Transcript Document

THE CONSEQUENCES OF
UKRAINE'S ACCESSION TO THE
WTO FOR THE DOMESTIC
MARKET.
«INSAM»
Student: Evgeniya Litvin IE-09
Scientific supervisor: Serhii V.Kuzminov
D. Sc. (Economics)
Language consultant - Cand. Sc. (Pedagogy),
Associate Professor Miasoid G.I.
OUTLINE
1. The WTO and its cooperation with Ukraine;
2. Assess of the "INSAM" status and prospects of
company development and metallurgical sector ;
3. Ways of «INSAM» activity improvement.
The objective of the research : to analyze the consequences of
Ukraine's accession to the WTO for the national market
Research tasks:
- to describe the features of the WTO and its cooperation with Ukraine;
- to make a general characteristic of the enterprise;
- to evaluate the economic efficiency of the project.
The research object: the LLC. "INSAM" .
Subject of research: is the `INSAM` nowadays changes and export
development
THE WTO AND ITS COOPERATION WITH
UKRAINE
• WTO - an international organization that regulates trade among nations;
•
World Trade Organization began its activity in 1995;
•
On 16 May 2008 Ukraine became the WTO`s 152 member;
Consequences
Positive
•export growth
•revival of production in industries
•best conditions for the protection of
Ukrainian producers
•domestic enterprises became the part
of international trade
•expand the range and quality of products
and services with lower prices;
Negative
•implementation of WTO rules on
standardization and certification
•Ukraine also should reduce tariff and nontariff barrier
• increase the dependence of the national
economy from the global economy
‘INSAM’
• Factory of producing high-tech aluminum composite panels;
• Operates in the market of metal products since 2005 year;
• Occupies 25% of ACP in Ukraine
• In 2007-2009 had a state of crisis;
•
Since 2007,working capital started to increase
and till the 2012 company reached financial stability
Industrial production indexes by activity in 2014
January
(%)
JanuaryFebruary
(%)
JanuaryMarch
(%)
JanuaryApril
(%)
90,1
89,6
89,4
88,8
Metallurgical production
89,1
88,6
88,6
88,4
Manufacture of fabricated metal products, except machinery and equipment
94,2
93,7
92,6
90,6
Metalworking and coating of metals; machining metal products
81,0
88,8
82,4
83,7
Manufacture of other fabricated metal products
102,8
97,1
95,2
92,6
Industry
Metallurgy, manufacture of fabricated metal products, except machinery and
equipment
WAYS OF "INSAM" ACTIVITY
IMPROVEMENT
• Strategy for improvement of the LLC “INSAM” - expand markets and
increase turnover through the development of the export market for
Russia (Rostov and Belgorod region)
Why Russia?
• Territorial proximity
• Similarity of production standards
• Large market
Economic efficiency of the project
NPV=
where, NCFi - net cash flow for the i-th period;
INV – initial Investments;
r – discounting rate.
NPV= 1369516 $
So (NPV> 0) is satisfied
Price per m2
Russia
~26 $
Ukraine
36 $
Despite the fact that the Ukrainian ACP have
a quality advantage, Russia produces more
than 40% of Russian ACP, and the price is
about the same as that on the territory of
Ukraine.
Thank you
for attention!