INTERNATIONAL BUSINESS OF THE UKRAINIAN BLACK SEA AREA: MACROENVIRONMENT AND INFLUENCE ON THE REGIONAL DEVELOPMENT


Keywords: macroeconomic environment, international business, entrepreneurship, regional development.

Abstract

Topicality. International business increases GDP, but it is influenced by a lot of difficulties in its functioning; the share of Ukraine in global value chains remains low; the strategic prospects are undefined. The weakest aspects of the international business macroeconomic environment are determined in the paper. The influence of the international business macroeconomic environment on regional development is also studied in the paper.
Aim and tasks. The aim of the paper is the investigation of the international business macroeconomic environment of the Ukrainian Black Sea area; the determination of its elements and interrelation among them, specific features, and deterrents of regional development based on the successful entrepreneurship.
Research results. The results of the study show a wide range of problems in such components of the macroeconomic environment of international business as the world economy, regulatory policy, markets, capital, and human skills. The global economy influences the international with the global crisis. The period of the survival, adaptation, and crisis management comes for international business. The regulatory policy problems that worsen the conditions of international business in Ukraine remain unresolved (corruption, distrust of the judiciary, imperfect mechanisms for implementing legislation, violation of the property rights, lack of foreign economic strategy of the country, etc.). The market component of the entrepreneurial environment of the international business is faced by such problems: the narrowing of international and national markets, changes in the geographical and commodity structure of exports due to the military conflict in the Donbas region, the economic downturn and decline in the world commodity prices. Typical problems of the financial component are low access to foreign and other financial resources for the development of the international business. In terms of the human resources component, there is a loss of traditional benefits of Ukraine associated with a highly skilled workforce due to declining motivation to work productively and increased international migration flows from the region. The combined effect of these factors leads to the fact that the contribution of international business to regional development, calculated by the authors using a regression model, is insufficient.
Conclusion. The attractiveness of the southern region of Ukraine for international business is based on a number of advantages: a high level of specialization in shipbuilding, agriculture, tourism, recreation, green energy, etc. The rational use of regional resources has the potential to outweigh the risks of international business. The efficiency of the international business depends not only on available resources but also on the macroeconomic environment and the management of the business itself. Solving these problems will further increase the efficiency of international business in the region and its contribution to regional development.

Author Biographies

V.N. FOMISHYNA

Dr.Sc. (Economics), Professor
Head of the Department of Foreign Economic Activity,
Kherson National Technical University
Beryslavske highway, 24, Kherson, Ukraine

N.Ye. FEDOROVA

PhD (Economics),
Senior Lecturer at the Department of Foreign Economic Activity,
Kherson National Technical University
Beryslavske highway, 24, Kherson, Ukraine

R.P. OHORODNYK

Senior Lecturer at the Department of Foreign Economic Activity,

Kherson National Technical University

Beruslawske highway, 24, Kherson, Ukraine

A. V. MALYHA

Student, speciality 292 “International economic relations”
Program “International Business”
Kherson National Technical University
Beryslavske highway, 24, Kherson, Ukraine

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Published
2020-09-20
How to Cite
FOMISHYNA, V., FEDOROVA, N., OHORODNYK, R., & MALYHA, A. V. (2020). INTERNATIONAL BUSINESS OF THE UKRAINIAN BLACK SEA AREA: MACROENVIRONMENT AND INFLUENCE ON THE REGIONAL DEVELOPMENT. Economic Innovations, 22(3(76), 126-136. https://doi.org/https://doi.org/10.31520/ei.2020.22.3(76).126-136