The current economic structure and foreign trade of Russia should be the impetus for the provision of new development methods, since the old ones were not productive. Our country will experience a slowdown in economic growth if it continues to lag behind other states in the area of efficient production and scientific and technological progress. This can lead to a deterioration in the well-being of the population, as well as a lack of a country's predisposition to independent development.
It is worth knowing what constitutes the foreign trade of Russia, the statistics of which can tell a lot. But first you should get acquainted with the concept of world trade.
International trade is the process of buying and selling services and goods that are made between sellers, buyers, as well as their intermediaries from different countries. It contains the import and export of goods. The ratio between them is the trade balance, and the sum is the turnover.
Under the influence of scientific and technological revolution and MRI, the commodity structure of world trade is changing. Thanks to this condition, world trade is becoming a major factor in not only economic, but also political and social development. The strongest driving component of the world economic development is foreign trade.
Sources of efficiency increase
Participation in international trade provides the country with an opportunity to increase the level of satisfaction of public needs. The following sources of efficiency increase are worth mentioning:
- Increased competition in the domestic market.
- Savings achieved through increased production.
- The ability to use and obtain resources outside the country.
- Application of the principle of "comparative advantage."
Principles of international trade
International trade, carried out in modern conditions, has the following principles:
- Economic relations between participants in trade are based on the absence of interference in the internal affairs of the state, self-determination and respect for sovereign equality.
- Discrimination based on differences in socio-economic systems should be absent.
- Countries have the right to exercise sovereign trade.
- Social progress and economic development contribute to the strengthening of peaceful relations; therefore, they must be achieved by the joint efforts of the members of the international community.
- External economic policy must be pursued to achieve an MRI.
- World trade is governed by rules that do not prevent social and economic progress.
- Countries achieve cooperation through international treaties.
- International trade should be profitable for both parties and cannot contain actions that negatively affect the interests of other countries.
- It is necessary to promote the development of integration and other forms of economic cooperation between countries at the development stage.
In addition, it is worth noting that developed countries and international institutions are committed to providing increased inflows of technical and financial assistance to support those states that are at the development stage. It is necessary to take into account their development needs.
Foreign trade of the Russian Federation. Problems and their causes
Russia has long been a supplier of raw materials and semi-finished products to the world market. The domestic manufacturing industry was far from leading positions in international exports. The main problems of Russia's foreign trade in ensuring competitive manufacturing industries were the long closure of the USSR from foreign markets.
The high degree of militarization of the economy, combined with a small amount of financial resources, led to the actual division of the economy into two parts. The first was a developed and secured complex of defense industries. The second part was a technically backward field, consisting of civilian industries. It is quite important that the predominant amount of the products of the machine-building complex was sent to developing countries that had a political connection with the USSR.
At the present time in domestic exports are also dominated by commodities. This condition is due to the substantial dependence of the state on markets with the absence of a stable market environment. At the same time, regular price fluctuations impede the provision of stable currency inflows into the country. In this situation, the regulation of Russian foreign trade should be carried out at a high level.
Also negative is the fact that a significant part of domestic exports are products of environmentally harmful industries. These include pulp and paper, chemical and metallurgical industries.
Commodity structure of exports and imports of the Russian Federation
In the commodity structure of domestic exports, a raw material orientation has been preserved, in which energy resources prevail. This is evidenced by the dynamics of Russian foreign trade. Half of the country's total exports consist of fuel and energy products. Then there are metals, chemical products, precious stones and products made from them.
The level of state competitiveness is evidenced by foreign trade in machinery and equipment. In Russia, it occupies only a tenth of total exports.
The unfavorable commodity structure of Russian foreign trade may be due to the lack of competitiveness of the predominant number of types of finished products. This indicator in relation to imports is fairly stable.
This structure of Russia's foreign trade underwent major changes in the 1990s. Initially, its trading partners were former socialist countries, which accounted for about 67% of the commodity turnover. Mutual trade between them fell to 10% by the end of the last century due to changes in the terms of cooperation.
In the Russian Federation, the share of exports of countries with developed industry has increased dramatically. At the moment, a substantial part of raw materials and products of its direct processing are supplied to these markets. Access to finished products for developed countries is difficult. This is explained by the fact that different methods are applied to domestic exporters to hinder their realization of competitive advantages.
Russia's foreign trade with developing countries is highly volatile. The Russian Federation has actively developed foreign trade relations with the CIS countries and is interested in their preservation. In addition, the most important communications of Russia for foreign trade run through the territories of most of them. In particular, these are automobile and railway lines, as well as oil and gas pipelines.
Modern trends in the development of exports and imports of Russia
It is worth noting that the Russian Federation has the following export development trends:
- preservation of dependence of some branches of manufacturing products from foreign markets;
- export is characterized by the dominance of raw materials while reducing the foreign trade of machine-technical products;
- import is characterized by a change in the structure and preservation of a substantial share of the product group consisting of machines, vehicles and equipment;
- for import - a significant part of food products and raw materials for their manufacture;
- maintaining the share of CIS countries at a low level and increasing the share of countries with developed industry.
These trends will improve the degree of development that distinguishes Russia's foreign trade, and will allow it to occupy higher positions in the international market.
Russian Export Development Strategy
For the development of the country's trade, it is necessary to increase in exports the share of goods with a high level of processing, and first of all - finished products. At the same time, the diversification of the geographical distribution of international trade should be enhanced. Russia should return to the markets of developed countries and increase the share of CIS countries. Further development of import substitution is required. Consequently, Russia's foreign trade will start to develop gradually.
An alternative to a country's commodity exports could be to concentrate its potential not in the engineering industry, but in industries with higher competitiveness, such as nuclear power, high technology, and programming.