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Zinchenko Halyna Serhiivna

  

CHOOSING A POTENTIAL PARTNER TO CREATE A SAFE ENVIRONMENT FOR DOING BUSINESS BY SEA

  
Анотація:
the purpose of the report is to highlight the necessary characteristics and justify the choice of a potential partner to create a safe environment for doing business by sea. That is why I decided to analyze in detail the situation related to ports in Ukraine, based on the experience of NAI Global and TCN. These centers of world expertise will allow implementing it in Ukraine   

Ключові слова:
business partner, import, export, corporation, port   

УДК 656.07

Zinchenko Halyna Serhiivna

student of the Faculty of Management and Marketing

National Technical University of Ukraine

Igor Sikorsky Kyiv Polytechnic Institute

(Kyiv, Ukraine)

 

CHOOSING A POTENTIAL PARTNER TO CREATE

A SAFE ENVIRONMENT FOR DOING BUSINESS BY SEA

 

Abstract: the purpose of the report is to highlight the necessary characteristics and justify the choice of a potential partner to create a safe environment for doing business by sea. That is why I decided to analyze in detail the situation related to ports in Ukraine, based on the experience of NAI Global and TCN. These centers of world expertise will allow implementing it in Ukraine.

 

Keywords: business partner, import, export, corporation, port.

 

More than 80 percent of world trade is by sea. Interest in infrastructure has grown, in part due to the Large Construction Program, as well as Ukraine's large export volumes and potential, and the need to improve ports and maritime infrastructure is now a priority. Therefore, it is right to do so base on world experience [1].

Just estimate the scale of the seaport relationship: carriers, freight forwarders, ship teams, customs brokers, numerous government agencies, shippers, consignees, banks, surveyors, trading partners and more. In my opinion, the port should combine all these facilities into a single (online) port community system (PCS - Port Community System), which would connect all stakeholders in the logistics chain. A good system will optimize processes, automatically update and inform stakeholders, reduce paperwork, allow digital transactions, submissions and approvals, measure responsiveness, minimize bureaucracy and be a tool for continuous improvement of the supply chain and port operations [2].

The Government of Ukraine is carrying out reforms that provide for public-private partnership programs in logistics and transport infrastructure, which will further strengthen the potential of the Ukrainian economy [3].

The Government of Ukraine used the time of the pandemic to improve the legal framework necessary for the development and growth of infrastructure, in particular in the framework of the "Big Construction" program, also provides for the improvement of ports and maritime infrastructure in general. This will affect the desire of foreign companies to cooperate with us [4].

But the choice of trading partner depends on many specific factors. First of all, it is necessary to determine whether it will be the most efficient type of sea transportation of goods or whether it is more appropriate to use another type of transport (air, rail, road and others) [5].

First of all, the choice of partner is determined by:

1) the nature of the foreign trade agreement (export, import, compensation, etc.);

2) the subject of the agreement (purchase and sale of goods or provision of services);

3) the nature of the subject of the agreement (raw materials or finished products, machinery and consumer goods) [6].

 

In addition to economic criteria, it is important to take into account the nature of trade and political relations with the country. Preference is given to those with whom a normal business relationship has been established, confirmed by the legal basis, and which does not allow for any kind of discrimination against our country [7].

When choosing a company, first of all it is necessary to study various aspects of potential partners, namely:

1) technological (to study the technical level of the company's products, the level of its technological base and production capabilities);

2) scientific and technical (to study the organization of R & D and their costs);

3) organizational (organization of company management, taking into account FEA);

4) economic (to assess the financial condition of the company);

5) legal (to study the rules and regulations in force in the country and related to cooperation with a potential partner).

In international practice, taking into account the generally accepted methods of evaluating potential partners, the following principles are identified, which are important to consider when organizing this work:

1) assessment of the degree of solidity of the potential partner. The degree of solidity of the company is understood as quantitative indicators of activity, scale of operations, degree of solvency, etc. Other indicators can be used to assess the company's solidity, such as the number of employees (including R&D), the number of enterprises, the share of products we are interested in, the company's production volume and industry, etc.

2) assessment of business reputation. The company's business reputation is determined by how conscientiously and scrupulously it fulfills its obligations, what is its experience in this field of business, the ability to negotiate at a civilized level;

3) taking into account the experience of past agreements. In the presence of equal conditions for potential partners, preference is given to those who have proven themselves well in previous agreements;

4) taking into account the company's position in the foreign market, ie whether it is an intermediary or direct producer (consumer) of products. If the company is an intermediary, then you need to take seriously the choice of intermediary [8].

Today, the foreign economic activity of enterprises is a necessary part of the development of international cooperation. The implementation of operations related to foreign economic activity leads to the development not only of the company but also of the country as a whole. It is advisable to ensure the implementation of foreign trade conditions in such a way as to maximize profits. The selection and careful evaluation of potential partners should take precedence when the company decides on the possibility of signing an external contract. In the future, an important point is the development of methods for finding and evaluating potential partners [9].

An efficient, well-managed port facilitates and reduces the cost of trade with the country. This will stimulate domestic trade and industry, which in turn will increase sales at the port. According to experts, by 2050 the demand for freight transport by sea will triple. It is necessary to identify the nature of the goods sold and the volume of sales, the presence of its own market. It is important to pay attention to the personal qualities of the mediator.

 

REFERENCES:

 

  1. More than 80 percent of all world trade is by sea [Electronic resource] // UN. - 2018. - Mode of access to the resource: https://news.un.org/ru/story/2018/11/1343431
  2. Andrushchenko LV State and legal regulation of insurance in the field of foreign economic activity. [Electron. resource] / LV Andrushchenko - Access mode: http://adminpravo.com.ua
  3. Baida NV Risks of foreign trade [Text] NV Baida // Finance of Ukraine. - 2002. - № 11. - P. 44 - 48.
  4. Dubinets Y. Theoretical aspects of the risk of foreign economic activity of the enterprise. [Electron. resource] / Yu. Dubinets - Access mode: http://www.nbuv.gov.ua.
  5. Karpenko MO Zakharchenko OV Improving the organization of foreign economic activity at the enterprise. [Electron. resource] / MO Karpenko, OV Zakharchenko - Access mode: http://www.finance-library.com.ua/
  6. Petrushenko YM Cross - cultural aspects of improving the efficiency of international business. [Electron. resource] / Yu. M. Petrushenko - Access mode: http://www.nbuv.gov.ua/
  7. Drozdova GM 6.2. Choice of partners in the world market [Electronic resource] / GM Drozdova // Management of foreign economic activity of the enterprise. - 2004. - Mode of access to the resource: https://www.ebk.net.ua/Book/MenedgmentZED/06-09/662.htm.
  8. CHOICE OF FOREIGN ECONOMIC PARTNERS - THE BASIS OF SUCCESSFUL BUSINESS [Electronic resource] // Effective economy. - 2011. - Mode of access to the resource: http://www.economy.nayka.com.ua/?op=1&z=448.
  9. Hux A. How complicated is the process of creating a world-class port? [Electronic resource] / Alexander Hux // LEAGUE LAW. - 2021. - Resource access mode: https://biz.ligazakon.net/ru/analitycs/202368_infrastrukturnyy-proryv-kak-sozdat-port-mirovogo-urovnya.
  
Діалог з науковим пізнанням. Київ, Україна.   

Посилання для цитування:

Zinchenko Halyna Serhiivna. CHOOSING A POTENTIAL PARTNER TO CREATE A SAFE ENVIRONMENT FOR DOING BUSINESS BY SEA // ''Діалог з науковим пізнанням'' (міжнародна наукова конференція). ISBN 978-966-8420-86-6. Київ, Україна. С. 21 - 26. 2022 р. // Електронний ресурс: https://academconf.com/article/293 (дата звернення: 17.04.2024 р.)


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