British market. General characteristics of the UK stock market. Financial instruments traded on the UK securities market

Great Britain, one of the leaders in world trade and financial center, is the third largest economy in Europe after Germany and France. Over the past two decades, the government has greatly reduced the share of state ownership in the country's economy and implemented welfare programs. Agriculture is intensive, highly mechanized and meets European standards, providing approximately 60% of the country's food needs with less than 2% of the labor force. The UK has large coal, natural gas and oil resources, but oil and natural gas reserves are declining and the UK became an oil and gas importer in 2005.

The service sector, especially banking, insurance and business services, is considered the largest component of UK GDP, while the share of industry continues to decline. Since recovering from the crisis in 1992, the British economy has grown for the longest period in history, and this growth has largely outstripped that of most Western Europe. In 2008, however, the global financial crisis hit the country's economy particularly hard, due to the importance of the country's financial sector. Sharply falling prices in the domestic market, large consumer debt and the global economic crisis are the main British economic problems, due to which the UK experienced a recession in the second half of 2008.

The crisis prompted the then Bruna government to implement many economic stimulus measures and stabilize financial markets; they included partial nationalization of the banking sector, tax cuts, increased government spending and capital projects. Faced with an increase in the budget deficit and a high level of debt, the government of D. Cameron in 2010 began to implement a five-year program to reduce spending, which is aimed at reducing the country's budget deficit from 10% of GDP in 2010 to 1% by 2015. The Bank of England periodically coordinates steps to change the interest rate with the ECB, but the UK remains outside the European Economic and Monetary Union (EMU).

Currently, the leading sector of the British economy is the service sector (74% of GDP), the growth rate of which in 2006 (3.6%) exceeded the growth rate of GDP as a whole (2.8%). The leading position in it is occupied by its financial component (27.7% of GDP), which determines the country's specialization in the system of international economic relations. In transport (7.8% of GDP), the growth was 2.9%. The second most important branch of the British economy is industry (18.6% of GDP, a decrease in output in 2006 by 0.1%) is represented by two sub-sectors: mining (2.2% of GDP, a decrease of 9.2%) and manufacturing industry (14.7% of GDP, an increase of 1.4%). Agriculture, which satisfies about two-thirds of domestic food needs, accounts for only 1% of GDP (output decreased by 1.8%), construction (6.1%, growth by 1.1%).

UK Natural Resources

Great Britain - is considered the world's second exporter of kaolin (white clay from which porcelain is made); other types of clay are also mined on a large scale for the ceramic industry. There are prospects for the extraction of tungsten, copper and gold from newly explored deposits.

Iron ore is mined in a relatively narrow belt that starts at Scunthorpe in Yorkshire in the north and runs through the East Midlands to Banbury in the south. The ore here is of low quality, siliceous and contains only 33% of the metal. The need for iron ore is covered by imports from Canada, Liberia and Mauritania.

In the British sector of the North Sea, 133 oil fields are known with proven reserves of 2 billion tons and recoverable reserves of 0.7 billion tons, which is about 1/3 of the shelf reserves. More than 80 gas fields have been discovered in the British zone of the North Sea with proven reserves of 2 trillion m3 and recoverable reserves of 0.8 trillion m3.

UK Industry

The UK industry (18.6% of GDP, a 0.1% decline in output in 2006) is represented by two sub-sectors: mining (2.2% of GDP, a decrease of 9.2%) and manufacturing (14, 7% of GDP, an increase of 1.4%).

The mining industry includes ferrous and non-ferrous metallurgy, oil and natural gas production. Oil production in the UK is carried out at fifty fields, of which the largest are Brent and Fortis. In 2003, it amounted to 106 million tons, of which more than half was exported - mainly to the USA, Germany, and the Netherlands. Large oil imports also remain (up to 50 million tons), which is associated with the predominance of light fractions in North Sea oil and the technological features of British refineries designed for heavier oil.

Growth rates of industrial production in Great Britain, % to the previous year

As for the British oil refining industry, it is still dependent on imports of crude oil and petroleum products. There are 9 refineries in the country with a total capacity of about 90 million tons per year (in 1999, the Shell refinery in Shell Haven with a capacity of 4.3 million tons per year was closed). They are located at the mouth of the Thames, at Foley near Southampton, in south Wales, at the Manchester Canal, in Teesside, Humberside and in Scotland (Grangemouth).

Gas production at them began in the mid-1960s, now 37 fields are being exploited, 1/2 of the production is produced by 7, among them - Lehman-Bank, Brent, Morkham. Production volume for 1990-2003 increased to 103 billion m3. Foreign gas trade is negligible; in 2003, its exports amounted to 15, and imports - 8 billion m3. Through a gas pipeline laid at the bottom of the North Sea, gas reaches east coast the islands of Great Britain in the area of ​​Easington and Yorkshire.

Ferrous metallurgy has been greatly developed. By the beginning of the 70s, the volume of steel production amounted to about 30 million tons, later, with the introduction of quotas for ferrous metals in the EU, it decreased by more than 2 times - to 13.5 million tons in 2001 (Great Britain is not among the ten largest steel producers.) In the second half of the 1980s, the industry underwent a technical modernization, and at present 75% of steel is smelted by the BOF process.

Today, the UK ranks eighth in the world in iron and steel smelting. The state corporation British Steel produces almost all the steel for the country. It should be noted that the British metallurgy developed in favorable conditions. The country is rich in coal. Iron ore was often found in the coal seams themselves or was mined nearby. The third component necessary for metallurgy - limestones are found almost everywhere in the British Isles. The coal basins, near which metallurgical centers developed, are located relatively close to each other and from the largest seaports of the country, which facilitates the delivery from other regions of the country and from foreign countries missing raw materials and export of finished products. 4 metallurgical districts have survived, of which only one is located in the center of the country (Sheffield-Rotherham with its specialization in high-quality steel and electric steel), the rest are on the coast in ports (in South Wales - Port Talbot, Llanvern, in Humbersay de - Scunthorpe , in Teesside - Redcar).

The steel industry in the UK is increasingly using scrap metal as a raw material, so modern steel plants are usually "tied" to the main industrial centers as sources of raw materials and markets for finished products.

In turn, the British non-ferrous metallurgy is one of the largest in Europe. It works almost entirely on imported raw materials, so the smelting of non-ferrous metals tends to port cities. With the almost complete absence of a resource base, the industry developed due to the high demand for non-ferrous metals and is represented mainly by the production of secondary metal. Of the primary metals, only aluminum and nickel are produced. The country's needs for tin, lead, and aluminum are almost completely met by domestic production; for copper and zinc by 1/2.

Non-ferrous metal exports far exceeded iron and steel exports in terms of value. Great Britain is also one of the main suppliers of metals such as uranium, zirconium, beryllium, niobium, germanium, etc., which are used in the nuclear industry, aircraft construction and electronics. The main buyers of British non-ferrous metals are the USA and Germany.

The West Midlands is the main area of ​​non-ferrous metallurgy, there are many small enterprises specializing in the production, rolling, casting and processing of non-ferrous metals. Other centers are South Wales, London and Tyneside. The three largest aluminum smelters are located on the island of England, near the city of Invengordon (Scotland) and in the northeast of England. They provide more than half of the industry's demand for primary aluminum. The aluminum production centers in Midland and South Wales are closely associated with US and Canadian aluminum companies.

In the structure of the manufacturing industry, the paper and printing industries (13.9%), food and tobacco (13.8%) have the largest share. The food and flavor industry over the past half century has become one of the main areas of concentration of British capital: of the 40 corporations in the country that are members of the "Club 500" of the largest firms in the world, this industry is represented by a dozen, led by Unilever, Diageo and Cadbury Schweppes. Food concentrates, confectionery, drinks (including tea, Scotch whiskey and London gin), and tobacco products are highly competitive on the world market. The placement of the largest enterprises is focused on markets, including external ones.

The engineering industry, the largest branch of British industry, employs 1/4 of all those employed in the manufacturing industry. The industry accounts for 40% of conditionally pure products of the manufacturing industry. If in the past it was characterized by the production of high-quality products, but of an average level of complexity, now technically complex, science-intensive products are gaining more and more weight. Transport engineering dominates. About 1/3 of the capital spent on the production of means of transport belongs to American companies that have established themselves in the British Isles after the Second World War. There are enterprises in this industry in almost all areas and in most cities in the UK.

The UK is the world's leading exporter of trucks. For example, a series of off-road vehicles of the Land Rover brand is widely known. The main buyers of English cars are the USA, New Zealand, Iran and South Africa.

Several of the largest automobile firms produce almost all serial cars and trucks. Such as British Leyland, factories of the international American company Chrysler U.K. and the American subsidiaries Vauxhall and Ford. Rolls-Royce (controlled by BMW) and Bentley, controlled by Volkswagen, maintain their positions as world leaders in the production of high-end cars. In 2002, 1.8 million cars were produced, including 1.5 million cars. Imports so far exceed exports, but the latter is also very significant (about 1 million units). The first major automotive industry in the British Isles was the West Midlands, centered on Birmingham. The second region of the automotive industry was the south-east of England (with centers in Oxford, Luton and Dagenham), where there were an abundance of workers.

General engineering is now inferior in terms of growth to other sectors of the industry. In recent years, the positions of the machine tool industry have again strengthened (the country ranks sixth in the world in terms of production, but fourth in exports). The branch of international specialization is tractor construction (the first place in the world in the production of wheeled tractors).

More than 2/3 of the cost of products in the instrument-making industry is accounted for by scientific and industrial instruments, including a number of the latest types of instrumentation and diagnostic equipment. The production of watches and cameras is also developed.

Aircraft manufacturing is one of the fastest growing engineering industries in the UK. This industry is dominated by the state's largest firm, British Airspace. She specializes in issuing a wide range various planes, helicopters, space vehicles, rockets. Helicopters are manufactured by another large firm, Westland Aircraft. Almost all the production of aircraft engines in the country is concentrated in the hands of the nationalized company Rolls-Royce, which has factories in Derby, Bristol, Coventry, and also in Scotland. Cooperation with Western European and American companies in the production of civil and military equipment is widely developed.

The newest productions of the chemical industry are also among the rapidly developing industries. About 1/3 of the products of basic chemistry are inorganic chemicals - sulfuric acid, oxides of metals and non-metals. Among the many chemical industries the production of synthetic fibers, various types of plastics, new dyes, pharmaceutical products and detergents began to stand out on a large scale. British chemistry is based on oil and gas raw materials and specializes in a rather limited number of chemical products that are highly science-intensive: these are pharmaceuticals, agrochemicals, engineering plastics used in aircraft rocketry, microelectronics. The main areas of the chemical industry were formed on the basis of refineries near the sales markets. The main areas for the location of the chemical industry are the following: the South East of England, Lankshire and Cheshire.

The industries traditional for the British economy, such as the textile industry, are also developing. Of the light industries, it plays a special role in the industrial development of the country, in the spread of the machine method of production throughout the world. Woolen fabrics are produced mainly in West Yorkshire, rayon production prevails in the Yorkshire city of Silesden, and cotton fabrics in Lancashire, in small textile towns north-east of Manchester. The production of woolen fabrics, products, yarn is the oldest in the British Isles. The woolen products of British textile workers are still highly valued in foreign markets today.

UK agriculture

Great Britain stands out in agriculture among European countries in that less than two percent of the population is employed in this sector of the economy. With commercial intensification of crops and high level mechanization for some positions, the volume of agro industrial production outpaced domestic demand. The level of employment in this area is gradually decreasing. To create alternative jobs for people in countryside, the government is trying to transfer labor force to other industries. The area of ​​land used in agriculture (about three-quarters of the total area) is also decreasing, while land suitable for growing cereals is given over to pastures.

State policy towards agriculture involves increasing the level of productivity and living standards of people employed in the agro-industrial complex, while at the same time maintaining reasonable prices for goods. To achieve this, a system of minimum prices for domestic goods and duties on imports was created. Producers of beef and lamb are specially paid extra to make their product competitive on the European market. Recent measures include restrictions on milk production and compensation to farmers for unused land.

The most important cereals are wheat, oats, rye. A significant part of the cereals goes to feed livestock, but the rest goes to the production of bread, cereals, etc. In animal husbandry, cattle are the most important. In agriculture, they try to maintain a high level of self-sufficiency, with the exception of the production of sugar and cheese; which are imported.

The UK currently ranks sixth among EU member states in terms of agricultural production. On average, one full-time worker here produces products worth 25.7 thousand euros (in gross terms). Agricultural land in the UK is 18.5 million hectares, which is about 77% of the country.

Agriculture in the UK is currently one of the most productive and mechanized in the world. The share of employment in the industry is 2% of the total employment in the country. The total area of ​​agricultural land is 58.3 million hectares (76% of all land in the country). The structure of agricultural production is dominated by animal husbandry. Dairy and meat and dairy cattle breeding, pig breeding (bacon fattening), meat sheep breeding and poultry farming are also developed.

The general dynamics of the development of agriculture in Great Britain in 2006, in terms of the cost of production of the main types of agricultural products in market prices, had the following indicators: wheat production increased by 16% and amounted to 1.2 billion pounds; barley - by 9.8% to 412 million pounds; rapeseed for the production of vegetable oil - by 17% to 307 million pounds; sugar beets fell 37% to £168m; fresh vegetables increased by 9.1% to £986 million; plants and flowers decreased by 4.4% to 744 million pounds; potatoes increased by 24% to £625 million; fresh fruit fell 1.2% to £377m; pork increased by 1.3% to 687 million pounds; beef - by 13% to 1.6 billion pounds; mutton - by 2.7% to 702 million pounds; poultry meat - by 1% to £1.3 million; milk decreased by 3.6% to 2.5 million pounds; eggs increased by 2.0% to £357m.

UK service industry

The most remarkable phenomenon that characterizes the UK economy has been the growth of the service sector. It reflects the increase in real incomes of the population, as well as the ratio between spending on goods and services. Representatives of the financial sector and the entertainment and tourism sector especially benefited. While some services, such as public transport, laundries and cinemas, have lost income per unit due to a shift towards their own goods such as cars, washing machines and televisions, service sectors that sell and repair these goods have been helped to develop. Other service sectors that saw increased demand include hotels, tourism, retail, finance and leisure. Numerous other sectors that previously held little or no market share have become much more significant. They include the production of computers and software, advertising, market research, holding exhibitions, presentations and conferences. IN Lately The UK is also actively developing the sector of teaching foreign languages, especially English, secondary and higher education, attracting foreign students.

Currently, the service sector in the UK accounts for about 2/3 of country's GDP. In it, the main share (about 40%) is occupied by business and financial services. The share of public services accounts for 35%, trade - 19%. Hotel services occupy - 5% of the total services market. Turnover in the service sector of the UK in 2006 amounted to 221.5 billion pounds, its growth compared to the previous year - 8.4%. The UK external trade in services has a positive balance (17.2 billion pounds). In 2006, total exports of services amounted to £125.6 billion. and increased relative to 2005 by 9.8%. Financial services took the leading position in exports.

Currency, finance and banks of Great Britain

While the UK has traditionally maintained its position as the world's financial leader, the 1980s saw significant changes in the structure and regulation of financial institutions. They affected the banking system, the insurance system, the building societies, the stock exchange, and the consumer goods market. Some of the previously well-defined lines of activity have become more blurred, for example, while home construction loans used to be the exclusive prerogative of building societies, now these loans have been issued by both banks and insurance companies. There were two related changes: the transformation of building society affiliates into actual banks with their own cash reserves, and the expansion of all three types of organizations into the real estate market. Building societies are also involved to some extent in investment services, insurance and land services.

London continued to grow as a center for international financial transactions. Capital inflows have increased as well as foreign exchange and securities trading, thus London is a large number of foreign banks- Increased competition and development of technology accelerated the process of exchange and trade- The stock exchange was reorganized, and traditional system brokers and jobbers was abolished. As a result, a number of companies were formed that became an intermediate link between British and foreign banks and former brokers and jobbers. In the late 1980s, laws were passed to regulate these new financial institutions. We even had to create new regulatory bodies that monitored the implementation of the letter of the law in this area of ​​activity.

All commercial banks are supervised by the Bank of England, which has the right to issue banknotes in England and Wales (the banks of Scotland and Northern Ireland have limited rights to issue money in their territories). The Bank of England licenses banks that mainly work with the population (like Sberbank), investment, mortgage and other British or foreign banks. The dividing lines in this sector / have also become less visible, while banks working with individuals, divided into mortgage banks, insurance banks; securities banks, etc. The Bank of England also controls the refinancing rate, which affects the structure and level interest rates. He actively intervenes in foreign exchange markets, protecting the stability of the pound. The pound sterling is one of the world's major currencies, and London is one of the world's most important trading centers.

The savings of the population are invested in the development of the economy through a network of financial institutions. Examples include insurance companies, pension and investment funds. Other organizations specialize in particular areas of funding; thus, financial institutions provide money secured by real estate. There are also companies that finance equipment leasing and medium- and long-term capital markets, which also finance banks or the stock market, including the market for innovative technologies.

There are several organized financial markets in the UK. The securities markets consist of the International Stock Exchange, which deals in listed securities and shares (including government securities and options), the Unlisted Securities Market, for smaller companies, and the Third Market, for smaller companies whose securities are not listed. Actions in the foreign exchange market include trading in certificates of deposit, short-term deposits, etc. Other markets deal with the Euro, currency exchange, futures, etc.

The share of invisible trade (fees and fees for financial services, interest on deposits, profits and dividends) is constantly increasing from one third to one half of all external income of the state. Gold and foreign exchange reserves (gross) of Great Britain as of the end of 2006 amounted to 84.0 billion dollars. (end of 2005 - 79.2 billion dollars), including government - 51.8 billion dollars. (48.1 billion dollars), the Bank of England - 32.2 billion dollars. (31.1 billion dollars).

The fluctuations in the exchange rate of the British pound that took place in 2006 against major currencies varied markedly. If the relative stability of the pound sterling against the common European currency reflects, first of all, the synchronization of economic processes in the UK and countries belonging to the euro area, then the significant strengthening against the dollar is partly the Bank of England maintaining its discount rate at a fairly high level, and partly - the acceleration of national economic growth.

Foreign relations and UK foreign trade

The UK retains an important role in the global economy. The country is one of the five most developed countries in the world and produces about 3% (2000 - 3.2%) of the world's GDP (according to the purchasing power parity of the national currency). In the export of goods and services, its share is 4.6% (2000 - 5.2%), in their import - 5.1% (5.6%). At the same time, there is a reduction in the share of the country in world trade. The macroeconomic situation in the UK has remained stable over the past decade. The growth of real GDP per capita was on average higher than in other G7 countries, unemployment and inflation were lower.

In 2006, the UK GDP growth increased to 2.8%, which corresponds to the level of economic growth in the G7 countries. At the same time, the inflation rate in the UK was lower (2.3% vs. 2.5%). Since the 2001/2002 financial year in the UK, the situation with the size of the state budget deficit has worsened, and in the 2004/2005 financial year its value reached 3.3% of GDP. However, in the 2006/2007 financial year, this figure fell to 2.8% of GDP.

The country continues to maintain a dominant position in the global financial services market. Three-fifths of world trade in international bonds (1st place in the world, primary market), two-fifths - foreign assets (1st place) and derivatives (1st place, the so-called "trading over the counter") are concentrated in the UK , a little less than a third of foreign exchange transactions (2nd place after the USA), a fifth of international borrowings (1st place). oh place). London also leads in wealth management wealthy people peace.

The most important commodity and stock exchanges of the world are located in Great Britain: the London Stock Exchange, the London Metal Exchange, the International Petroleum Exchange, the Baltic Exchange.

The UK trade deficit in December 2010 set a record since 1980, when the measurement of the corresponding indicator began. The negative trade balance amounted to $14.5 billion, $1.9 billion more than in November, when an anti-record was also set.

Experts say that the main reason for the sharp increase in the deficit is the heavy snowfall that hit the country in the last month of last year. December 2010 was the coldest in 100 years, causing many UK airports to close. While imports grew by 3.5 percent in December, exports grew by only 1.5 percent.

In general, for the whole of 2010, the deficit amounted to 140.9 billion dollars - 14.8 billion more than a year earlier. The volume of exports amounted to 405.6 billion dollars, and the volume of imports - 546.5 billion dollars.

While the state and support institutions are investing considerable resources in increasing the number of exporters among Russian small and medium-sized businesses, according to the Ministry of Economic Development, the share of SMEs in total Russian exports does not exceed 1%. In foreign countries, this figure reaches 20-30%. If you break it down by location, the figure will seem even sadder - the basis of Russian export statistics is made up of companies working with the CIS countries, less often with Asia.

Competitive markets such as the US and UK remain an unattainable dream for Russian small businesses. This is partly facilitated by the regulatory environment and the difficult foreign policy situation, and partly by the unpreparedness of the business itself for foreign markets.

Thus, the British, who have experience of working with Russian companies, note the frivolity of export ambitions, which entrepreneurs in our country traditionally demonstrate. Examples include the desire to “save” on certification and licensing, the unwillingness to invest in foreign market research and spend a lot of time searching for a foreign business partner, as well as the lack of even a minimal desire to adapt to a different business environment.

A partner in a British company that specializes in working with Russian businesses told the story of a manufacturer of healthy snacks for diabetics who was trying to arrange supplies to the United Kingdom. The head of the Russian company insisted on immediate meetings with potential buyers, not agreeing to invest in certification before signing the first contracts. According to the results of product trials initiated by the British partner, it turned out that, according to national standards, the snacks and bars produced are exactly the same thing that British doctors categorically forbid to use for British diabetics.

Cultural differences in doing business are also a serious barrier to which Russian entrepreneurs tend not to pay enough attention, thereby confirming the most ridiculous stereotypes of foreigners about "crazy Russians". So, in the presence of foreign partners, it is better not to voice your plans regarding the use of informal ways to solve the problems facing your joint business.

What needs to be done

Meanwhile, despite the seeming difficulty of working for export for a small business that does not have serious budgets, the process of entering a foreign market for the first time can be reduced to a few simple steps.

To assess the company's ability to work in the market of a particular country, as well as to build a strategy for its conquest, it is important to understand the characteristics of this market, so a future exporter cannot do without research. At the same time, among representatives of small and medium-sized businesses that demonstrate export potential, there are many who sincerely believe that in order to explore the market that the company seeks to enter, it is enough just to “google”. The particular absurdity of using this method becomes apparent when a small business begins to “google” any insiders, for example, about the British medical equipment market in Russian. Obviously, in such a situation, the company is unlikely to receive relevant information for making decisions on the start of foreign economic activity with a particular country.

If you want to understand the market, then you need to find out who are the main players in it - sellers and buyers. Depending on the industry and the specifics of the product / service, these can be corporations, small businesses, online companies or the state. Manufacturing companies also need an understanding of the assortment - what proportion of the market each product occupies. This will allow predicting demand and opening up new niches (sometimes these niches are obvious and banal, for example, it is still difficult to find buckwheat on the shelves of British chains, why not a business opportunity for Russian exporters?).

In order to predict the costs of implementing export ambitions, it is also important for a company at the research stage to assess the cost of logistics, warehousing services, as well as the costs of licensing and certification.

If the main sellers in your industry are represented by distributors, then certification issues can be solved by them - which is more reliable, convenient and usually cheaper. Indicators such as the price segment, the level of income of the population and the average check will help you generally understand the feasibility of trying to start selling to a particular country if you work in the B2C segment. To understand the average check and the price segment, it is important for correct pricing and calculation of payback.

When you start working in developed and competitive markets, you should not forget about the brand. Checking if you are eligible to use the brand you plan to go with is also a good idea during the research phase. Penalties for violations are serious, and supervision is strict - which can later turn into serious expenses.

Step 2. Support institutions

Russian entrepreneurs are lucky - the support institutions in our country pay serious attention to the export topic. In most regions, export support centers have been created and continue to open, where you can get both general information on issues of conducting foreign economic activity, as well as specific assistance in organizing business meetings and negotiations.

In addition, trade missions continue to exist in most countries, the main current task of which is to increase trade with other states.

Traditionally, trade missions actively communicate with foreign businesses, so at least they can be useful in finding suppliers. They can also tell about the markets and priority sectors of the country where they are represented.

At the research stage, it is there that small businesses need to contact in order to get the information you are interested in in Russian without any extra costs. Not so long ago, Dmitry Medvedev voiced the idea of ​​reforming the system of trade missions. It is supposed to transfer them under the wing of the Ministry of Industry and Trade, as well as to establish closer cooperation with the Russian Export Center (REC). For SMEs, this means that the focus of trade missions on supporting existing and potential exporters will be even more serious.

Step 3. Participation in business missions and exhibitions

Participation in industry-specific exhibitions and conferences remains one of the most effective ways to find first buyers and assess demand in new country. The inspiring stories of Russian manufacturers that conquered international markets most often happened due to the active exhibition activities of companies.

Russian flagships such as SPLAT, a manufacturer of oral care products, and Natura Siberica, a manufacturer of organic cosmetics, supply their products to dozens of countries around the world. A huge part of their success in the UK market has been their regular presence at the key European trade show Natural Organic Products Europe in London.

Depending on the industry, exhibition costs may be subsidized by support institutions, even in difficult countries like the UK. Thus, the Skolkovo Innovation Center, together with the REC, is already helping the first Russian technology companies to enter the British market by subsidizing participation in TechWeek in London.

In addition, the embassies of other countries in Russia also seek to help companies enter the national markets of their states. Thus, the British Embassy has a division of the Department of International Trade, which not only organizes business visits to the country, but generally helps with consultations and contacts.

Step 4. Foreign countries support programs for foreign business

Each state (at least in words, but most often in deeds) cares about becoming an attractive place for doing business. In this regard, launch special programs support for foreign companies entering the national market. They can be either very targeted - for example, with a focus on attracting innovative businesses, or quite general - the main thing is that a foreign company creates jobs.

For example, Great Britain, positioning itself as one of the best countries for doing business (in fact, it is the 7th place in the Doing Business ranking), has developed a state marketing program Britain is GREAT, where serious attention is paid to attracting foreign capital. All opportunities available for foreign business are associated with visa support.

So, in this regard, three options may seem interesting to small businesses.

• The first of these is Solo Representative - visa support for foreign companies seeking to try their hand at the British market. Foreign businesses with plans to scale into the UK market have the opportunity to send a representative to the country to assess the prospects and chances of success. It is important that the sent employee, in the event of his dismissal, will not have the right to remain in the country.
• Another opportunity to access UK opportunities is the Global Entrepreneur program. According to the terms, by raising an investment of £50,000 from one of the incubators or venture funds, an entrepreneur can register a company in the UK, raise financing (including banking) and obtain visas for employees, as well as have access to a team of 19 mentors.
• The third opportunity to scale your business to the UK is the start-up visa, which will be introduced in the spring of 2019. Aspiring entrepreneurs, developing companies in the field of high technologies will be able to obtain a visa.

Finishing the conversation about how to become an exporter, one cannot but mention the need to think globally. Thinking globally in the case of a small business means not only a certain attitude of the owner and his team, but also a certain set of business processes that reflect the company's readiness for constant scaling. As well as meeting the highest standards and the ability to exceed expectations - a British entrepreneur, if he complains, then about great competition. I am grateful to her, because it motivates even small companies to be the best version of themselves.

Shopping in the UK is an unforgettable experience. If you want to save time, go to the shopping center, where many famous boutiques are concentrated under one roof. If you want to save money, go to outlets where last year's collections are sold at breathtaking discounts. If you want to enjoy shopping to the full, walk through the shopping districts in search of your favorite brands. And finally, those who are eager to become part of the local color should visit the best markets in the UK.

Clothing stores in England

If you want to immerse yourself in the world of British style with its variety of fashionable looks, head to UK designer shops that are open in London, Birmingham, Leeds, Manchester, Liverpool, Bristol and beyond. An impressive assortment of original gizmos awaits you in the most outrageous English boutiques "Alexander McQueen", where even Lady Gaga and Rihanna dress up. Fans of strict classics will be pleased with the collections of Aquascutum stores, and modern fashionistas - the most popular British brand Burberry. Karen Millen Boutique offers a rich selection of non-traditional items, as well as vintage dresses in silk, lace and cashmere. No less original style of clothing, which is a symbiosis of British and French culture, is offered by the Stella McCartney designer boutique. For traditional Scottish clothing, go to The Scotland Shop in Edinburgh.

You can change your entire wardrobe at once at Jasper Conran, where, in addition to clothes and shoes, you will pick up stylish accessories, watches, Jewelry and spirits. Solid and self-confident men will appreciate the elegant collection in the Paul Smith boutique, and beautiful ladies- outfits and underwear from Rigby & Peller, which Princess Diana herself attended. Fans of original prints on clothes will be pleased with the assortment of the Ted Baker store, and supporters of the punk style of the Vivienne Westwood boutique will be the inspirers of this trend.

If you are interested in more democratic brands of England, the store "George" and "Next" is exactly what you need. The selection of stylish casual wear for the whole family is just as good as the quality. Of the budget boutiques, Diesel, Nike, Matalan, Gap, Newlook, Republic, Peacocks, Zara, Play, Tmlewin, Topman, H&M, John Lewis, Bershka, Aldo, Dorothy Perkins, Monsoon, Orvis, Pull & Bear.

Sports shops in England

In the UK, there is a chic selection of goods for sports: from clothes and shoes to equipment and sports equipment. While in the capital, visit the Lillywhites high-rise complex, which sells everything for football, tennis, volleyball, basketball, cricket, skateboarding, rock climbing and even canoeing. In "Born Extreme" you will find everything for kiting, kayaking, snowboarding and skateboarding. Motorcyclists will be delighted by the Grand Prix Legends store, which has an excellent selection of gloves, leather jackets and boots. Don't miss the Niketown themed city-museum, each of which has its own life on each of its five floors. In addition, sports shops are open in Liverpool, Birmingham, Bristol, Manchester, Nottingham and other major cities of the UK: Adidas, Reebok, Nike, Bench, Formula1, Blacks, Sportsbikeshop, Sports Direct, Sweatshop.

Electronics stores in England

In England, there are many shops with digital equipment and electrical goods. At the same time, the most popular network is the Apple Store company, whose outlets are open in all cities of England. In the British Apple stores, you will be sold an iPod, iPhone and iPad, as well as a short course on the operation of gadgets. If you are into photography and want to capture the best moments of your trip, visit Buyacamera and Jessops where you can buy photography equipment and accessories. Also take a look at the network "Kitchenscience" - a real paradise for housewives. This store has all the home "helpers" with which your home will shine with cleanliness and aromas of delicious dishes. From hardware stores are also popular: iMakr, Currys PC World, Samsung Store, Maplin Electronics, Leica Store, Dixons Travel, Phones 4u.

Children's shops in England

Shopping in the UK pleases not only adults, but also delights kids. Fairy-tale characters, bright colors and favorite heroes are waiting for young guests of the country in the Disney Store stores. Here you can buy clothes with Disney symbols, masquerade costumes, radio-controlled cars from the Cars cartoon, rocking horses, funny dolls and much more.

In the ranking of "the best toy stores in the UK" in the lead, no doubt, "Hamleys". You can visit this fascinating world of toys and entertainment in London and Manchester (Trafford area). Do not look here for baby food, clothes and school supplies. The assortment of the store is exclusively toys, and in such a variety that even adults will want to plunge into childhood. On average, Hamleys has more than 1200 products from 400 famous brands. The cost of production is above average. Almost every day, children's animators work in the store and theatrical performances and educational master classes are held.

When listing the best toy stores in the UK, one cannot fail to mention Just Childsplay in Leicester, which presents a colorful assortment of developing, educational and board games for children, books, sets for young engineers, attributes for young princesses, mini power plants and railways, doll furniture, and much more.

For clothes, stroller, baby monitor, changing table, high chair and car seat, head to Mothercare, which often has generous discounts. There are more than 260 stores of this company in England. For outfits for toddlers and teenagers, look into the children's departments of famous boutiques: Monsoon, Diesel, Next, Esprit, Kiddicare, Gap, Next, Peacocks, Selfridges.

UK outlets

True shopaholics know that the most profitable purchases can be made in outlets, where past collections of famous brands are sold all year round. There are 13 outlets in the UK and discounts range from 20% to 80%.

"Bicester Village"- the largest trading village of the country, located in Oxfordshire, an hour's drive from the capital. Traditional country style, picturesque recreational areas, playgrounds and over 900 fashion boutiques with over 130 British and international brands. For more information about Bicester Village (how to get there, brands represented) and other London outlets, read the special article Shopping Expert.
Dalton Park- a huge stock center located between Newcastle and Middlesboro. 55 acre scenic parkland with over 60 major chain stores (Marks & Spencer, Levis, Next, Gap, Adidas, Nike, Joseph, Designer Room, etc.) .) and, of course, attractive prices attract tourists to Dalton Park.
Bridgend Designer Outlet- an outlet village in Wales, half an hour from Cardiff. Among more than 90 boutiques (Calvin Klein, Gap, Austin Reed, Jaeger, Ted Baker, Ben Sherman, French Connections, etc.) you will find a recreation area, playgrounds for kids, fast food restaurants.
Kildare Village- the only outlet in Northern Ireland, in Dublin. The boutique town has more than 60 shops decorated in the style of horse farms. Among the European brands here you will find: "Cath Kidston", "Molton Brown", "Anya Hindmarch", "Jack Wills", "Superdry", "Designers Guild"; among global brands: DKNY, Lacoste, Seven, TSE, For All Mankind, Wolford, Thomas Pink, Bally.
Livingston Designer Outlet- the largest outlet in Scotland, located in the town of Livingston, between Glasgow and Edinburgh (near the M8 highway). Over 100 boutiques are open for you (Revlon, Calvin Klein, Armani, Mexx, Cruise, Nike, Ted Baker, Next Clearance, Marks & Spencer, Gap) etc.), cinema and restaurants.

UK Markets

British markets are more than ordinary trading platforms. This is a special atmosphere of local color, plunging into which you can see the daily life of the British. So, when you go shopping in England, be sure to visit the food market and taste local delicacies, take a look at the flea markets and buy antiques to remember England.

Top UK Markets:

"Boro"- the most famous food market in Europe, where both organic products grown by British farmers and delicacies imported from all over the world are sold.
Leicester- a market in the city of Leicester of the same name, which proudly tops the rating of "covered markets in the UK", as well as throughout Europe. Neither rain nor sleet will prevent you from enjoying shopping for woolen goods, fabrics and wardrobe items at affordable prices.
"Catterick"- Sunday fair in Richmond, where, in addition to trade, you will be enchanted by live music, circus performances, beer festivals, performances of magicians and comedians.
"Portobello" - largest market antiques in the world, the highlight of which is a unique combination of flea stalls with expensive designer assortment.
Edinburgh Farmers Market- the main grocery indoor market of the capital of Scotland. All products (fish, meat, vegetables, fruits, spices) are of the highest quality. Gourmets from other countries travel to Edinburgh for deli meats and liquor.
"Greenside Place" Edinburgh's housewives' favorite market, where high-quality farm products can be bought at ridiculous prices.
"Saint Nicholas"- the famous Bristol market (in the historic center), an ideal place for budget purchases: clothes, shoes, decor, art, etc.
"Skipton"- a market in North Yorkshire, where they always sell fresh products, as well as non-food products.
"Take it"- an open market in Lancashire, where more than 400 trading stalls are concentrated, and black pudding is a local delicacy.

UK shopping malls

If your shopping in England does not involve bypassing popular shopping streets and quarters, we recommend that you go to the shopping center, where the most popular brandy boutiques, entertainment venues and cafeterias are concentrated in one square.

Perhaps, first of all, it is worth noting the best:

Harrods- a department store-museum, where real masterpieces of luxury are presented, of course, at exorbitant prices: collections of clothes from famous couturiers, elite cosmetics, alcohol with many years of exposure, jewelry with diamonds.
"Liberty"- another premium shopping center, made in the Tudor style. Finding yourself among the ancient fireplaces, glass atriums, huge mirrors, wooden balconies and original staircases, you will feel like a part of the royal family.
"Selfridges"- one of the most visited complexes in the capital (despite the far from budget "prices"), the highlight of which is creative design (animated mannequins, funny compositions and video broadcasts).
"Harvey Nichols"- a high-class trading house, where designer collections are presented in boutiques, and in the champagne bar you can meet the world's "celebrities".
Westfield Stratford City- a whole trading town, consisting of 5 department stores, more than 250 clothing stores, several dozen restaurants and rich infrastructure (photo studios, beauty salons, a library, a cinema, flower departments, etc.)
Debenhams- the most affordable shopping center in the capital, where at ridiculous prices you can buy wardrobe items, goods for children, interior and health, digital equipment and much more.

Other famous shopping centers in England:

Arndale Center- the largest shopping center in Manchester, which is rightfully considered a local landmark. On an area of ​​185 thousand sq.m. there are about 300 shops.
Trafford- the second largest shopping complex in England, located in Manchester. Its high attendance (350 million buyers annually) is due to the impressive architecture and the range of famous brands (Puma, Hugo Boss, Dolce & Gabbana, Giorgio Armani, Louis Vuitton).
Highcross- the largest shopping center in Leicestershire, which has gathered under one roof about 120 of the best boutiques in the UK, including chain stores: "Ghost", "Apple" and the second largest in the country "John Lewis".
Broadmead- the largest shopping complex in the center of Bristol, where over half a thousand boutiques and more than 50 cafes are concentrated.
Cabot Circus- another huge shopping center in Bristol. Its boundless glass roof houses more than 120 boutiques, including 15 flagship stores of Harvey Nichols and Fraser Chambers.

Separately, it is worth highlighting the best shopping centers in Edinburgh:

"Cameron Toll"- a shopping center in the southern part of the Scottish capital, on Lady Road. The shopping center consists of a huge supermarket and about 50 adjacent shops with clothes, souvenirs, jewelry, perfumes, cosmetics and handicrafts.
"Ocean Terminal"- a modern shopping center of the Marine Terminal, located on Ocean Drive, near the Leith embankment. Here you can buy famous brands (for example, "BHS" or "Debenhams"), visit the Royal Yacht Britannia, as well as visit the restaurants, cinemas and nightclubs located on the territory of the complex.
Saint James- A shopping center bordering two districts of Edinburgh (Old and New Town), at the corner of Leith Street. The lower floors of the center are filled with boutiques with clothes, shoes, sporting goods and accessories. Fast food restaurants are located on the top floor.
Fort Kinnaird Retail- a shopping park in the southern area of ​​the city of Newcrayhall Road, not far from the A1 highway. On an area of ​​120 thousand sq.m. there are boutiques of famous designers and restaurants.
"princes"- an old shopping center, on the ground floor of which, oddly enough, there is a vegetable market, on the other two - fashion boutiques, jewelry departments, children's shops, souvenir shops and countless cafes.

Discounts in England

Shopping in the UK has its own peculiarity - discounted goods can be bought here all year round. In addition to fixed seasonal sales, during which collections of clothes and shoes are discounted up to 80%, cosmetics, jewelry and electronics up to 30%, all stores in the country periodically arrange a price collapse of up to 50% at their discretion.

Scheduled sales are generally divided into:
summer (late June - July - early August);
winter (after Christmas - the end of January).

The sales schedule may vary from year to year, so it is advisable to check the Internet for more accurate information about the start and finish of long-awaited discounts so as not to miss the most “delicious” offers. For example, the 2014 winter sales in England began before Christmas. So, the shops of the country staged a dizzying pre-Christmas sale, which lasted two cherished days - December 10-11.

Wherever you go shopping (to shops, outlets, malls or markets in the UK), friendly sellers, a diverse assortment and a lot of positive emotions from shopping are waiting for you.

Figures 8.6-8.10 allow a visual comparison of the dynamics of the US and British stock markets from 1985 to early 1990. Although there is no complete coincidence of the graphs, a strong correlation between them is beyond doubt. The need to track both markets is explained by the close historical ties between them. One of the advantages of intermarket analysis is that the outlook for one market can often be clarified by examining the charts of the related market. As discussed above, the UK market usually peaks before the US market. Figure 8.6 shows three such cases: peaks in early 1986, late 1987, and late 1989. (In the relatively recent past, the 1929, 1956, 1961, 1966, 1972, and 1976 peaks in the US stock market were also preceded by peaks in the British stock market.)

Figure 8.7 compares the British and American markets during 1986. The peak in the British market in the spring of 1986 and the correction that followed coincided with a period of consolidation in the American market. The break of an important downtrend line in the British market in December was a sure sign that the uptrend in the US market is about to resume.

As Figure 8.8 shows, the UK market peaked in July 1987, a month before the US market topped. In the fourth quarter of the same year, a double-bottom reversal pattern formed in the UK market, which became an early signal of the end of the collapse in global equity markets. Figure 8.9 shows the consolidation of both markets on the eve of the resumption of bullish trends in January 1989.

Figure 8.10 demonstrates the value of cross-market comparisons and divergence analysis. British Financial Times - London Stock Exchange index for 100 shares(Financial Times Stock Exchange 100 share index, FTSE) peaked in mid-September 1989 and began to fall rapidly. And American dow jones industrial index(DJIA) set a new high in early October. Any technical analyst who discovered such a serious discrepancy between these important indices would immediately suspect something was wrong, and a mini-crisis on the New York Stock Exchange on October 13, 1989 would not come as a surprise to him. Figure 8.10 shows that the rally in the US market, which lasted until the end of 1989, also began with a break in the downtrend line in the UK market. The end of the decade was marked by peaks in both markets.

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AMERICAN AND JAPANESE STOCK MARKETS

Figures 8.11-8.15 compare the American (represented Dow Jones Industrial Average) and Japanese (introduced Nikkei 2 2 5) markets. The correlation between these markets is not as strong as between the US and UK markets. However, their influence on each other is undeniable. Figure 8.11 illustrates the global bull run of 1985-89 using the two largest stock markets in the world.

In August-October 1986, the Japanese market experienced a corrective decline, which coincided with the consolidation of the US market (Figure 8.12). In early November of the same year, the Nikkei 225 index broke through the descending trend line and continued to rise. An attentive American analyst might take this bullish signal in the Japanese market as an early warning of the upcoming strengthening of the US stock market.

We have already said that the American market has reached highest point in August 1987, that is, two months before the peak in the Japanese market. However, as Figure 8.13 shows, the real collapse of global equity markets only began in October, following a bearish reversal in the Japanese market. The same chart shows the double bottom of the Nikkei 225 that ended in a bullish breakout in February.

1988. This important buy signal in the Japanese market proved to be the first and surprisingly accurate sign of the resumption of the upward trend in world markets after the crash at the end of 1987. Figure 8.14 shows that the bullish breakout in Japanese stocks in November 1988 outpaced the similar breakout in the US market by nearly two months.

Figure 8.15 compares the dynamics of the American and Japanese markets in

1989. Both markets peaked in October and then stabilized. This month's events demonstrate how much attention around the world has become on global market connections. On Friday, October 13, the Dow Jones Industrial Average fell nearly 200 points. On Saturday and Sunday the whole world waited tensely for the Japanese market to open on Monday morning (in New York it was Sunday evening). Everyone feared that if the weakening of the Japanese market continued, it could provoke panic selling in all other markets. Fortunately, the Japanese market has stabilized. The ensuing growth brought a final calm and contributed to the recovery of world markets, which lasted until the end of the year.

In mid-November 1989, the Japanese market approached a major hurdle, a high set two months earlier. Failure to overcome this important level of resistance would mean a possible weakening of equity markets on a global scale. Figure 8.15 shows that the Nikkei 225's bullish break to new highs in late November coincided exactly with the upside breakout of

the American market, as a result of which the Dow Jones Industrial Average again reached the level of the October peak. Thus, the strength of the Japanese market, which successfully broke through the resistance level, made it possible for the global bullish trend to hold out for some more time.

If Japanese stocks resumed their growth, then other market sectors in Japan at the end of 1989 gave distress signals. The yen continued to weaken, inflation in the country grew (mainly due to a jump in oil prices), interest rates rose, and Japanese bond prices fell. From the point of view of intermarket analysis, a very dangerous situation was emerging for the Japanese stock market.

Figure 8.16 divides the Japanese markets into four sectors of interest for intermarket analysis: currencies, commodities, bonds, and stocks. The top left chart shows the depreciation of the yen against the US dollar in early 1990. The weakness of the yen caused a rapid rise in inflation in the country. The situation was exacerbated by the sharp rise in oil prices at the end of 1989 (lower left graph), which increased Japanese inflationary expectations. Interest rates were raised to curb inflation and stabilize the yen. (Japan's central bank raised the discount rate three times in succession in an attempt to trigger the three-step-and-fall mechanism described in Chapter 4.) The bottom right chart shows a massive drop in Japanese bond prices. This market crash

bonds in January 1990 began to exert bearish pressure on the Japanese stock market (upper right graph).

During eight of the first eleven trading days of the new decade, the Japanese stock market fell a total of 5%. In just over two weeks, the Nikkei 225 lost about a third of last year's gains. Yields on 10-year government bonds hit their highest since November 1985. Inflation rose to 3%, which is not high by US standards, but exceeds the Japanese government's target in 2%. In addition, over the previous three months, the Japanese ye not only lost ground against the dollar, but also fell by 15% against the German mark. The combination of all these bearish intermarket factors weighed heavily on the Japanese market. On Friday, January 12, the Nikkei 225 index sank 653 points, recording the eighth largest drop in its history. A similar bearish equity market in Tokyo, triggered mainly by the collapse of the Japanese bond market, sent bearish echoes to markets around the world (Figure 8.17).

On the same day, London's FTSE -100 (pronounced footsie) plunged 37.8 points, the largest in two months, while the Dow Jones Industrial Average fell 71 points in New York. However, the problems of the New York market were not limited to the decline of foreign markets that Friday morning. The production price index for December was 0.7%, bringing wholesale price inflation in 1989 to 4.8%, the highest since 1981. The main culprit behind this surge in US inflation was the sharp increase in oil prices in the previous month. Thus, at the turn of the nineties, the world markets faced two main problems: rising inflation and rising interest rates - two potentially bearish factors for world stock markets.