ANALYSIS OF NATIONAL COMPANIES PROBLEMS TO ENTER FOREIGN MARKETS
Abstract
The positioning of Ukraine in international ratings has been analyzed in the article, that is, how domestic companies are perceived by foreign contractors. The main problems of national companies' penetration into foreign markets are analyzed, namely political instability, inflation, hryvnia fluctuations, low level of competitiveness, reduction of financing volumes, absence of mechanism for effective introduction of new technologies. Political instability, which causes frequent governmental changes, deepening of the financial and socio-economic crisis, increasing the level of risk in the work of national enterprises, resulting in a fall in the income of citizens, the magnitude of demand for products and opportunities for further development of firms, contributes to the fact that export contracts reluctant to conclude, trade with international counterparties is declining. The depreciation of the national currency had a detrimental effect on the competitiveness of domestic companies' products in foreign markets, which was reflected in the dynamics of the real effective exchange rate. An analysis of the structure of exports of Ukrainian goods gives grounds to claim that the bulk of it belongs to products with a low degree of processing, and therefore - with low added value. Indicators of the banking sector are gradually returning to indicators of 2014, which is why banking lending and in general the banking system of Ukraine is gradually returning confidence to businessmen and citizens, however, in order to develop international trade, it is necessary to create favorable conditions for export crediting and to develop investment activities. Domestic enterprises need to pay due attention and build up intellectual capital that would provide the necessary knowledge needed to create and bring to market high-value consumer hardware. For domestic enterprises, providing innovative development is, in fact, the only prerequisite for their survival and potential entry into world markets. It has been concluded that these factors are interrelated and require gradual steps to strengthen the Ukrainian economy in order to improve the penetration of national companies into foreign markets.
References
Kanishchenko, O. L. Mizhnarodnyi marketynh: Teoriia i hospodarski sytuatsii [International Marketing: Theory and economic situation]. Kyiv: Politekhnika, 2004 [in Ukrainian].
Ukraine: index globalnoi konkurentospromojnosti [Ukraine – Global Competitiveness Index]. Retrieved from: http://countryeconomy.com/ government/global-competitiveness-index/ukraine [in English].
Reitynhy Ukrainy [Ratings of Ukraine]. Retrieved from: http://www.20khvylyn.com/life/spravki/help_15544.html [in Ukrainian].
Ukraina v svitovykh reitynhakh 2019 roku (infohrafika) [Ukraine in the world rankings in 2019 (infographics)]. Retrieved from: http://www.slovoidilo.ua/articles/6798/2015-01-12/ukraina-vmirovyh-rejtingah-2014-infografika.html [in Ukrainian].
Arapova, O., Peschanska, V., and Smorodinova, A. 2014. Derzhavne stymuliuvannia eksportu ukrainskykh pidpryiemstv [State promotion of export of Ukrainian companies]. Naukovyi visnyk ONEU [in Ukrainian].
Dmytrenko, L. O. 2011. Posylennia konkurentnykh pozytsii ukrainskykh pidpryiemstv na svitovomu rynku mashynobuduvannia“ [Strengthening the competitive position of Ukrainian enterprises in the world market of engineering]. Formuvannia rynkovykh vidnosyn v Ukraini [in Ukrainian].
Mnykh, O. B. 2015. Poshuk novykh vektoriv rozvytku biznesu dlia ukrainskykh mashynobudivnykh pidpryiemstv v umovakh kryzy“ [Search for new vectors of business development for Ukrainian machine building enterprises in a crisis]. Upravlinnia rozvytkom [in Ukrainian].
Dinamika obminoho kursu hrivni do dollaru v 2014-2018 [Dynamics of the official exchange rate of hryvnia to US dollar (average for the period) in 2014 – 2018]. Retrieved from: https://bank.gov.ua/markets/exchangerate-chart [in Ukrainian].
Dinamika realnoho efektivonoho kursu valut v 2018 b Ukraini [Dynamics of real effective exchange rate in 2018 in Ukraine]. Retrieved from: https://bank.gov.ua/control/en/publish/category?cat_id=7693080 [in Ukrainian].
Dinamika export ta Importu tovariv ta posluh v Ukraini v 2014-2018 [Dynamics of export and import of goods and services in Ukraine in 2014-2018]. Retrieved from: https://bank.gov.ua/control/en/publish/category?cat_id=7693080 [in Ukrainian].
Dinamika export za osnojvnimi tovarami v 2014-2018 [Dynamics of exports by major commodities in 2014-2018]. Retrieved from: http://www.ukrstat.gov.ua/operativ/operativ2005/zd/zd_rik/zd_u/gs_rik_u.html [in Ukrainian].
Plotnichenko, S. R., and Havryliuk, I. I. 2014. Rol stratehichnoho planuvannia pry vykhodi ahrarnykh pidpryiemstv na zovnishnii rynok [The role of strategic planning at the output of agricultural enterprises to foreign markets]. Zbirnyk naukovykh prats Tavriiskoho derzhavnoho ahrotekhnolohichnoho universytetu (ekonomichni nauky) [in Ukrainian].
Carlin M. 2013. Upravlina derjavnimi finansami [Public Finance Management] [in Ukrainian].
Obsiah depositiv ta kreditiv v bankah v 2018 [Bank loans and deposits in banks exceeded pre-crisis level in 2018]. Retrieved from: https://bank.gov.ua/control/en/publish/article?art_id=85761675&cat_id=55838 [in Ukrainian].
Dinamika naurnoi ta technichnoi aktivnosti Ukrainskih kompanii v 2016-2018 [Dynamics of scientific and technical activity of Ukrainian enterprises in 2016-2018 years] Retrieved from: www.ukrstat.gov.ua›druk›publicat›kat_u›zb_nauka_2017 [in Ukrainian].
Stadnyk, V., and Mala, H. 2015. Stratehiia priamoho investuvannia iak osnova vykhodu na zovnishni rynky mashynobudivnykhpidpryiemstv [The strategy of direct investment as a basis for entering foreign markets engineering enterprises]. Perspektyvy stabilnoho ekonomichnoho rozvytku ta ekonomichnoi bezpeky Ukrainy i ii rehioniv. Uzhhorod: Uzhhorodskyi UNU [in Ukrainian].
