Methodology for Assessing the Logistics Potential of the Foreign Economic Activity of a Pharmaceutical Company

The aim of the article is to determine the essence of the logistics potential of a foreign trade activity of a pharmaceutical enterprise and justify the methods for determining it.The materials used in the study include statistical data of the investigated pharmaceutical enterprises, namely JSC FF “Darnitsa”, PJSC NPC “Borschagovsky Chemical and Pharmaceutical Plant”, PJSC “Pharmak”, LLC “FC Zdorovia” and JSC “Lekhim-Kharkiv”. The study used methods of analysis and synthesis, generalization, content analysis, questionnaires and methods for assessing potential. The questionnaire was used to select indicators that should be part of the logistics potential of a foreign trade activity of a pharmaceutical enterprise.The experts were 100 leading specialists of pharmaceutical companies. They are all involved in foreign economic activity. Experts are gender–divided into women (73 %), men (27 %); by age: up to 25 years – 8 %, 25–35 years – 14 %, 35–45 years – 27 %, 45–55 years – 36 %, over 55 years – 15 %; by experience: up to 5 years – 11 %, 5–10 years – 15 %, 10–20 years – 32 %, 20–30 years – 36 %, over 30 years – 6 %. The experts\u27 conclusions are valid, the coefficient of concordance is 0.86, and the Pearson test exceeds the table value.The essence of the definition of "potential of logistics of pharmaceutical enterprise\u27s foreign trade activity" is investigated. The types of logistics potential of foreign economic activity and indicators that are appropriate to use for determining the level of development of the logistic potential in foreign economic activity are offered.The potential of logistics of foreign trade activities of pharmaceutical enterprises consists of the potentials of logistics in the field of export and import. The system of indicators for measuring the logistics potential of a foreign trade activity of a pharmaceutical enterprise contains indicators selected through content analysis and questionnaires.The method of estimation of logistics potential in foreign economic activity of pharmaceutical enterprise is offered

Foreign Direct Investment and Domestic Economic Activity

How does rising foreign investment influence domestic economic activity? Firms whose foreign operations grow rapidly exhibit coincident rapid growth of domestic operations, but this pattern alone is inconclusive, as foreign and domestic business activities are jointly determined. This study uses foreign GDP growth rates, interacted with lagged firm-specific geographic distributions of foreign investment, to predict changes in foreign investment by a large panel of American firms. Estimates produced using this instrument for changes in foreign activity indicate that 10% greater foreign capital investment is associated with 2.2% greater domestic investment, and that 10% greater foreign employee compensation is associated with 4.0% greater domestic employee compensation. Changes in foreign and domestic sales, assets, and numbers of employees are likewise positively associated; the evidence also indicates that greater foreign investment is associated with additional domestic exports and R&D spending. The data do not support the popular notion that greater foreign activity crowds out domestic activity by the same firms, instead suggesting the reverse.

EXCHANGE RATE AND ITS IMPACT ON FOREIGN ECONOMIC ACTIVITY

In the article the influence of a market exchange rate and its ratio with purchasing power parity of national currency on behavior motivation of the subjects of the foreign trade activities is analyzed. The system of the country rating estimation depending on currency conditions of foreign trade activities is developed. The evaluation of the currency component in foreign trade activities of Ukraine is presented.exchange rate, foreign economic activity, market.

Aspects of export optimization in the context of the machine-building enterprise

The question of increase in volumes of export trade and hi-tech export becomes more and more actual in the context of an exit from an economic crisis. According to the Law of Ukraine About foreign economic activity, “export (export of commodities) – sale of commodities by the Ukrainian subjects of foreign economic activity the foreign subjects of economic activity (including with payment in a unmoney form) with a export or without the export of these commodities through the custom border of Ukraine, including the re-export of commodities.The question of increase in volumes of export trade and hi-tech export becomes more and more actual in the context of an exit from an economic crisis According to the Law of Ukraine About foreign economic activity, “export (export of commodities) – sale of commodities by the Ukrainian subjects of foreign economic activity the foreign subjects of economic activity (including with payment in a unmoney form) with a export or without the export of these commodities through the custom border of Ukraine, including the re-export of commodities. Thus term a re-export (re-export of commodities) is meant by a sale the foreign subjects of economic activity and export outside Ukraine of commodities which were before imported on territory of Ukraine”

Foreign aid and export performance: a panel data analysis of developing countries

The effect of foreign aid on economic activity of a country can be dampened due to potentially adverse effects on exports through a real exchange rate appreciation. In this study we examine the long-term relationship between export performance and foreign aid in developing countries while accounting for other factors. The estimates of direct effect of foreign aid on exports are imprecise. However, the effect of the quadratic term of foreign aid on exports is negative and precise. This implies large amount of foreign aid does adversely affect export performance. The results are robust to the use of two different export performance measures and different sub-samples.Developing countries - Economic conditions ; Exports

Foreign exchange and the liquidity trap

When short-term interest rates hover near zero, central banks may have difficulty offsetting downward momentum on prices and economic activity through traditional monetary-policy channels, since commercial banks have little incentive to make loans. Economists refer to this situation as a liquidity trap. Do exchange rate targets and foreign exchange operations, as some have suggested, offer a way to escape such a trap?Foreign exchange ; Liquidity (Economics) ; Economic conditions - Japan

ОЦІНКА ТА ДОКУМЕНТАЛЬНЕ ЗАБЕЗПЕЧЕННЯ ЗОВНІШНЬОЕКОНОМІЧНИХ ОПЕРАЦІЙ В УМОВАХ РИЗИКУ

Identification, documenting and reliable assessment of risks of an enterprise foreign economic activity is a prerequisite for effective and stable operation of a business entity. The need to reflect the consequences of risks of foreign economic activity and measures undertaken to minimize them in order to avoid losses and negative results from foreign economic transactions necessitated the development of a risk-oriented accounting system of foreign economic activity of an entity. The article presents the main components of a risk-oriented accounting system. With the purpose of forming a proper documentation of foreign economic transactions in terms of risk, the forms of primary and consolidated documents are proposed. The usage of the devised forms of primary documents provides the formation of the essential informational basis to assess their impact on the performance of the enterprise. In order to reflect properly the consequences of risks and measures taken to minimize them, the main methods of assessing the risks of foreign economic activity are identified and methodological support for quantitative assessment of foreign trade risks is proposed, taking into account the probability of their occurrence and impact on foreign trade performance.Identification, documenting and reliable assessment of risks of an enterprise foreign economic activity is a prerequisite for effective and stable operation of a business entity. The need to reflect the consequences of risks of foreign economic activity and measures undertaken to minimize them in order to avoid losses and negative results from foreign economic transactions necessitated the development of a risk-oriented accounting system of foreign economic activity of an entity. The article presents the main components of a risk-oriented accounting system. With the purpose of forming a proper documentation of foreign economic transactions in terms of risk, the forms of primary and consolidated documents are proposed. The usage of the devised forms of primary documents provides the formation of the essential informational basis to assess their impact on the performance of the enterprise. In order to reflect properly the consequences of risks and measures taken to minimize them, the main methods of assessing the risks of foreign economic activity are identified and methodological support for quantitative assessment of foreign trade risks is proposed, taking into account the probability of their occurrence and impact on foreign trade performance

Monetary and fiscal influences on economic activity : the foreign experience

Monetary theory ; Fiscal policy

Location decisions of foreign banks and competitive advantage

While institutional differences have been found to affect country growth patterns, much has remained unexplained, including how economic actors"overcome"institutional weaknesses and how internationalization helps or hinders development. Banking is an institutionally-intensive activity and the location decision of foreign banks provides a good test of how institutional differences are dealt with and how they may affect economic choices. Specifically, the authors examine whether banks seek out those markets where institutional familiarity provides them with a competitive advantage over other foreign competitor banks. Using bilateral data on banking sector foreign direct investment in all developing countries and controlling for other factors, they find that competitive advantage is an important factor in driving foreign banks'location decisions. The findings suggest that high institutional quality is not necessarily a prerequisite to attract foreign direct investment in banking and that there are specific benefits, as well as risks, to international financial integration between developing countries.Banks&Banking Reform,Foreign Direct Investment,Country Strategy&Performance,Corporate Law,Economic Theory&Research

FOREIGN AID AND ECONOMIC GROWTH: NEW EVIDENCE FROM PANEL COINTEGRATION

The relationship between foreign aid and economic growth is investigated for a panel of developing countries (Botswana, Ethiopia, India, Kenya, Sri-Lanka, and Tanzania) over the period 1974-1996. The results reveal that the variables contain a panel unit root and they cointegrate in a panel perspective. The long-run elasticities (close to one for most countries) show that foreign aid has a positive and significant effect on economic activity for each country in the sample. A policy implication which may be drawn from the study is that foreign capital flows can have a favorable effect on real income by supplementing domestic savings.Foreign Aid, Economic Growth, Panel Unit Root Tests, Panel Cointegration, Africa, Asia