Both
centrifugal and centripetal tendencies are the basis of a modern world. The
main uniting force of the modern international community is international
financial investments. Investment classification is various, but its major flow
is divided between three directions:
- Direct investments
- Portfolio investments
- Bank credits
Approximately
70% of international investments are redistributed between the USA, the
European Union and Japan.
Investments in
global meaning provide the functioning of the world market by the capital flow
from less profitable (old) branches and countries to more profitable (progressive
and dynamic). That ensures the world civilization progress at the present stage
of human society development, financing the more innovative and perspective
fields, technologies and the whole countries. Judging by the human progress in
science, techniques and technologies, the living and culture standards
investment mechanisms as the factor of world community dynamic development can
not but considered as super efficient. How this mechanism which is able to
change medieval countries into the leading countries of post-industrial world
order in a several decades (Japan, China, hopefully- Russia) is formed.
International
portfolio investments – are the capital deposit into the foreign shares or debt
securities without the right to control investment objects. The main task of
portfolio investment – is improvement of investment terms by offering the set
of securities (on the assumption of successful combining). A new investment
quality with pre-defined characteristics is only achieved in the process of
securities portfolio formation. Thus, the securities portfolio is often
intangible (electronic) substance, uniting many people of different
nationalities- investors (jointed by their funds) and founders of joint-stock
companies (jointed by stocks). From the investor’s position which is more
interested to us in this material, portfolio investments are those instruments
with the help of which the necessary investor’s profit is ensured in case of
minimal risk. Usually portfolio investments are considered as the means of
preserving the funds from inflation, and only in the case of venture deals- as
the means of getting a real profit.
International
direct investments. Under the conditions of international economic crisis the
government of the majority countries, including Russia, implements a
protectionism policy and some closing of national markets. However, the direct
international investments are still the basic method of global investing. This
method is used by commercial enterprises for getting profit on the foreign
markets. For an investor, the funds allocated to the enterprise, will be the
foreign investments, and for the country which receives investments- the
foreign ones. As the direct investments presuppose the entrepreneurs’
investment activity, so the investor should be ready for an active
participation in managing the foreign enterprise. Earlier entering the international
investment market was the destiny only of prominent entrepreneurs and
structures, now it is possible to invest any amount of money to the foreign
enterprise, if it is demanded by the foreign enterprise. The direct investments
excluding mediation of different structures (shares funds, stocks) provide not
only a considerable income, which can be compared with entrepreneurial, but
also higher risk comparable with entrepreneurial one.
International
bank loans. The major modern banks are international transnational
corporations; they are ready to grant a credit to a borrower who satisfies the
requirements practically in any country of the world by means of its branches
and representatives. At the moment transnational banks follow the global
corporations, ensuring them with modern and actual bank services in this or
that country. Naturally, the investor in this form of investment is bank
institutions, and the given article serves to less institutional investors –
private persons and small corporations. For them, international bank loans- are
one of the sources of investment capital formation. This source is
characterized by high charges and mandatory repayment. These terms make bank
loans objectionable, but sometimes the only one source of investment capital.
It should be mentioned that the world financial crisis of the present days was
initiated by the non –credit process with investment banks (particularly
mortgages) in the USA. Thus, the use of a bank credit for investment purposes
make investments less profitable, and less reliable, because there are risks of
out-of-date debt, leading to the bank penalties.
And, finally,
the most profitable and consequently the most risky type of investment is Forex
market. Due to these two factors the given market has the highest liquidity
among investment instruments and the funds turnover. According to the data of
the Bank for International Settlements, which conducts the appropriate
monitoring, the daily deals volume on the Forex market exceeds 1.4 billion US
dollars. The currency market is greater than all other markets in the world.
Main currency market participants – are banks, exporters and importers,
governments, institutional investors and the most interesting to us, the
brokerage companies and private investors. The currency Forex market- is an
off-exchange structure, i.e. it exists in the form of participants’ mutual
calculations through the global fund communication, mainly by the Internet.
Consequently, the currency market Forex- is the most democratic and less
bureaucratized investment type. Using the leverage mechanism, the brokerage
companies ensure an access to the market to any Internet user with an amount of
100-200 US dollars, as well as a rule free trading terminals and the necessary
informational support. The income on the Forex market depends from an increase
or decrease in the one currency rate against another one. If a person comes
into a market and makes a deal just “at random”, his/her chances to get profit
or to suffer losses will be equal to 50% to 50%. But if a person adds some
knowledge and technique analysis skills to its choice, that brokers teach its
clients as a rule, than he/she will shift the income ratio to his/her favor in
one or another extent.
Thus, the
modern financial system represents a wide range of investment instruments
depending on the investment volume, its source and urgency, as well as purposes
which an investor intends to achieve- the capital preservation or its multiple
advancements. After that the characteristics of income and risk are selected,
and only after that in accordance with the above mentioned, an investment
instrument should be chosen.
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