Task 1. The population of the country is 20 million people. At the same time, the country's GDP amounted to 800 billion euros. Exports amounted to 180 billion euros, imports amounted to 300 billion euros. It is required to assess the extent to which the national economy of a given country is open (the degree of openness of the country).

Solution:

You can judge how open the country's economy is based on the extent to which the country participates in international exchange.

To assess the degree of participation in international exchange, we calculate the import quota and export quota.

Import quota= 100% = (300/800)×100%= 37,5%.

Export quota= 100% = (180/800)×100%= 22,5%.

The market is considered closed if the export quota is less than 10%. In this case, the market can be considered as the highest degree open if the export quota is more than 35%. In our case, the export quota is 22.5%, i.e. the market can be considered open.

The country's imports (domestic market) are also significant (37.5%), but exports account for a fairly large share of GDP, i.e. the country actively participates in international exchange.

Task 2. The country's economy is characterized by the following integral indicators:

Import of products is equal to 19,000 million euros.

Export of products is 17,000 million euros.

The population of the country also receives income as interest payments on investments in other countries. The value of this type of income is 3,000 million euros.

On the contrary, the interest to investors from other countries is 1200 million euros.

The country's reserves are 2400 million euros.

The import of services is 1800 million euros.

Export of services is equal to 1900 million euros.

The inflow of capital into this country is 6500 million euros.

The outflow of capital from this country is 4,000 million euros.

Net remittances amounted to EUR 2,100 million.

Find: current account balance (current account balance), as well as the balance of payments of this country.

Solution:

balance sheet foreign trade = Export of products - Import of products = 17,000 - 19,000 = - 2,000 million euros.

Balance of goods and services= Balance of foreign trade + Export of services - Import of services = -2000 + 1900 - 1800 = -1900 million euros.

Current account balance= Goods and services balance + Net investment income + Net remittances = -1900 + (3000-1200)+2100=2000 million euros.

Capital balance= Capital inflow - Capital outflow = 6500-4000=2500 million euros.

Current account balance and capital flow= Capital balance + Current account balance = 2500+2000 = 4500 million euros.

Balance of payments= Current account balance and capital flow + Country reserves = 4500+2400 = 6900 million euros.

Task 3. The table shows the costs for the production of cheese and knitwear in Russia and Germany as follows:

		Germany
Cheese (kg per hour)
Knitwear (sq. m. per hour)

Define:

a) in the production of which product do Russia and Germany have advantages? What type of advantage is there?

b) calculate (in hours) the winnings from international trade between Russia and Germany, respectively, if 5 kg of cheese are exchanged for 3 square meters. m. jersey.

Solution;

a) Russia has an absolute advantage in the production of cheese, since in 1 hour it produces 5 kg of cheese, while Germany - only 1 kg. Germany has an absolute advantage in the production of knitwear, since in 1 hour it produces 3 square meters. m of knitwear, while Russia - only 1 square. m.

b) In the absence of trade, Russia can only exchange 5 kg of cheese for 1 sq. m of domestic knitwear. If she trades with Germany, then she will be able to exchange the same 5 kg of cheese for 3 square meters. m knitwear. Thus, Russia's gain will be 3-1=2 square meters. m of knitwear, or 2/1 = 2 hours of labor.

Germany, for its part, receives from Russia 5 kg of cheese, for the production of which it would have to spend 5 hours. Instead, she spends those 5 hours producing 5×3=15 square meters. m knitwear. Thus, Germany's gain from trade with Russia will be 15-3 = 12 square meters. m of knitwear, or 12/3 = 4 hours of labor.

Task 4. The following notional data are available for the Russian economy:

years
GDP (billion rubles)
Import volume (billion US dollars)
Well$ (in rubles)

Calculate the import quota and draw a conclusion about its dynamics in the Russian Federation.

Solution:

In order to show what part of GDP is the import of developing countries, we calculate the indicator of the import quota, which is calculated by the formula:

Import quota= 100%

Let's add additional rows to the table, calculate the volume of imports in billion dollars and the import quota by year.

As can be seen from the table above, Russia's import quota has a positive trend, and increases every year by 1 - 2%. The exception was 2004, but then in subsequent years, the import quota again tended to increase. In 2008 it was 19%.

Import plays a very significant role for the national economy, which may lead to some dependence of the country on the world market. But, nevertheless, the growth of the import quota may also indicate a sufficient openness of the Russian economy, i.e. about its active participation in international exchange.

years
GDP (billion rubles)
Import volume (billion US dollars)
USD exchange rate
Import volume (billion rubles)
Imported quota

Task 5. The Russian company is discussing the possibility of purchasing telephone sets in Germany. The cost of one device is 20 euros; shipping cost 100 pcs. – 5 euros per piece, 500 pcs. – 4 euros, 1000 pcs. – 3 euros, 10,000 pcs. – 2 euros, 20,000 pcs. – 1 euro per piece. Such a device can be sold in Russia for 23.5 euros apiece. Assuming that there are no other costs, what is the minimum volume of imports that will provide a profit of 10%?

Solution:

Let's summarize the initial data of the problem in the table and add new calculation columns.

Price unit acquisitions. products,	units products,		Price transportation per piece,	Final price transportation,	Final price acquisitions,	when implementing,	implementation,

Thus, to ensure a profit of 10%, the company will need to order a volume of products from 20,000 pieces, as this will earn a 12% profit.

Ordering a batch of products from 10,000 to 20,000 pieces will provide the company with a 7% profit.

Therefore, you should either supply products in the amount of 20,000 pieces, or consider increasing the selling price. So, with an increase in the selling price to 24.2 euros per piece, it is possible to ensure a 10% profit with a supply volume of 10,000 pieces, the profit in this case will be (10,000 * 24.2-10,000 * (20 + 2)) = 22,000 euros, those. (242000-220000)*100%/220000= 10%.

Task 6.. TV supply function in Germany P s = 5+0.5Q. Demand for televisions in the domestic market is described as Q d = 1000 - 2P. Find the value of imports if the price of a TV in the domestic market is P = 200. How will imports be reduced if a customs duty of 10 is introduced?

Solution:

Let's find the value of domestic production of TV sets at a given price: 200 = 5 + 0.5Q, that is, Q = 390. The value of demand at a given price: Qd = 1000 - 2 * 200= 600. The difference between domestic supply and demand will be import: Im = Qd - Qs \u003d 600 - 390 \u003d 210. With the introduction of customs duties at 10 new price will be 210. Then the domestic supply will increase to Qs = 210 = 5 + 0.5 Q = 410, and the demand for TV sets will decrease to Qd = 1000 - 2 * 210 = 580. Accordingly, imports will decrease to Im = 580 - 410 = 170 .

Thus, with the initial data, the import is 210. And with the introduction customs duty at 10, imports will drop to 170.

Task 7.. Russia's foreign trade was characterized by the following conditional data (in billions of US dollars):

	Far countries abroad		CIS countries

Calculate:

a) the foreign trade balance in each year for each group of countries;

b) foreign trade turnover in each year for each group of countries;

c) the relative share of the CIS countries in Russian export and import;

Solution:

a, b) The trade balance of foreign trade is the difference between the value of all exports and imports.

The total amount of a country's exports and imports represents its foreign trade turnover. Based on this, we will supplement the table given in the condition of the problem and find the foreign trade balance in each year for each group of countries and the foreign trade turnover in each year for each group of countries.

	Non-CIS countries			CIS countries
foreign trade balance(export Import)
foreign trade turnover(export+import)

The share of exports of the CIS countries in the total volume of Russian exports in 1995 was: 14.5/78.2=0.185 or 18.5%.

The share of exports of the CIS countries in the total volume of Russian exports in 2013 is: 48/304=0.158 or 15.8%.

The share of imports of the CIS countries in the total volume of Russian imports in 1995 is: 13.6/46.7=0.121 or 12.1%

The share of imports of the CIS countries in the total volume of Russian imports in 2013 is: 24.1/191.8=0.126 or 12.6%.

Accordingly, the share of the CIS countries in the total foreign trade turnover of Russia in 1995 was 28.1/124.9=0.225 or 22.5%

Share of CIS countries in total foreign trade turnover Russia amounted to 72.1/495.8=0.145 or 14.5% in 2013.

d) growth rates of exports, imports and foreign trade turnover for each group of countries.

The growth rate of exports in non-CIS countries in 2013 compared to 1995 was 256/63.7=4.02.

The growth rate of imports in non-CIS countries in 2013 compared to 1995 was 167.7/33.1=5.07.

The growth rate of foreign trade turnover in non-CIS countries in 2013 compared to 1995 was 423.7/96.8=4.38.

The export growth rate for the CIS countries in 2013 compared to 1995 was 48/14.5=3.31.

The growth rate of imports in the CIS countries in 2013 compared to 1995 was 24.1/13.6=1.77.

The growth rate of foreign trade turnover in the CIS countries in 2013 compared to 1995 was 77.1/28.1=2.74.

The growth rate of exports according to the final indicators of the Russian Federation in 2013 compared to 1995 was 304/78.2=3.89.

The growth rate of imports according to the final indicators of the Russian Federation in 2013 compared to 1995 was 191.8/46.7=4.11.

The growth rate of foreign trade turnover according to the final indicators of the Russian Federation in 2013 compared to 1995 was 495.8/124.9=3.97.

Task 8. In countries A and B, the labor market is described by a system of equations. For country A, the labor demand function looks like D L = 100 - 5W, and the labor supply function - S L = 60 + 3W, where W is the real wage in dollars.

In country B, the analogous functions are: D L = 120 – 3W and S L = 40 + 5W.

Calculate:

a) What is the potential direction of labor migration?

b) What are the employment rates (in millions) and equilibrium wages (in dollars) in both countries?

c) Assume that in both countries all restrictions on emigration and immigration are removed, and as a result of the movement of labor in the country of emigration, the equilibrium wage rate increases by $ 1. What will be the volume of emigration in this country?

What will be the new wage level in the host country?

Solution:

a) The condition for equilibrium in the labor market is that the real wage must reach a level at which the demand and supply of labor would be balanced. This condition can be written by combining the following formulas as: D=S.

Indeed, the market is built on the interaction of supply and demand, if the state does not interfere.

Therefore, since supply and demand are in equilibrium, we can write the supply and demand ratios by country:

country A: 60+3W=100-5W,

country B: 40 + 5W = 120 - 3W.

Thus, in country A W=5 (USD per hour), in country B W=10 (USD per hour).

Therefore, in view of the higher rate in country B, the potential direction of migration will be from country A to country B.

b) the equilibrium wage rate in country A is $5 per hour, and in country B it is $10 per hour.

c) When demand and supply are in equilibrium, the employment rate can be considered equal to 1, since this indicator is calculated as the ratio of the employed population to total strength population of the appropriate age, when demand equals supply, it is assumed that all people are busy.

Assuming that all restrictions on emigration and immigration have been lifted in both countries, and as a result of the movement of labor in the country of emigration, the equilibrium wage rate has increased by $ 1, then the following calculations should be made to estimate the new wage level in the host country and the volume emigration.

In the country from which they emigrate (in country A), the wage rate increased by $1, i.e. amounted to 5 + 1 = 6 dollars per hour.

In this case, supply and demand will change.

Labor demand function: D L = 100 - 5W=100-5×6 = 70 - ready to offer these jobs.

Labor supply function: S L = 60 + 3W = 60 + 3×6 = 78 are willing to work at a given rate.

It turns out that with an increase in the wage rate in the market, demand exceeded supply, i.e. people would potentially like to work in country A rather than emigrate.

In country B, the labor supply function will be S L = 40 + 5W = 40 + 5 × 10 = 90.

The labor demand function will be D L = 120 – 3W = 120-3×10=90.

If the demand for labor increases by 8 (with migration from country A), then 98 = 120-3W. The wage rate (W) will be = 7.33 (USD per hour).

Task 9. Country A and country B are going to form a free trade zone. Previously, country A had imported 10,000 mobile phones from third countries at $100 each, subject to a duty of $30 per unit. The cost of producing such phones in country B was $110, and in country A it was $130.

Define:

(a) What will be the price for country A of redirecting its foreign trade to country B after the creation of a free trade area?

b) By how much should country A's imports increase to offset the costs of this reorientation?

Solution:

First of all, we summarize the data of the problem in the table

Quantity, pcs.	Purchase price in a third country, USD	Duty per unit, USD	Total duties	The cost of phones when importing from a third country, dollars (number *	The cost of production on its own, USD	Total costs for own production	Cost of production in country B, USD	Total costs when purchased in country B

a) A free trade area is a type of international integration in which customs duties, taxes and fees, as well as quantitative restrictions in mutual trade are canceled in the participating countries in accordance with an international treaty.

Thus, the reorientation of foreign trade to country B after the creation of a free trade zone will lead to the fact that the state budget will not receive additional duties (acting as a kind of indirect taxes) in the amount of 10,000 × 30 = 300 thousand dollars.

Consumers, on the other hand, would benefit from the establishment of a free trade zone, since the cost of the phone will be reduced from $130 to $110. Thus, the consumer will reduce spending by $20 per phone, therefore, the total consumer spending will be reduced by 20 × 10,000 = 200 thousand dollars. It should be noted that the cost of production in-house is $130, i.e. products produced in the domestic market become uncompetitive. The way out will be either the modernization of Russian enterprises, or the reduction of the world price to the domestic price, i.e. selling phones for at least $130 per unit. In this case, the country will earn $ 20 on a phone supplied from outside, i.e. compensates for a total of $200,000 by supplying 10,000 units of telephones to the domestic market.

b) In order to compensate for the entire amount of import duties that the budget will lose due to the transition to a free trade zone, it will be necessary to increase the volume of imports to a value that will allow the budget to earn another 100 thousand dollars. Thus, it is necessary to increase the import of phones by 100,000 / 20=5000 (pcs.). Thus, imports should amount to 15,000 phones to compensate for budget losses, i.e. costs caused by the reorientation of foreign trade.

Task 10. There is data on supply and demand for Swiss francs:

Calculate:

a) What is the equilibrium exchange rate for the dollar?

b) What is the equilibrium exchange rate of the Swiss bank?

c) How many dollars will be bought in the foreign exchange market?

d) How many Swiss francs will be bought in the foreign exchange market?

Solution:

a, b) The exchange rate is determined by the interaction of demand and supply of currency. The equilibrium exchange rate is the exchange rate that achieves equilibrium in the balance of payments, provided there are no restrictions on international trade, special incentives for the inflow or outflow of capital, and excessive unemployment. The equilibrium exchange rate of the Swiss franc can be determined from the equilibrium graph of the Swiss foreign exchange market.

Let's build this graph according to the task data.

The equilibrium exchange rate of the Swiss franc is 0.60 dollars (according to the equilibrium graph of the Swiss foreign exchange market), and the equilibrium exchange rate of the dollar is 1.67 francs (that is, 0.60 dollars is given for 1 franc).

c, d) The amount of Swiss francs that will be purchased at the equilibrium rate of 440 million. francs (according to the task). The amount of US dollars that will be purchased at the equilibrium rate is calculated as 440 million francs × 0.6 dollars = 264 million dollars (because at the equilibrium rate the franc is related to the dollar as 1/0.6).

Task 11. Russia produces 70, consumes 20, and exports 50 light sport aircraft per year at a cost of $6,000 per aircraft. The government, considering aircraft construction as a promising industry, provides manufacturers with a subsidy of 15% of the cost of an aircraft, as a result of which the price of an aircraft in the domestic market increased to $6450, and its price in the external market decreased to $5550. Explain:

a) Why did the domestic price of the aircraft increase less than the amount of the subsidy?

b) How has the introduction of the subsidy affected domestic production and exports?

c) How did the introduction of the subsidy affect consumers and the country's budget revenues?

Solution:

a) The domestic price can rise by the full amount of the subsidy only if the elasticity of demand for imports in the world market is infinitely large, which is not the case for the aircraft industry.

b) Subsidies, i.e. financial benefits provided by the state are especially relevant for exporters and expanding the export of goods abroad. As a result of such subsidies, exporters are able to sell goods on the foreign market at a lower price than on the domestic one. It becomes more profitable for producers who receive a subsidy to export than to sell goods on the domestic market. But in order to expand supplies to the foreign market, they must lower export prices. The subsidy covers losses from falling prices, and export volumes are growing.

c) At the same time, since less goods enter the domestic market due to the growth of exports, the domestic price for it increases (from P w to P d). An increase in price causes an increase in supply from S 0 to S 1 and a decrease in demand from D 0 to D 1 . As a result, consumers suffer losses, and producers receive additional gains.

The elasticity of demand for imports in importing countries is obviously not infinitely large, so domestic prices in the exporting country will increase by less than the subsidy provided, and therefore , budget spending will increase.

But in order to assess the consequences of subsidies for the country as a whole, one must take into account the costs of the subsidy, which will be borne by the state budget (ie taxpayers). To do this, the amount of the subsidy per unit of exported goods must be multiplied by the new volume of exports (S 1 - D 1).

How to calculate percentage changes in demand indicators depending on price changes? If the indicators of price reduction and increase in demand are equal in percentage terms, that is, an increase in the volume of demand only compensates for a decrease in the price level, then the elasticity of demand is equal to one. Let us assume that the elasticity of demand is equal to one to simplify calculations. Thus, if the value of demand in the domestic market was equal to 20 units, and the price in the domestic market increased by 7.5% ((6450-6000) × 100% / 6000), then we can assume a decrease in demand in the domestic market by 7 .5%, that is, the demand will be 18 aircraft (20 × 0.075).

In the foreign market, the demand amounted to 50 aircraft, and the price in the foreign market decreased by 8% ((6000-5555) × 100% / 5555), then we can assume an increase in demand in the foreign market by 8%, that is, the demand will be 54 aircraft ( 50×1.08).

In total, it will be necessary to produce and sell 72 aircraft.

The volume of aircraft sales in monetary terms before the introduction of subsidies was 20×6000+50×6000=420,000 dollars.

After the introduction of subsidies, it is assumed that the sale of aircraft in the amount of 18 × 6450 + 54 × 5555 = 416070 dollars will be carried out.

In addition, we calculate the budget losses in connection with the provided subsidies:

0.15×6000×72=64800 dollars (additional budget burden associated with subsidizing the aircraft industry).

The provided subsidy allows to increase the export of products to the foreign market, the products become more attractive and competitive for importing countries. Therefore, it is possible to increase the volume of production of aircraft and sell more than before. As a result of such subsidies, exporters are able to sell goods on the foreign market at a lower price than on the domestic one.

Task 12. Determine the amount of taxes included in customs payments when importing beer into the Russian Federation. Load 6000 l; customs value - 0.8 USD/l; duty - 0.5 rubles / l; special duty - 1.5%; additional import duty - 5%; excise - 7 rubles / l; VAT - 18%. The Euro exchange rate is 40.2 rubles, the dollar exchange rate is 31.5 rubles.

Solution:

Customs value = 6000×0.8 = $4800.00 = €3761.19 = RUB 151200.00

Customs duty \u003d 6000 × 0.5 r / l \u003d 3000.00 rubles. = €74.63 = $95.24

Special duty = 4800.00 × 1.5% = $72 = €56.42 = RUB 2268.00

Additional import duty = 4800.00 × 5% = $240.0 = €188.06 = RUB 7560.00

Excise tax = 6000 × 7 rubles / l = 42000.00 rubles. = 1333.33 $ = 1044.78 €

VAT \u003d (151200.0 + 3000.0 + 7560.0 + 42000.0) × 18% \u003d 36676.80 rubles \u003d 912.36 € \u003d $ 1164.34

Task 13. Determine the PPP of the euro and the US dollar according to the table on the conditional consumer basket, consisting of four goods:

countries	products
	The price of the product					Quantity of goods
euro area

Solution:

The cost of the consumer basket in the euro area:

4 x 100 + 11 x 20 +130 x 10 + 1500 x1 = 3420 euros.

The cost of the consumer basket in the United States:

1.5 x 100 + 9 x 20 + 100 x 10 + 2800 x 1 = $4130

PPP = EUR 3,420: USD 4,130 ≈ EUR/USD 0.83

Task 14. During the year, average export prices increased by 12%, import prices increased by 5%. How have foreign trade conditions changed?

Solution:

Taking the level of export and import prices in the previous year as 100% (or 1), we determine that the level of export prices in the current year is 112% (or 1.12), and the level of import prices is 105% (or 1.05) . In order to determine how the conditions of foreign trade operations have changed, we calculate the terms of trade index in the current year:

Consequently, the terms of trade index increased over the year. This suggests that the purchase of a unit of imported goods this year had to spend less revenue from exported goods than last year.

Task 15. In which of the following cases in the table can it be said that the firm practices dumping in foreign markets:

Indicators	Japanese firm	South Korean firm	Chinese firm
Average cost
The price of goods in the domestic market
Export price
Product price in Europe
Product price in the USA
Product price in Russia

Solution:

Since dumping is the artificial lowering of prices for exported goods in order to achieve competitiveness in foreign markets, we must determine which of the firms has export prices for its products below domestic prices. This criterion corresponds to the economic policy of the South Korean firm. Prices for the goods it exports in the territory of importing countries differ depending on the amount of anti-dumping duties applied by them.

Task 16. Two washing machines of the same quality - Russian and Italian - cost 10 thousand rubles, respectively. and 400 euros. The nominal exchange rate of the euro is 35 rubles. for 1 euro. What will be the real exchange rate?

Solution:

Calculate the real exchange rate using the formula: ER = EN ×(Pd / Pf × EN) = 35 × (10000 / 400 ×35) ≈ 25 (RUB/EUR). Thus, the real exchange rate is 25 rubles. for 1 euro

Task 17. According to the newspaper "Kommersant" on 02.08.2007. 1 US dollar was estimated by the Central Bank of Russia at 25.6008 rubles.

Determine the exchange and motto rates of the national currency of Russia for this date.

Solution:

RUB 25.6008 for 1 dollar is a direct currency quotation and, therefore, this is the exchange rate of the national currency of Russia.

In order to determine the motto exchange rate of the ruble, it is necessary to calculate the reverse (indirect quotation). The reverse quote is:

$1 / RUB 25.6008 ≈ 0.03906 USD/RUB, i.e. about 4 cents for 1 rub. This will be the motto rate of the national currency of Russia.

Task 18. Suppose (numbers are conditional) that the exchange rate of 1 dollar is 2 euros. A laptop of the latest model in the US costs $1,500, and the same computer in Germany, which previously cost 3,000 euros, has risen in price by 1,000 euros due to inflation. Consider the possible consequences of the changes that have taken place.

Solution:

Under the current conditions, it will be profitable to export laptops from the US to Germany. Buying a computer in the US for $1,500 and selling it for €4,000 can turn that €2,000 into $2,000 ($500 benefit). Since such operations are profitable (and not only in the field of selling computers), many will want to do them.

To do this, for the purchase of goods in the United States, they will buy more dollars on the foreign exchange market, which will lead to an increase in demand for the dollar and raise its rate - for example, up to 3 euros per 1 dollar. But then it becomes profitable to export the computer (and other goods) from Germany. In particular, buying a laptop for 4,000 euros and selling it for 1,500 dollars in the US, you can exchange 1,500 dollars for 4,500 euros (getting a benefit of 500 euros). This will cause an increase in demand for the euro and a fall in the dollar. The equilibrium in the market, obviously, will be restored at the rate of 1 dollar = (4000/1500) ≈ 2.66 euros. This rate will reflect the new price ratio of computers and other goods.

Task 19. The Russian plant daily exports about 100 tons of carbon black to Finland for the production of car tires at a price of $1,000 per ton. The cost of producing one ton of carbon black is 15 thousand rubles. Determine how the monthly profit of the exporter in national currency will change if the exchange rate changes from 26 rubles. up to 25 rubles for 1 dollar.

Solution:

Production costs amount to 1.5 million rubles a month. (15,000 × 100 = 1,500,000).

If the average number of working days in a month is 22 days, then the average monthly income of a Russian plant is 2 million 200 thousand dollars (1000 × 100 × 22 = 2,200,000).

With a course of 26 rubles. for 1 dollar, the plant's monthly income was 57 million. 200 thousand rubles (26 × 2,200,000 = 57,200,000). The monthly profit of the plant at the same time amounted to 55 million 700 thousand rubles. (57.2 - 1.5 = 55.7)

With a course of 25 rubles. for 1 dollar, the plant's monthly income will be reduced to 55 million rubles. (25×2,200,000 = 55,000,000). In this case, the monthly profit will be equal to 53 million 500 thousand rubles. (55 - 1.5 = 53.5).

Thus, due to the growth of the national currency, the monthly profit of the Russian exporter will decrease by 2.2 million rubles. (55.7 - 53.5 \u003d 2.2) or almost 4% (100 - 53.5 x100: 55.7 ≈ 4).

Task 20. Consider a historical example of a forward transaction for the purpose of hedging - insurance against currency risks. According to the terms of the contract, on June 1, 2012, the Canadian importer of Czech goods had to pay 1 million CZK for the delivered goods. As of March 1, 2012, the spot rate was CAD 0.816 to CZK 1. The 3-month forward rate was 0.818 Canadian dollars to 1 Czech crown, i.e. the Canadian dollar was quoted at a premium. On March 1, 2012, the Canadian company did not have free cash to buy Czech crowns. How could a Canadian importer of Czech goods take out insurance if he expected the spot rate to rise to CAD 0.820 per 1 CZK by March 1, 2013?

Solution:

To hedge against exchange rate fluctuations, on March 1, 2012, a Canadian importer of Czech goods entered into a forward deal to buy CZK 1 million against Canadian dollars in 3 months at a price of CZK 0.818 per CZK 1.

Having received 1 million CZK for 818 thousand Canadian dollars (0.818 × 1,000,000) on June 1, 2013, he immediately pays with them for the delivered goods. If the Canadian importer of Czech goods had not entered into a forward transaction, then on March 1, 2013 he would have to pay 820 thousand Canadian dollars for 1 million CZK at the current spot rate (0.820 × 1,000,000). Thus, the importer not only insured against losses associated with fluctuations in the exchange rate, but also saved 2 thousand Canadian dollars.

The total value of export and import operations of an individual state or several countries for a certain period.

For the collection of statistical data on foreign trade operations, the assessment of VO is very important, since it is then used to calculate:

• trade balance;
• average prices;
• efficiency of foreign trade operations in general and other significant parameters.

Foreign trade turnover is closely related to the concept of foreign trade.

What is foreign trade

Trade relations of one state with other countries, including import operations (import) and export operations (export) of goods, are called foreign trade. This term applies exclusively to individual countries.

Foreign trade helps:

• receive additional income from the sale of the national product abroad;
• to saturate the internal market of the state;
• increase labor productivity;
• cope with limited resources within the country.

In the aggregate, foreign trade transactions of different states form world (international) trade.

International trade is the oldest form of economic relations between states, which has a huge impact on the development of the world economy as a whole.

How is foreign trade turnover calculated?

So, the main concepts of foreign trade are export and import.

• Exports - the total volume of goods produced in the country, which is exported from it for a certain time period.
• Import - a set of goods produced outside a certain state and imported into it for a certain period.

Export and import transactions are recorded at the moment when the goods cross the border. They are displayed in foreign economic and customs statistics. The export operation of the state-seller corresponds to the import operation of the state-buyer.

As a rule, exports are recorded at FOB (free of board) prices. In international trade relations, this means that the price of the goods includes the costs of its transportation on board an international ship or other transport and insurance until the completion of loading.

Imports are accounted for at CIF prices (cost, insurance, freight). This means that the price of the goods includes the costs of its transportation and insurance, customs fees to the port of shipment of the buyer. That is, all these costs are borne by the seller.

The formula for the total volume of foreign trade turnover is as follows:

VO = Import of goods + Export of goods

The country's VO is calculated in monetary units, since miscellaneous goods cannot be compared in physical terms, for example, in tons, liters or meters.

How is the balance of foreign trade turnover calculated?

The balance of foreign trade turnover is also a significant concept for assessing the economy of a particular country. It can be calculated using the following formula:

VO balance \u003d Export of goods - import of goods

The balance of foreign trade turnover can be either positive or negative. A positive VO balance (the state sells more than it buys) indicates the growth of the economy. On the contrary, a negative balance indicates that the market is oversaturated with imported goods, and the interests of the domestic producer may be infringed.

World trade turnover

World trade is the sum of the exports of all countries, which is expressed in US dollars.

The participation of a state in world trade is displayed by such indicators as export and import quotas.

• Export quota - the ratio of export operations to gross domestic product (GDP). This indicator allows you to understand what part of the goods and services produced within the state is sold on the international market.
• Import quota - the ratio of import operations to the volume of domestic consumption of the state's products. Shows the share of goods imported into the country in domestic consumption.

Statistical data on world foreign trade turnover are collected, summarized and systematized. For this, international nomenclatures were developed (they are taken into account in the course of building national foreign trade classifications).

Which reflects the essence of net exports is the difference between exports and imports. The formula looks like this:
* Xn \u003d Ex - Im.

If imports are higher than exports, then we can say that the calculated value is negative; if there are more imports, then exports are positive.

If you look at macroeconomic models, you will see that they refer to net exports as the current balance. If it is negative, then we can talk about the deficit of the operations account, if it is positive, then there is an account of operations on this moment.

When determining net exports, it is important to take into account the factors affecting financial factors. According to the IS-LM model, this quantity will take the following form:
* Xn \u003d Ex (R) - Im (Y)

This formula shows that exports are negatively dependent on R - rates, but at the same time do not depend on Y - the level of income in the country where the goods are exported from. Basically, it is GDP. The interest rate affects exports through changes in the exchange rate. If it grows, so does the exchange rate. As a result, exports become more for foreign buyers, which means that they are steadily declining.

Import in the formula according to the IS-LM model is directly dependent on the income level of the population. Such is the nature of the dependence of imports on the exchange rate. With the growth of the national currency is growing and the solvency of citizens in terms of imports - it becomes cheaper for them, therefore, they can have more foreign goods than before.

It is equally important when determining net exports to take into account the income of the population in the countries where the goods produced in the country go. In this case, net exports can be calculated using the formula
* Xn \u003d Xn - mpm Y

Here Xn is an autonomous net export that does not depend on the income of the producer population, and mpm is an indicator of the marginal propensity of the population to import. It shows how the share of imports will decrease or increase with or increasing income.

Useful advice

The IS-LM macroeconomic model was developed by John Hicks with Alvin Hansen in 1937. It describes the balance of macroeconomics in natural and monetary terms. IS stands for investment and savings, while LM stands for liquidity and money.

With the development of the media, various professional concepts began to enter people's lives. Especially in the media you can meet economic terminology. At the same time, many readers and listeners do not know the exact meaning of such words as " export».

Export is economic concept, meaning the export of goods or services outside the country in which they were produced. The receiving state is called, the sending - export er. Based on basic concepts such as export, a modern one is being built. It should be noted that there are no states that deal only export ohm. The modern global economy implies active mutual and services between countries. There are various classifications export a. For example, experts often share export raw materials and finished goods as facts that have a different impact on the economy. A country that exports only raw materials actually incurs losses due to the fact that the sale trade goods much more profitable and useful for the economy. Since it creates additional jobs within the country. Volume export and can become an indicator that determines the economic state of the state. It is used to calculate the trade balance. A positive trade balance means dominance export and over

GDP is Gross Domestic Product...

Gross domestic product (GDP) is a total measure of output that is equal to the sum of all gross outputs of resident institutional entities related to the production process (including taxes, but excluding subsidies for goods/services not included in the value of the final product). This definition is official according to the Organization for Economic Co-operation and Development (OECD).

The calculation of GDP is usually used to measure the level of productivity of an entire country or a particular region. Also, the GDP indicator can show the relative contribution of a single industrial sector to the total volume of production in the country. Determining the relative contribution of sectors of the economy through the indicator of gross domestic product is possible because this indicator reflects value added rather than total revenue. The calculation involves summing the value added of each firm in the analyzed region (the value of the final product minus the value of the products used in the production). For example, a firm buys steel to produce a car, thus creating added value. If, when calculating GDP in this situation, the cost of steel and machinery were summed up, then the final indicator would be incorrect, since the input cost of steel would be calculated twice. Because this measure is based on value added, GDP increases when firms reduce the use of inputs or other inputs (intermediate consumption) to produce the same amount of output.

A more familiar way of calculating GDP is to calculate the growth of the economy from year to year (or quarter to quarter). The change in the GDP growth indicator reflects the success or lack of it in the economic policy used in the country. Also, by GDP growth, you can determine whether the country's economy is in a recession.

History of GDP

The concept of GDP was first discovered by Simon Kuznets in a report to the US Congress in 1934. In this report, Kuznetz cautioned against using GDP as a measure of wealth. Since the Bretton Woods Conference in 1944, GDP has become the main tool for measuring the size of an economy.

Before the GDP indicator became widely used, the gross national product (GNP-Growth National Product) was used to analyze the performance of the economy. The main difference from GDP is that GNP measures the level of production generated by the citizens of a particular state, both on the territory of this state and abroad. GDP, in turn, measures the level of production of "institutional entities", that is, entities located within the country. The transition from the use of GNP to GDP took place in the mid-1990s.

The history of the concept of gross domestic product is divided into stages according to the methods of calculating this indicator. The value added by firms is relatively easy to calculate. It is enough to check the movement of accounts and financial statements. However, the added value of the private sector, financial corporations and the added value generated by intangible assets is a technically difficult value to calculate. These types of activities are very significant for developed economies and the international conventions that are the basis for these calculations change very often to comply with industrial changes in the non-material sectors of the economy. In other words, the GDP indicator is the product of complex mathematical calculations and manipulations over data arrays to be presented in a form acceptable for further analytical actions.

GDP formula

GDP is the monetary value of all finished goods and services produced in a country during a given period of time. GDP is usually calculated at the end of the financial year. This figure includes all private and public consumption, government spending, investment, and exports minus imports.

Standardized formula for GDP:

AD=C+I+G+(X-M)

AD (aggregate demand) - total demand

С (consumption)-consumption

I (investment)-investments

G (government spending)

X (export)-export

M (import)

This formula shows the main theoretical components of the total demand in the economy. Total demand is the sum of all individual purchases made in the economy. In a state of equilibrium, total demand should be equal to total supply - the total volume of production in the country, which is the indicator of GDP.

So the GDP (Y) includes consumption (C), investment (I), government spending (G) and net exports (X-M).

Y = C + I + G + (X − M)

The following is a description of each of the components of GDP:

1. C(consumption -consumption) is the most significant component in the economy. Consumption consists of private consumption (consumption or costs incurred by final consumers). Private sector consumption is in turn divided into different categories: durables, non-durables and services. Examples include: rent, household goods, gasoline, expenses for medical services, but not consumption is not, for example, the purchase of real estate.
2. I (investments —investment) includes, for example, a company's investment in equipment, but excludes the exchange of existing assets. Examples of investments include the construction of a new mine, the purchase of software or the purchase of equipment and machines for the factory. The costs of individuals associated with the acquisition of new real estate are also investments. Contrary to popular belief, the term "investment" has nothing to do with the purchase of financial instruments. The purchase of financial products is classified as "saving" rather than an investment. This terminology avoids duplication of transactions when calculating GDP: if a person buys shares of any company and the company uses the received funds to purchase equipment, then the figure taken into account when calculating GDP will be the cost of purchasing equipment, but not the transaction value when buying shares. Buying bonds or stocks is just a transfer Money that is not directly a cost to purchase products or services.
3. G(government spending-government spending)it's su mma of government spending on final services or products. They include wages state employees, the purchase of weapons for military purposes and any investment made by the government.
4. X(export -exports) represents the gross volume of goods and services supplied abroad. Since the theoretical meaning of the GDP indicator is to measure the level of production generated by domestic producers, it is necessary to take into account the production of goods/services exported to other countries.
5. M(import -imports)— part of the calculation of GDP, representing gross imports. The indicator of gross domestic product is reduced by the volume of imports, since goods and services supplied by foreign suppliers are already included in other variables ( C, I, G).

A fully equivalent definition of GDP(Y) is the sum of final consumption expenditure (FCE), gross capital formation (GCF), and net exports (X-M).

Y = FCE + GCF+ (X − M)

FCE, in turn, can be divided into three components: the consumption costs of individuals, non-profit organizations and the government). The GCF is also divided into five components: non-profit corporations, government, individuals, commercial organizations and non-profit organizations for individuals). The advantage of the second formula is that the costs are systematically separated by type of end use (final consumption or capital formation), as well as by the sectors making these expenditures. The first mentioned GDP formula separates the components only partially.

Components C, I and G- these are the costs of final goods and services, the costs of intermediate products are not taken into account (intermediate goods and services are used by companies to produce other products and services during the financial year).

Example of GDP Components

C, I, G, and NX(net exports): if individual reconstructs the hotel in order to increase the flow of future guests, then this cost is considered a private investment, but if this person owns shares construction company- the contractor, then this cost is considered savings. However, when the contractor settles with his suppliers this will be included in the GDP.

If the hotel is a private residence, the renovation costs will be considered consumption, but if the municipality uses the building as an office for government employees, then this cost will be attributed to the state. spending or G.

If, during the reconstruction, component materials were purchased abroad, then these costs will be taken into account in items C, G, or I(depending on whether the contractor is an individual, municipality or legal entity) but after that the item "import" will be increased by the amount of costs, which means a decrease in the final GDP indicator.

If a local manufacturer manufactures components for a hotel overseas, then this transaction will not apply to C, G, or I, but will be taken into account in the "export" article.

GDP calculation

GDP can be found in three ways, which in theory should give the same result. These methods include: production (value added method), income and cost methods.

The simplest calculation method is the production method, in which the goods and services produced by each type are summed up. entrepreneurial activity presented in the economy. The cost method for calculating GDP is based on the principle that the product produced must be bought by someone, so the cost of the final product must be equal to the total costs incurred by the citizens of the analyzed country. income approach in turn, is based on the assumption that the income of factors of production (producers) must be equal to the value of the goods produced. Thus, when using this approach, GDP is calculated by adding the income of all producers.

Nominal and real GDP

The gross domestic product can be of two types. Nominal GDP shows total cost all goods and services produced in the country during the year, without taking into account their appreciation (inflation) for this period. More useful for purposes economic analysis type of indicator of gross domestic product is real GDP. Real GDP is the indicator of goods and services produced in the country for the year, taking into account the annual inflation rate. For example, if the growth of the nominal gross product is 4%, and the inflation rate is 2%, then the real GDP will be 2% (4% - 2% = 2%).

Investocks explains "GDP-Gross Domestic Product"

The standard measure of calculation is GDP growth, which is measured as a percentage (increase in the monetary value of goods and services produced). GDP is commonly used as an indicator of the economic health of a country and also to measure the level of a country's economic development. Often, the GDP indicator is criticized because the calculations do not take into account the shadow economy - operations that, for one reason or another, are not brought to the attention of the government. Another disadvantage of GDP is the fact that this indicator does not assess material well-being, but serves as a measure of a country's productivity.

Thus, the gross domestic product is an indicator of the overall level of production. Analysts often use the indicator of GDP growth, which is calculated through changes in the annual volume of production in the economy (gross domestic product).

Newcomers to foreign economic activity very often succumb to the temptation and thoughtlessly conclude deals, looking only at an attractive difference between the purchase and sale prices. As a result, not all operations have the expected commercial efficiency due to unaccounted for customs payments, which can significantly increase the final cost of products and, accordingly, reduce profits. Therefore, even at the stage of planning a foreign economic transaction, it is important to correctly calculate customs payments.

What are customs payments and how to calculate them?

Import / import and export / export duties, excise, VAT, customs fees - costs that are commonly called the general term "customs payments".

Depending on the product code and the direction of the foreign economic operation (import / export), along with the price of the warehouse and delivery, customs payments are levied on the final cost of the purchased / sold products.

• Importer pays: customs duties, import duty, excise (for excisable goods) and VAT (if it is not zero).
• Exporter pays A: Customs payments are usually limited to the clearance fee. Except for those cases when the exported products fall into the category of goods subject to export duties. To help the novice exporter, we have published on our website.

At risk:

• goods, the export of which is considered by the state to be little desirable (the goods have high demand within the country, for example, industrial forest);
• goods that are always in demand on the world market (the presence of an additional payment in favor of the state does not detract from the demand for this unique product, for example, Far Eastern sturgeons).

To calculate customs payments, you first need to, or, find out the TN VED code. In ambiguous cases, you can make an official request to customs and they will determine the product code from the description provided. The list and description are available in a special section of our resource.

Calculation of payments according to the TN VED code

Why is code so important?

With the code in hand, we can:

• calculate nominal customs payments;
• receive information about the need for additional certificates/permits for import/export of goods;
• find out if the goods are excisable;
• whether export duty is payable;

Knowing the code and the country of origin, we can:

• see if there are preferences for the product (preferential rates)

If there are preferences (reduced rates) in the country, then it is necessary to ask the supplier for confirmation of the country of origin in order to reduce the duty.

customs duty

This is a mandatory payment collected from the declarant when the goods cross the border.

Customs duties depending on the types of rates are:

• ad valorem, i.e. calculated as a percentage of the customs (contract) value (for example, chipboard, code 4411949000, the rate is 7.5%);
• Specific, i.e. calculated in monetary terms per unit of goods (for example, carpets, code 5703201209, the rate is 0.25 Euro/m2);
• Combined(for example, knitwear code 6103290009 rate 10%, but not less than 1.88 Euro/kg).

The rate depends on the product code and country of origin. Rates are reviewed regularly. For certain groups of goods sometimes introduced special conditions, implying a decrease, increase or cancellation of rates. The list of goods for which the export customs duty is established and their amount is fixed in the resolution of the Russian Federation Government of August 30, 2013 N 754.

Customs duty rates are reviewed regularly.

excise tax

Import excises apply to the same goods as in domestic trade. Of those that everyone hears are alcohol, tobacco, cars. A more detailed list and all excise rates are specified in article 193 tax code RF.

Payment of excise duty by the importer is made before the fact of filing customs declaration to customs.

When exporting excisable goods given type no payment is made from the exporter.

VAT

When exporting goods outside the Russian Federation, VAT is not charged.

All imported goods fall into 3 categories depending on the VAT rate applicable to them:

1. VAT is charged in full (18%)- this is where the bulk of the goods go;
2. A reduced rate is charged (10%)- this includes some categories of food products and a number of products for children. A detailed list is indicated in paragraph 2 of Art. 164 of the Tax Code of the Russian Federation;
3. Zero VAT rate applied (0%)- if high-tech equipment that has no domestic analogues is imported into the country. The list of equipment is constantly changing. The decision on whether imported equipment is subject to exemption from VAT is made by the Ministry of Industry and Trade of the Russian Federation and fixed by the Cabinet of Ministers with relevant resolutions.

How to calculate VAT on customs payments for imports?

The VAT calculation base is determined as the sum of the customs value of the purchase, customs duty and excise, and then 18% or 10% VAT is calculated from the amount received.

For example, the invoice value of the goods is $1,000, delivery to the customs territory of the Russian Federation is $150, duty is 7.5%, the goods are not excisable, VAT is payable at 18%.

• Customs value 1000+150 = 1150 USD
• Duty 1150 * 7.5% = 86.25 dollars.

The base for calculating VAT will be the amount of 1150 + 86.25 = 1236.25 dollars. As a result, VAT will be 1236.25 * 18% = 222.53 dollars. (in rubles at the exchange rate on the day of sending the declaration).

Remember that import VAT is paid together with general customs payments, that is, before the declaration is sent to customs, and not at the end of the quarter.

Customs duties

Separated by a separate group, but in fact these are three completely different payments:

The procedure for calculating customs payments according to the formula

To calculate customs payments, you need to know the product code, its customs value and country of origin. You can contact a broker, or you can calculate customs payments online calculator or even by hand. How to calculate payments?

• When exporting: if the goods are not included in the list on which the export duty is set, then customs payments are limited to the clearance fee (minimum 500 rubles).
• When importing: everything is also simple if the goods are not subject to duties, excises and does not imply preferences.

The calculation formula literally looks like this: we take the customs value of the goods, add the clearance fee to it and calculate VAT based on this amount. The resulting VAT, together with the processing fee, will make up the customs payments.

However, to be safe, it is better to use the services of a broker or a professional online calculator of customs payments, where payments are calculated according to the TN VED code.

When exporting excisable goods, this excise duty is not levied.

Calculation example

For a full calculation, you must specify the product code, its quantity, customs value (invoice value plus delivery to the customs border of the Russian Federation) and the country of origin of the goods.

Watch a video containing useful information on the procedure for calculating customs payments:

Let us give an example of a calculation for a small batch of Chilean wine.

Suppose we managed to buy 500 liters. wines of Chilean origin for 2000 dollars. already with delivery to the Russian Federation.

• We determine the product code 2204 10 980 1 (sparkling wines with an actual alcohol concentration of at least 8.5 vol.%)
• Information about the product gives us a duty of 15% and an excise tax of 25 rubles / l.
• We enter all the known data into the calculator and get the result:

Customs clearance costs	Payment types	In the currency of the supply contract	In the currency of customs payments
Customs value of goods	—	2000.00USD	RUB 138351.00*
customs duty	12.5%	250.00 USD	17193.88 rub.
excise tax	25 rub/l – Sparkling wines	180.70USD	12500.00 RUB
VAT	18%	$437.53	30266.08 rub.
customs duty	500 rub.	$7.23	500.00 RUB
Total- customs clearance costs	—	$875.46	60559.96 rub.
*The calculation was made at the rate of 1 USD = 69.1755 rubles.

• Of pleasant surprises: the duty rate for deliveries from Chile is reduced by 25%, i.е. when confirming the origin of the goods (usually with a certificate of origin), instead of 300 USD, only 250 USD will be paid.
• From unpleasant: customs payments in this case increased the cost of goods by more than 40%.