FOREIGN ECONOMIC CONTRACTS: FINANCIAL INSTRUMENTS

Abstract

Foreign economic contracts are legal agreements or contracts concluded between business entities (companies, enterprises, states, etc.) from different countries for the purpose of international trade and economic transactions. Foreign economic contracts can have different forms and structures depending on the type of agreement and its goals, but the main purpose is to regulate international relations in the field of trade in goods, services, investments and other types of economic cooperation. The purpose of the presented work is to consider the main features of the implementation of contractual foreign economic activity, taking into account the features of financial instruments. The main methods of the presented research are: analysis and synthesis - to reflect the essence of foreign economic contracts and highlight effective financial instruments; induction and deduction – to determine the main components of foreign economic contracts, to determine the features of financial instruments; graphic method - for visual representation of the obtained results. The following conclusions can be attributed to the main results of the research, that the main characteristics and aspects of foreign economic contracts include: foreign economic contracts can relate to various objects, including goods, services, investments, intellectual property, technologies, etc.; they can be concluded between business entities from different countries, including private companies, state bodies, international organizations, etc.; foreign economic contracts determine the terms of payment, including the currency of payment, terms of payment, terms of credit, etc.; they may contain information about the prices of goods or services, as well as price change mechanisms based on certain factors; foreign economic contracts determine the duration of the agreement, terms of delivery, quality of goods, standards and other aspects regulating the interaction of the parties; they may be subject to international or national rules and regulations, such as international trade agreements, trade sanctions and other regulatory acts; foreign economic contracts may contain terms of insurance or bank guarantees to ensure the execution of the agreement; they may contain provisions for dispute resolution, such as arbitration, litigation, etc. Foreign economic contracts play an important role in maintaining international relations, creating opportunities for international trade, investment and economic cooperation, as well as in regulating and ensuring stability in international economic relations.