State import quota. Export quota

Hello, dear readers of the site. Stocks and bonds are the main market instruments valuable papers. In this article you will learn the difference between stocks and bonds.

Shares are part of ownership. Shareholders are co-owners of the company.

Bonds are a company's debt. Bondholders cannot influence the management of the company, but have an advantage over shareholders in getting their money back if the company goes bankrupt.

For example:

• If you have 5% of the shares of a company, you have the right to convene a general meeting of shareholders, that is, convene all shareholders/owners of the company.
• If you have 25% of the shares, you have the right to block any decision of the shareholders meeting. You have access to accounting documents.
• If you have more than 50% of the shares, you have complete control over the company.

Lukoil has 850 million shares, Gazprom has 23.6 billion shares, VTB has 13 trillion shares, at 7 kopecks apiece.
The more shares you have, the more ownership you have in the company.

Bonds are debt from a company; you can buy a portion of that debt and wait for the company to pay it back to you with interest.
Ownership of bonds does not give the right to manage the company or express proposals for the management of the company.

But bonds have one advantage over shares: if a company declares (goes bankrupt, becomes bankrupt), then bondholders and creditors/banks get their money first. This money comes from sales physical assets companies.

In case of bankruptcy of a company, when dividing property, shareholders can only count on that part of the property that will remain after paying off all debts on loans and bonds.

Shareholders receive dividends.

Companies can decide to pay dividends on shares.
This is decided at the general meeting of shareholders, when the board of directors decides to pay or not pay dividends.
The size of dividends depends on the company's profits; sometimes there may be no dividends at all.

Bondholders receive coupons.

This is the interest on bonds that is paid at a predetermined date.
The issuing company is required to pay coupons on the bonds, and is also required to pay the face value of the bond on the maturity date.
This is the same as a loan - the borrower is obliged to make payments on the loan.

Purpose of issuing shares

The owner of the company, by issuing shares, sells part of the company in order to invest the money received from the sale in the development of the company, or start something new.

When companies issue additional shares this results in a change or redistribution of ownership.
For example, some shareholder has 5% shares of some company. If the company's management decides to issue some more shares, the shareholder will have, for example, 4.9% of the shares of this company, and this shareholder will lose the right to call other shareholders to a general meeting.

Purpose of issuing bonds

Companies issue bonds to attract additional funds into circulation. Issuing bonds for a company may be more profitable than taking out a loan from a bank, because the interest rate on bonds may be lower interest rate on loan. The second reason is that the money raised by issuing bonds is usually available for a longer period.

Types of stocks and bonds

Stock:

Ordinary (JSC) - This is a paper that gives the right to receive non-fixed dividends (if the board of directors decides to pay dividends), and also gives the right to participate in the management of the company, 1 share - 1 vote.

Preferred (AP) - They pay fixed dividends, for example, 10 kopecks per share, or 0.001% of the company's profit per share, and these dividends are paid first, before ordinary shares. The rights to participate in the management of the company may be limited or, conversely, expanded.

Bonds:

Short-term, Medium-term, and Long-term

Coupon and No Coupon

(with fixed constant, fixed variable, and floating coupon),

Different in the method of repayment of the face value, -

Ordinary, when the nominal value is repaid at the end of the circulation period.
Amortization, when the face value is paid in installments over the life of the bond.

Revocable and Irrevocable.

Read more about types of bonds

Quotas- this is a restriction in quantitative or monetary terms on the volume of products allowed for import or export from the country. In this regard, a distinction is made between import quotas and export quotas.

Import quotas– limiting the volume of imports to a certain natural or value quantity.

Export quotas– limiting the volume of exports to a certain natural or value quantity.

Under tariff restrictions, the quantities of imported and exported goods are not regulated; it is necessary to pay the tariff rate based on the quantity, customs value or a combination of them. Quotas limit volumes foreign trade a certain number of tons, pieces, liters. The state issues licenses for the export or import of a limited amount of products and imposes a ban on unlicensed trade.

Quotas differ from tariffs in that they completely neutralize the impact of external competition on domestic prices. Import quotas isolate the domestic market from the penetration of new and innovative foreign goods in excess of the issued license. As a result, quotas become a serious and powerful method of protectionist policy.

There are also significant qualitative differences between quotas and tariffs: changes in tariffs are regulated by national legislation within the framework of international agreements, so the government does not have the right to independently increase tariffs. In this case, it tightens import quotas and makes foreign trade policy deeply selective through the distribution of licenses between specific enterprises.

Voluntary Export Restrictions (VER)- This is a type of export quota. Under voluntary export restrictions, exporting countries undertake obligations to limit exports to a specific country. The appearance of voluntariness covers the desire to avoid more serious and stringent protectionist restrictions on the part of partners.

Essentially, DEOs are a forced measure.
EEOs imposed by the exporting country have a more negative effect on the importing country than the conditions of tariffs or import quotas, since in this case the prices of imported goods may be higher than in the case of tariff restrictions or import quotas. Thus, the decrease in export volumes is compensated by increasing prices.

Attitude international organizations to voluntary export restrictions is of a negative and condemnatory nature, as evidenced by the task of abolishing DEO by 2000 under the General Agreement on Tariffs and Trade.

In addition to the three main ones, non-tariff trade restrictions also include varieties of hidden protectionism, under which the pre-customs movement of goods is controlled, i.e. the very possibility of goods participating in import and export. TO These include sanitary, technical and currency restrictions on the import of goods.

TO sanitary restrictions The following types include:

mandatory compliance with national standards;

quality certificates for imported products;

requirements for specific labeling and packaging of goods;

requirements for the environmental characteristics of consumer goods and industrial goods.

Free trade as a type of foreign trade policy (select

Possible answer):

• a) supports subjects of the national economy;
• b) used for saving economic security in times of international tension;
• c) stimulates competition processes among domestic producers and on the world market;
• d) protects new industries that have arisen as a result of scientific and technical progress.

Answer: c), since this is one of the main positive impacts of free trade. Free trade leads to the most efficient allocation of resources on a global scale and to the maximization of world income.

Check out the non-tariff methods of regulating foreign trade:

• a) quotas;
• b) licensing;
• c) customs duties;
• d) voluntary export restrictions;
• e) sanitary and technical restrictions.

Answer: a), b), d), e), since quotas, licensing and voluntary export restrictions are the main types of non-tariff methods. Non-tariff methods also include types of hidden protectionism, under which the pre-customs movement of goods is controlled, such as sanitary and technical restrictions.

Protectionist policy instruments are used by the state to achieve goals such as (indicate the correct answer):

• a) protection of new (“young”) industries from the effects of competition from foreign entrepreneurs;
• b) growth in employment within the country;
• c) prevention of dumping;
• d) ensuring national economic security;
• e) all of the above answers with different points views characterize the directions of protectionism;
• f) only answers a) and c) are correct.

Answer: d), since all of the above options are the goals of protectionist policies.

One of the most important tools for protecting domestic producers from competitors and protecting the domestic market from reduced consumption of domestic goods is export and import quotas. This term refers to the introduction by the state of cost or quantitative restrictions on the volume of exports or imports of certain goods. With quotas, the state issues licenses for the import and export of a limited number of goods, while prohibiting unlicensed trade.

When are quotas used?

• With an increase in external debt and a deterioration in the country's balance sheet.
• In accordance with international agreements.
• Due to the saturation of the domestic market with goods that are not produced within the country.
• If there is a need to ensure certain proportions between domestic and imported goods.

Import and export quotas guarantee that the import and export of certain products will not exceed established standards.

Are export and import quotas applied in Russia?

Russian legislation established one system quotas and licensing. Its effect applies to all small businesses exporting goods. Quotas apply for customs union countries of the EAEU in order to regulate supply and demand in the domestic market of the member states.

Quotas are determined by the Russian Ministry of Economic Development. This ministry is also responsible for issuing licenses. When exporting a number of goods from the country, it is necessary to obtain permission from the relevant department.

The state has introduced the following types of quotas on goods:

• global (without specifying specific countries);
• group (for certain groups of countries);
• individual (indicating a specific state).

Normative base

Export and import quotas are regulated by:

• Law of December 8, 2003 No. 164-FZ;
• Decrees of the Government of the Russian Federation No. 1299 of October 31, 1996, No. 1498 of December 9, 2017, No. 779 of July 30, 2012;
• Treaty on the Eurasian economic union dated May 29, 2014;
• other regulations regulating certain quota issues.

The range of goods subject to quotas for import and export is contained in the relevant decrees of the Government of the Russian Federation regulating the export and import of certain types of products. For example, Decree No. 779 dated July 30, 2012 regulates tariff quotas for pine and spruce; Decree No. 1498 dated December 9, 2017 establishes the volume of quotas for poultry, pork and large cattle etc.

External economic activity each country has a direct impact on the state of the international economy. In turn, the international economy affects the efficiency and dynamics of domestic economic systems. Countries with unstable national economies experience difficulties entering the international arena. In order to assess the level of integration into the international economic system, special quotas are used. Foreign trade parameters, by which the country’s economy is assessed, make it possible to determine its readiness to work with foreign companies. In this article, we propose to examine in detail the question of what a quota is and what it is used for.

For the globalization of the international economy, the state of foreign economic activity of individual states is important

What is quotas

Probably every person has heard of such a term as “quota”, however true meaning Not all people know this word. Translated from Latin language, this term is translated as “share”. As a rule, a quota is a certain part of a product or a percentage of a service. This indicator is used to limit various actions. Today, many experts consider the meaning of the term quota as a restriction on the import or export of commercial products from a particular country. These restrictions can be of both quantitative and price nature.

Quota parameters are used to control the legal relations of participants economic activity. The main goal the use of quotas is to limit the indicators of manufactured and sold products. Quotas can also be used to temporarily limit the quantity of imported and exported products.

Advantages and disadvantages of quotas

Temporary restrictions on the import and export of goods to a specific country are used as the main instrument regulating the relations between several countries. This tool can also be used to put pressure on a country in need of specific goods.

Thanks to the implementation of this system, the world community received an effective tool for regulating market relations.

The use of the tool in question increases the profitability of domestic production. This phenomenon is fully manifested in those areas that are protected by the state. The introduction of quotas allows you to increase demand local products, which allows manufacturing companies to increase their own capacity. Also, the use of this system makes it possible to exert political influence on foreign countries acting as importers.

Among the advantages of quotas, the following aspects should be highlighted:

1. Preservation of national security.
2. Reduced consumption of minerals.
3. Improving the country's domestic economy.

However, the use of this tool has a number of significant disadvantages that have a direct impact on consumers of goods. An artificial shortage contributes to an increase in prices for domestic products. Buyers also have difficulty choosing the products they are interested in due to the limited range. In this case, consumers have to independently look for alternative solutions to the problem. The use of the instrument in question significantly slows down the speed of development of competition in the domestic market.

To assess the degree of integration into a world-class economic system, it is necessary to calculate the quota parameter

Types of quotas

Today there are several different types of quotas. Group quotas imply restrictions on the import of products from several foreign countries. In addition, there are global parameters used to regulate the volume of receipt of specific product groups. In this case, the countries where the products whose import is temporarily restricted are not indicated.

There are also anti-dumping regulations that are used to determine the amount of goods imported into a particular country. The last type is compensatory quotas, which are used to limit the maximum size of a consignment of goods imported into the territory of a particular state.

Import quotas

An import quota is a kind of regulation according to which the import of goods into the territory of a particular state is limited. The function of controlling restrictions has been transferred to the customs authorities. It is important to note that the instrument in question is typical for the international market. The use of import quotas allows the authorities to attract consumer attention to domestic goods. Import standards are set by government agencies. The value of the established threshold allows local manufacturing companies to increase their own competitiveness.

Peculiarities

It is important to note that the use of import quotas deprives the country of one of the additional sources of replenishment of the treasury. Entrepreneurs who have received permission to sell imported products receive all income from the sale of these goods. Entrepreneurs with an import license have the opportunity to sell foreign goods at a high margin. The income received from such operations is called quota rent.

Restrictions on the import of foreign goods make it possible to create a unified structure used to regulate the domestic market. This tool allows every manufacturing company to set high price for your goods. This factor is explained by the fact that there is a limited assortment on the domestic market. Also the owners large enterprises get the opportunity to reduce production capacity, developing an artificially created shortage and increasing the demand for its supply.

How is it calculated

As a rule, import quotas are calculated on the basis of cost or quantity parameters. In most cases, the quota system is implemented for exactly one year. Before you implement this system, it is necessary to conduct a thorough analysis, studying each state separately. When developing this system, the interests of both participants in international trade are taken into account, but the most important criterion is the personal benefit of the party restricting imports.

To determine the value of quotas, statistical data on the number of goods imported into a particular country over a period of time is used. recent years. It should also be noted that there are product groups with the right to sell, which only exporting states have. The presence of restrictions on the import of products is confirmed by compulsory licensing. Every entrepreneur can purchase permits.

The concept of a quota allows you to allocate a specific share attributable to a specific action or participation in a joint venture.

Impact on cost

It should also be said that placing restrictions on foreign goods significantly increases their cost. This factor is explained by the fact that transportation costs are added to the original cost of the product. Another reason for rising prices is the need to stabilize the market situation.

Distribution of rights

The procedure for distributing rights to import foreign products allows us to assess the degree of impact of the instrument in question on the well-being of the population. Authorized bodies use the following methods for allocating import rights:

1. Based on the competition.
2. Based on economic preferences.
3. Based on estimated and actual costs.

The competitive basis implies the use of open auctions in which all business entities can participate. During the bidding, a certain cost of permits is established, which is equal to the difference between the cost of goods and the price at which these products will be sold. The priority system of quota distribution implies taking into account explicit and systemic preferences in the domestic market. Authorities establish quantitative and cost limits for specific entities. By using this system, there is no need to apply for licenses.

Export quotas

An export quota is a certain framework that limits the volume of supplies of products produced in local market to foreign countries. Control authorities can establish both certain limits and norms according to which the volume of quotas will be regulated. This instrument is often used by those states whose economies depend on the sale of raw materials to other countries. Analysis of the indicator under consideration allows us to determine the level economic development countries and find out the degree of dependence of various industries on exports. As a rule, the export quota is expressed in the form of a quantitative or natural value. Using this indicator, the form of regulation of trade transactions between several states is determined.

Advantages

Quotas are a tool by which to regulate or limit foreign trade policy. It is important to note that this instrument has progressive and flexible characteristics in comparison with tariff parameters. This is explained by the fact that when developing tariff rates Both international agreements and legislative norms are taken into account.

The main advantage of export quotas is the impossibility of reducing prices based on increased sales volumes. This option allows government agencies provide support to entrepreneurs operating in certain industrial areas.

The quota is introduced not for a permanent, but for a certain period

Calculation

This type of restrictions is established for each type of commercial product separately. When calculating limits, indicators from previous years on the number of goods exported abroad are taken into account.. In addition, the total volume of goods manufactured during a given time period is taken into account. In order to determine the value of the parameter under consideration, it is necessary to calculate percentage the volume of goods sent to foreign countries to the number of products manufactured during a given time period.

There are a number of specific national production standards, according to which a list of marketable products is formed, as well as quantitative export parameters. The license issued by the control authorities contains information about all restrictions and permits relating to exports. It is important to note that this document is valid for a limited period of time.

Export restrictions

The use of voluntary restrictions on the export of goods is considered as one of the options for non-tariff regulation of trade relations between several countries. The meaning of this system is to establish an agreement between two countries on restrictions on the import of specific goods. Speaking in simple language, the heads of several countries select product groups for which quotas are set. The procedure under consideration is carried out according to a special scheme, which must be followed by all members of foreign economic activity:

1. Representatives of the two countries enter into a formal agreement.
2. Manufacturing companies representing the interests of each country enter into informal agreements.
3. Based on the agreements reached, an interstate agreement is drawn up to approve a voluntary export restriction.

The use of this tool allows us to protect the interests of not only local producers, but also foreign consumers.

Embargo

The term "embargo" means that the quota is set to zero. This tool can be described as a prohibitive quota. As a rule, an embargo is used against those countries that have violated international trade relations. This procedure implies the imposition of penalties from one or more states. T Thus, large manufacturing companies stop working with a state that has violated international agreements.

An import quota is a restriction on the import of products into a country.

The embargo is expressed in the form of the following legal actions against the violating country:

1. A ban on the import and export of commercial products, valuables and other material property.
2. Detention of transport.
3. Ban on ships entering international ports.

The consequences of imposing an embargo depend on the amount of demand for commercial products. In the event that goods prohibited for export cannot be replaced by local production, the countries that have imposed a ban on trade operations begin to incur losses. This fact is explained by the fact that these countries have to purchase goods from other suppliers at a higher cost. In the case where a prohibited product has cheaper analogues, the exporting country begins to lose money due to a narrowing of the sales market.

Conclusions (+ video)

In this article we looked at different kinds quotas, which are an effective tool for political influence on other states. However, the main purpose of quotas is to protect local producers and internal resources countries.

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