova O.V.

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