World capital market

• Export of entrepreneurial capital as a long-term foreign capital investment, which means the creation of subsidiaries, branches, joint ventures. Investments in foreign enterprises that make it possible to control them are called direct investments. By creating similar enterprises in other countries, corporations of industrialized countries successfully overcome customs barriers, use increasingly cheaper labor, and are introduced into foreign markets.
• International credit (a loan in cash or in kind) that a lender of one country provides to a borrower of another country on the terms of urgency, repayment, interest payment. In a broad sense, this includes foreign portfolio investments (the acquisition of foreign bonds, shares of foreign enterprises, etc.), since they pursue the goal of establishing control over the economic activity of the borrower, and set the task of generating income.
  

The international capital market is connected to national markets, but at the same time it is isolated. It is more susceptible to market forces than national markets, since the latter are more regulated by the state.

• world market for entrepreneurial capital; Here, for capital investments, not only the current conditions for its application matter, but also the strategic goals that the company investing in this country pursues: conquering new markets, reducing production costs, etc.
• world market of loan capital - a combination (in different directions) of relatively separate national markets of loan capital as an organization of international credit. Here, for capital investments in the form of portfolio investments (purchase of blocks of shares that do not provide control) and loan capital (especially short-term loans and borrowings), the current opportunities for obtaining capital income, which are determined by the size of dividends, interest, and also the national currency rate, are of paramount importance taxation, etc. An important element of the global market for loan capital has become foreign currencies, in which commercial banks carry out non-cash deposit and loan operations outside of en - issuers of these currencies. The backbone of the global loan capital market is financial intermediaries transnational companies ( TNCs ), financial companies, stock exchanges, etc.), connecting lenders and borrowers from different countries. They centralize the enormous resources coming from private firms, insurance companies, pension funds, and others. The demand for loans is from TNCs, government agencies, and international and regional organizations. The core of the global market for loan capital is the Euro-currency market, based on credit operations performed with the national currency (dollar, mark, etc.) outside the country of its origin, while transactions are not subject to control by state bodies. In this market, the basis of lending activities (short and medium term loans) are Euro-currency deposits. The dollar dominates in the currency structure of lending operations in the world market of loan capital, although other currencies constrain it.

• Commercial banks - they have a central role not only because they set in motion the mechanism of international payments, but also because of the breadth of the scope of their financial activities. Bank liabilities consist primarily of deposits with different maturities, and the assets are mainly loans (to corporations and states), deposits with other banks (interbank deposits) and bonds;
• Transnational banks (TNBs) are large banks that have reached such a level of international concentration and centralization of capital that, thanks to merging with industrial capital, it assumes their real participation in the economic section of the world market of loan capital and credit and financial services;
• Multinational companies (TNCs) cover 35-40% of their needs from external sources. One of the new forms of lending to TNCs is parallel loans based on a combination of a deposit operation (the parent company deposits in the TNB of their country) and credit (this TNB through its branch provides credit to a branch of TNK in another country);
• International monetary and financial organizations - have preferential access to the global capital market, where they place their bond loans.

The nature of the operations:

• currency (purchase and sale, foreign exchange and other cash payments);
• deposit (operations with money or securities deposited in a bank on behalf of a private person, corporation, state body - a client of the bank);
• credit (short-term loans with a term of up to one year, they serve international trade in commodities, services, medium-term - for a period of one to 5-7 years, they are actively used in export transactions with machinery and equipment, long-term - for a period of more than 5-7 years, these loans are used to finance investments in infrastructure and other long-term projects);
• issue (issuance of securities, mediation in their placement);
• insurance (insurance of risks of foreign economic activity, etc.).

The world market for loan capital has its own financial centers; their historical choice was not accidental. The favorable geographical position, the country's active participation in world trade, the developed banking system, liberal tax and currency laws, political stability and a number of other factors led to the nomination of certain world financial centers. First place in the world is New York. The New York Stock Exchange is unrivaled in the world (issuing stocks and bonds, trading in securities). London dominates in Europe (the leading place on the planet in terms of the scope of currency, deposit and credit operations). The role of Tokyo is growing. New centers are active - Singapore, Hong Kong, Bahrain, Panama. In these new financial centers, financial transactions do not fall under national financial regulation, there are preferential currency and tax regimes (“tax havens”, where transactions made in different parts of the world are recorded favorably).

The movement of loan capital is carried out in the form of international credit, and business - through foreign investment.

In the last decades of the past century, a number of trends have emerged in the global capital market. The most important of them are:

• the growing role of the international financial market;
• growth of direct investments and changes in the structure of investments directed to industrialized and developing countries;
• globalization of the global stock market;
• growth in direct investment from developing countries.

The globalization trend in the use of labor has been especially pronounced in the last decade, when, with the development of information technologies, engineering, design, financial, insurance and other types of services have been exported to developing countries. So, since the beginning of the 90s, several thousand people worked in Jamaica, booking air tickets for orders coming from the United States. These and similar processes of globalization of the labor force, manifested in the creation of enclaves of highly skilled labor in developing countries, contribute to the growth of the qualifications of the labor force outside the industrialized countries.

The export of professional services is not only from industrialized countries to developing ones. It is characteristic of all countries. So, in 1990, 2.8 million people worked in American companies in Western Europe, 1.5 in Asia, 1.3 million in Latin America.

The most important factors that predetermined the development of international economic integration were: the scientific and technological revolution, the processes of internationalization of national economies, the deepening of the international division of labor, the evolution of state regulation of the economy, and increased competition. The main structure-forming factors of international integration are the export and import of factors of production, the exchange of goods and services. Currently, integration is associated primarily with the creation of a common market for a number of countries, involving the approximation of the economic policies of the countries included in it, and the creation of a supranational governing body.
The most distinct tendency of economic integration manifested itself in Western Europe and North America.

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• Types of the global capital market