ASSESSMENT OF THE EXTERNAL ENVIRONMENT OF INTERNATIONAL BUSINESS DEVELOPMENT IN UKRAINE

Анотація

The paper substantiates the relevance of the external environment for companies that already operate in international markets or plan to enter them as it affects both the final results of companies operating internationally and the ability to enter foreign markets for newcomers. Some factors of the external environment can intensify the foreign economic activity of companies, while others will inhibit their foreign ambitions. The object of research is the external environment of international business and its elements. The assessment of the state of the external environment is based on materials from open sources (international ratings). To assess the external environment, a modified PESTEL analysis of the political, economic, social, and legal elements of the Ukrainian business environment was performed. According to the results of the assessment, the following conclusions can be drawn: 1) Ukraine has a number of problems with political instability, low government efficiency, quality of legislation, corruption; 2) the economic environment becomes more favorable (such indicators as GDP per capita (PPP), export, and inflation have decreased). However, there are also negative trends (there was an increase in the unemployment rate and import volumes); economic growth hampered by several factors (corruption, insecurity of property rights, low efficiency of the judiciary, low investment and financial freedoms); 3) the population of Ukraine is gradually declining due to significant migration flows and the “aging of the nation”; despite the growth of the average wage in the country relative to developed neighbors, it remains low; 4) Ukraine still has problems with the rule of law (arbitrariness of power; illegal application of laws; enforcement of regulations is subject to bribery and illegal influence by private interests; public services such as permits, licenses, and administration of public health services provided through bribery, etc.), as well as a rather complicated procedure for starting and operating a business.

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