Економічні дисципліни/2. Зовнішньоекономічна діяльність

Guturyak K. O.

Scientific supervisor: Bozhesku M. G.

Bukovinian State Financial Academy

International trade of Ukraine in 2010

The term “international trade” becomes today one of the most important and global economic concept in the world. This term means the exchange of capital, goods and services across international borders of different countries or territories. Without international trade, nations would be limited to the goods and services produced within their own borders. Such type of trade gives rise to a world economy in which supply and demand has influence on prices of commodities (capital, goods, and services) and depends on global events in various spheres – economic, financial, politic, and social.

Trading globally gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries. Almost every kind of product can be found on the international market: food, clothes, spare parts, oil, jewelry, wine, stocks, currencies and water. Services are also traded: tourism, banking, consulting and transportation. A product that is sold to the global market is an export, and a product that is bought from the global market is an import. Imports and exports are accounted for in a country's current account in the balance of payments. Global trade allows wealthy countries to use their resources - whether labor, technology or capital - more efficiently. Because countries are endowed with different assets and natural resources (land, labor, capital and technology), some countries may produce the same good more efficiently and therefore sell it cheaper than other countries. If a country cannot efficiently produce an item, it can obtain the item by trading with another country that can [1].

Although the potential gains from world trade are perhaps clear, we must recognize one central fact of life: some products have a vested interest in restricting international trade. Microeconomic resistance to international trade arises from the fact that imports mean fewer jobs and less income for some domestic industries. Exports represent increased jobs and incomes for other industries. Thus on the microeconomic level there are gainers and losers from international trade. Trade not only alters the mix of output but also redistributes income from import-competing industries to export industries [2,197].

Every country has its own trade policy that depends on economic, political, social stability or general situation in the country. Nowadays international trade of Ukraine is developing and is collecting the rapid rates of development. A problem of optimization of foreign trade has a major value for all Ukraine that was conditioned by several reasons. At first, a national economy is in the phase of deep market transformations which its structure and institution environment is formed since Ukraine has got independence. Participating in international trade renders enormous influence on intensity and orientation of transformations; secondly, the high level of effectiveness of foreign trade was not attained in the last few years, dependence increased on the import of highly technological products. Thirdly, at the beginning of 2008 Ukraine joined the WTO. Fourthly, Ukraine is actively participating in European integration processes, not creating the real economic pre-conditions and reasons for this purpose. Fifthly, enormous problems are concentrated in the field of competitiveness of domestic commodities and services on world markets and on the whole competitiveness of national economy [3].

In the first quarter of 2010 the export of commodities made up 10336,3 mln.$, import, – 11796,1 mln.$. By comparison to the first quarter of 2009 the export increased by 24,6%, import – by 20,7%. Negative balance of foreign trade commodities made up 1459,8 mln.$ [4]. For Ukraine an increase of export of products is positive in 2010 in comparison to 2009, however simultaneously with it the import increased too. The situation did not change significantly with the balance of trade, the point-of-sale balance this year remains negative, whereas the import prevails the export.

Ukraine carried out foreign trade operations with partners from 194 countries of the world. To the countries of the CIS it is exported 35,1% of all commodities, to the countries of EU – 23,3% . Russian Federation remains the most important point-of-sale partner of Ukraine – 24,8% export and 38% imported deliveries. The export of commodities increased to all basic countries-partners: Russian Federation – by 64,3%, Turkey – by 57,8%, to India - by 53,6%, to Poland – by 48,6%, to Italy – by 47,9%, to Byelorussia – by 34%, Germany – by 31,6%. From the CIS countries it is imported 44,6% of all commodities, from the countries of EU – 30,9% [4].

As we can observe, our country had close point-of-sale relationships with many countries, where the export grows every year, however it remains unnoticeable through the growth to the import from the same countries. But, unfortunately, as the practice showed, import dominates over export. It is therefore necessary to implement qualitative change in external point-of-sale policy of our country.

The inefficient commodity structure of export and import is kept for all this time, substantial disproportions and one-sidedness characterize the export-import of services. On the whole, the geography and commodity pattern of trade of Ukraine has many weak points and must be corrected, our products unfortunately are not competitive enough as compared to the developed countries, our technologies of production are not modern, that is why we can not make such products, the investment resources are unreasonably and inefficiently used in our country, and certainly there is not enough skilled and high qualified staff in different spheres of production. In this case all depends on the change of positions of point-of-sale policy of our country and the search for new ways of improvement of “point-of-sale face” of the country.

Literature:

1. Reem Heakal What Is International Trade? - http://www.investopedia.com/

2. Shpak V. K. English for economists and businessmen. – Kyiv: High school, 2006.-223p.

3. Абрашка О. В., Рідченко О. А. Зовнішня торгівля України – http://www.rusnauka.com/

4. Держ. ком. стат. України від 25.02.2010 “Соціально-економічне становище України за січень 2010року” - http://www.ukrstat.gov.ua/