Nargiza kasimova farkhod mukhamedov elkan harebov

 
Figure 9. Scheme of the integrated financial and economic mechanism 
Manufacturers of agricultural goods, processing enterprises, suppliers of 
means of production, trading enterprises, as well as  financial and credit 
institutions, investment funds, insurance companies can become members of an 
association created on the basis of an integrated financial and credit mechanism. 
At the same time, along with industry associations, there should be an 
association that would unite all areas of the regional agro-industrial complex. 
The integrated financial and credit mechanism allows you to: (1) identify 
and calculate the regional needs for cash,  (2) to distribute resources from 
different sources between specific economic entities (it is much easier and more 
efficient to distribute financial resources within an integrated system than to 
seek funds for an individual economic entity —  this is primarily due to 
transaction costs), (3) with the participation of banking organizations to organize 
settlement services for enterprises,  (4) with the participation of insurance 
organizations, provide insurance coverage for business entities and link it with 
state support. 
In an association, the need of an enterprise for financing is determined by 
selecting priority projects for investment. After that, the possibility of 
implementing selected projects from various sources (own, budget, credit, 
private investment) is determined. 
The advantages of creating an association of business entities based on an 
integrated financial and credit mechanism can be considered a reduction in 
transaction costs and wider access to sources of financial resources. Among the 
shortcomings is the complexity of managing the integrated system, which can be 
manifested in a decrease in efficiency in decision-making and expenses, 
possibly significant, for the content of such an association. 
Private 
investments 
Governmental  
support 
Other  
sources 
Integrated  
Formations 
Public-private enterprises 
Bank  
loans 
Own  
funds 
 
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In developed countries and in Russia, integrated systems set the vector for 
the development of the national economy and ensure stable production. The 
integration of business entities and entire industries involves a new, higher level 
of management, which allows, through coordination of actions and considering 
the interests of the participants in the association, to increase production 
efficiency. The management of integrated systems has a complete understanding 
of the financial condition of the enterprises included in the association and, 
optimally redistributing financial resources, manages the competitiveness of the 
entire company. At the same time, the dependence of enterprises on creditors, 
suppliers of raw materials and trading companies is reduced, which is a definite 
plus in the conditions of the global financial crisis. In addition, as a result of 
integration, the cost of the final product is reduced due to a reduction in the 
costs of the intermediate stages of production and a reduction in the amount of 
taxes per unit of production (Непринцева, 2006). 
Doing business in a market economy requires flexibility. Each business 
entity seeks to organize its activities in such a way as to obtain additional 
benefits (cost reduction, expansion of production and sales market, attraction of 
investments, favorable position in the market, etc.) and, as a result, increase 
profit (Беляева  и  Эскиндаров, 2001). The pooling of production capacities, 
pooling of capital, pooling of business entities is one of the effective ways to get 
the listed and many other advantages. Such associations make it possible to 
coordinate entrepreneurial activity and protect common interests. 
The positive and negative aspects of the impact of integrated systems on 
the regional economy are systematized in Figure 10.