The international movement of capital, its active migration between countries is an important part and a form of modern international economic relations.
The movement of capital is very different from the movement of goods. Foreign trade is usually limited to the exchange of commodities as use-values. The export of capital (foreign investment) is the process of withdrawal of capital from national circulation in the country and moving it in a commodity or cash in the manufacturing process and the treatment of another country.
At first, the export of capital was typical for a small number of industrialized countries who export capital to the periphery of the world economy. The development of the world economy significantly expanded the scope of this process: the export of capital is a function of any successful and dynamic economy. Capital and take out the major industrial countries and developing countries, especially China, Russia, Brazil and India.
The main reason for the export of capital and the prerequisite is the relative abundance of capital in the country, its over-accumulation. In order to generate business profits or interest he transferred abroad. Characteristically, the export of capital may be in short supply and capital for domestic investment (for example, in spite of the lack of investment in the Russian economy, in 2011 the outflow of capital from the country amounted to 84.2 billion U.S. dollars).
In the world have formed a huge mass of reserve capital seeking profitable use. Insurance companies, pension funds, trust, investment and other funds accumulate the funds.
Since the second half of the XX century, the export of capital is continuously growing. The export of capital is ahead in terms of growth as commodity exports and gross domestic product of industrialized countries. With the sharp increase in scale export of capital increases its international migration.
International migration of capital - is a counter-movement of capital between countries, bringing their respective owners income. Many countries are both an importer and exporter of capital: there are the so-called cross-investment.
As part of the international movement of capital distinguish between exports and the export of capital and imports, or imports of capital. Each party to the international movement of capital tries to get their benefits from the export or import of capital.
Exporter of capital trying to get a great rate of return on the capital invested in another country or to obtain other economic or political benefits.
The reasons for the export of capital may also be:
· Obtaining additional profits;
· Have access to the latest technology;
· Savings in fiscal payments;
· The establishment of control over others;
· Uneven accumulation of capital in the various countries and the appearance of relative excess capital in some national markets;
· Inability to effective capital investment or investing it at a high rate of return;
· Availability of customs barriers that hinder exports of goods, which leads to the substitution of exports of goods exports capital to penetrate the commodity markets;
· The approach of manufacturers to sources of raw materials;
· Approximation of production to new markets;
· Other reasons.
Importer of capital may also pursue economic (to raise capital for the development of certain industries and production, natural resources, enhancing employment, creating conditions for further economic growth), or political benefits.
In particular, imports of capital causes may be:
· Attracting more foreign investment and resources;
· Capital inflow from abroad opens up opportunities for new business development, modernization and expansion of production, which has a high demand;
· Introduction of the world's scientific and technological achievements;
· Expanding or increasing the number of jobs;
· Other reasons.
The main reasons for the export of capital (incentives for entrepreneurs, owners of capital) for greater profits are:
1. The discrepancy between the demand for capital and supply in the various segments of the global economy.
2. The appearance of the absorptive capacity of local commodity markets. In this case, capital is exported in order to pave the way for the export of goods to stimulate demand for its products. To this end, not only mastered the existing markets, but also create new ones.
3. The presence in the countries to which exported capital, cheaper raw materials and labor. So, for example, a German worker in the manufacturing industry "worth" is 4 times higher than the Taiwanese, 9 times higher than the Brazilian or Mexican.
4. A stable political environment and a generally favorable investment climate in the host country, preferential investment regime in special (free) economic zones.
5. Lower environmental standards in the host country than in the country - the donor capital.
6. The desire to detour to penetrate the markets of third countries that have established high tariff or non-tariff barriers on products of an international corporation. For example, Israel and South Korea have banned the import of cars from Japan. However, this prohibition does not apply to import cars produced in the branches of Japanese firms operating in the United States.
In practice, the need for investment is determined by a complex of reasons, including all components of the investment climate, as well as the principle of comparative advantage of individual markets.
Among the factors that contribute to and stimulate the export of capital, include:
1. The growing interdependence of national economies and cohesion that are the driving force that activates the export of capital. The internationalization of production has a huge impact on the international movement of capital, contributing to its acceleration.
2. International industrial cooperation, investment of transnational corporations in the subsidiaries. Thus, the individual legally independent companies from different countries in a single international corporation established close cooperation in the field of industry, technology, specialization exploded.
3. Economic policies of industrialized countries aimed at attracting large amounts of capital to maintain the pace of economic growth, employment, development of advanced industries.
4. The economic behavior of developing countries seeking to help attract foreign capital to give a significant boost to their economic means of the use of scientific and technological achievements of the developed countries.
5. Important stimulators are international financial organizations, guide and regulate the flow of capital.
6. International agreements on avoidance of double taxation of income and capital between countries contribute to the development of trade, scientific and technological cooperation, attraction of investments.
The development of the process of international capital flows affected by the following factors:
1) the development of production and maintain the pace of economic growth;
2) The deep structural shifts in the global economy, and the economy of individual countries;
3) deepening international specialization and cooperation of production;
4) the growth of trans-nationalization of the global economy;
5) the growth of the internationalization of production and integration processes;
6) the liberalization of world trade;
7) liberalization of the export / import of capital;
8) the policy of "industrialization" of developing countries;
9) the implementation of economic reforms;
10) the level of employment support policies