International Financial Relations

International financial relations arerelations with regard to the provision of loans, loans and investments in the economy of other states. The level of development of this type of financial relations is determined by the degree of development of national economies of countries, the world economy as a whole, the political situation, the nature of relations between states. The higher the level of the country's production, the more completely the division of labor and the stronger links between states, the more significant are the flows of capital between them.

International financial relations unfold, first of all, in the form of currency transactions, during which part of the state's money capital is transferred to the currency or vice versa.

At present, the main centers of the internationalfinancial activities are the countries of Western Europe, the United States and Japan. Their income from financial transactions in the international arena often exceeds revenues from foreign trade.

International Monetary and Financial Relationsare formed with the direct participation of governmental and national institutions, international organizations and private enterprises in them. Relations in the economic sphere of a similar level are regulated by numerous international organizations specially created and operating in accordance with international agreements in the field of joint economic projects.

The largest international financial organizations are the IMF, WTO, as well as a number of specialized funds and various international banks.

Contents of International Financial Relationstoday implies a rather large circle of relations playing a particularly important role in the situation when the export of goods (services) is a strategically important for the states direction of economic development.

International financial relations are developingin the form of international credit and financial relations, world trade, mutual provision of international services by countries, industrial cooperation, international tourism, scientific and technical relations.

Most of the countries participating in the worldare closely connected at the level of political, economic, scientific and other spheres of activity. These ties are becoming stronger over time, which leads to an expansion of the flow of money payments, capital, and credit resources between individual countries. International finance in this regard are grouped in relation to the subjects of management of states, in relation to states and governments of other countries with economic entities of foreign states, about the relationship of states and business entities with the world financial organizations (structures of supranational level).

International financial relations in itspurpose are mediated by cash flows between individual entities of different states. Such entities can be enterprises (sales-purchase relations), governments of different countries (regarding lending to other countries or lending by foreign states to another country), etc. Any international loans are bilateral relations (granting a loan - its repayment and payment of interest on it).

International finance by its functioningreflect the global integration processes that are taking place in the modern world. They ensure the activities of supranational structures through funds specially created for this purpose by special international organizations.

Increasing the credibility of existing international financial organizations leads to an increase in the level of financial centralization and the transition to a single monetary unit.