The global division of labor, the development of international institutions and transnational corporations have united all countries of the world into a complex system of relationships. By the middle of the 20th century, there were no more countries without international and foreign economic relations. The most closed country in the world North Korea conducts international trade with dozens of countries, including Russia, despite the sanctions imposed by the UN. Tokelau, the poorest country in the world, has ties to New Zealand, receiving financial assistance from there. And the country's international foreign economic relations are also actually limited to New Zealand, which is responsible for the security of the three atolls of which this state consists.
What is international relations?
With the emergence of ancient states, the first international relations were established, first military and commercial. With the development of society and the state, new areas of interaction appeared in politics, culture, religion and many other areas of human activity. All these types of relations between states, associations of states, public, cultural, religious and political organizations in the international arena are now included in the concept of international relations. In a broad sense, these are all relations between nations.
Sometimes they share international and foreign economic relations. Then everything connected with economic relations on the world market — trade, investment, scientific and technical interaction — singles out foreign economic relations into the concept. And everything else, including political, cultural, humanitarian and other ties, is classified as international.
Types of international relations
Differences in geographical location, climatic and natural conditions, levels of development of productive forces, labor, means of production and capital lead to the fact that countries are "forced" to build international relations and especially their economic part.
Conventionally, international relations are divided into:
- political - are considered the main ones that determine the presence and degree of interaction in other areas;
- economic - are inextricably linked with political ties, foreign policy is almost always aimed at protecting economic relations and obtaining better conditions for subjects of international trade;
- international legal - regulate relations by establishing norms and rules of work in other areas (the close relationship of foreign economic relations of the economy and law is always crucial for successful economic activity);
- military-strategic, military-technical - few countries in the world are able to single-handedly protect their national interests, countries unite in military alliances, conduct joint military exercises, jointly produce or purchase weapons.
- cultural and humanitarian - the globalization of public consciousness, the interaction and interpenetration of cultures and the almost instant availability of information quickly increase and strengthen these ties; non-governmental and public organizations are playing an ever greater role here.
Principal subjects
For a long time, international and foreign economic relations were considered as the exclusive prerogative of the state. The countries agreed on political and military cooperation and the conditions and volumes of foreign trade. With the development and complication of public life, new participants joined the international activity, in addition to states. Foreign economic entities are also recognized as transnational corporations, which often work directly with states.
The first such company was the British East India Company, created by decree of the British Queen Elizabeth I and which was engaged in the colonization of India and China, and even had its own army. The subjects of international and foreign economic relations are:
- nation states;
- international organizations;
- non-governmental organizations;
- transnational corporations;
- religious organizations;
- public, political, environmental and other associations.
Head of Relations
International relations have emerged as relations between countries. The state represents to the outside world the country as a whole, and not individual social groups, organizations or movements. This is the only legitimate institution that will determine the state’s policy on all sides of international life from declaring war to determining the conditions for economic cooperation and cultural exchange. Any actions of the state are aimed at obtaining a favorable environment for the implementation of foreign economic relations.
The level and quality of international, including foreign economic relations is determined by the competitiveness of the state, its economic and military potential. Of course, the level of national wealth, natural and labor resources, the level of development of science and education, and achievements in high technology are also important.
International institutions
The unification of states began with the military alliances of Greek city-states with the development of public consciousness came to the creation of one of the first international organizations - the League of Nations, which became the prototype of modern institutions of cooperation. Now hundreds of international organizations are full participants in international relations in all spheres of human activity. For example, organizations involved in foreign economic relations - the World Bank, the International Monetary Fund and several others - provide financial and technical support to all countries that need such assistance. The UN is a universal organization that works in all areas, from politics and cultural ties to military peacekeeping operations.
Global opportunities
They distinguish between foreign economic activity carried out by individual enterprises for the purchase of goods or attracting investments in the world market from foreign economic relations, which are considered as the totality of the activities of all such companies. However, with an increase in the scale of activity and reaching a supranational level, the approach is changing.
Since the mid-20th century, transnational corporations have been recognized as full participants in international relations. Global corporations, whose economic opportunities have become higher than in many countries of the world, began to directly influence many aspects of international life. Corporations operating in the jurisdiction of dozens of countries often enter into agreements with them that regulate not only the conditions of actual foreign economic relations, but also in the field of scientific, cultural and humanitarian relations.
Politics is primary
Politics defines everything. Political relations create the prerequisites and conditions for the development of all types of international relations, including foreign economic relations of countries. They determine, shape, and ensure the security of cooperation between states and other subjects of international relations. Depending on the level of political ties, countries establish rules for economic interaction. Recently, when the US government announced the introduction of barrage duties aimed at protecting the market from metallurgical products, it made an exception for its neighbor Canada. Then she began negotiations with her Asian allies, South Korea and Japan, on the conditions under which the new rules would not apply to these countries.
Relations in the foreign economy
The Institute of Foreign Economic Relations is the same age as the first states. Barely born, countries began to fight and trade among themselves. International trade has long been practically the only type of foreign economic relations. With the development of technology and the global division of labor, new types of relationships have appeared that are now subdivided into the types described below.
- International trade.
- Scientific and technical cooperation.
- Economic cooperation.
- International cooperation.
The economy of foreign economic relations includes, inter alia, more than 30 trillion world trade and 35 trillion foreign direct investment.
A little about Russia
Complicated international relations with the developed countries of the world had a negative impact on the foreign economic relations of Russia. The imposition of mutual sanctions, especially with its largest trading partner, the European Union, which accounts for 52 percent of trade, reduced foreign trade and investment opportunities. Amid increasingly worsening international relations with the countries of the Atlantic Union, Russia is successfully building up ties with the BRICS countries, especially China. Having the largest natural resources, Russia in the international division of labor so far occupies a not very attractive role as a supplier of minerals and agricultural raw materials. Of the more than 393 billion exports of goods and services, only 9.6 billion accounted for high-tech products and 51.7 billion for services.
