ISSN 2413-2322 (Online)

ISSN 2221-1055 (Print)

UDS: 339.562.4:339.54 DOI: https://doi.org/10.32317/2221-1055.201904080
Зовнішньоекономічні відносини

Import and prospects of import substitution in Ukraine / Shtakal M.A., Pugachov V.M. // Ekonomika APK. - 2019. - № 4 - P. 80

The purpose of the article is to determine directions of refusal to import agricultural products including reorientation from import substitution to development of service-oriented economy. Research methods. Researches were implemented using the following scientific methods: structurally functional (description and explanation of outsourcing and offshoring systems, in which their elements and dependences between them within the whole); comparative (definition of properties and characteristics on basis of assembled statistics of import substitution process and practices of outsourcing and offshoring); economic-statistical analysis (investigating mass phenomena, processes, facts and tendencies of import dependence and regularities of its development); abstract and logical (theoretical generalizations and formulation of categories, hypothesis, conclusions). Research results. The last decades have been characterized by an increase in the trade volume in services and growth of global value-added chains. Exactly only production of both industrial and non-industrial goods will not provide the country long-term enough income. Therefore, a trade policy of many developed and developing countries, focuses on domestic service providers and attraction of domestic firms into global and regional value-added chains. Tendency to use outsourcing or transfer a part of business processes to other countries (“offshoring”), which is gaining momentum, is now a matter of special attention and public debate in many countries. In our opinion, Ukraine can get benefits if except steps to import substitution and focuses on development of a service-oriented economy. This will allow Ukraine to provide competitive services to domestic industries that will integrate these services into their production process increasing its effectiveness. Over the past decades, volume of services for “outsourcing” and “offshoring” have grown significantly, and it is expected that this process will continue. Elements of scientific novelty. Prospects of development of “outsourcing” and “offshoring” in Ukraine were considered. Outsourcing is a transfer of part of tasks or processes to third parties by subcontracting. This is an agreement that work is carried out by people from an outside company, which are usually also experts in this kind of work. Offshoring is a new way of doing business, generated by globalization, which allows companies to reduce costs, increase company capitalization and develop faster pace, responding quickly to changes in a market. Tactic of offshoring becomes a survival tactic for companies not only in the world, but also in the domestic market. Practical significance. Thanks to globalization, many companies were able to minimize their costs, transferring production to countries with cheaper labour. Outsourcing / offshoring becomes a survival tactic for companies not only in the world, but also in the domestic market. Using of an outsourcing / offshore strategy enables a company not only to reduce costs and increase the company's capitalization, but to grow and develop at a faster rate. Tabl.: 1. Figs.: 1. Refs.: 28.
Key words: import; import substitution; outsourcing; offshoring; trade; foreign markets

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