Research and development of domestic instrument-making enterprises exports to EU markets in the conditions of overcoming the impact of COVID-19
Students Name: Artemuk Hanna Andriivna
Qualification Level: magister
Speciality: International Business
Institute: Institute of Economics and Management
Mode of Study: part
Academic Year: 2022-2023 н.р.
Language of Defence: англійська
Abstract: Export is an integral part of the foreign economic activity of the enterprise and the state. The instrument-making sphere was significantly affected, because the own balance sheet of the enterprise of this branch is mostly formed at the expense of exports. The COVID-19 pandemic caused the following challenges in the instrument manufacturing industry of Ukraine on the way to export [1]: a decrease in aggregate demand in the world and a decline in business activity, a decrease in the overall production process in the EU member states, which caused a drop in prices on the world market and the EU market. In these conditions, domestic industrial enterprises suffered great losses and were forced to reduce the workforce, one of the most affected areas - instrument making and metallurgy; expansion of state regulation. A state of emergency was introduced, certain sanitary regulations were introduced, public movement was restricted and a remote mode of work was introduced. Such restrictions strongly affected the work of instrument-making enterprises, in particular, their internal and external work; there was a significant decrease in the export of raw materials, in particular those necessary for the operation of instrument-making enterprises, because industrial enterprises are dependent on world raw material prices, which led to the dependence of the amount of monetary resources received from external price fluctuations; decrease in business expectations and decrease in the volume of investments due to uncertainty among investors, which mostly affected machine building and instrument building. The EU is Ukraine’s largest trading partner, accounting for 39.5% of its trade in 2021. Ukraine is the 15th largest trading partner of the EU, its share is about 1.2% of the total volume of EU trade. The total volume of trade between the EU and Ukraine reached almost 52.4 billion euros in 2021, which has almost doubled since the entry into force of the FTAA in 2016 [2]. There are various reasons and advantages for exporting to the EU, such as: attraction of new foreign customers who wish to purchase exported products; more opportunities for business in international markets; an increase in the number of markets to which products are exported means a decrease in dependence on any of them; use of production capacities in a larger volume; more production means economies of scale and better profitability [3]. Exports of Ukraine to the EU in 2021 amounted to 24.1 billion euros, which is a significant increase of more than 47% compared to the previous year. The main export items of Ukraine to the EU are iron and steel (20.8% of the total export volume), ores, venison and ash (12.5%), animal and vegetable fats and oils (8.5%), in particular sunflower oil. electrical equipment (7.8%). and cereals (7.3%) [4]. Study object: the indicator of the export activity of the instrument-making enterprise. Scope of research: the possibility of increasing the export activity of instrument-making enterprises when overcoming the consequences of the COVID-19 pandemic. Goal of research: to develop a scheme to strengthen the export activity of an instrument-making enterprise to the EU markets in the conditions of overcoming the impact of COVID-19 on the example of PrJSC NVO "Termoprylad". As a result of the research, the main ways and prospects of expanding the export activity of the instrument manufacturing enterprise were determined. A step-by-step way to increase net profit with the help of export activity was also proposed using the example of PJSC NVO "Termoprylad" [5]. As a result of the implementation of the plan, the company incurred expenses in the amount of UAH 175,000, with savings on the cost of components for devices, on energy resources, payment of vacations and other expenses for wages and the involvement of employees in international trade exhibitions with the help of obtaining grants and investment financing. As a result of the implementation of the export expansion plan, 2 export contracts were signed in the amount of UAH 597,560, which increased the company’s net income by 1.7%. Therefore, based on the results of the study, a mechanism for improving the export activity of the instrument-making enterprise was determined and its effectiveness was proven. Keywords: export, European Union, instrument-making enterprise, COVID-19, income, growth.