Classification of forms of cross-country movement of capital

By its nature and forms of foreign investments may be different.

Thus, according to the sources of origin is usually followed by their division:

(1) State and (2) private capital.

Public investment in international practice is also called the official, they are funds from the state budget, which are sent or received abroad from thence upon the decision of the governments, either directly or intergovernmental organizations.

On the forms - this government loans, loans, grants (gifts), aid, international movement of which is determined by inter-governmental agreements. This includes loans and other means of international organizations (for example, loans from the IMF). But in any case, it is taxpayers' money, while going to a different destination path.

Private capital - is a means of non-government sources, placed abroad or received from abroad by private persons (legal or natural).

These include investment, trade credits, interbank lending, and they are not directly related to the state budget, but the government keeps them moving into the field of view and can within their powers to control and regulate them. In practice there are very subtle methods of conversion of public funds to private investment.

On maturity foreign investments are divided into (1) short-term, (2) medium and (3) long-term. The latter include investments of more than 15 years. This group includes the most significant investment, as long-term investments include all venture capital in the form of direct and portfolio investment (mostly private), as well as loan capital (public and private loans).

By the nature of the use of foreign investment are (1) loan and (2) entrepreneurial.

Loan funds meant to provide a loan for profit as a percentage. In this area, very active advocate of capital investments from public and private sources.

Entrepreneurial investment directly or indirectly invested in production and are associated with obtaining a particular scope of the rights to make a profit in the form of a dividend. Most often it is a question here of the investments of private capital.

Target entrepreneurial investments are divided into (1) direct and (2) portfolio investment.

Direct investment capital invstitsii are in the name of getting the long-term interest and provide it with the right of ownership or rights to manage critical. In general, foreign direct investment is a private business capital.

Portfolio investment does not provide control of object attachments, and provide only a long-term right to income, even pre-emptive in the sense of priority in the receipt of such income.

The International Monetary Fund in the same context (ie, the "target") identifies another group - "other investment", which is mainly made up of international loans and bank deposits.

Driven forms of foreign investment in the scheme presented all equal. Meanwhile, it is not clear what form of investment is more important from the point of view of control of the actual production. The basis for these discrepancies, which go to the level of laws and government regulations, is, as a rule, personal or group interest relevant financial and industrial circles.

But increasingly recognized as a priority direct investment as the most successful among national (or state) interests of different sectors of society.

In addition, they are predominantly associated with specific companies operates internationally, financial and industrial groups, so they are more manageable and their "rules of the game" is more definite. This becomes particularly important in terms of ensuring real competitive standards

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