Legal regimes of investment in the CDAM. International legal regime of foreign direct investment
Examination on the subject: "International Law"
Introduction ................................................... .................................................. ........... 3.
1. Connecting and elements of the system of state regulation of foreign investment ........................................ . four
2. Legal regulation of foreign investment in the Russian Federation 7
3. International legal regulation of foreign investment in the Russian Federation .................... 19
Conclusion ............................................................... .................................................. ..... 23.
Bibliography................................................ ........................................... 24.
Bibliography
1. Convention on the settlement of investment disputes between states and individuals or legal entities of other states (ICSID). Enclosed in Washington 03/18/1965 // Vestnik of the Russian Federation. Special annex to N 7, July 2001.- M.: Yurit-Bulletin, 2001. P. 74 - 92.
2. Tax Code of the Russian Federation. Part One: Federal Law of July 31, 1998 №146-ФЗ (as amended by 05/23/2016) // Meeting of Legislation. 1998. №31. Art. 3824.
3. Tax Code of the Russian Federation. Part Two: Federal Law of February 05, 2000 №117-ФЗ (as amended by 03.07.2016) // Meeting of the Legislation of the Russian Federation. 2000. - №32. - Art. 3340.
4. Civil Code of the Russian Federation. Part I: Federal Law of November 30, 1994 No. 51-FZ (as amended by 03.07.2016) // Meeting of the Legislation of the Russian Federation. 1994. №32. Art. 3301.
5. Federal Law of the Russian Federation of October 29. 1998 No. 164-FZ (as amended by December 31, 2014) "On the financial lease (leasing)" // Meeting of the legislation of the Russian Federation. -1998. - No. 44. - Art. 5394.
6. Federal Law of 25.02.1999 N 39-FZ (ed. Dated December 28, 2013) "On investment activities in the Russian Federation implemented in the form of capital investments" // Meeting of the legislation of the Russian Federation. - 1999. - N9. Art. 1096.
7. Federal Law of 09.07.1999 N 160-FZ (ed. Dated 05.05.2014) "On Foreign Investments in the Russian Federation" // Meeting of the Legislation of the Russian Federation. - 1999. - N28. Art. 3493.
8. Federal Law of 21.07.2005 N 115-FZ (ed. Dated December 30, 2015) "On concession agreements" // Meeting of the legislation of the Russian Federation. - 2005. - N30 (Part II). - Art. 3126.
9. Federal Law of 01/12/1996 N 7-FZ (as amended by 02.06.2016) "On non-commercial organizations" // Meeting of the legislation of the Russian Federation. - 1996. - №3. - Art. 145.
10. Order of the Ministry of Finance of the Russian Federation of September 30, 2010 N 117N "On approval of the participation of accounting in the tax authorities of foreign organizations that are not investors under the Production Sharing Agreement or Agreement Operators" // Russian newspaper. - 2010. - November 24.
11. Anikin, M. Foreign investment in the Russian Federation: the system of state regulation / M. Anikin. // Actual problems of economic theory and management / scientists. - M.: Ekon-Inform, 2013. - P. 3-20
12. Velkova, E.E. Sources of legal regulation of foreign investment in Russia at the present stage / E.E. Veselkova // Legislation and Economics. - 2012. - №3. - P. 53 - 58.
13. Voznesenskaya, N.N. The contemporary concept of "foreign investment" / N.N. Voznesenskaya // law. 2012. - № 5. - P. 167-174.
14. Igonina, L.L. Investments: Tutorial / L.L. Igonina, ed. Dr. Ekon. Sciences, prof. V.A. Slepova. - M.: Economist, 2014. - 478 p.
15. Kadyrov, G.M. Financial Investment Potential of the Russian Federation: International Aspects of Formation and Use / G.M. Kadyrov. - M.: Ankil, 2012. - 231 p.
16. Knyazev, O.A. International Investment Activities in Globalization: Theory and Practical Experience / O.A. Prince. - M.: Max Press, 2010. - 112 p.
17. Coposova, A.S. Improving the tools of state financial regulation of foreign investment in modern economic conditions / A.S. Koposov // Management of Economic Systems - 2013. - №12 (60).
18. Sukhareva, E.V. Legal regulation of national investment of Russia / E.V. Sukhareva. - All-Russian Scientific and Practical Conference: Investments - the main factor in the economic development of Russia. - Moscow, Inion, 2015. - P. 240-250
19. Shestakova, M.P., Lazarev, T.P., Khlestova, I.O. International Private Law and Investment / MP Shestakova, the like Lazareva, I.O. Khlestov // Journal of Russian Law. - 2008. - №2. - S. 12 - 16.
20. Eriashvili, N. D. Financial law: Textbook / N. D. Eriashvili; Mosk. UN-T of the Ministry of Internal Affairs of Russia. - 3rd ed., Pererab. and add. - M.: Uniti-Dana: Law and Law, 2010.- 575 p.
Work price: 300 rubles.
Work code:MPR_0047.
By virtue of the current international practice, foreign investments can be provided with one of the following legal regimes: national regime, the most favorable mode, justice, transparency.
In granting a national regime to foreign investments, national and foreign entrepreneurs perform on the market, for some exceptions, equal subjects, which does not infringe on the interests of foreign investors. It follows from this that the "national regime" means such a regime in which the rights of foreigners in the host state are determined mainly by local (national) laws, and not the laws of the country of origin of capital. At the same time, foreign investment regime cannot be less favorable than the regime provided to national legal entities (national capital). The principle of national regime may provide for some exceptions and seizures. This is for example the requirements of the country of reciprocity, that is, the issuance of foreign investment permits only if there is similar activities of investors of the first country in the country of origin of these investments. Restrictions on the activities of foreign investors are made to establish state control over the development of individual sectors in order to prevent the weakening of the competitiveness of national legal entities. In different countries, the circle of these industries is different, but, as a rule, it is a mining and military industry, as well as the sectors of the service sector (banking and insurance business). Some of these industries are fully closed for foreign investment, and separate access is allowed only after receiving a special permission.
For many decades, the greatest favored regime is considered as one of the most important legal instruments of the normal implementation of international trade and economic ties. States interested in equal and mutually beneficial economic cooperation seek to build it on the basis of reciprocity.
National regime can be established both bilateral and multilateral international treaties. This is, first of all, the Paris Convention on the Protection of Industrial Property of 1883, Bern Convention on the Protection of Literary and Artwork Works 1886, World (Geneva) Convention on Copyright Protection of 1952. The essence of which is largely provided precisely by the fundamental principle of national regime.
The principle of the national regime regarding foreign trade is enshrined in Art. XVII General Agreement on Commerce Services. So, in accordance with the specified article in certain sectors, on the agreed conditions and requirements, each WTO member provides services and service providers of any other WTO member regarding all measures affecting the supply of services, a regime that is no less favorable than the one that it provides similar Domestic services or service providers.
The specified requirement is followed by providing services and service providers of any other WTO member or formally the same regime, or a formally excellent regime with respect to which it provides its own similar services or service providers. .
The principle of greatest favorable means that one Contracting State provides another Contracting State (his legal entities and individuals) in one or another agreed area of \u200b\u200btheir relationships as a favorable regime as the one that it provides or will provide in the future by any third state, its legal and individuals.
The greatest favored, contractual mode and determination of its volume is the case of the Contracting Parties themselves. The parties can extend the effect of this regime on the area of \u200b\u200beconomic relations, can limit its effect only by trade, navigation issues, can agree on its application only to certain areas of regulation of their economic relations (for example, to customs.).
By concluding an agreement with the condition of national favorable mode, the state can be confident that the conclusion of its contractility of a preferential agreement with the third state will entail the use of the same benefits in relation to himself. To create the most profitable international trade regime, it is not enough to conclude a bilateral agreement on national favorable regime, a multilateral agreement may be required or a system of bilateral contracts that would associate a whole group of countries. Thus, the Unified Trade Mode would act for a whole region (an example - a trade regime between the EU member states or the WTO regime). In fact, in this case, there is a peculiar community of states selling together by the same rules.
In international practice, the peculiarities of the regime of the greatest faults find their textual consolidation in Art. II GATS. As part of this document, the considered principle is formulated as follows: "Every WTO member immediately and, of course, provides services and service providers of any other member, no less favorable than the one that he provides for similar services or service providers of any other country." At the same time, exceptions are possible from the specified rule, that is, a member of the WTO can introduce any measure that does not meet the principle of greatest favored, only if that such a measure is included in the list of seizures and meets the conditions of the application to the GATS for seizures from Article II of the General Sales Agreements. .
As the analysis of bilateral agreements shows, the establishment of a national regime or the greatest favored regime is "mixed character". In one convention on investments, the regime of the greatest favored or national regime may be distributed. Other agreements guarantee the most favored and national regime for investments and income. In this respect, an example of GATT is adequate.
Fair and equal regime is one of a number of general standard modes enshrined in international agreements on the promotion and protection of foreign investment. The predecessors of this standard were the provisions of the Havan Charter of the International Trade Organization of 1948. Fair and equal regime provides for complete and continuous protection and safety of foreign investment and non-separation in this area of \u200b\u200bdiscriminatory measures. Due to the fact that within the framework of the WTO, the problem of foreign investment in indirect form is present in the definition of the third method of supplying services (commercial presence), and also due to the fact that the Committee on Trade and Investments is working, the question of the possible application of this regime Periodically arises in the course of formal and informal discussions on the problem of "trade and investment".
Data several investment regimes used in state and interstate practice for regulating capital flows stimulate the investment process in the world. These modes enshrined legislatively contribute to attracting investments. Against this background, the most favorable examples serve the investment climates of the United States, as well as the EU, where these modes are fully presented. When considering the EU, the main centers of attraction of foreign investment here are Britain (almost 1/3), then France (20%) and Belgium (14%) are followed. In its technological structure, foreign capital investments of the EU companies do not relate to high-tech (office equipment, radio engineering - 1.1% of the total). The main share of foreign direct investments falls on the scope of services (54.2%), where the bulk is focused on the credit sector and trade. That is, we see that legal regimes, enshrined by law or by means of agreements and having no contradictions in national legislation are also one of the attractive aspects affecting the activities of foreign investors and the entire investment process. So, without having such an additional stimulation lever, the EU investments would not have achieved such positive results.
The transboundary movement of capital occurs mainly in two forms: movement of capital and investment of capital (investment).
Capital relocation includes: short-term loan and commodity loans; Clearing and other financial transactions.
Attaching capital abroad (foreign investment) is carried out either in the form of a direct foreign investment, or in the form of "portfolio" investments.
The special forms of capital investment can be attributed:
- ? long-term loans;
- ? Financial leasing operations;
- ? Economic assistance, i.e. Providing material or intellectual resources on a free or preferential basis.
Under direct foreign investment it means the participation of a foreign legal entity and individual - through its property or intellectual values \u200b\u200b- in the authorized (folding) capital of the economic entity in order to extract profits, with full or partial control over these values.
The placement of capital by purchasing securities in the foreign market of a foreign state or the national stock market of a foreign company's securities market is "portfolio" foreign investment.
The primary public outlook of capital by buying a release or additional issue of the issuer's securities at open auctions on the stock market of a foreign state or the national stock market of securities in foreign person is a kind of "portfolio" foreign investment, called the primary public offer, or "1ro" (Initial Public Offering). Under certain circumstances, such a primary proposal may be considered as a direct foreign investment, first of all, if the proportion of the primary acquisition of a foreign person is such a volume that will allow the acquirer for the relevant national legislation to establish full or partial control over the issuer.
With "portfolio" foreign investments, the control and management of the company is separated from the equity ownership of this company. A foreign signator is not so much direct participation in managing the investment subject through the rights that belong to him, expressed by shares - the investor is mainly interested in forming his investment portfolio so that it brings him a greater profitability and less risk.
With the "portfolio" foreign investment, the investor has to take on all political risks associated with investment. When the "portfolio" investor feels the risk for his investments, he can quickly withdraw them and translate them into other shares, more attractive for him.
Direct foreign investment, in contrast to the "portfolio" investments, it is rather difficult to withdraw, since they are usually designed for the medium or long-term perspective. Such investments are almost unthinkable without a permanent "economic" presence of a foreign investor (its management component) in the host investment. Therefore, the protection of management personnel, as well as production facilities and equipment equipment, is vital for the functioning of foreign capital.
Foreign foreign investments differ from the movement of capital expressed by other forms. Such a movement is carried out, for example, in the form of payments on export-import transactions, when the seller receives the price of an export-import transaction, and the buyer pays it. Legal support of the export transaction is being worked out with such a calculation in order to maximize it from possible risks. In the field of creating international standards regulating relations related to such transactions, certain progress has already been reached. The successful signing of the UN Convention mentioned above on the international purchase and sale of goods of the 1980 goods was possible largely due to the search for such approaches where the interests of the trading parties would be balanced.
The regulation of foreign direct investment is taken into account that the contradictions between the investor and the host of the set. Also, investments objectively suggest closer cooperation between the foreign investor and the host state. Direct managerial "business" presence of a foreign investor in the host country investment and the important role that he plays in the economy of this country gives such investments more importance than just a trade deal. Foreign investment, as it were, "poured" into the national economy of the country, thereby contributing to its development, playing an important economic, and sometimes a political role.
The lawyers allocate international financial operations that do not imply capital movement through the borders. For example, in the case when the borrower's sovereign state does not translate the credit funds to its territory, but exercise financial transactions on the territory of the lender state with them. As a rule, in such cases, transactions are governed by the norms of the law of the lender.
Cash transfers to the deposit to foreign banks are also considered most often investment. Relationships associated with a bank deposit generally regulated by the national lead, unless the relevant states agreed on other.
Theory argues that foreign direct investment needs more detailed regulation under international law. As already noted, the investment process determines the movement of involved individuals, capital from one state to another. The "introduction of a large foreign investor in the national economy of the host state attaches to the participation of an investor in domestic economic, even political affairs is inevitably significant, which can lead to contradictions with the local economic elite. Accordingly, international law, developing in the direction of the investor's protection, has envisaged such an institution as diplomatic protection, known from the course of general international law.
GOU VPO "Russian Legal Academy of the Ministry of Justice of the Russian Federation"
Volga (Saratov) Law Institute (branch)
Department of Civil Law Disciplines
Legal regime of foreign investment
Course work
Rozhko Svetlana Alexandrovna
female student 5 courses
Saratov 2010
Work plan
Introduction
1.2 Meaning of foreign investment
2. Terms of Foreign Investment
3. Basic forms of foreign investment in modern world economy
Conclusion
Bibliography
Introduction
There is a lot of investment definitions in the scientific literature. In the scientific literature, the following definition: Investments are investments in any economic objects and processes: means of production, stocks, reserves, information resources, securities (target bank deposits, pairs, shares), cash, movable and immovable property, property rights , experience arising from the Copyright "know-how", the right to use land and other natural resources, technology, machinery, equipment, licenses, including trademarks, loans, intellectual values \u200b\u200binvested in entrepreneurial and other activities , "human capital".
Most authors, identifying foreign investments converge on the fact that they are the property of foreign investors serving in various forms and species exported from one state and invested in any business on the territory of another state, and investments are considered in the broadest sense. These are not only the funds embedded in capital construction, in the securities of enterprises and governments, but also loans in various forms and even gratuitous transfer of funds that are intended to achieve a positive social effect.
Subjects of foreign investment can be: investors, customers, work performers, users of investment activities, suppliers, foreign states, international organizations, foreign legal (banking, insurance and mediation organizations, investment stock exchanges) and individuals; Citizens of investment of states with permanent residence abroad.
As objects of foreign investment, the investment code in Article 4 calls: Real estate, including an enterprise as a property complex; securities; intellectual property.
The state's legislative acts are usually determined by objects that are only in state ownership, which does not exclude investment activities against these facilities: promotions, bonds, bank deposits, insurance policies and other securities; enterprises and organization of the host country; buildings, structures, property of local legal entities and individuals; Scientific and technical products; rights to intellectual values; the rights to use the Earth, natural resources and the Earth itself; Other property, as well as property and non-property rights.
Investment (from Latin Investire - region) - all types of property and intellectual values \u200b\u200binvesting in the objects of entrepreneurial and other activities, as a result of which the profit (income) is formed or the social effect is achieved.
Foreign investment issues in economic literature are ambiguous. So in most Soviet economic literature, foreign investments were presented as the export of capital by the monopoly of one country to other countries with the aim of its most profitable application. Now such ideas have changed significantly, since any entrepreneurial activity is related to obtaining a certain profit.
The problem of investments in our country is so relevant that the conversations do not subside about them. This problem is relevant, first of all, the fact that investments in Russia can be given a huge state, but at the same time, the fear of losing investors does not fall. The Russian market is one of the most attractive for foreign investors, however, he is also one of the most unpredictable, and foreign investors are moving out of side to side, trying not to miss their piece of the Russian market and, at the same time, not lose their money. At the same time, foreign investors are focused, first of all, to the investment climate of Russia, which is determined by independent experts and serves to indicate the effectiveness of investments in a particular country and which is very unfavorable. Russian potential investors are no longer trusted by the government, it is distrust due, first of all, the established stereotype of attitudes towards power among Russians - "the government works only on itself." However, the state investment policy is now sent precisely to ensure investors with all the necessary conditions for working in the Russian market, and therefore we can count on changing the situation in the Russian economy for the better.
Therefore, in front of our state is a complex and fairly delicate task: to attract foreign capital to the country, and, not depriving his own incentives, to direct it with measures of economic regulation to achieve social goals.
The relevance of the studied question, follows from the fact that the modern world economy cannot be successfully developed without foreign investment. Many countries of the world actively invest their funds into the economy of other countries, receiving certain income and developing certain sectors of the national economy of these countries. The role of foreign investment for many countries is very important: they are intended to raise and develop production, increasing its capacity, technological level, and favorable conditions are also created on the basis of loans received, update and develop all the necessary sectors of the national economy, improve production efficiency and produce competitive goods . And this is still not all.
The purpose of my course work is to determine the importance of foreign investment and in the disclosure of their legal regime.
The tasks of this work are: 1. Disclosure of the essence of foreign investment, namely: ● give the concept of foreign investment; and
● Determine their value in the global economy.
2. To identify the conditions for the implementation of foreign investment.
3. Give the characteristic of the main forms of foreign investment.
4. To approve the role of foreign capital in the formation of the world market economy and the Russian economy.
The practical significance of the work lies in the possibility of its use in the educational process when studying this topic.
Methods of research course work. In the process of performing work, I used systemic, logical and dogma methods.
1. Essence of foreign investment in the global economy
1.1 Concept of foreign investment
Foreign associations include import and export of not only goods, but also capital. Capital export is a targeted movement of funds from one country to another to attach them to a profitable case. Fabric investment is mainly carried out by the largest, first of all transnational companies. Export is carried out in the form of entrepreneurial and loan capital. Entrepreneurial capital export is long-term foreign investment in industrial, trade and other enterprises.
Foreign investments serve as a source of cash, and sometimes property investments in the development or development of new production of goods and services, improving technology, mining, the use of natural resources.
Foreign investments are long-term investment investment investment (- subjects of investment activities that invest in their own, borrowed or attracted funds in the form of investments and ensuring their target use), as well as foreign owners to objects of entrepreneurial and other activities (industry, agriculture, Transport and other sectors of the economy). Entrepreneurial capital exports are carried out mainly by creating monopolies of branches or subsidiaries abroad, including in the form of joint ventures with the participation of national capital. That is, foreign investments are the removal of domestic capital to other countries.
The most famous classification allocates two basic forms of foreign private investment: direct and portfolio. Direct investment (both in freely convertible and in national currency) are:
Investments in the authorized capital of the economic entity in order to extract the income and obtaining rights to participate in the management of this economic entity.
Credits received from foreign co-owners of enterprises.
- Acquisition of long interest in the resident of one country (direct investor) in the enterprise - resident of another country (enterprise with direct investment).
There are also a way to improve productivity and technical level of Russian enterprises.
At the right most often include investments of such a volume in which a foreign investor controls at least 20-25% of the company's capital in which he has invested funds. This value is different in different countries.
Under portfolio investment is understood:
The formation of a portfolio by purchasing securities and other assets. The portfolio is a set of collected together various investment values \u200b\u200bthat serve as a tool to achieve a specific investment goal of the depositor. The portfolio can include securities of the same type (stock) or various investment values \u200b\u200b(stocks, bonds, savings and deposit certificates, mortgage certificates, insurance policies, etc.).
Investment in the shares of foreign enterprises, in bonds and other securities of a foreign state and international monetary and financial organizations carried out in the calculation of high profits and do not give the rights to control the object of investment, that is, in which the investor is not intended (unlike direct Investor) - direct participation in the management of the enterprise or the impact on the country's economy (in most cases, such investments are produced in the market of freely accessible securities).
It should be noted that portfolio investments are carried out, as a rule, in cash, while directly carried out in the form of supplying goods, raw materials, equipment, technologies, in the form of management experience, etc.
There are actual investments. These are capital investments in Earth, real estate, machinery and equipment, spare parts, etc. Real investments include working capital costs.
Other investments include deposits in banks, commodity loans, loans of governments of foreign states, etc. Their exclusion from the analysis is caused primarily by the heterogeneity of the group, as well as the complexity of obtaining reliable statistical information about many of them. Allocation of other investments is associated with the specifics of the investment (not in the authorized capital).
The border between the first two types of investments is quite conditional (it is usually assumed that investments at the level of 10-20 and more percent of the shareholder (statutory) capital of the enterprise are direct, less than 10-20 percent - portfolio), however, since the goals pursued by direct and portfolio Investors are somewhat different, such a division is quite appropriate.
In world practice, there are three main forms of investment:
1. Direct, or real investment (premises of capital in industry, trade, the scope of services - directly to the enterprise).
2. Portfolio, or financial investments (investments in foreign promotions, bonds and other securities).
3. Medium-term and long-term international loans and loans of loan capital industrial and trade corporations, banks and other financial institutions.
Investments of international organizations and foreign governments are usually carried out in the form of loans and loans (both related and non-related).
German Professor Weinrich classifies investment on the application object and the nature of use.
Regarding the application object:
1) investment in property (material investment). Under material investments, investments that are directly involved in the manufacturing process (for example, investments in equipment, buildings, materials reserves) are understood.
2) Financial investments - investments in financial property, the acquisition of rights to participate in the affairs of other firms and business rights (for example, the acquisition of shares, other securities).
3) Intangible investments - Investments in intangible values \u200b\u200b(Nr, investments in training, research and development, advertising, etc.).
By the nature of the use:
Primary investment, or net investments carried out at the base or when buying an enterprise;
Investment on expansion (extensive investments), directed to the expansion of industrial potential;
Reinvestment, i.e., the use of free revenues received as a result of the implementation of the investment project, by referring them to the acquisition or preparation of new means of production in order to maintain the composition of the main funds of the enterprise;
Replacement investment, as a result of which available equipment is replaced by new;
Investments on rationalization directed to the modernization of technological equipment or technological processes;
Investment on changing the production program;
Investments for diversification related to the change in product range, the creation of new types of products and the organization of new markets;
Investments to ensure the survival of the enterprise in the future, directed to R & D, training, advertising, environmental protection;
Gross investments consisting of net investments and reinvestia.
Investing in property and intangible investments are advisable to combine into one group, since those and others are investments in production, or so-called direct investments.
Within the framework of the classification proposed by the author, the allocation of extensive investments and reinvestments is not justified. Goals they pursue the same, but the sources of capital appearance are different. Consequently, the basis of the classification here is used different.
One of the representatives of the French Economic School - Henri Kulman - considers the problem of the classification of investments in perfect in another aspect. He considers indirect investment (using cash) and direct (without the use of cash).
Attracting foreign investments, any state should try to harmoniously include them in the overall investment process so that they effectively work together with internal investments, the country's internal production potential. This goal is the investment policy of the state. It is based on production optimization to meet human needs and on minimizing the use of natural resources and has both internal and external sources.
1.2 Foreign investment
The results of fundamental studies of foreign scientists unequivocally suggest that the processes of economic renewal and growth are determined by the size and structure of investments, the quality and speed of their implementation. Moreover, the researchers fix that without investment savings and relevant material resources in investing, no positive shifts occur.
Without investment, modern capital creation is impossible, ensuring the competitiveness of commodity producers in external and domestic markets. The processes of structural and high-quality renewal of world commodity produce and market infrastructure occur exclusively by and by investing. The more intense it is carried out, the faster the reproductive process takes place, the more active the effective market transformations occur.
Currently, more than ever, many countries of the world have been staged in front of the objective need to enhance investment activities on the creation of competitive economic systems, modernization and reconstruction of existing structures, ensuring capital diversification towards socially oriented structural transformations.
Foreign investments are becoming one of the decisive factors of the entire economic policy of many states. Without them, it is impossible to quickly overcome economic crises and go out on the frontiers of economic growth, to ensure the growth of the social effect, the balance of macrostructures, to increase wages to the level of stimulating its high performance and market solvency, serving the powerful catalyst for general economic lifting and progressive shifts.
In the investment strategy, an important role is played by a reasonable choice of investment areas - as far as it will meet the future national interests of a certain state. The implementation of long-term investment projects is known to form a promising macroeconomic structure of the country, changes in the domestic (regional and industry) and the external division of labor, the definition of the country's relevant niche in the world market structure. The future economic development of countries of the world should be considered in the context and trends in the development of the global economy. The era of the entry into the new eyelids is characterized by tectonic shifts in the socio-economic and technological structure with the corresponding transformation of the institutional foundations of the entire modern economy. Local economies of individual countries gradually lose the potency of self-development, integrating into a generally aggrandant economic body with a universal regulatory system. Now transnational corporations (TNCs) and other powerful business structures play a decisive role in world development. According to the testimony of foreign researchers, a combination of 37 thousand TNCs with 200 thousand of their branches covered almost the entire planet.
This is a kind of economically stable and dynamic planetary-type economic system, which focuses on all the planet's production funds, produces about 40% of the generally strange product, performs more than half of the foreign trade turnover, over 80% of the new technologies and controls more than 90% of the export of capital.
If you add to this the national forms of big business of every economically developed country, it becomes quite understandable, on which it keeps and that moves the modern world economy with a rapid pace. This is not small and not even medium-sized businesses that occupy their market niches, but are neither significant investors nor major capital educators.
It should also be noted that the global global closed type markets are actively forming, covering groups of countries of huge regions of the world. Among them are the Unified EU Market, the markets of the countries of the American continent, headed by the United States and the Pacific Basin, headed by Japan and China.
At the same time, the determining factor of progress is technological leadership. According to this assessment criterion, the country was divided into groups:
a) rapidly progressive, labor productivity in which the highest;
b) countries with an average level of technological development and labor productivity;
c) countries technologically backward with low scientific and technical development and labor productivity;
In most cases, they are the raw materials of economically developed countries, falling out of the prospects of leadership, and sometimes from the regional world market for finite consumption products due to non-competitiveness.
Thus, capital is mainly concentrated in economically developed countries with high labor productivity. It is here that there is a significant part of the financial capital of economically backward countries, their natural resources and talents.
foreign investment economy
2. Foreign investment conditions
Foreign investment occurs in the presence of two main factors: incentive motives and regulation. Each process of investing funds is carried out and develops in specific and largely unique domestic and external socio-economic and political conditions. Its impulses and stimulants are determined by gamma factors, which, depending on the combination, determine the methods of capital application.
The complexity of the most important motives of modern foreign investment requires the use of a multifactor approach to its study. This is due to the fact that, firstly, several main factors are influenced by the dynamics of external funds: political, economic (currency, inflationary, value, conjunctural), social, technological, etc. Secondly, the effect of different factors is manifested not isolated, but in the interaction.
Practical unlimitedness and significant variation of the circle of their action objectively determine the use of a selective approach to identifying the most important of them when analyzing the motives of foreign investment. The qualification of the latter and the presence of a clear interdependence with basic economic parameters (political and macroeconomic stability, economic growth, scientific and technical progress, portfolio investment, the structure of the economy, employment, export, balance of payments, exchange rate, interest rates, inflation, etc.) require them Accounting in the implementation of foreign economic policy.
Foreign investment is accompanied by increasing the openness of the economy of countries for foreign investors. At the present stage of internationalization of economic processes, liberalization of foreign investment regulation is everywhere: in 1991, 35 countries have introduced changes in the liberal plan in their investment regimes, in 1992 - already 43, in 1993 - 57, in 1994 - 49 and 1995 - 64 countries. The number of changes in the liberalization of foreign investment, in these years, respectively: 80, 79, 101, 108, 106. In their structure for 1995, 32% of the changes were associated with the provision of incentives, 30% - the conditions for productive functioning, 15% - Conditions of ownership, 9% - an increase in guarantees and 4% - weakening control.
A regular factor in external investment is economic stability. There is a clear relationship between the economic growth and the rates of entering foreign direct investment; Some researchers consider growth in the economy of host countries with a decisive factor for the positive dynamics of their flows. In particular, an increase in the gross national product of developing countries on average by 1% stimulates the rise of FDI streams by approximately 10 billion dollars.
The evolution of foreign investment led to the creation of international production. With it, there is a tendency to the concentration of national enterprises within the territories of its regions, i.e. To grouping foreign investments around the country of basing. In particular, the United States is investing in Central and South America, European firms - in other European countries, including Eastern Europe, Japanese investors are divided into a number of Asian countries. In addition to reducing transportation costs, it is determined and certain advantages, such as language and cultural ties, the similarity of mentalities, as well as the possibility of closer contacts by saving time on travel.
Investing, especially in high-tech industries, one of the most important factors is to use internationalization. The latter, first of all, practices in the conditions of intra-profit international production of transnational corporations and to some extent can serve as updating their creation and principle of organization and growth of any company. Within its framework there is foreign economic operations on an internal basis - without changing the owner to the resources transmitted. Internalization is the best option in a quick variability of technology. Advantages in the latter and sales determine the circle of industries and firms to carry out investment activities.
In fact, no company could carry additional costs in operations in the absence of ownership-related advantages over their competitors. Increasing the volume of FDI in this aspect is determined by the existence of a number of intangible advantages, which with minor costs can be translated abroad; This makes it possible to ensure the profitability of such investments. Thanks to such intangible assets, some firms increase their volume of activity and create concentrated industrial structures.
Along with the objective factors for the development of foreign investment, the factors of subjective order have significant influence, including the activities of people, public groups, political forces, the units of the state apparatus. These also include current legislation in the field of entrepreneurial activities, government funds regulating economy and general political stability. The level of the latter directly determines the strengthening or decrease in foreign investment. First of all, this concerns developing countries and countries with economies. It is considered possible to state the presence of a long-term dependence between the political stability of the host country and the pace of inflow (outflow) of foreign investment. A real example in this context may be the South African Republic, which at one time achieved significant success in attracting FDI, however, due to the long-term practitioner of apartheid and, as a result, social instability lost foreign capital, the outflow of which continued until 1994.
The choice of investment places in the country received is determined on the basis of accounting for such parameters as the size of the market, the provision of factors of production, expenses, the degree of development of infrastructure, trade policy, competition, entry and departure regime, property, employment, etc. The investor chooses the place of investment also, taking into account the nature of the relevant technology, the strategy of the company and its representatives about the degree of risk and possible profits.
Attempts by national firms to postpone activities outside the national borders can be explained by aggressive or protective reasons: an increase or protection of profits, retention of the market or penetration on it.
One of the main driving forces of foreign investment is the cost factor. Its skillful use determines the considerable profitability of cash investment for the country of capital application.
It should be noted that in order to select the place of the foreign investment application, the availability of cheap unskilled labor and the possibility of reducing payable taxes is important.
The implementation of investment is primarily pragmatic motifs. Therefore, it is also taken into account that income from investing in developing countries at this stage is much higher (as a whole by 10 - 12%) than in developed.
Another feature of the modern period is that one of the driving forces determining the levels and proportions of foreign investment has become a currency factor. Its value on each product market is purely individual. However, empirical observations indicate that the influence of the currency factor is especially the markets characterized by a relatively homogeneous and resistant nomenclature.
Thus, a condition can be formulated according to which the strengthening of the national currency of the country's country determine the increase in its foreign investment. Investors of countries with an inflated currency rate seek to send their funds to countries with an understated course.
Considerable importance in the implementation of foreign investment has a stable monetary and financial system in the country importing country.
The dynamics of foreign investment largely depends on the relations of the recipient country with non-state international organizations. The study of world practice allows to bring an informal dependence, according to which investments in this or that state begins to come after signing an agreement with the International Monetary Fund and the implementation of insurance. An important role in this context also plays the presence of external debt: a significant amount of it determines the lower level of external funds.
You can also allocate factors in which foreign investment is not carried out. The backwardness of the infrastructure, the underdevelopment of the raw material base, external debt, a low credit rating, depreciation of the national currency, low income of consumers, problems with repatriation of profits, political instability, etc. Reduce the activity of foreign investors. At the same time, this is determined by the specifics of the country's economic policy.
Important for the implementation of foreign investment, as well as systemic transformation and movement to the market economy, represents privatization. It is carried out against the background of simultaneous recognition of the need for further deregulation of economic activity and liberalization of the private sector.
The investment of FDI through the purchase or privatization occurs more often than the creation of new enterprises, and is one of the most common and effective forms of foreign investment. The predominant majority of national firms after Absorbing FDI becomes more competitive; The sale of assets to foreigners causes the immediate receipt of funds and, ultimately, leads to further investments, reinvestment of profits, etc.
In modern conditions, privatization processes are carried out mainly in countries with economies in transition and developing countries.
Another point can be noted, according to which the increase in the volume of privatization (and, accordingly, the openness of the economy) is accompanied by an expansion of participation and an increase in the specific grades of foreign direct and portfolio investors in it.
Recently, in the foreign investment process, the circumstances of the subjective plan - the international increase in corructuring should be distinguished. The moment was emphasized during the work of the global investment risk management section at the World Economic Congress in the United States in September 1996. Bribery of foreign officials deciding the fate of loans, international tenders and assistance programs, tends to disseminate international economic relations.
There are a number of negative circumstances, substantially deterrent investors in the investment of capital. These include a weak convertibility of the national monetary unit; Low solvency of enterprises and the practice of Barter, in many cases not necessary to the foreign partner; Slow pace of privatization, as well as the presence of a significant amount of objects forbidden to privatize; underdevelopment of the stock market; the growth of corruption and crime in the economy; Low purchasing power of the population; The policy of national entrepreneurs who are trying to place their money in foreign banks due to the fear of the loss of their money; lack of domestic actual production investment (which is an important indicator for foreign investors); outflow of national capital abroad; The absence of the right of private property to land and the impossibility of buying the latter.
When exporting public funds, the task of obtaining high profits is not always put. First of all, the placement of state capital abroad pursues political goals - the creation of a favorable climate for the subsequent export of private capital and its products, the formation of the sales market. When exporting state capital of governments, providing subsidies and loans, often dictate countries in which the exported capital is sent, certain conditions: the provision of guarantees that enterprises and other property belonging to the country exporting capital will not be nationalized, creating preferences for investors' firms etc.
In turn, the host as a foreign investment conditions put forward such requirements as the participation of local entrepreneurs in the activities of enterprises, the training of local personnel, the implementation of research and development, as well as ensuring the export of goods produced by the forces of the investment side.
In order to encourage each other's investment, give them additional benefits and guarantees, states enter into relevant agreements affecting foreign investment:
Trade agreements;
Tax agreements;
Contracts and foreign investment agreements.
Trading agreements play a major role in regulating international trade, as well as largely used as a form of regulating relations related to export-import of capital. The contracts are aimed at developing and strengthening friendly relations between nations, promote mutually beneficial trade and investment. But due to the weakness of the sources of investment in developing countries, the principle of reciprocity, mutual benefit is observed only in relations between developed countries, and from contracts between developed and developing countries, advantageously developed states.
Trade agreements determine the principles and regulation of issues of capital investment. They establish the general legal regime, provided by the parties to each other during investment, admission of foreign individuals and legal entities to the country, give them freedom of movement in each other's territory, mutual recognition of foreign legal entities, the right of foreign legal entities and individuals to appeal to court for protection, Mode and guarantees of foreign private ownership in each other, issues of taxation, translation of profits and capital abroad, acquisition of movable and real estate. These treaties often create the basis for regulating relations related to foreign investment.
The disputes between the Contracting Parties should be resolved through diplomatic channels, but if it fails, then the consideration of the dispute can be transferred to the UN International Court of Justice.
Tax Agreements conclude between states in order to regulate tax issues in the export-import of capital between them. States that signatories such an agreement make commitment to fully or partially free enterprises controlled by foreign capital from taxation.
Many developing states interested in the influx of foreign capital provide him with a tax benefit due to the resolutions of national legislation on foreign investment, i.e. The need to conclude tax agreements seems to be no. But, despite this, such agreements are concluded in order to avoid double taxation of investors.
The main goal of bilateral investment treaties is to ensure the relative stability of reproduction and freedom of motion of capital in the conditions of the socio-economic and political crisis, ensure the influx of foreign private capital into the country, providing him with guarantees from political or non-commercial risks.
The concept of "warranty from non-commercial risks" includes:
A. Guarantees from the nationalization and expropriation of enterprises with foreign capital;
B. from the non-convertible currencies when transferring capital and profits;
B. From damage to investments in the event of wars, revolutions, other social upheavals.
As for investment agreements (they are also called agreements on facilitating the implementation and mutual investment protection "), then they are concluded for the development of economic cooperation, creating favorable conditions for increasing investment in the territories of Contracting States.
Agreements contain definitions of such concepts as "investment", investor, "territory", etc. Next, it is specified that each Party creates favorable conditions for the investment of the other Party, provides them with protection and guarantees.
In relation to investments and income, the regime is set to no less favorable than for national investments or investments of third parties, i.e. Mode of the greatest favored and national regime. But the exceptions may be envisaged from the greatest favored mode: it does not necessarily apply to the investment of the other side of the benefits arising from any international treaties and internal laws, the customs union, etc. Next is determined by the general procedure for compensation for losses to foreign investors (in what cases and how). Foreign investments are not subject to nationalization and expropriation, otherwise, as in the interests of the state related to emergency needs and when providing timely and adequate compensation. The agreement further determines the procedure for repatriating investments and income.
3. Basic forms of international investment in the modern world economy
The creation of special (special) economic zones (SEZ) is a promising direction of integration of countries into the system of world economy and the development of international investment activity. This is one of the most attracting forms of interest of foreign investors, which makes it possible to intensify entrepreneurship, increase the export potential, form a market infrastructure, accelerate the development of individual regions and sectors of the economy.
The motives for creating a SEZ in different countries are very different. They can be created as in the pure form of the free trade zone, or as special zones, where not all parties to economic activity are regulated. In countries whose policies are focused on the domestic market, the SEZ is rigidly regulated, possess minor freedom in the investment area and develop with less activity; If the country's economic policy is focused on the external economy and attempts are made to interfere as much as possible in the OEZ Office, favorable conditions are created for the influx of foreign investment.
The experience of China is very relevant for us, where the introduction of market elements in the economy and openness in relation to foreign partners has become the most important goals of the PRC government. By the beginning of the 80s, 4 SEZ - Shenzhen, Juche, Shanghou and Xianmen were created, in the mid-80s 14 seaside cities and Hyimin Island were economically open. Later in the open economic areas were transformed by the locality in the Valley of Yangtze and Judzian, Peninsula Fujam, the open economic regions of steel, also, Shandun Peninsula and Lododun, and by the end of the 80s decided to make the Heyman Island province and turn it into China's largest in China SEZ, Guangdong Province, Fudiang, Jiangsu were combined into one of the largest experimental economic zones, simultaneously formulated the development strategy of seaside areas in order to further expand the openness of the economy. Thus, an experimental economic region was created with a population of more than 100 million years, which in China is figuratively called the "open window". The goal is to use foreign capital and modern foreign technologies, creating a large export sector of the economy on this basis. According to experts, the experience of creating a SEZ in China can be viewed as very successful, because For the 10 years, which have passed since the decision to create them (1979), foreign investments in the SEZ amounted to 2.5 billion dollars. What corresponds to ¼ of all foreign investments in China for the specified period.
Recently, such a form of foreign investment has been obtained, such as the creation and functioning of joint ventures (SP), especially in the CIS countries. SP - the form of cooperation of partners from several countries that unite their capital for the implementation of joint production and economic activities, management and distribution of profits proportionally invested capital. The creation of the joint venture is aimed at the production of goods in order to replenish the consumer market, the introduction of advanced achievements of science and technology, progressive technology, management experience, attracting additional material and financial resources, accelerating the development of the achievements of domestic science and technology, expanding the export base and optimizing import deliveries. Today's joint venture was created for future investments. For the latter to take place and effectively realized, it is necessary to deepen and intensify economic reform, to conduct a carefully reasonable and consistent state domestic policy.
In world practice, other diverse investment forms are also known: ♦ leasing; ♦ licensing (sale of "know-how" foreign partner); ♦ franchising; ♦ joint production; ♦ Subcontracting; ♦ Construction of plants, turnkey objects.
Advantages in the amount of profit Foreign partners have in the use of inactive forms of investment compared to the creation of the joint venture, thanks to a diverse payments for the provision of services. The range of these services is very wide: marketing, procurement, transportation, insurance, instructions and manuals for the use of equipment, advertising activities, maintenance, etc.
4. The role and specificity of foreign investment in the development of the global economy and in particular Russia
Among the important factors for the development of market relations in Russia, the attraction of foreign capital is essential. In the conditions of the administrative and command economy, the country was completely separated from the flow of capital flow. Meanwhile, in the West countries, international capital migration led to the deepening of the internationalization of economic life. This is most brightly manifested in the mutual movement of capital between industrialized countries.
Investments - a relatively new term for our economy. As part of the centralized planned system, the concept of gross capital investments was used, under which all the costs of reproduction of fixed assets were understood, including the cost of repairing them. Investments are a wider concept. It covers the so-called real investment, close in content to our term "capital investments", and "financial" (portfolio) investments. Financial investments can be both an additional source of capital investment and the subject of stock market in the securities market. But part of portfolio investments - investments in the shares of enterprises of various industries of material production - by their nature no difference from direct investment in production. The magazine economist identifies the main directions of investment policy. The following main objectives of the investment policy were allocated: the formation of a favorable environment that promotes the increase in the investment activity of the non-state sector, attracting private domestic and foreign investments for the reconstruction of enterprises, as well as state support for the most important life-supporting industries and social sphere while increasing the effectiveness of capital investments.
Our country acts on the global economic scene as the exporter of raw materials and products of the first redistribution and as an importer of foreign high-tech products and services designed for consumer demand.
The investment policy that the state adheres to has a huge impact on the development of capital investments in both private and state. It is it that forms the so-called investment climate of the country (a set of political, socio-economic, financial, sociocultural, organizational and legal and geographical factors inherent in a country that attracts or repulsive investors), therefore the Government of Russia has great attention.
Investment policies in our country until recently paid not enough attention, but now the state began to understand the whole importance of the right investment policy and, most importantly, the start of taking steps in the right direction.
The growth of capital exportation from some industrialized countries to others reflects the deepening of the international division of labor and the internationalization of production. Modern production under pressure from the scientific and technical revolution is becoming increasingly difficult.
The need to export investment capital by a specific country-donor is related to the following factors: relative overwhelming capital, the increase in the needs of monopoly in expanding the overall scope of accumulation, strengthening industry monopolization in the national economy, the development of the internationalization of production.
Consider the reasons for pushing a foreign entrepreneur to invest. Such a solution is determined by a wide range of motivation, such as:
1. The policy of the host country in relation to foreign investment.
2. Geographical conditions of the host country.
3. The desire to obtain a higher rate of profit, thanks to the use of the difference in the national levels of production costs.
4. Distribution and redistribution of the production of goods between foreign branches, depending on the economic situation of individual countries.
5. Transfer from the country to the country of production and sales of goods as they are general development to preserve the "youth" as long as possible.
6. Summing up the financial base for a variety of the scheme of international specialization and cooperation, ensuring a comprehensive solution to the tasks for placement and complementary industries.
7. Access to technical, technological, managerial innovations, trademarks, signs, and so on.
8. Maneuvering costs of research and scientific work by placing them in the most advanced scientific centers and laboratories abroad.
9. Savings on transport costs and bypass customs barriers.
10. Access to the capital markets of many states, which makes it possible to carry out investments abroad with minimal spending.
11. Stability profits due to the game on differences in the economic situation of individual industries and countries; In the scientific and technical policy of governments, trade and political regimes, in currency and tax legislation.
12. Accounting for social climate in host countries, the stability of their economy and political regimes.
The number of types and subspecies of production is growing, and their development turns out to be economically inexpedient within individual countries. Increased development of international specialization and cooperation of production. The production of the final product is dismembered into separate areas of production, which are in different countries.
Following the development of production, capital is also internationalized. Overflow of capital from one country to another reflects the desire of companies to focus in their hands the individual stages of the product produced in different countries. Companies of industrialized countries, especially large, are becoming increasingly transnational, leaving for national borders. The formation of large transnational companies in which there are enterprises located in different countries lead to the acceleration of international specialization and cooperation, since one owner of the enterprise has the opportunity to more sustainably develop production relations. Thus, the mutual movement of capital, its education on the basis of transnational companies act as an essential factor in the deepening of the economic interdependence of countries in the world economy.
For Russia, which embarked on the path of integration into the world economy and the transition to an open economy, in strategic terms it is extremely necessary to participate in capital migration processes and as an importer, and as a capital exporter. And then it will be more actively involved in the internationalization of production. Russia has taken a very modest place in the world for imports of capital.
Appeal to foreign capital sources for Russia is largely due to the need to solve both strategic and current tasks. In the modern economic situation, the question of attracting foreign investment is very acute: the economic crisis, a sharp reduction in investment resources makes the inevitable appeal to foreign sources of financing. However, the need to attract foreign investment resources is determined not only by purely financial aspects. The sharp lag of domestic engineering, which in recent decades has been largely focused on the release of military products, led to a situation where equipment is purchased for many sectors of the economy.
To improve production efficiency in some industries, the use of foreign technologies is essential. This applies, for example, to the main export industry - oil production and oil refining.
Attracting foreign investment can contribute to an increase in the production of certain types of products (and especially consumer goods), expanding exports with the help of foreign partners, etc. All this has an important meaning, and if with the help of foreign investment will be able to move into solving these tasks, it will be weighty contribution to the creation of a modern economy. And for their involvement in Russia, "free economic zones" (FEZ) are created - these are areas with special legal and political status, creating favorable conditions for this involvement with a number of benefits. For example, the largest free economic zones are: "Nakhodka" (Primorsky Krai), "Yantar" (Kaliningrad region), "Eve" (Jewish autonomous region). There are other ways to attract.
The legal regime and the conditions of economic activity in the territory of the FEZ should be determined by the Law on the FEZ.
Cooperation with foreign partners can give a positive effect in terms of the development of foreign management experience, marketing, training and other personnel.
Attracting national and foreign investments in the Russian economy, the long-term strategic goals of creating a civilized, socially-oriented society in Russia, characterized by the high quality of the population, is based on a mixed economy, which suggests not only the joint effective functioning of various forms of ownership, but also to internationalization market of goods, labor and capital.
Foreign capital can bring to Russia to achieve scientific and technological progress and advanced management experience. Therefore, the inclusion of Russia into the world economy and attracting foreign capital is a necessary condition for building a modern civil society in the country. Attracting foreign capital into material production is much more profitable than obtaining loans to buy the necessary goods that are still excite of unsystematic and only multiplies public debts. The inflow of investments of both foreign and national, vital and to achieve medium-term goals - exit from the modern socio-economic crisis, overcoming the decline in the production and deterioration in the quality of life of Russians. It should be borne in mind that the interests of Russian society, on the one hand, and foreign investors on the other, do not directly coincide. Russia is interested in restoring, renewing its production potential, saturation of the consumer market with high-quality and inexpensive goods, in the development and structural restructuring of its export potential, conducting anti-foreign policy, in the introduction of Western management culture in our society. Foreign investors are naturally interested in a new springboard for profit due to the extensive domestic market of Russia, its natural wealth, qualified and cheap labor, achievements of domestic science and technology and ... even its environmental care.
Attracting foreign capital, it is impossible to allow discrimination against national investors. It should not be provided with foreign investment enterprises tax benefits that are not Russian busy in the same area of \u200b\u200bactivity. As experience has shown, such a measure practically does not affect the investment activity of foreign capital, but leads to the emergence of the former domestic industries of enterprises with formal foreign participation claiming preferential taxation.
It is not enough to note that the Russian state legally created guarantees for the protection of foreign investment. Foreign investment in the territory of the Russian Federation enjoy complete and unconditional legal protection, which is provided by the Federal Law "On Foreign Investments in the Russian Federation", decrees of the President of the Russian Federation and other legislative acts and international treaties.
The legal regime of foreign investment, as well as the activities of foreign investors in their implementation, cannot be less favorable than the legal regime of investment activities of legal entities and citizens of the Russian Federation, for the exceptions provided for by federal laws.
Conclusion
Summarizing the foregoing, it can be concluded that foreign investments play an important role in the successful development of the global economy. FDI are most actively used in such promising sectors of the economy as energy, telecommunications, pharmaceuticals, financial services.
The development of foreign investment has a significant impact of organizational and economic activities in host countries. The analysis of a variety of types of foreign investors present today in the investment market, in accordance with their economic and political interests, forms and methods of organizing business is very relevant.
Foreign investments are of great importance for the development of the national economy of countries in transition. The volume of foreign investments entering these countries does not satisfy their needs, and measures are taken to attract additional funds.
Most foreign investment is private investment. As a rule, this is a profitable company for which the national market has become too crazy and, striving for expansion, are introduced into the markets of other mill. Naturally, the lack of profit or losses scare such companies.
A significant part of foreign investment comes in the form of various loans, as well as through the creation of special and free economic zones and joint ventures.
Foreign investors seek to receive as much profit from their activities.
The largest foreign investors are the United States, United Kingdom, Germany, Japan, France, where the economic result from their activity is the highest. The capitalist system does not provide for free capital investment. The main goal of the investor is the extraction of profit. There are a number of reasons due to which the capital export is much more profitable than working in the domestic market. This is mainly tax benefits and the domestic market of the country into which capital is imported. If the country requires investment, it needs to create as many attractive conditions for investing capital.
As the main conditions for the attraction of foreign capital for Russia, we can specify the following: the creation of a stable and developed regulatory framework for the activities of investors in Russia; reforming the tax system; strengthening property institutions; Formation of the insurance system and mortgage forms for foreign investment; creation of information and advisory systems that ensure the adoption of investment solutions; Development of investment cooperation with international banks and financial organizations.
At the moment, Russia needs investments, and it would be good if the tools were invested in those industries that are experiencing the greatest crisis. In the practice of investors attracts the raw material base of our country and some not very significant industries. The most important thing is to extract as much benefits for the country, and it is as little as possible to lose economic independence.
Foreign investments entering Russia, of course, do not solve the main problem of restoring the investment process. Without significant domestic investments it is impossible to move to economic growth. But foreign investment is needed by the Russian economy, as they bring new technologies, marketing and management experience, create the necessary competitive environment.
At the beginning of the 21st century, the prevailing number of countries is involved in the processes of international investment as import and exporters of capital, exchanging the latest technology, increasing labor productivity and its level of development.
The ability to attract foreign investment is the question of which many contradictory opinions are expressed: some believe that foreign investors are afraid of Russia, others - "if you allow", all Russian enterprises will be scared by foreigners for the root. Truth is in the middle.
One of the main reasons for the low activity of foreign investors is not to contribute to foreign investment by the state policy, the absence of the greatest fault regime for them, which is created in many developing countries and gives a high effect. Foreign investors scare away the inconsistency of the state's economic policy, the constant change of the "Rules of the game".
One feature of frightening foreign investors from Russia is the Russian image of thinking. It is very difficult to reorient people to unusual for Soviet Russia (albeit in the past) market economy.
It can be said that the main, in my opinion, the problem that impedes the active involvement of foreign investment in the Russian economy is the lack of a clear and effective state investment policy in practice.
Interestingly, the opinion of Russell Foreign Ministry, who believes that Russia is not able to control its territory. "" Every time, returning from Russia, I am increasingly strengthened in belief: no billions invested by the West in the Russian economy will not benefit it. It doesn't care what to spit on the fire. "" The most crushing and hopeless feature in Russia is just as obvious in Vladivostok, as in Tyumen and in Moscow, is the absence of labor ethics. "" Step here everything. Steer workers. Therefore, they are not interested in the efficiency of production and saving raw materials. Waiters steal, so they are not interested in customers. Army officials steal, so they are not interested in improving military discipline and establishing order in the army. In the framework of the Russian system, no free economy will earn "".
Thus, the restoration of investment activity in the country and the transition to economic growth is a complex, multifaceted problem, requiring the association of the efforts of all participants in this process headed by the state.
As for other countries, global experience shows that the attraction of foreign investment has a positive effect on their economy. The rational use of foreign investment contributes to the development of production, transfer of advanced technologies, the creation of new jobs, an increase in labor productivity, improving the competitiveness of products on the world market, the development of backward regions.
In addition, the attraction of foreign capital and the creation of joint ventures expand the taxable base and can become an important additional source of formation of the revenue part of the state budget.
It should also be noted that foreign investments are by no means panacea from all the ailments of the global economy. The use of foreign capital is ambiguous in their consequences for a recipient country, manifested through the complex interaction of a complex of positive and negative trends on macro-, meso- and micro levels.
In the introduction, the relevance of the topic of research is considered. The first chapter reveals the concept and determines the meaning of investment activities in the modern world economy. The II chapter indicates the conditions for investment, with examples of practice. The III chapter is devoted to two forms of foreign investment in the global economy. Finally, Ivgela characterizes the specifics and role of investment in the development of the global economy. In conclusion, conclusions were made on the study.
The paper uses the main legislative documents, the Constitution of the Russian Federation, as well as other sources that give a detailed consideration of this topic. When writing the work, existing legislation was used, literature on international law and special literary sources.
BIBLIOGRAPHY
Regulatory sources
1. Federal Law "On Investment Activities in the Russian Federation, carried out in the form of capital investments" of July 25, 1999 No. 39-FZ.
2. Federal Law of July 9, 1999 No. 16-FZ "On Foreign Investments in the Russian Federation" (with changes and additions from March 21, July 25, 2002, December 8, 2003) // Meeting of the legislation of the Russian Federation. 1999. №28. Article.3493.
3. Federal Law of July 22, 2005 No. 116-FZ "On Special Economic Zones in the Russian Federation".
4. Decree of the President of the Russian Federation of July 26, 1995 No. 765 "On additional measures to improve the effectiveness of investment policy in the Russian Federation".
5. Decree of the President of the Russian Federation of January 25, 1995 "On additional measures to attract foreign investment in the industry of the material production of the Russian Federation".
6. Decree of the President of the Russian Federation of June 4, 1992 N548 "On some measures for the development of free economic zones (FEZ) in the Russian Federation".
7. Resolution of the Government of the Russian Federation of September 29, 1997. №1108 "On the intensification of work on attracting foreign investment in the economy of the Russian Federation". Meeting of the legislation of the Russian Federation. 1994 №24. Article 2637.
8. Resolution of the Government of the Russian Federation of September 8, 1994 No. 1033 "On some measures to develop the free economic zone" Nakhodka ". Meeting of the legislation of the Russian Federation. 1994. №20. Art.2279.
9. Resolution of the Federation Council of July 3, 1997 №259 - SF "On Free Economic Zones".
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Foreign investment activity is an important component of the normal functioning of the economy of any state, and Russia is not an exception. In the context of this thesis, legal regulation of foreign investment in the Russian Federation is of great importance for the country, for their absence negatively affects the economy. Problems with their involvement are caused not only by the crisis, but also the imperfection of the legal framework and legal institutions operating in the country. Therefore, it is advisable to consider the features of investment regulation in 2019 more.
What is foreign investment
The concept and legal regime of foreign investment in Russia is determined by the provisions of the Federal Law "On Foreign Investments in the Russian Federation" of 07/09/1999 No. 160-FZ (hereinafter referred to as "On Foreign Investments in the Russian Federation"). Such, according to Art. 2 of the law are the property investments of foreign investors in the object of entrepreneurship in the territory of the Russian Federation.
Investments can be carried out in the form of investing material and intangible values, money or shares, property and property rights, services, and even information, while they must belong to a foreign investor and not withdraw from civil turnover.
Not only legal aspects, but also political and economic factors affect foreign investment activities. In order to avoid related adverse effects for foreign investors, Art. 4 of the law prescribes foreign investment national legal regime. In particular, it cannot be less favorable than the "Rules of the game" provided to domestic investors. At the same time, legislation may provide for both restrictive and stimulating exceptions to this rule.
Who is such a foreign investor
Foreign investor, according to Art. 2 of the Law "On Foreign Investments in the Russian Federation" is recognized as an investment activity in the territory of the Russian Federation and is:
- a foreign legal organization that does not form a legal entity;
- law and capable citizen of another state;
- legal and capable apart;
- international organization;
- another state.
The legal foundations of investment activities established by the legislation of the Russian Federation are equally guaranteed investors - and foreign and Russian - non-discrimination and respect for their rights and interests, in particular: equivalent conditions of business, the elimination of unfavorable changes in legislation, compensation for nationalization and requisition, justice , participation in privatization and others. In addition, to attract foreign capital in the Russian Federation, legislation provides for some benefits.
Regulatory and legal base for investment activities
Russian legislation is designed to comprehensive coverage and solving the complex and the variety of problems that potentially emerging from foreign investors. According to Art. 3 of the Law "On Foreign Investments in the Russian Federation", it is this regulatory legal act on a par with other federal laws, codes and laws of subjects of the federation is the basis of a regulatory framework regulating foreign investment.
Since relations in the field of foreign investment are regulated mainly by such regulatory and legal acts, it is advisable to consider them in more detail:
- Federal Law "On Foreign Investments in the Russian Federation" (ed. Of 07/18/2017) - defines a number of state guarantees to foreign investors in their investment activities;
- The federal law "On the basics of state regulation of foreign trade activities" dated 08.12.2003 No. 164-FZ - determines the general standards associated with the importation and export of goods, services, works, the results of intellectual activity, etc.;
- The Tax Code of the Russian Federation - regulates investor relations and tax authorities on taxation;
- The Federal Law "On Investment Activities, carried out in the form of capital investments" No. 39-ФЗ regulates investment activities in the form of capital investments;
- The federal law "On the procedure for the implementation of foreign investment in economic companies, which have strategic importance to ensure the defense of the country's country and security" (hereinafter referred to as the procedure for the implementation of foreign investments ") dated 04.2008 No. 57-FZ - defines some restrictions for foreign investment.
At the same time, the state also provides universal legal support, which regulates the general principles and rules concerning investment activities of subjects. This, in particular, civil and other codes, the federal law "On joint-stock societies" and many others. In addition, it is impossible not to mention international treaties concluded by the Russian Federation.
Legal forms of investment activities
By establishing a national regime for foreign investment, the legislator, according to Art. 6 of the Law "On Foreign Investments in the Russian Federation", admits the law of the investor to carry out them as if it is not prohibited by law. Law enforcement practice traditionally allocates three legal forms of foreign investment:
- companies with foreign investment;
- creation of branches and representative offices of foreign companies;
- investments in the form of contracts.
Consider each of them in more detail. 
Companies with foreign depositors
Commercial organizations with foreign investments are traditionally created in the form of economic partnerships and societies. Despite the presence of foreign capital, they are registered by the tax authorities in general, in accordance with the Law "On State Registration of Legal Entities and Individual Entrepreneurs" of 08.08.2001 No. 129-FZ.
At the same time, the legal status of commercial organizations with foreign investments is determined by the standards of the Law "On Foreign Investments in the Russian Federation". It is worth considering that investors can carry out investments not only to new companies, but also acquire shares in existing societies. From the moment of this transaction, the company will be recognized as an organization with foreign investment.
When organizing enterprises with foreign investments, not only the rights of foreign investors, but also the rights of domestic participants are to be taken: in particular, the creation of subsidiaries of foreign legal entities in the Russian Federation should be prevented.
By the way, it is important to distinguish investment and business activities: the latter is not carried out by investing, but by creating Russian branches.
Representative offices and branches
Representative offices and branches are, as indicated in Art. 55 Civil Code of the Russian Federation, separate structural units through which, according to the Law "On Foreign Investments in the Russian Federation", foreign companies have the right to carry out entrepreneurial activities in the Russian Federation.
Sources of regulation of foreign investment require compulsory state accreditation from such branches and representative offices, which are carried out by tax authorities. From the moment of its implementation, the branch and representation acquire the right to conduct activities corresponding to their goals. Despite this, due to the need for foreign financial investments, this is not only an organizational form of entrepreneurship, but also the form of investment activity.
By virtue of the action of Art. 55 of the Civil Code of the Russian Federation, branches and representative offices of a foreign legal entity in Russia have differences. So, if branches are able to perform all or part of the economic functions of a legal entity, representation only organizational and legal functions. But regardless of these differences, both forms are not independent legal entities.
Investments in the form of contracts
International private law distinguishes many forms of contractual relations, but only some of them may have the nature of investment cooperation.
In particular, they must answer such signs:
- Have a long-term.
- Have an investment risk of non-discharge, non-return of investment, etc.
- Contracts contain the duty of the targeted use of investments.
- Attachments must have a commercial nature, that is, be aimed at receiving income.
In fact, the legislation distinguishes many contracts falling under such signs. In the context of this investment, agreements of various nature and various activities can be recognized. Such, in particular, may be:
- agreement on attracting investments;
- agreement of a commercial concession;
- a concrete agreement;
- a loan agreement for investing in fixed assets of the enterprise;
- financial lease agreement;
- product sharing agreement.
We note that the existing freedom to the forms of foreign investment in the Russian Federation enshrined Art. 6 of the Law "On Foreign Investments in the Russian Federation", allows investors to enter into any agreements that are investment.
Principles of regulation of investment in the Russian Federation
Legal doctrine and an analysis of law enforcement practice allow you to allocate three main principles, on the basis of which legal regulation of foreign investment is carried out:
- of course, the basis of legal regulation of foreign investment in Russia is national legislation. Regulation of investment is carried out exclusively at the federal level;
- the non-alternative effect of the national legal regime, regulating the mandatory equalization in the rights of domestic and foreign investors, with the exception of stimulating or restrictive seizures. Such features of legal regulation can be established by federal legislation, but in general, equality is guaranteed to all investors, regardless of nationality;
- the need to comply with the domestic regulatory framework of international treaties and international legislation.
Consider the features of each principle separately. 
Application of national legislation
The inner law is definitely one of the fundamentals of regulation of investment activities in any of the states, and Russia is not an exception.
Investment legislation should be perceived as a set of regulatory acts regulating not only investment activities, but also currency relations and control, labor relations and other aspects of investment activities.
It should be noted that in Russia, national legal regulation of foreign investment is based on special investment laws, which is characteristic of countries with economies in transition.
These laws define a single regime for foreign and domestic investments, but does not apply the collisional method of regulation, directly establishing the order of relations between investors and the state.
Interestingly, in developed countries there are no such investment legislation at all, due to foreign investors, the same norms are applied as for other civil subjects.
Equality of foreign and Russian investors
Civil law regulation of foreign investment in business law on the territory of the Russian Federation is aimed at ensuring the interests of each investor, regardless of the form of investment, nationality, the volume of investment, the profits and other subjective aspects of their activities.
Guarantees of such protection are enshrined as domestic legislation and the obligations of the Russian Federation on international treaties and conventions. To such protection from any non-economic factors, each investor is entitled to qualify, and the state is obliged to provide it.
International Regulatory Investment Base
In addition to national legislation, the legal regulation of foreign investment in the Russian Federation and other countries is also carried out by international treaties concluded between states and other entities of international law. In a circle of participants, they are usually divided into multilateral, regional and bilateral international treaties. The most influential and significant sources of investment law are certainly multilateral international treaties. The multilateral system for regulating foreign investment makes it possible to ensure the preservation of investments at the interstate level. Consider some examples in more detail.
Convention on the procedure for resolving investment disputes
In the historical past, investors who contributed capital to the economy of a foreign state, in the event of a change in the political situation in the recipient state, invested funds and property could be lost, having only two options for the protection of violated rights. In this regard, the second half of the 20th century, the international community was trying to develop a mechanism that protects the rights of investors from violations by such states.
One of the most influential international treaties regulating international investment activities is the Washington Convention on the settlement of investment disputes between states and foreign persons signed on March 18, 1965.
Being a universal source of international law, it has become a foundation on which the system of measures to resolve investment disputes is based. The Russian Federation signed the Convention on June 16, 1992, but so far has not ratified. At the moment, more than 150 states are participants in the Washington Convention.
Its main achievement is the creation of an autonomous international center for the settlement of investment disputes. The Center seeks to eliminate all foreign economic obstacles to private investment and is considered as one of the most authoritative international arbitration agencies, where all disputes are resolved through conciliation procedures or by arbitration.
Convention on the establishment of a multilateral agency for investment guarantees
As noted above, a foreign capital recipient country cannot always provide him with proper protection, but the development of new forms of cooperation has led to the establishment of more efficient investment protection mechanisms - insurance. 
The result of this process was the Seoul Convention on the establishment of a multilateral agency for investment guarantees, signed on October 11, 1985. Along with the Washington Convention, Seoul is the most important document in the issues of protecting investment. Guarantees provided by investors from the Agency are designed to protect them from most non-economic risks in investment activities in the member states of the Convention. The only thing that the agency does not insure is from economic risks, including bankruptcy. The agency acts as a guarantee that investors' rights will not be violated.
One of the participants of the Seoul Convention is Russia, which ratified it in 1992.
International treaties within the CIS
Along with multilateral international treaties, it is impossible to not pay attention to regional international agreements concluded by Russia within the CIS. For 26 years of the existence of the Commonwealth, it was signed about 500, many of which concerned investment activities, for example:
- Agreement on cooperation in the field of investment activities (1993).
- CIS Convention on Investor Rights Protection (1997).
- Treaty on the Eurasian Economic Union (2014).
It should be borne in mind that all these treaties and agreements apply only within the framework of regional cooperation of the CIS countries, since the provisions presented in them establish some privileges to representatives of the CIS countries.
State regulation measures of foreign investment
By virtue of the action of Art. 4 of the Law "On Foreign Investments in the Russian Federation" and the national legal regime established by it for foreign investments, the activities of foreign investors are under the same protection of legislation as the activities of Russian companies. Applied to foreign companies, legal regime cannot be less favorable.
Despite the same regulatory measures in the field of foreign investment, the legislator does not exclude the possibility of using stimulating or restrictive seizures. True, restrictions are possible only in order to protect the constitutional system, the security of the state, as well as the rights and legitimate interests of others.
At the same time, stimulation in the form of benefits for investors can be established by legislation in the interests of the country's socio-economic development. There cannot be provided for any prohibitive measures for economic investment. In addition, state regulation measures can be expressed in the form of state guarantees.
State guarantees to foreign investors
The legislation of the Russian Federation through federal laws, obligations under international treaties and other regulatory acts guarantees a complete and comprehensive protection of the rights and interests of foreign investors. One of the main regulatory legal acts providing for state guaranteed foreign investment is the law "On Foreign Investments in the Russian Federation".
The above law gives investors the following rights:
- implementation of investment activities in any forms not prohibited by legislation;
- possession of legal personality in the territory of the Russian Federation;
- protection against adverse legislation changes;
- objective justice;
- the use of legitimate income at its own discretion;
- unhindered removal of documents and property imported as an investment;
- buying securities and participation in privatization;
- obtaining benefits.
Governmental authorities investment
In accordance with the law "On the procedure for the exercise of foreign investment" and the Decree of the Government of the Russian Federation of July 6, 2008 No. 510, the Cabinet of Ministers is formed by a Government Commission for Control for Foreign Investment. Its composition is determined by the Government of the Russian Federation, the head is considered the Prime Minister.
The main tasks of the Commission include preliminary coordination of transactions that may entail the establishment of foreign investors' control over economic societies that have strategic importance, harmonizing the possibility of establishing such controls, as well as a refusal to coordinate.
When considering investors' petitions and performing other functions, it requests the required information in the executive authorities, hears experts and makes decisions by a majority vote.
Foreign investment in strategic sectors of the economy
One of the exceptions for foreign investors is to limit the possibility of their participation in the authorized capital of economic societies that have strategic importance for the economy, security, defense of the countries and other strategic directions. The withdrawal is not prohibitive, so admission to the participation of foreign investors in investment activities in relation to the strategic sectors is not prohibited, but requires compliance with some conditions. 
So, Art. The 4 law "On the procedure for the exercise of foreign investment" allows for such investment transactions that may entail the establishment of control by foreigners, only under the condition that the permit will give the aforementioned Government Commission.
The admission of foreign investors to investment in strategic industries is possible on their petition filed in the Commission with all the necessary documents specified in Art. 8 of the law. It checks the documents submitted, receives the necessary conclusions and requests the necessary materials regarding the threat to the strategic sectors from other authorized bodies and only after that decides on the preliminary agreement of the transaction, coordinating the establishment of control or refusal to them.
The decision must be made within three months from the date of application. Art. 6 of the law defines 45 types of activities that are strategic importance for the defense and security of the country.
Legal regulation of investment activities: Actual problems
Despite the very impressive, detailed and diverse regulatory framework, legal regulation of foreign investment is often characterized by a number of problematic issues. All of them for the most part concern investment legislation. We managed to allocate the most priority problematic issues.
- The lack of concretization of a number of state guarantees provided by foreign investment entities: for example, the state guarantees the stability of the legislation, but, according to Art. 9 of the Law "On Foreign Investments in the Russian Federation", no more than 7 years.
- The need for regulatory investment is not only federal, but also at the regional level.
- The absence of any law enforcement aspects in the domestic legislation on the resolution of disputes at the interstate level, and the effective mechanisms for entering international investment arbitration.
- The lack of legal institutions directly responsible for the implementation of state guarantees in respect of foreign companies carrying out investment activities, as well as for consideration of complaints from their part and the protection of their rights and interests, etc.
Why Russia is foreign investment: video
