Trends in economy development

Автор: Пользователь скрыл имя, 19 Ноября 2012 в 16:26, курсовая работа

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The urgency of the work is that at this time in our country, the real prospects for a truly open economy, its effective integration into the world economy. Active use of external factors contributes to overcoming the negative processes in the economy and further development of market relations.
The work consists of three parts, which consistently explored the role of foreign trade in economic development of Ukraine.
In the first chapter I will tell you about “Foreign trade as system of economic relations”. After that I will move on to “Analysis of the role of Ukrainian foreign trade at the present stage”. And then I will give you some background about “Trends and problems in development of Ukraine's foreign trade”.

Содержание

Introduction................................................................................................................3
CHAPTER 1. Foreign trade as system of economic relations...................................5
1.1. Essence and theories of foreign trade........................................................ ......5-8
1.2. Government control of foreign trade...............................................................9-10
Conclusions to Chapter I……………………………………………………….......11
CHAPTER 2.The position of Ukraine in modern foreign trade…… …….....….…12
2.1. Factors of Ukraines foreign trade development…………………………...12-15
2.2. Evaluation of import and export potencial of Ukraine …………………...16-19
2.3. Trade of Ukraine at the international markets………………………….....20-31
Conclusions to Chapter II…………………………………………………..…..…32
CHAPTER 3. The problems of Ukraine's foreign trade development.…………...33
Conclusions to Chapter III……………………………………………………..…35
Conclusion…………………………………………………………………....…...36
References…………………………………………………………………….…..37

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This will reduce the volume of imports of services from France - 25.8 million (26.1%) and the United States - 22.5 million (12.2%). Recall foreign trade surplus in services of Ukraine in the first quarter of 2012 decreased by 12% to $ 1 billion to $ 733.2 million was reported, the positive balance of foreign trade in 2011 amounted to 7 billion 449.6 million dollars. At the same time,  merchandise trade deficit of Ukraine for the I half-year rose by almost 30%. The total volume of foreign trade in services in January-March 2012 amounted to U.S. dollars 7,7 million which compared to the same period in 2011 decreased by 2,5% (U.S. dollars 0,2 million), while services exports decreased by 13,4% to U.S. dollars 6,7 million and imports – increased by 73,2% to U.S. dollars 1,0 million. The balance of foreign trade in services was positive and 5,6 million U.S. dollars compared to the previous year – U.S. dollars 7,5 million. Partners in the field of foreign trade transactions services were representatives from 18 countries worldwide. The volume of services provided by the CIS countries amounted to U.S. dollars 0,6 million (9,6% of total exports of services), which compared to the same period in 2011 increased by 16,9%.

The volume of services provided by other countries in the world, was – U.S. dollars 6,0 million (90,4% of total exports the field).

Fig.9. Geographic structure of export and import services in January-March 2012 (in%)

The largest share in total exports, namely 74,5%, were transport and communication services. Services, whose share was 20,2% of total exports of services in the region have been provided in the manufacturing industry.

Fig.10.The structure of export of services in January - March 2012

From the total volume import of services –  60,6%, up services in real estate operations, leasing and corporate banking, transport and communication services - 13.1%, services, hotels and restaurants – 6,5%, and manufacturing services – 2,0%. Import of services increased during the reporting period, compared with January-March 2011 on 73,2% at the expense of services in real estate operations, leasing and services to legal entities, which were up by 94,2%, to  U.S. dollars 0,6 million.[7]

Fig.11.The structure of import of services in January - March 2012

Ukraine's foreign trade with EU countries

Ukraine has chosen strategic course towards European integration, which remains unchanged and the absolute priority of both domestic and foreign policy of Ukraine. The idea of European integration unites the Ukrainian society. A key politicians and the majority of our country support this policy. European perspective has a specific pragmatic dimension for our country. Modernization processes in Ukraine are closely related to EU integration course of the country. Ukraine performs many commitments in accordance with the provisions of the Association Agreement that actually meet the obligations of the candidate countries for EU membership and require significant financing of the relevant transformations.

The EU is in negotiations for a deep and comprehensive free trade agreement with Ukraine as part of a future Association Agreement. The last round of negotiations took place on 19-23 September 2011.

The EU is Ukraine's foremost commercial partner and accounts for about one third of its external trade. The EU believes that closer economic integration (in the overall context of a political association) can be a key factor in economic growth for Ukraine.

The EU was a strong proponent for Ukrainian WTO membership, effective since 16 May 2008. Building on that membership the EU and Ukraine immediately launched negotiations for an agreement on a deep and comprehensive free trade area (DCFTA). As part of the future Association Agreement, the DCFTA is designed to deepen Ukraine's access to the European market and to encourage further European investment in Ukraine.[1]

Ukraine's membership of the WTO in 2008 has deepened an already promising economic partnership.

Trade in goods
  • EU exports to Ukraine 2010: €17.3 billion
  • EU imports from Ukraine 2010: €11.4 billion

Ukraine's primary exports to the EU are iron, steel, mining products, agricultural products, and machinery. EU exports to Ukraine are dominated by machinery, transport equipment, chemicals, and agricultural products.

Fig.12. Ukraine imports, exports to EU

GSP. Ukrainian exports to the EU are to a very large extent liberalised thanks to the Generalised System of Preferences (GSP) granted by the EU to Ukraine since 1993. In 2010, the GSP utilisation rate reached a rather good level of 72.2% of the eligible products. With € 2.15 billion of GSP preferential imports to the EU, Ukraine ranks 12th among the most effective users of the system. Preferential imports include machinery and mechanical appliances, plants, oils, base metals, chemicals and textiles.

Relations with the European Union are very unstable. President Yanukovych declared that European integration is a priority for Ukraine, and his administration managed to conclude negotiations on an Association Agreement with the European Union. The four-year-long negotiation process was completed in the fall of 2011, and the agreement involves the establishment of a deep and comprehensive free trade zone and a visa-free regime. The EU, however, refused to accept a loosening of democratic principles in Ukraine and the persecution of the opposition there. A criminal case against former prime minister and opposition leader Yulia Tymoshenko, which the EU and United States considered politically motivated, became the main obstacle to signing the Association Agreement at the December 2011 Ukraine-EU Summit. Although the parties agreed to initial the agreement, the EU has made it clear that as long as Tymoshenko and other opposition leaders are persecuted, it will not finalize the agreement.

In order to stay on the reform track, the government needs to fully restore cooperation with international organizations. The recent tensions in relations should be treated as a serious signal to the government that it has ventured off course. While Ukrainian and foreign experts do not question the content of the reform agenda, whether the government is truly dedicated to implementing the economic reforms that will lead to more prosperous and democratic future of Ukraine remains an open question.

 

 

Conclusion to chapter II

Ukraine exports products to 140 countries of the world. Its main export products are ferrous metals and metal products, engines, transport and mechanical equipment, chemicals, and vehicles. Top import items include mineral products, automobiles, transportation equipment, chemicals, and textiles. Ukraine relies heavily on trade, particularly with the other former Soviet republics, although not nearly as much as it had a 15 years ago.

Today is an important task to reform the foreign trade of Ukraine, which will be a factor in the country's economic security, transparency, economic reforms, attractive economic environment to attract foreign investment. All of this should be a powerful impetus for further reform of the national economy and Ukraine's joining the EU Economic Community as a full and stable partner.

 

 

 

 

 

 

 

 

 

 

 

 

CHAPTER 3. The problems of Ukraine's foreign trade development

Ukraine has seen significant overall growth in import/export activity with the United States since establishing a World Trade Organiztion,WTO, bilateral market access agreement in 2006, and more significantly since its accession into the WTO on May, 16 2008, despite ongoing revisions to its trade barriers affecting the U.S.The bilateral market access agreement signed in March 2006 was a step in the Ukrainian accession process to the WTO and a commitment from the Ukrainian government to “broad-based reform and economic liberalization.

Upon accession to the WTO in 2008, Ukraine decreased import duties on products, including automobiles from 25% to 10% . However, when the economic crisis hit in 2008, Ukraine imposed a 13% duty increase on imported goods. They later abolished the 13% increase on goods except for select products, including automobiles. This 13% increase went against the rates by which the Ukraine is bound to uphold by the WTO. The increase comes a year after realizing a 434% increase in imported automobile goods, such as passenger car bodies and chassis, from the U.S. Despite the growth of automobile goods from the U.S., imports of manufactured automobiles are still curtailed through excise taxes and high registration fees on imported used automobiles.

Ukraine applies three different duties, or tariffs, on imports based on diplomacy agreements with individual nations. Full rates can be 2 to 10 times higher than “most favored nation”  (MFN) rates, while full rates and MFN rates are both higher than preferential rates. MFN rates are only offered to member countries of the WTO, while preferential rates are only applicable to the “12 counties with which Ukraine has a free trade agreement.

Further trade barriers with Ukraine come in the form of import licenses. These licenses restrict the importation of certain products such as, alcohol products, some sugar products, some industrial chemical products and other specific paper related and media related products. Import products including livestock and poultry where removed in 2008 from the list of items needing import licensing.

U.S. exports to Ukraine increased by 144.36% from 2005 to 2006, from $532 million to $1.3 billion. Further export growth to Ukraine was exhibited in 2008, up to $1.9 billion. The largest growth sector exhibited in Ukrainian imports from the U.S. 2006 to 2007 was aluminum—an increase of 4239%. This may be, in part, due to the relaxation of some of the previously mentioned import barriers.

On the other hand, Ukraine realizes very few export barriers. In order to align itself with commitments associated with accession to the WTO, Ukraine abolished or reduced the number of export duties. Like some imported products to Ukraine, some products must be registered with the government for export such as precious metals and stones and any rolled metals that are exported to the U.S. In addition, most export duties have been eliminated for those associated with primary GDP exports such as natural gas, livestock, some oil seeds and scrap metals. [26]

Ukraine has made substantial progress in reducing barriers to trade during its accession to WTO, in particular by consolidation of tariff rates and unification of customs procedures. However, a number of severe impediments remain, as outlined below.

  • Complicated Regulatory and Legal Environment

The biggest barrier to foreign trade in Ukraine is the regulatory and legal environment. Importes as well as exporters face complicated, lengthy customs procedures. There is no stability in legislation, even after Ukraine became a member of WTO. The temporary 13% surcharge imposed by the government and then canceled was a good illustration of this statement.

  • Corruption

On Transparency International’s Corruption Perceptions Index, Ukraine is ranked many years in the bottom half of the group of 163 countries Ukrainian government employees voluntarily apply licensing and registration procedures to halt or slow exporting or importing operations. That is why corruption is named as one of the most serious deteriorations of foreign trade.

  • Certification

Ukraine’s complex system of certifying imports imposes one of the greatest barriers to importers. The international practice according to which products certified by accredited bodies in partner states with internationally recognized accreditation procedures have to be recognized as acceptable in the importing country does not work in Ukraine. The procedures for certifying compliance with Ukrainian standards for agricultural products, food, and pharmaceuticals are particularly complex.

  • Difficulties in Obtaining Refunds for VAT

This is one of the most severe impediments to exports from Ukraine. The problem is the corruption embedded in the system that provides rebates to exporters for the value-added tax (20%) they pay on inputs. The government consistently delays payment (up to 18 months) or the tax authorities challenge the veracity of the exporters’ claims.[21]

 

 

 

 

 

 

 

Conclusion to chapter III

The development and complexity of international trade is reflected in the evolution of theories to explain the dynamics of this process. In modern conditions, differences in international specialization can only be analyzed on the basis of the aggregate of all key models of the international division of labor.

If we consider the global trade in terms of its development trends, then there is on the one hand - a clear intensification of international integration, the gradual erosion of boundaries and the creation of various international trading blocs, on the other hand - a deepening of the international division of labor, gradation of the industrialized and underdeveloped.

But if the role in world trade is small, the value for Ukraine foreign economic sphere is essential. Foreign trade is an important source of capital goods, as well as playing a major role in the supply of various goods of the Ukrainian population. 
With regard to structural changes in the foreign trade of Ukraine, it is necessary to bring the structure of merchandise exports in line with the strategic priorities of Ukraine, which is an innovative type of development. This implies, first of all, regulatory restrictions commodity exports to a critically needed, triggered long-term agreements with foreign partners, a gradual reduction of export partial processing industry, the deployment of new production facilities and development of new technologies

 

 

 

 

 

 

 

Conclusion

Modern problems make it possible to conclude that an important condition for the development of foreign trade in terms of market transformation is the active state foreign policy. The policy should be aimed at improving the situation in foreign trade by deployments in the management mechanism against destructive processes. That is not possible without the timely adoption and implementation of management decisions on the system consistency tax, financial, investment, structural, scientific, technical, industrial, agricultural, customs tariff and other elements of economic policy to conform them to achieve strategic objectives of foreign trade and direct control as the foreign trade sector.

However, unfortunately the current foreign policy and its implementation means in practical actions by executive authorities preferred not to achieve specific goals, and preventive measures against the destructive influence of external factors, and delayed acceptance under pressure uncoordinated and often conflicting decisions on pressing current issues.

The number of these measures may accelerate the development of foreign trade and adapting to the requirements of the WTO:

A) implement a comprehensive legislation to provide differentiated conditions imports taking into account:

  • appropriate importation of the goods;
  • qualitative characteristics of the goods;
  • important commodity for economic restructuring;

B) provide support to domestic producers at the expense of tax incentives and loan production of those products; 
C) provide a gradual reduction of import products specific sectors and modes of production by increasing production of the respective capacities of domestic enterprises.

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