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THE ADVANCED SCIENCE JOURNAL
ECONOMICS
RECEIVED 14.02.2015 ACCEPTED 28.03.2015 PUBLISHED 01.04.2015
DOI: 10.15550/ASJ.2015.02.015
THE WAYS OF IMPROVING THE
AGRICULTURE’S FOREIGN ECONOMIC
ACTIVITY OF SOUTHERN UKRAINE
A. Salitra
Admiral Makarov National University of Shipbuilding
9, Geroyiv Stalingradu Avenue, Mykolayiv 54025 Ukraine
[email protected]
Abstract: The article reveals the concept of "foreign trade" and its role within the situation in Ukraine today.
It analyzed the statistics of foreign trade of the food industry in the Southern region of the country during
2009-2013 years. The paper calculated and analyzed for each of the segments site performance dynamics,
efficiency and intensity of foreign economic relations of enterprises engaged in agricultural activities. It
discovered the advantages and disadvantages of economic activity of regional enterprises engaged in the food
industry and suggested ways of improving the efficiency of foreign economic activity of Southern Ukraine,
according to territorial characteristics and climatic conditions of each segment of the selected area.
Key words: foreign economic activity, export, import, foreign trade, import-export ratio, export for capita,
import for capita, dynamic, index of the net trade, economic relations, turnover.
Introduction
Today Ukraine’s economy is undergoing a period of market relations’ improvement, which have
important tasks like preservation industry and its restructuring, increasing production and scientific potential
of the regions, and improving the efficiency of the state and private enterprises’ research activities in the
territory. The fundamental solution of these problems will contribute to the creation and use of equipment and
technology at a higher level, accelerating the growth of the country's competitiveness in foreign markets.
Unfortunately, the economic activities of the state have a period of destabilization, and despite the
tendency to increase production capacity, enterprise, without the necessary strategies for managing their
activities, reducing all their chances of sufficient competitiveness both in the domestic and foreign markets.
The issue of foreign economic activity’s management studied in foreign and domestic scientific
literature. A significant contribution to the study of the problem made the following scientists:
− Grebelnik, O. with his book “Osnovi zovnishnoeconimichnoi diyalnosti” (2008), in which author
describes the main legislation governing foreign relations, addresses a number of issues related to foreign
trade and foreign trade activities in Ukraine (the causes and background of foreign trade, the system of
regulation of this activity, characterization instruments regulating relations in the field of foreign trade, etc.);
− Irtyscheva, I. and Hrosytska, O. scientific work “Strategichni perspectivi konkurentospromojnosti
harchovoi promislovosti v umovah globalizacii (2013)”, which addressed the theoretical paradigm concept of
"competitiveness" and conducted a comprehensive study of the current state of the food industry in Ukraine;
− Article of Babets, E. and Shalatskyy, W. (2010) “Upravlinnya zovnishnoeconimichnou diyalnostu z
pozicii funkcii menedzmentu”, which is considered an effective model of international management and
analysis of its main components and conducted a systematic analysis of all management functions and the
features of their application;
− Scientific work of Kiseleva, O and Bilych, Yu “Problemi zovnishnoeconimichnoi diyalnosti Ukraini
ta shlyahi ih virishennya”, where authors consider in-depth study of the causes and factors that contribute to
the invention of optimal solutions aimed at improvement of foreign policy, the protection of the economic
interests and accelerate economic development.
But, the unexplored issues are features of the mechanisms and factors that affect the implementation of
more effective foreign economic activity’s management based on territorial characteristics, regions’
specialization and the current state of the industries that produce goods and provide services to foreign
companies.
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Therefore, the purpose of the article is the analysis of economic activities the food industry’s enterprises,
calculating the dynamics of foreign trade and the development of measures to improve the management of
foreign economic relations in Southern Ukraine.
Method
During the writing of the article I used data of foreign economic activity and the volume of sales in
agriculture, based on statistical information for each of the elements of the Southern Ukraine. Also, I have
used a number of indicators that characterize the dynamics of the intensity and efficiency of foreign economic
relations of the Southern region of Ukraine during 2009-2013 years for the analysis and synthesis of the
economic situation in the territory.
Results
Foreign relations of Ukraine in modern conditions become a powerful means of accelerating scientific
and technological development and intensification of the economy. Currently acquire the latest achievements
of science and technology without intensive exchange of research, various goods and services means
irrational use their own resources to waste time and pace of development.
Keep in mind that economic activity in each country varied as it has a number of industries (ferrous and
non-ferrous metallurgy, food industry, chemical industry and so on. D). Therefore, you should develop and
improve a number of systems and measures for each of the branches whose activity is directed not only at the
domestic but also foreign markets sales (Grebelnik, 2008).
As we know, Ukraine is a major agricultural state, because its food industry is one of the systems
forming elements of the national economy, taking one of the leading places in the economy, as the share of
this sector in the total industrial production is second only to the steel industry and reaches 18 -20%.
But not having a strategy of international management, the share of imports of all goods and services
provided to the country steadily increased and amounted to 51.98% on average for 2009-2012 (Irtyscheva and
Hrosytska, 2013).
Speaking specifically about South region of Ukraine, the situation of foreign trade activities in
agriculture was ambiguous nature.
As we can see from Table 1, during the settlement period the trade balance and its elements in the
segment’s region were as follows:
− In 2009-2010, the share of exports that was implemented in the territory of Crimea, was 68.13% and
52.17% respectively, while the share of imports accounted for 31.87% and 47.83% in the total trade
balance, resulting in balance amounted to 39118,00 thousand US $ in 2009 and 4451,40 thousand US $
in 2010. However, during 2011-2013 the number of export sales significantly reduced and equaled
45536.30 thousand US $, 76187.30 thousand US $ and 65385,20 thousand US $ (or 44.71%, 48.06% and
39.04%) respectively, while the number of import sales increased by setting 56321,10 thousand US $,
82232,80 thousand US $ 102112,90 thousand and US $ (or 55.29%, 51.94% and 60.96%) in the field of
foreign trade balance. The balance of 2011-2013 accounted for -10784,80 thousand US $, -6445,50
thousand US $ and -36727,70 thousand US $;
− During the years 2010-2013 Odessa region always had a negative trade balance, which was -282172,80
thousand US $, -183580,10 thousand US $, -183976,30 thousand US $ and -313848,90 thousand US $,
respectively. Also, the share of exports in the structure of foreign trade balance did not exceed the mark
of 44.00% during the settlement period, setting 39.79% in 2010, 42.87% in 2011, 43.99% in 2012 and
40.80% in 2013, and the share of imports was lower by 56.00% (2010 - 60.21%, 2011 - 57.13%, 2012 56.01%, 2013 - 59.20%);
− The trade balance of Mykolaiv region was positive throughout the period: 597572.30 thousand US $ in
2009, 723857,40 thousand US $ in 2010, 662149,90 thousand US $ in 2011, 1358141,80 thousand US $
1,072,033.00 in 2012 and thousand US $ in 2013. Also, the share of exports in foreign trade balance was
greater than 85% during 2009-2013 (the lowest rate was in 2009 and amounted to 85.61%) and the share
of imports does not exceed 15% over the same period (it was the largest in 2009 and equaled 14.39%);
− Kherson region also always has a positive balance of foreign trade activities during the settlement period:
148217.90 thousand US $, thousand US $, thousand US $, thousand US $ thousand US $ and in
accordance with 2009-2013. In addition, the share of imports in the field of foreign trade balance does
not exceed 19.0% for the entire period of time (the smallest margin rate achieved in 2011 and amounted
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Period
to 18.10%), reaching an average of 12.42% and the share of exports was less by 81% over the same
period (the lowest figure was in 2011 and amounted to 81.90%), setting an average of 87.58%.
I calculated performance dynamics, strength and effectiveness of foreign economic relations of South
Ukraine, which based on data on foreign economic activity of the region and segment statistics from GRP
and the number of people living in this area:
Table 1
The foreign economic activities of the agriculture of Southern Ukraine’s segments
The
Foreign trade of the food industry,
The structure of
The foreign
segment of
thousand of US $
foreign trade, %
trade, thousand
Southern
of US $
Ukraine
Export
Import
Balance
Export
Import
ARC
Odessa
region
Mykolaiv
Region
Kherson
region
2009
2010
2011
2012
2013
2009
2010
2011
2012
2013
2009
73490,30
53523,90
45536,30
76187,30
65385,20
…
549625,60
551990,10
673768,10
695471,00
718267,40
34372,30
49072,50
56321,10
82332,80
102112,90
…
831798,40
735570,20
857744,40
1009319,90
120735,10
39118,00
4451,40
-10784,80
-6145,50
-36727,70
…
-282172,80
-183580,10
-183976,30
-313848,90
597532,30
68,13%
52,17%
44,71%
48,06%
39,04%
…
39,79%
42,87%
43,99%
40,80%
85,61%
31,87%
47,83%
55,29%
51,94%
60,96%
…
60,21%
57,13%
56,01%
59,20%
14,39%
107862,60
102596,40
101857,40
158520,10
167498,10
…
1381424,00
1287560,30
1531512,50
1704790,90
839002,50
2010
2011
2012
2013
2009
843843,20
742704,00
1369084,60
1201611,60
166706,80
119985,80
80554,10
10942,80
129578,60
18488,90
723857,40
662149,90
1358141,80
1072033,00
148217,90
87,55%
90,22%
99,21%
90,27%
90,02%
12,45%
9,78%
0,79%
9,73%
9,98%
963829,00
823258,10
1380027,40
1331190,20
185195,70
2010
2011
2012
2013
159150,10
180277,20
179135,50
190558,10
20085,90
39843,40
20665,70
27097,90
139064,20
140433,80
158469,80
163460,20
88,79%
81,90%
89,66%
87,55%
11,21%
18,10%
10,34%
12,45%
179236,00
220120,60
199801,20
217656,00
Based on the data from Table 2, I can say that the dynamics and the figures of the intensity and
efficiency of the food industry’s foreign economic relations of Southern Ukraine had an irregularity
throughout the period:
− The growth rate of ARC’s export relations during 2010-2011constantly increased, setting 0.73 and 0.85
respectively, and import relations decreased from 1.43 to 1.15. This led to an increase in the rate of
growth of foreign trade turnover (or FTT) from 0.95 to 0.99. In 2012, the growth rate of imports and
exports increased to 1.46 and 1.67, respectively, and the growth rate increased to 1.56 FTT. But at the
end of 2013 the accretion rate of export relations decreased by 0.21 (the growth rate amounted to 0.86
during this period), which led to a reduction in growth FTT at 0.50, and its growth rate to 1.06;
− Odessa region had a similar situation. In 2011-2012 the accretion rate of exports relations amounted to
0.22 (growth rate increased from 1.00 to 1.22), and the dynamics of FTT increased to 1.19 (although
during this period of growth of imports was 0.28). But in 2012-2013 the growth rate of exports declined
by 0.19, and increase imports fell by only 0.01, which led to a reduction of the dynamics of FTT to 1.11;
− Mykolaiv region twice had the lowest growth rate of export ties - in 2011 and 2013, when the figure was
only 0.88, and the highest growth rate of imports among all segments of the Southern region of Ukraine
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−
in 2013 (figure was 11.84). This led to a reduction in the accretion rate of FTT at 0.30 in 2011 and 0.72
in 2013 (the rate of growth of foreign trade turnover amounted to 0.85 and 0.96). But with the decline in
the growth rate of imports to 0.14 and increasing the accretion rate of exports to 0.96 in 2012, the growth
rate of FTT equaled 1.68;
In the end of 2011 the growth rate of imports relations of Kherson region increased from 1.09 to 1.98, but
the growth rate of exports relations also increased from 0.95 to 1.13 which caused the accretion rate of
FTT rose to 0.90 (the growth rate of FTT equaled 1.23). The similar situation was during 2013, when the
accretion rate of exports and imports rose to 0.07 and 0.79 appropriately, and the growth rate of foreign
trade turnover increased from 0.91 to 1.09. But in 2010, when the growth rate of exports decreased to
0.95 and the growth rate of imports increased to 1.09, and in 2012, when the growth rate of exports was
0.99 (even at lower the accretion rate of imports by 1.46), the growth rate of FTT reduced to 0.97 and
0.91 respectively.
Table 2
The dynamics of the food industry’s foreign economic relations of Southern Ukraine’s segments
The growth rate of foreign
The accretion rate of foreign
The segment
economic
relations
of:
economic relations of:
of Southern
Period
Ukraine
Export Import
FTT
Export
Import
FTT
ARC
Odessa
region
Mykolaiv
region
Kherson
region
2010/2009
2011/2010
2012/2011
2013/2012
2011/2010
2012/2011
2013/2012
2010/2009
2011/2010
0,73
0,85
1,67
0,86
1,00
1,22
1,03
1,17
0,88
1,43
1,15
1,46
1,24
0,88
1,17
1,18
0,99
0,67
0,95
0,99
1,56
1,06
0,93
1,19
1,11
1,15
0,85
0,12
0,82
-0,81
0,22
-0,19
-0,29
-0,28
0,31
-0,21
0,28
0,01
-0,32
0,04
0,56
-0,50
0,26
-0,08
-0,30
2012/2011
1,84
0,14
1,68
0,96
-0,54
0,83
2013/2012
2010/2009
2011/2010
2012/2011
2013/2012
0,88
0,95
1,13
0,99
1,06
11,84
1,09
1,98
0,52
1,31
0,96
0,97
1,23
0,91
1,09
-0,97
0,18
-0,14
0,07
11,70
0,90
-1,46
0,79
-0,72
0,26
-0,32
0,18
Table 3
The figures of the intensity and efficiency of economic relations in the Southern Ukraine’s agriculture
The figures of the intensity and efficiency of economic relations
Foreign trade
Index
Export per
Import per
Importturnover per
Period
Import
of the
Export
capita,
capita,
export
capita,
quota
net
quota
thousand of thousand of
ratio
thousand of
trade
US $
US $
US $
2009
5,52
0,04
0,22
170,68
26,17
118,34
2010
1,57
0,20
0,75
0,32
242,72
154,28
397,00
2011
1,67
0,16
1,04
0,26
230,32
138,19
368,51
2012
2,37
0,16
2,18
0,37
348,33
147,28
495,61
2013
1,70
…
0,67
…
326,64
192,39
519,03
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As we can see from Table 3, the import-export ratio of Southern Ukraine during 2010-2012 increased
steadily and reached 1.57, 1.67 and 2.37. But in 2013 ratio was reduced to 0.67 and 1.70 equal. It was highest
in 2009, setting a mark in 5.52.
Table 4
The structure of the agricultural products’ sales of Southern Ukraine
The segment of Southern Ukraine/period
The
Mykolaiv region
Odessa region
structu
re, %:
2009
2010
2011
2012
2013
2009
2010
2011
2012
2013
1.Plant:
Cereal
40,50 36,52
41,90
30,69 40,04 42,99
36,93
45,10
36,92 43,89
s
Sugar
0,02
0,00
0,05
0,00
0,09
0,12
0,13
0,32
0,51
0,01
beets
Sunflo
wer
21,51 25,77
23,52
34,38 29,15
8,98
11,57
15,82
22,24 20,37
seeds
Potato
5,81
5,84
7,64
2,68
4,29
6,66
18,85
11,0
7,87
10,37
Veggie
5,49
4,86
4,11
4,58
3,75
9,00
7,31
6,52
6,33
4,86
s
Fruits
and
1,12
1,36
1,55
1,34
1,54
4,33
4,38
3,14
2,59
2,20
berries
2. Stockbreeding:
Meat
7,49
6,54
5,86
8,33
5,93
9,49
5,74
5,55
7,83
5,75
Milk
14,07 15,15
12,05
13,13 12,92 14,56
12,4
11,37
13,21 10,73
Eggs
3,93
3,83
3,25
4,55
1,88
3,98
2,79
1,50
2,96
1,83
The
Kherson region
ARC
structu
2009
2010
2011
2012
2013
2009
2010
2011
2012
2013
re, %:
1.Plant:
Cereal
38,97
27,92 27,25 21,56
18,86
27,26
18,92 14,15
33,34 27,56
s
Sugar
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
beets
Sunflo
wer
9,85
17,90
16,16
16,73 13,08
0,47
1,29
1,84
3,25
3,97
seeds
Potato
8,27
9,06
7,03
7,49
7,79
9,74
9,46
9,64
5,57
12,31
Veggie
15,66 16,02
12,98
15,72 19,36 18,22
19,89
15,0
13,32 20,13
s
Fruits
and
2,76
2,87
4,35
3,64
3,34
3,61
3,69
4,38
5,25
5,75
berries
2. Stockbreeding:
Meat
11,77
7,64
6,07
9,60
7,09
30,07
28,16
25,56
35,82 28,16
Milk
14,53 15,46
11,39
13,44 12,84 11,97
13,78
11,91
12,33 12,15
Eggs
3,81
3,49
3,04
5,45
9,25
4,38
4,86
4,42
5,54
3,37
Import and export quotas region during the settlement period is also constantly changing: in 2010, these
figures increased from 0.04 to 0.20 and from 0.22 to 0.32, respectively, but in 2011 again declined (import
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quota equal to 0, 16, and the export quota was 0.26). Thus, at the end of 2012 import quota remained
unchanged, and the export quota increased to 0.37.
Index of net trade during 2010-2012 increased steadily and was 0.75, 1.04 and 2.18 respectively. But in
2013 this figure dropped to 3.25 times and amounted to 0.67. As a result, in 2013 exports per capita decreased
from 348.33 thousand of US $ to 326.64 thousand of US $, while imports per capita increased from 147.28
thousand of US $ to 192.39 thousand of US $.
Foreign trade turnover per capita at the end of 2010 and 2013 increased by 3.35 and 1.05 times,
respectively, setting 397.00 thousand of US $ and 519.03 thousand of US $, but in 2011 tended to decrease by
7 % and amounted to 368.51 thousand of US $.
Finally, I made the structure of sales of agricultural products in South Ukraine for 2009-2013, in order to
have full information about the economic activities of the region by segments.
According to data obtained in Table 4, I can say the following:
− ARC during the calculation period ranked first for the production of animal products, which share in the
total volume of sales on average 46.49% (29.55% of it was the average selling of meat). In the structure
of plant products in the area for a specified period of highest occupied grains (20.15% and average) and
vegetables (average value equaled to 17.31%) and the lowest - fruits and berries (maximum value was 5,
75% in 2013) and sunflower seeds (3,97% in 2013). The overall proportion of plant products in the
structure of agricultural output amounted to 53.51% on average in 2009-2013;
− The main share in the structure of production in the Odessa area occupied plant (78.06% on average for
the period), while the share of the stockbreeding products amounted to 21.94% on average for the period
(12.45% of them - production dairy products). However, the main focus in crop production were cereals,
sunflower seeds and potatoes, whose share in the total volume of sales on average for the period was
41.17%, 15.18% and 10.95% respectively. The lowest share in the average for the years 2009-2013 were
vegetables (6.80%) and fruits and berries (3.33%);
− In Mykolaiv area during 2009-2013 the share of plant products in the structure amounted to an average
of 76.22% and included 37.93% and 26.87% of grains and sunflower seeds respectively. The lowest part
throughout the period amounted to crop fruits and berries and sugar beet (average 1.38% and 0.23%
respectively). Also, during the share of animal products in the structure of production volumes amounted
to an average of 23.78%, of which 13.46% were dairy products;
− Kherson area in agricultural activities, like the previous two territories, specialized more on plant
products (73.03% on average) than in stockbreeding (26.97%). Thus, among crop production accounted
for the largest portion of grains (31.01%), vegetables (15.95%) and sunflower seeds (14.75%) and the
smallest part - the volume of potatoes (7.93%) and fruit and berries (3.39%). In animal most part during
the settlement period occupied produce dairy products (13.53%).
Discussion
Based on the results obtained during the analyzed statistical data, I can say that the South region of
Ukraine in 2009-2013 years was the exporter of agricultural products and had a sufficient level of production
capacity and competitiveness, as confirmed by the reduction of import quotas, export quotas and increase
capacity region provide necessary production of its territory and population of high volumes of sales abroad
(as import-export ratio). But South region periodically Ukraine lost its position in foreign markets and had
sales decline in production capacity, as evidenced by the reduction of the index of the net trade relations in
late 2013.
If we consider the region for its segment, it can be argued partial loss of their positions in foreign markets
and increase sales depending on the region from foreign manufacturers. This is evidenced by the presence of
two segments of importing agricultural products - Crimea and Odessa areas in which the share of imports in
total trade balance significantly higher than that of exports, and from 2011 to 2010, respectively, as a result,
we can see negative growth value of the trade balance and reduce the accretions rate of the exports relations
and foreign trade turnover. One can assume that the two data segments are not used its production capacity at
a sufficient level or used it inefficiently.
However, the South region of Ukraine had two segments that were constantly exporters - Mykolaiv and
Kherson regions, where agricultural exports during the billing period consistently exceeded imports, which
made it possible to always have a positive balance of trade value, saying the high level of capacity utilization
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segments of the region and a sufficient level of demand for the products they produce. But, due to the lack of
flexible strategy of international management in enterprises Mykolaiv and Odessa areas had slower growth of
export economic ties and increase the growth rate of imports, leading to a reduction in the growth rate of
foreign trade balance of the two segments.
However, during my calculation parameters and further processing of statistical data analysis results
were deviations due to the existence of deficits following information:
− The foreign economic activities of the agriculture of Odessa region in 2009, and, as the result, its the
growth rate of foreign economic relations during 2009-2010 and the accretion rate of foreign economic
relations during 2010-2011;
− The lack of data on gross regional product by 2013, which is used in the calculation of import quotas
and export quotas, which makes the collected data to approximate;
− Unstable exchange rate of the National Bank of Ukraine, through which I made UAH gross regional
product of Ukrainian hryvnia in US dollars. At the time of the Feb. 10, 2015: 1USD = 24.95UAH.
Thus, the following methods of improving foreign relations south Ukraine enterprises engaged in
agricultural activities, apply only to the results.
Therefore, Southern Ukraine without a system of measures to improve the efficiency of international
management at the level of each of the regions and the effective and flexible policy management
administrative apparatus of the state had destabilizing foreign economic relations and reduced the intensity of
their accumulation. This means that for the effective management of foreign trade activities in enterprises is
essential that strategies that will be used to improve and stabilize foreign trade, carried out at least
at two levels:
− Regulation of foreign policy throughout the all country;
− Improvement of foreign economic relations at the level of each state economic area.
So, the government's economic policy of Ukraine has focused more on the domestic market, making the
implementation of strategies in the foreign market is not effective enough. Increased export potential is a
priority of foreign economic activity. It involves lifting the entire national economy to a higher level, creating
a competitive economy.
Also, an important factor and a means of government regulation is a system of economic incentives,
contributing to the development of foreign economic relations and expanding exports. It greatly affects the
capacity of production and exports attract foreign investment, advanced science and technology, streamlining
commodity and geographical structure of exports and imports. Significant improvement requires tax policy
and customs and tariff regulation in Ukraine, because now they do not perform their
function (Vasurenko, 2011).
Nevertheless, to date, there are two important ways to stabilize International Business at the state level –
a decentralization of budget and a stabilization of the currency.
The decentralization of a budget will allow 70-80% of all funds received from the economic activity of
enterprises retain regional budgets, and about 20-30% of the funds transferred to the treasury of the state. For
administrative staff this will allow to create reserve funds and funds of which is invested in enterprises
innovative activity of the area that will allow not only to stabilize economic activity areas (if the economic
crisis in the country or the world in general), but also to provide them with the necessary investments to
develop and implementation of new or improved projects in a given area.
Also, the stabilization of the currency in the foreign exchange market will help reduce the financial risks
of transactions purchasing products or services from foreign companies, as well as reduce the amount of
losses carried out economic transactions.
Speaking of strategy for regulation of foreign trade enterprises at an economic area, this process, as
Pshik-Kovalska (2012) said, will include the following steps:
− Setting goals and objectives of foreign economic activity;
− Selection and justification of the type of foreign economic activity;
− Information support for assessment and analysis of factors that influence the foreign economic
activity;
− Analysis of factors affecting the foreign economic activity;
− Prediction modalities and results of a particular type of foreign economic activity;
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− Selection and justification of methods of planning of foreign economic activity;
− Formation planning model of foreign economic activity.
However, we must remember that the establishment and implementation stages of the strategy, like the
strategy should depend on the specific economic region of the state and, in particular, on climatic conditions
and economic segments of development of the area. This means that either strategy will be more, or it will be
combined and universal.
Speaking directly about the South region of Ukraine, we see that the ARC, which should realize the
majority of animal products and wine due to climate conditions, Odessa region, which is suitable for growing
fruits and berries, and Mykolaiv and Kherson areas, which should use their land, mainly for the production of
cereals and vegetables (Ishuk, 2006).
But according to our data, we know that these segments of the region irrational use existing resources in
choosing strategies that do not meet the current situation. For example, ARC and Odessa areas use a strategy
of diversification, which is not typical for these segments of the region, as a disadvantage of this strategy is
reducing the target market of the company. So for these territories a more suitable strategy concentration,
which is aimed at companies focus on one (or a little amount) products to increase its sales volumes and
declining share of production costs for winning in price competition. In other words, the implementation of
this strategy in the Crimea and Odessa area will be able to produce products that are most suited specifically
to those territories, thus increasing the volume of products that will be implemented in Ukraine and abroad.
At the same time, Mykolaiv and Kherson areas had chosen concentrated marketing strategy, which is
relevant for economic activity. However, as we have seen, their economic activity was in a state of
destabilization, which can lead to loss of competitiveness in the domestic and international markets.
Therefore, the main task is to preserve areas of existing positions or improving product quality by changing
the technology of processing and storage, or by reducing the financial and economic risks during its
implementation outside the state. Therefore, these areas could use the the strategy of differentiation or the
strategy of risk management.
References
Grebelnik, O. (2008) Osnovi zovnishnoeconimichnoi diyalnosti. Kyiv: The Center Textbooks.
Irtyscheva, I. and Hrosytska, O. (2013) Strategichni perspectivi konkurentospromojnosti harchovoi
promislovosti v umovah globalizacii. Mykolaiv: Design and Printing.
Ishuk, S. (2006) Rozmishennya productivnih sil s regionalna ekonomika. Kyiv: Taras Shevchenko Kyiv
National University.
Pshik-Kovalska, O. (2012) Process planuvannya zovnishnoeconimichnoi diyalnosti pidpriemstva. Lviv:
Polytichnik National University.
Vasurenko, V. (2011) Teoretichni zasadi sutnosti ta zmistu finansovogo regulyuvannya
zovnishnoeconimichnoi diyalnosti v suchasnih umovah. Bulletin of the University of Banking of the
National Ukrainian Bank, (10), pp. 75-79.
The official site of State Statistics Service of Ukraine (2015) [Online] Available from:
http://www.ukrstat.gov.ua [Accessed 05/02/15].
The official website of the Main Statistical Office in Crimea (2015) [Online] Available from:
http://gosstat.crimea.ru/ [Accessed 06/02/15].
The official website of the Main Statistical Office in Kherson (2015) [Online] Available from:
http://www.ks.ukrstat.gov.ua [Accessed 03/02/15].
The official website of the Main Statistical Office in Mykolaiv (2015) [Online] Available from:
http://www.mk.ukrstat.gov.ua [Accessed 03/02/15].
The official website of the Main Statistical Office in Odessa (2015) [Online] Available from:
http://www.od.ukrstat.gov.ua [Accessed 03/02/15].
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