Global and National Problems of Economics

MINISTRY OF EDUCATION AND SCIENCE OF UKRAINE MYKOLAIV NATIONAL UNIVERSITY NAMED AFTER V.O. SUKHOMLYNSKY

GLOBAL AND NATIONAL PROBLEMS OF ECONOMICS

Electronic scientific publication Issue 1

Mykolaiv 2014 EDITORIAL BOARD:

Chief Editor: Stroiko Tetiana Volodymyrivna, Doctor of Economic Sciences, Associate Professor (Department of International Econom- ics, Mykolaiv National University named after V.O. Sukhomlynsky). Deputy Chief Editor: Irtyscheva Inna Oleksandrivna, Doctor of Economic Sciences, Professor (Professor at the Department of Economics, Mykolaiv National University named after V.O. Sukhomlynsky). Executive Secretary: Danik Natalia Vadymivna, Candidate of Economic Sciences, Associate Professor (Associate Professor at the Department of Finance, Mykolaiv National University named after V.O. Sukhomlynsky). Editorial Board Members: Borodina Olena Mykhailivna, Ph.D, Professor of Economics (Professor, “College of Banking” Prague, Czech Republic). Buzko Iryna Romaniva, Doctor of Economic Sciences, Professor (Department of International Economics, Pro-rector for Research, Volodymyr Dahl East Ukrainian National University). Bulatova Olena Valeriivna, Doctor of Economic Sciences, Professor (Department of International Economics, Pro-rector for Research Mariupol State University). Deineko Liudmyla Viktorivna, Doctor of Economic Sciences, Professor (Head of the Department of Industrial Policy, In- stitute for Economics and Forecasting of the National Academy of Sciences of Ukraine). Kishchak Ivan Teodorovych, Doctor of Economic Sciences, Professor (Dean of the Faculty of Economics, Mykolaiv Na- tional University named after V.O. Sukhomlynsky). Klysinski Janusz, Doctor of Economic Sciences, Professor (Professor at the Department of Sports Marketing, University of Bielsko-Biala, Poland). Martyniuk Volodymyr, Doctor of Economic Sciences, Professor (Head of the Department of Financial and Economic Se- curity, Ternopil National Economic University). Nikolaienko Natalia Oleksandrivna, Doctor of Political Sciences, Associate Professor (Head of the Department of Politol- ogy, Mykolaiv National University named after V.O. Sukhomlynsky). Stukalo Natalia Vadymivna, Doctor of Economic Sciences, Professor (Department of International Economics, Oles Hon- char Dnipropetrovsk National University). Sukhorukov Arkadii Ismailovych, Doctor of Economic Sciences, Honored Economist of Ukraine, Professor (Advisor to the Directorate of the National Institute for Strategic Studies under the President of Ukraine). Khvesyk Mykhailo Artemovych, Academician of NAAS, Doctor of Economic Sciences, Honored Worker of Science and Technology of Ukraine, Professor (Director of the Institute of Environmental Economics and Sustainable Development of the National Academy of Sciences of Ukraine). Fradkin Akiva, Ph.D, Professor of Economics (Executive Vice President, York University, USA). Shaposhnykov Konstiantyn Serhiiovych, Doctor of Economic Sciences, Professor (Dean of the Faculty of Economics and Management Kherson State University). Shyian Dmytro Viktorovych, Doctor of Economic Sciences, Professor (Professor at the Department of Enterprise Econom- ics and Management Kharkiv National University of Economics).

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ISSN (Online): 2313-2137 © Mykolaiv National University named after V.O. Sukhomlynsky 2014 Global and National Problems of Economics 3 CONTENTS SECTION 1 WORLD ECONOMY AND INTERNATIONAL ECONOMIC RELATIONS O. Vyshnevska, O. Niedova, L. Sokirke GLOBALIZATIONAL CHALLENGES IN THE GUARANTEE OF ECONOMIC SECURITY OF THE COUNTRY 5 T. Stroiko, T. Hordieieva, O. Yevdochenko STRATEGIC DIRECTIONS OF FUNCTIONING OF FINANCIAL INSTRUMENTS OF REGIONAL POLICY OF EU 7 SECTION 2 ECONOMY AND OPERATION OF NATIONAL ECONOMY M. Plotnikova BALANCED RURAL DEVELOPMENT BASED ON THE CONCEPT OF “ANCESTRAL HOME” 9 K. Shaposhnykov THE FEATURES OF FORMATION AND DEVELOPMENT OF INFOCOMMUNICATIONS MARKET IN NATIONAL ECONOMY 11 SECTION 3 ECONOMY AND ENTERPRISE MANAGEMENT O. Kvasha WORLD MODELS OF WORK MOTIVATION IN ENTERPRISES: LESSONS FOR UKRAINE 13 V. Krainii IMPROVEMENT OF THE SYSTEM OF WORK STANDARDIZATION IN MODERN CONDITIONS 15 O. Sarapina TRENDS IN DEVELOPMENT OF THE MARKET OF VEGETABLE PRODUCTION IN CONDITIONS OF ECONOMIC GLOBALIZATION 17 SECTION 4 DEVELOPMENT OF PRODUCTIVE POTENTIAL AND REGIONAL ECONOMY Y. Boiko REGIONAL DEVELOPMENT AGENCY: MODERN REALITY 19 M. Pauk ANALYSIS OF INVESTMENT PROJECTS OF TOURISM AND RECREATIONAL SECTOR OF ZAKARPATTIA REGION 21 4 Mykolaiv National University named after V.O. Sukhomlynsky

SECTION 5 MONEY, FINANCES AND CREDIT N. Danik BUSINESS PLANNING AS A TOOL FOR THE IMPLEMENTATION OF FINANCIAL MANAGEMENT IN CONDITIONS OF MODERN DEVELOPMENT OF UKRAINE 23 N. Kornieva FORECASTING OF FINANCIAL STATEMENTS UNDER FINANCIAL AND ECONOMIC CRISIS 25

Issue 1. 2014 Global and National Problems of Economics 5 SECTION 1 WORLD ECONOMY AND INTERNATIONAL ECONOMIC RELATIONS

UDC 338.43(477):339.9 O. Vyshnevska Doctor of Economic Sciences, Professor, Dean of Accounting and Finance Faculty, Mykolayiv National Agrarian University O. Niedova Master, Accounting and Finance Faculty, Mykolayiv National Agrarian University L. Sokirke Master, Accounting and Finance Faculty, Mykolayiv National Agrarian University

GLOBALIZATIONAL CHALLENGES IN THE GUARANTEE OF ECONOMIC SECURITY OF THE COUNTRY

The article deals with theoretical world system, but their development and methodological aspects of the is slow. Therefore, we proved that development of the state given the the issues of regulation of the inter- influence of geo-economic factors in nal market, the process of pricing, order to identify potential benefits quality and standards of products and minimize the economic and en- as well as slow integration process, vironmental risks. It is proved that formation of organizational and eco- the world globalization flows and nomic structures adapted to external processes in the economic, financial, conditions remain unresolved. social, environmental and other ar- Globalization is a comprehensive eas are the guidance of any national process of global political, econom- economy. It is found that disregard ic and social integration. Globaliza- of globalization changes and trends tion processes aim to obtain rele- will limit the possibilities of obtain- vant global benefits in the further ing benefits at the national level. development of the international The national economy as a part of community and the development of the global economic system has acti- individual state systems. In recent vated some elements of an integrated years the world economy is charac- 6 Mykolaiv National University named after V.O. Sukhomlynsky terized by an increasing coverage nomic development in the long run. of systems of different levels with Effectiveness of directions of devel- features of transitivity, chaotic de- opment can be proved only applying velopment, which causes more pro- innovative solutions and maximum found consequences of the crisis at elimination of negative trends in different levels of the global com- political, economic, social and eco- munity development. The issues of logical spheres. geopolitical changes, including di- Guarantee of economic security rect territorial reorganization of the of the state is associated with the world, are becoming more and more implementation of the measures at acute. Similar processes are associ- the international and national lev- ated primarily with different levels els to ensure the appropriate lev- of development of separate states, el of social, political and military financial capacity, energy dependen- safety, security and territorial in- cy of national economies, overpopu- tegrity, ensuring the development lation of certain areas, relevant na- of industries on the basis of inno- tional interests of individual states vation, invulnerability and inde- and global geopolitical leaders. pendence of national interests in Globalization has a significant accordance with emergence of ex- impact on the content and the rate ternal and internal threats, primar- of formation of new types of rela- ily ones related to globalization, tionships in modern society. Global prevention of armed conflicts. This changes, along with other objective approach will minimize threats and factors contribute to finding effec- provide appropriate adaptation to tive ways of reducing the adverse ef- globalization changes and trends. fects, reliable methods for predicting All geo-economic factors in the possible changes with the purpose of socio-economic development and adaptation and further development. guarantees of economic security The relevance of this study is de- from foreign economic to techno- termined by the fact that the world logical ones should be focused on globalization processes and flows in internal natural resource base, take the economic, financial, industrial, into account the economic, social, social, environmental and other ar- cultural, ecological features in or- eas are guidance for future devel- der to minimize risks and enhance opment of any national economy. the benefits of geo-economic envi- In turn, disregard of these trends ronment. There is an urgent need will limit the possibility of taking for the effective combination of in- advantage of globalization changes ternal fundamentals in the devel- at the national level. opment of industries, appropriate It is impossible to avoid the in- technological readiness for innova- fluence of globalization processes tion and adaptation to globalization and phenomena; it is expedient to trends, ensuring economic, social, adapt to them in order to provide energy, food, and defense security national interests and socio-eco- of the state.

Issue 1. 2014 Global and National Problems of Economics 7

UDC 338.439.02:631.57 T. Stroiko Doctor of Economic Sciences, Associate Professor, Head of the Department of International Economics, Mykolaiv National University named after V.O. Sukhomlynsky T. Hordieieva Candidate of Economic Sciences, Associate Professor at the Department of International Trade Kyiv National Economical University named after Vadym Hetman O. Yevdochenko Candidate of Economic Sciences, Associate Professor at the Department of International Trade Kyiv National Economical University named after Vadym Hetman

STRATEGIC DIRECTIONS OF FUNCTIONING OF FINANCIAL INSTRUMENTS OF REGIONAL POLICY OF EU

Leveling of regional development and regions should provide soli- is an important aspect of the Eu- darity with poorer countries and ropean market economy and deter- regions, as well as the economic mines the policy of the European principle that the lower volume of Union in regional development. production in poor member states In the EU regional policy is being and regions or states and regions under close attention since 1950s. with high levels of unemployment For a long period of time the EU is the loss of potential and opportu- countries were focused on equity nities for the EU as a whole. in the development of regional pol- Principles of Regional Develop- icy, but since the mid 1970s, eco- ment were checked and repeatedly nomic efficiency gradually started improved over the years to be able gaining more attention. Regional to develop a variety of strategies policy began to focus on economic to solve economic and social prob- growth through the development of lems and to achieve environmental competition and reduction of un- goals. The success of this policy is employment. That is why the study based on partnerships within the of strategic directions of function- EU, planning and good governance. ing of financial instruments of In case of application of these prin- EU regional policy is particularly ciples of development the program relevant. can be carried out in a decentral- European policy of regional de- ized way. velopment is based on the political EU regional policy can be best principle that the richer countries defined as thematically ordered 8 Mykolaiv National University named after V.O. Sukhomlynsky grouped by unifying (supranation- difficult situation as a result of the al) center of activities aimed at restructuring of the industry in the using complex legal and financial EU. Resources of fund are direct- instruments of elimination of dis- ed to implementation of programs parities in economic and social de- to reduce unemployment, overcome velopment of the regions in the EU, social inequality, harmonize pro- and at ensuring balanced growth fessional and family life; of all its areas preserving internal - European Agricultural Guidance economic and social unity. and Guarantee Fund (EAGGF) was The main instruments of regional established in July 1964. It funds policy in the European Union at the general and specific measures of supranational level are structural agricultural policy of the EU. funds. They are responsible for re- Regional development in Europe distribution of financial resources benefits from a wide range of dif- on the principle from “rich” regions ferent funding opportunities. Ex- to “poor”. By the 1990s in the EU cept the main sources of funding, funding for regional development there are other means of capital in- involved several funds: volvement. Unlike the period of pro- - European Regional Develop- gram realization of 2007-2013, in ment Fund (ERDF) – established in the rules on the use of financial in- 1975. The main task of the ERDF struments adopted for the program is to reduce disparities in different of 2014-2020, there are no rigidly regions of the EU. Primarily it is defined sectors, beneficiaries, types aimed at supporting and developing of projects and activities to be sup- depressive and peripheral regions; ported. Within the new system there - European Social Fund (ESF) was are also clear rules which allow bet- created in 1960 to provide aid to ter combination of financial mecha- certain regions, industries and pro- nisms and other forms of support, fessions which appeared to be in particularly issuing grants.

Issue 1. 2014 Global and National Problems of Economics 9 SECTION 2 ECONOMY AND OPERATION OF NATIONAL ECONOMY

UDC 330.34.01:338.43 (477) M. Plotnikova Candidate of Economic Sciences, Associate Professor, Associate Professor at the Department of Management and Investment Activity, Zhytomyr National Agroecological University

BALANCED RURAL DEVELOPMENT BASED ON THE CONCEPT OF “ANCESTRAL HOME”

The article describes the cur- State Target Program “Ancestral rent state of rural areas and the Home” provides revival of rural dynamics of the rural settlements. territories mainly by moving urban Priority directions of revival of ru- residents to distant “vanishing” ral areas through implementation regions, and often those villages of the Concept of the State Target that no longer exist on the map of Program “Ancestral Home” are re- Ukraine. The concept provides the vealed. Prospects and the effects of transfer of one hectare of land to the program at the regional level each family that wants a perma- are described. nent or life use for furnishing the Understanding the nature of eco- ancestral home without the right nomic conflict of businesses and of private ownership, land acting competition between other parties – as a commodity, prohibition to use owners of resources and income in it as security deposit, but with the the agricultural sector, resulting right to transfer by succession. In- from the factors of market compe- stitute of “ancestral home” is a tool tition make people look for ways to that will change the consciousness harmonize relationships between toward environmental preserva- subjects of social interaction as tion, provide revival of the nation- multifactorial and synergistically al idea and guarantee of food and oriented values. economic security. The mechanism Rural areas are a source of nation- of these changes is change in the al historical and cultural heritage, way and quality of life of the urban the main supplier of raw materials population interested in restoring for food and processing industry, the health of children by ensuring recreational center. Concept of the quality, and biological (organic) 10 Mykolaiv National University named after V.O. Sukhomlynsky food, safe environment, discovery cantly improve the environmental of the potential spiritual and cre- situation, including through the ative abilities. use of preferred application by The implementation of the con- owners of such homes (holdings) cept of “Ancestral Home” will en- of organic farming which will courage new settlements in rural give a significant push to start areas; will stop the process of “dy- agricultural production in all the ing of villages”; will enhance the lands of Ukraine. process of enlargement of produc- These areas of economic and so- tion of fruits, berries, vegetables, cial activities require a significant livestock and other products, fish number of jobs and thus securing farming, mushrooms growing and families in rural areas. The popu- gathering, which is inherent in ru- lation, which will “flow” from the ral areas; will help expand the base city to work in rural areas, will re- for creating cooperatives on har- duce demographic tensions in cities vesting and processing of agricul- and industrial centers. tural products. Communication with nature will In connection with the appearance strengthen love for all living things, of new settlements will be created change attitude and moral princi- the conditions for the development ples, treatment of all processes that of the service sector, medicine, edu- occur in society, on Earth. Imple- cation; rural development industry, mentation of the program “Ances- focused on satisfaction of needs of tral Home” will provide an irre- developing rural areas. versible rural development based Responsible attitude to land and on the new moral and psychological environment on the part of own- grounds and will have not only tac- ers of ancestral homes will signifi- tical but also strategic results.

Issue 1. 2014 Global and National Problems of Economics 11

UDC 331.101: 338.47 K. Shaposhnykov Doctor of Economic Sciences, Professor, Dean of the Faculty of Economics and Management, Kherson State University

THE FEATURES OF FORMATION AND DEVELOPMENT OF INFOCOMMUNICATIONS MARKET IN NATIONAL ECONOMY

The article investigates the fea- The spread of ICT contributes to tures of formation and develop- integration of business and emer- ment of the infocommunication gence of alliances of organization- in the national economy. It is de- al structures inside infocommuni- termined that information and cations sphere as well as in other communication technologies (ICT) fields. Convergent character of de- encompass a set of information velopment of infocommunications, and communication facilities and which manifested itself in creation methods of collection, processing of converged networks (NGN, IMS), and transfer of data in order to of content and convergent services obtain a new quality of informa- (Triple Play – voice, data, video, tion. The basic factors that in- Quad Play – voice, data, video, mo- fluence the development of the bile communication), convergent information and communication terminals (smartphone, wireless technologies are specified. Kinds gateway), promotes the integration of convergence peculiar to the of operators, service organizations telecommunications and infocom- in service delivery and network ac- munication sector in the national cess and review of the market and economy are justified. business strategies. The development of the national At the same time, information economy indicates that information service has similar to communica- technology is becoming the mode of tion services specific features of in- production, which gradually replac- tangibility, inability to move away es industrial one, and is based on from from the source and network production and productive use of principle of services distribution. information. According to the main features of The transition to an information services, production technology, society determines the need for principles of organizational struc- continuous improvement of an ef- ture, dependence on the demand ficient system of dissemination of and infrastructural characteristics, information, which is a function of telecommunications (communica- market of ICT. tion) and information services are 12 Mykolaiv National University named after V.O. Sukhomlynsky close, which is the material and eration of networks, designed for technical basis for combination of better convergence of information, these areas of economic activity. multimedia, computer formats and Thus, the economic basis of info- services. communications is multidimension- As a result, it can be argued that ality of processes of production and before the last third of XX centu- consumption, which are character- ry telecommunications industry did ized by: not play any important role in either - cooperation between operators international trade or the economy of different types of communica- of individual countries, but at the tion and information services in beginning of ХХІ century togeth- providing services to one client; er with informatization it became - emergence of virtual operators dominant for national economies of of infocommunications; many countries. This rapid increase - separation of production and in intensity of information process- consumption of information and es is the most important essential communication services; feature of modern science and tech- - change of role of user from pas- nology. sive client to active consumer. ICT is the driving force of con- As a result, the development of vergence of technical means of pro- information and communication cessing and transmission of infor- sector and telecommunications mation observed in recent years. nowadays takes place simultane- Further research of information ously in several areas: liberaliza- and communication technologies tion, privatization, integration, requires the development of an ef- internetization and globalization, fective model taking into account a and most importantly – gradual number of factors affecting the dis- introduction of innovative tech- tribution of products and services nologies, including the latest gen- for these technologies.

Issue 1. 2014 Global and National Problems of Economics 13 SECTION 3 ECONOMY AND ENTERPRISE MANAGEMENT

UDC 331.101.3 O. Kvasha Lecturer at the Department of International Economics, Mykolaiv National University named after V.O. Sukhomlynsky

WORLD MODELS OF WORK MOTIVATION IN ENTERPRISES: LESSONS FOR UKRAINE

In market conditions, one of the to identify the causes of the high factors of success and competitive- efficiency of each management sys- ness of enterprises is the effective tem and determine the conditions use of resources. The most import- of their integration into a different ant resource that provides opera- economic system. tional efficiency of businesses is In the global and Ukrainian eco- human potential. The desire to in- nomic science research of work mo- crease production and competitive- tivation are reflected in the writ- ness, to encourage workers to find ings of many renowned scientists. new and more efficient solutions Fundamental researches were made forces management of enterprises by such economists as F. Taylor, to create effective measures of mo- P. Drucker, D. Nadler and others. tivation and incentives. As for the modern researches in Work motivation is among the Ukraine, such scholars as I. Bond- range of problems the solution of ar, A. Kolot, E. Libanova dedicated which gets much attention in the their works to analysis and search world practice. Throughout the of the possible ways to improve twentieth century in the world mechanism of motivation. Accord- was formed conventional classifi- ing to scholars, Ukrainian enter- cation of models of management prises face the question what expe- of employee motivation: American, rience of foreign practices should European, and Japanese. Each of be used. these models has national features Recently, in Ukraine’s economy and personal approaches to employ- take place certain transformation ee motivation in the workplace. processes that significantly affect The modern stage is characterized the field of personnel management. by broad comparative study of Jap- Public, private and corporate en- anese, American and West Euro- terprises practically felt that the pean management systems aimed development and success of mar- 14 Mykolaiv National University named after V.O. Sukhomlynsky ket relations is impossible without and distinctive features. The main finding new contemporary forms of thing that unites them is their ef- motivation and incentives, which fectiveness, as evidenced by the foreign companies currently use. level of economic development of In many countries of Western Eu- the countries in which they are im- rope, USA and Japan motivational plemented. However, it is impossi- aspects of personnel management ble to fully implement any of these gained great importance. These models in Ukraine. methods and experience of motiva- The level of motivation of work- tion can be successfully transferred ers in our country lags behind devel- to Ukraine in the course of forma- oped countries, which is reflected tion of work motivation. on the state of the economy. Thus, Many highly developed coun- it is necessary to adopt the expe- tries formed their own models of rience of foreign companies, use work motivation. The most typical effective systems of work motiva- are American, Japanese, English, tion, and introduce some elements French, German and Swedish. of American, English and French Analysis of the most famous for- models, taking into account differ- eign models of motivation makes ences between individuals and dif- it possible to find their similar ferent countries.

Issue 1. 2014 Global and National Problems of Economics 15

UDC 331.103 V. Krainii Candidate of Economic Sciences, Associate Professor at the Department of International Economics, Mykolaiv National University named after V.O. Sukhomlynsky

IMPROVEMENT OF THE SYSTEM OF WORK STANDARDIZATION IN MODERN CONDITIONS

Work standardization is the the importance of labor and wages. first step towards optimization of It is important to adhere to the ba- production resource exploitation. sics of work standardization; more- Work standardization is establish- over, it is desirable to improve it ment of the cost of living labor nec- according to the progressive chang- essary to perform certain work in es that occur in businesses and the conditions of proper organization economy as a whole. There is a need and labor intensity. The relevance to analyze the valuation of work of the theme is determined by the standardization at the enterprise fact that businesses, regardless of level, using Ukrainian and foreign ownership, receive the right to de- experience, to determine the gener- cide on the issues of the organiza- al characteristics of the process of tion, standardization and wages. work standardization, to identify The results of the work of the en- the problems in work standardiza- terprise should allow them covering tion and the main factors affecting current operating costs, including work standardization of the admin- wages, making investments for ex- istrative personnel in enterprises. pansion and renovation of produc- With the development of market tion, ensuring social development, relations and deepening of econom- fulfilling obligations to the budget, ic independence of enterprise, work banks and other bodies. standardization is of great impor- Improvement of work standard- tance as a means reducing the cost ization is fulfilled by leaders and of living labor, reducing produc- employers because they are inter- tion costs, increasing productivity. ested in the rational use of labor. Work standardization is a measure In turn, the employees themselves of labor for the performance of a are interested in the objective as- particular job and remuneration sessment of their work. However, for it according to its quantity and much of the business leaders and quality. economic authorities start rejecting International experience shows expediency of work standardization that the effective operation of en- in market conditions and reducing terprises in a market economy 16 Mykolaiv National University named after V.O. Sukhomlynsky is possible only in condition of a Improvement of work standard- high level of work standardization. ization promotes rational arrange- Leading countries like USA, UK, ment of employees and proper use Sweden, Japan, Italy and others of working time, affects the im- not only keep the requirements for provement of labor and produc- work standardization, but also ex- tion. Developed standards are used tend their scope. Commonly used in the preparation of plans for the are methods of microelement anal- company and its divisions, solution ysis and standardization of work of the issues of division and cooper- processes. ation, identification of the required The purpose of work standardiza- number of equipment and number tion in the contemporary economy of employees. The validity of stan- is improvement of production and dards significantly contributes to labor organization, improvement the proper definition of the amount of work conditions and reduction of wages, material incentives, im- of the cost of output, which in turn plementation of the principle of re- increases productivity and contrib- muneration for quality and quanti- utes to the expansion of produc- ty of work. tion and growth of real income of As part of measures aimed at im- workers. proving the level of work standard- The most important task of work ization should be a review of moral standardization is consistent im- and ethical ideas about labor stan- provement of labor and produc- dards, their role and place in the tion, reduction of labor intensity, mechanism of management. Crisis increasing material incentives to economic conditions prevailing in improve efficiency of production, the global economy in recent years support of economically sound re- necessitate further research of cur- lationship between productivity rent trends improving work stan- growth and wages. dardization.

Issue 1. 2014 Global and National Problems of Economics 17

UDC 635:338.439.5 O. Sarapina Doctor of Economic Sciences, Professor, Kherson National Technical University

TRENDS IN DEVELOPMENT OF THE MARKET OF VEGETABLE PRODUCTION IN CONDITIONS OF ECONOMIC GLOBALIZATION

The level of development of ag- of vegetable production requires an ricultural market determines the analysis of the market for vegeta- state of food security and economic ble production, development of ef- development because agriculture, fective organizational and mutually provided its formation through ex- beneficial economic relations of its tensive use of modern innovation subjects through the development and information technologies, re- of partnerships and creation of con- ceives significant financial abilities ditions for the effective function- to ensure quality standards of pro- ing of agricultural producers. duction processes. Ukraine is one of The increase in production, di- the few countries that can provide versification of assortment and im- not only our own needs, but also provement of quality of vegetable can become a potential exporter of production is possible only in case of high quality vegetable production, integration of economic relations, both fresh and canned products in organization of effective economic a wide range. There is a growing activity on industrial basis in the urgency of issue of formation of leading regions for the production high-quality fundamentals of agri- of vegetables. Five leaders in vege- cultural market in the context of table production among the regions the significant impact of globaliza- include: Kherson (1193.0 thousand tion processes. tons), Kharkiv (711.8 thousand Insufficiently disclosed are the tons), Dnipropetrovsk (586.6 thou- issues of the impact of transfor- sand tons), Donetsk (512.7 thou- mational changes on the formation sand tons), Kyiv (507.0 thousand of internal and external market tons). of vegetable production, which re- Ukraine’s accession to the World quires further investigation in the Trade Organization (hereinafter – context of globalization. the WTO) has activated the process Food market is one of the stra- of technological modernization of tegically important markets of any industries, focus on satisfaction state, providing food security func- of needs of consumers in national tions. The task of ensuring food se- market, considering the effective curity of the country with the help demand, as well as reorientation of 18 Mykolaiv National University named after V.O. Sukhomlynsky production to expand export oppor- Redistribution of share of the main tunities through diversification of suppliers of vegetable production in vegetable production in fresh and favor of private farms is held un- canned vegetable products. der the influence of many factors, In Ukraine, a new segment of the one of which is outdated material vegetable market is organic produc- and technical base. tion – vegetables, cultivated with- Successful implementation of the out the use of fertilizers and her- priority tasks in the development bicides. This market segment tends of vegetable production requires to expand in recent years, especial- the development of other criteria ly in the European Union. Interest for evaluation and management in organic products of Ukrainian methods. An important direction of consumers is not supported by ade- development is creation of a cluster quate purchasing power, while pro- within which, based on integration duction has significant export po- and cooperative relations, rapid tential that should be developed. leaps of adaptation of agricultural The relationship of the financial and processing enterprises to com- and economic stability of the coun- petitive conditions – conditions of try forms the purchasing power the World Trade Organization will of the population which, in turn, take place. makes it possible to increase pro- Given the globalization processes duction and sales volumes, defining that worsen food security in many priorities. countries, more attention should be The process of forming an effec- paid to the vegetable market as one tive market economy depends on of the sources of export potential, well-established linkages. The main effectiveness of which depends on stage of it is industrial and tech- ensuring conditions for technolog- nological sphere, which in today’s ical modernization of industry on conditions require a qualitatively the basis of innovation and devel- new approach to its development. opment of logistics.

Issue 1. 2014 Global and National Problems of Economics 19 SECTION 4 DEVELOPMENT OF PRODUCTIVE POTENTIAL AND REGIONAL ECONOMY

UDC 332.02 Y. Boiko Candidate of Economic Sciences, Admiral Makarov National University of Shipbuilding

REGIONAL DEVELOPMENT AGENCY: MODERN REALITY

The modern theory of regional Implementation of regional poli- policy, which was formed during cy requires a “staff center” in the 1980s, follows the principle that executive branch, which accepts decisions on regional development major tactical decisions and pro- must be accepted involving, and vides coordination of institutions ideally – directly by regional au- and other institutes involved in the thorities that establish system of process of such implementation. partnership with other public, com- Depending on the stage of develop- munity, business institutions. The ment of regional policy in a country main objective of regional policy and the goals of state regulation of was to eliminate the negative ef- regional development, in Europe- fects of the imbalance in the lev- an countries have been organized els of development of regions. State specialized ministries or region- solved this problem through direct al policy was coordinated by gen- investments, financial transfers or eral purpose central government introducing tools that indirectly af- authorities, consisting of specially fected the economic development in created organizational units. depressed regions. These included For effective implementation of the regional development agencies. the state regional policy it is neces- The article aims at comprehensive sary to create a network of non-gov- study of the institutional mech- ernmental institutions of regional anisms of regional governance, and local development. These insti- through the example of functioning tutions are designed to increase the of regional development agencies role and responsibility of local com- using international experience and munities, private businesses and elaboration of national practices in every citizen for the development the context of legislation and real- of relevant areas, ensure their real ities of functioning in the country. participation and impact in solu- 20 Mykolaiv National University named after V.O. Sukhomlynsky tions of important issues of region- intersectoral collaboration of au- al and local development. Such an thority, business and community institution could be a network of creating a qualitatively new eco- Regional Development Agencies nomic environment. (RDAs) representing government, Foreign experience of function- public and private interests. ing of institutional intermediaries According to some researchers, in implementation of strategies of “the tasks of regional development socio-economic development of ar- agencies in Europe were determined eas should be a useful lesson for primarily by existing paradigm of Ukraine, which has chosen the way regional development. By the early of European integration. Many 1980s main objective of RDA was questions regarding the operation to promote industrial development of RDAs require scientific develop- to diversify the economic structure ment, organizational and legal sup- of the region”. New tasks assigned port, in particular, such as the rela- to the RDAs during 1990s are sup- tionship between RDAs’ approaches port of economic competitiveness to regional development and tra- of the region through training for ditional government approaches, staff, improvement of manage- clear division of powers between ment of regional projects. As tes- the RDAs, local state administra- tified by the world practice, RDAs tions and local self-government. effectively cooperate with local Only after adaptation to local real- and central authorities as target ities of algorithm of RDAs’ opera- centers for strategic planning and tion, they will be effective agents support of projects of territory of future changes in the socio-eco- development, providing effective nomic development.

Issue 1. 2014 Global and National Problems of Economics 21

UDC 338.48 M. Pauk Degree Seeking Applicant, International University of Business and Law

ANALYSIS OF INVESTMENT PROJECTS OF TOURISM AND RECREATIONAL SECTOR OF ZAKARPATTIA REGION

The article investigates the im- services. In addition, investments pact of investment in social and usually contribute to measures of economic development of regions, macroeconomic stabilization and al- attractive investment projects in low solving the social problems of tourism and recreational sector of the transformation period. Zakarpattia region. Particular at- Foreign investments promote eco- tention is given to the most sig- nomic growth of state’s potential, nificant investment projects for integration of the national econom- the creation of sport and tourist ics into the world economy through infrastructure, defined by their so- the transfer of production facili- cio-economic impact on the region. ties, technology transfer, transfer The main goal of tourism and of capital, managerial experience, recreational sector is to create a skills, and innovations. Ukraine’s highly competitive tourism and rating status in the world commu- recreational complex that provides nity is not high. Nevertheless, there service for Ukrainian and foreign is a high interest in our country citizens, as well to make a signifi- among strategic investors focused cant contribution to socio-economic on long-term payoff of investment development of a region and coun- resources, because Ukraine is a try. For this purpose a number of cheap market with large investment measures, including attracting for- possibilities. eign investments, are proposed. Today projects, proposals for con- International experience shows struction of tourist and sporting that countries can not develop their ski slopes, cable cars, sports and economy without involvement and recreational facilities are attractive the effective use of investment. for investment. However, there are Accumulating private, national or many risks and obstacles to invest- foreign capital, providing access ment programs in Ukraine: political to modern technology and man- and legal, monetary and financial, agement, investment will not only infrastructural and economic risks. contribute to the formation of na- The tourism industry, according to tional investment markets, but also experts’ estimates, is considered to enliven the markets for goods and be one of the most highly profitable, 22 Mykolaiv National University named after V.O. Sukhomlynsky but high profits are determined by tation center “Professional” resorts high risks of investments. Thus, ac- “Kryshtaleve Dzherelo”, “Kvasnyi cording to investment risk, tourism Potik”. In addition, in recent years industry occupies 8th place among the development of recreational the other branches of the national facilities gained significant popu- economy of Ukraine. larity in other areas of the region. Zakarpattia is an extremely Thus, a number of large investment promising area in Ukraine in terms projects on construction and re- of tourism, recreation and leisure. construction of sanatoriums takes The unique recreational potential place in the region. Alone in Uzh- promotes the development of al- horod region two powerful modern most all types of tourism, especial- sanatorium complexes “Thermal ly balneal. Star” and “Derenivska Kupel” with Zakarpattia region is known for a wide range of medical and enter- its healing thermal and mineral wa- tainment services are in the stage ters. In the region there are more of construction. than 700 water springs of mineral The implementation of invest- waters and brines including 67 ma- ment projects of the tourism and jor springs of mineral and thermal recreational sector will certainly waters, i.e. there are great possibil- have a significant social and eco- ities of use of thermal mineral wa- nomic impact on the Zakarpattia ters both for therapeutic and recre- region, namely: ational and for industrial purposes. - creation of high quality tourism Some of them are unique in their product, able to meet the needs of composition and are analogous to the population; known Caucasian mineral waters - creation of new jobs; like “Borjomi” and “Essentuki”. - increase in tourist flows; The use of mineral water is the ba- - development of supporting in- sis of balneal treatment in health frastructure and others. resorts of Zakarpattia. In the san- However, the main problem that atoriums of the region there is the hinders the implementation of inability to treat over 100 diseases. vestment projects of the tourism One of the most promising tourist and recreational sector remains a resorts and recreation areas not only complicated procedure of allotment of Zakarpattia, but also of Ukraine of land belonging to the forest land is also Svaliavskyi region. Beauty for construction of recreational fa- and bounty of nature attract here cilities, which hinders attraction of everyone wanting to have active lei- both foreign and Ukrainian invest- sure, go hiking or treat diseases. The ments in the tourism industry of area has a network of health institu- Zakarpattia region, development of tions. On the basis of mineral water tourism and sports infrastructure. springs there are known sanatori- Solution of this issue is possible by ums “Soniachne Zakarpattia”, “Po- making appropriate changes to the liana”, “Kvitka Polonyny”, rehabili- legal acts of Ukraine.

Issue 1. 2014 Global and National Problems of Economics 23 SECTION 5 MONEY, FINANCES AND CREDIT

UDC 338.2 N. Danik Candidate of Economic Sciences, Associate Professor at the Department of Finance and Credit, Mykolaiv National University named after V.O. Sukhomlynsky

BUSINESS PLANNING AS A TOOL FOR THE IMPLEMENTATION OF FINANCIAL MANAGEMENT IN CONDITIONS OF MODERN DEVELOPMENT OF UKRAINE

This article analyzed the cur- the purpose and objectives of their rent state of business planning in operation, develop measures to im- Ukraine, identified key problematic prove their performance or prevent aspects and weaknesses of Ukrainian adverse events. business plans, and considered the Business planning is a modern and basic disadvantages in the ordering very popular term in today’s business of business plan as a specific service. environment. However, development Today unstable environmental of business plans and activities in line factors require from entrepreneurs of continuous business planning con- detailed prediction of their business sidering all the details of this concept strategy and current activities, tak- (constant monitoring of the market, ing into account the threats and op- the competitive environment, draw- portunities for further development ing up plans for implementing chang- and achievement of goals. Moderni- es, etc.) in Ukraine are significantly ty requires from the management distant from European practices of of any organization the ability to developed countries. make appropriate management de- Many businessmen, who have cisions. An important element of read over more than one foreign strategic planning significantly publication on the development of determining the respond of the en- business plans and try to follow terprise to the requirements of ex- the recommendations, face uncon- ternal environment and maintain- sidered issues and unknown in the ing the appropriate behavior in the West difficulties. market, is business planning, which Despite the lack of legislation can be regarded as an effective tool that directly require the devel- of modern management, through opment of business plans, now in which businesses can determine Ukraine there is a significant num- 24 Mykolaiv National University named after V.O. Sukhomlynsky ber of adopted decrees that shape project. Its implementation will the business environment of the significantly increase the effective- company. Functioning in it implies ness of the company, its competi- the need to develop a business plan tiveness and reduce costs. to obtain funding. Raising aware- In a market economic system ness of entrepreneurs and manag- business plan is an active manage- ers and adoption of foreign expe- ment tool, the starting point of rience regarding business planning all planning and implementation will bring Ukrainian business to the of the plan in company. Business next higher level of development. plan allows analyzing, monitoring The presence of a viable business and evaluating progress in the im- plan helps to attract capital, deter- plementation of business project, mine future plans, careful study of identifying deviations from the potential risks and possible diffi- plan and promptly adjusting the di- culties that may prevent the practi- rection of development of the busi- cal implementation of the business ness.

Issue 1. 2014 Global and National Problems of Economics 25

UDC 336 N. Kornieva Associate Professor at the Department of Finance and Credit, Mykolaiv National University named after V.O. Sukhomlynsky

FORECASTING OF FINANCIAL STATEMENTS UNDER FINANCIAL AND ECONOMIC CRISIS

The article attempts to explore crisis. The formed circumstances the manifestations of financial cri- of the market in Ukraine also un- sis in Ukraine, to study theoreti- dergo significant changes when cal ground and provide some rec- successful development of business ommendations for forecasting of depends on developed strategy and financial statements in conditions methods of implementation. The of crisis. objective conditions of tough com- The global economic crisis con- petition, associated with the active tributes to the manifestation of all introduction of market mechanisms the problems accumulated in the in the management of entrepre- Ukrainian economy over the past neurial activities of business enti- two decades, and especially, con- ties, require above all maintenance tinuing downward dynamics of vast of a high level of their own com- majority of macroeconomic indica- petitive position. In these circum- tors. Under these conditions, spe- stances, the demand for financial cial attention should be paid to the information greatly increases. In- development of anti-crisis strate- formational support in governance gy. It is necessary to use data of increases attention to accounting financial statements indicators of financial reporting as the main which require constant adjustment source of information about prop- and prediction. Determination of erty and financial condition, and future value of indicators makes it results of its industrial and eco- possible to determine the projected nomic activity during the reporting space filled by specification of pre- period. In terms of growth of the defined parameters. In this context, economic crisis in Ukraine, nation- especially important is compilation al enterprises form a new approach of projected financial statements, to the management of crisis in gen- since it can be estimated based on eral and in particular. In our opin- the expected financial results and ion, crisis management can now be the need for financing and business considered as a special system that in future can be justified. differs by comprehensive and stra- Today the world economy in tegic nature and has the ability to the process of development goes completely remove temporary diffi- through financial and economic culties, recorded in the enterprise. 26 Mykolaiv National University named after V.O. Sukhomlynsky

The key to the success of any busi- - predicted financial statements. ness is the prediction of the future In terms of growing economic financial condition of the company, crisis in Ukraine national enter- the expected amount of its financ- prises need appropriate techniques ing. Future activities of the com- and tools of anti-crisis manage- pany can be provided through the ment, i.e. a system of a complex development of predicted financial character, aimed at rapid detection documents – projects of future in- of signs of crisis in the future. One come statement, statement of cash of the main areas of such company flows and balance sheet. Projected management we believe to be fore- income and cash flows statements casting of financial statements, are a working plan for the entire which plays an important role in enterprise as a whole and projected the present economic environment. balance sheet, we believe, reflects Given the experience of Ukrainian the cumulative effect of the as- and foreign scientists we proposed sumed administrative decisions on a method for predicting reporting, the financial position of the com- which includes five stages, which, pany. Development of predicted in our opinion, are aimed at im- financial statements is a complex proving financial strategy of the process of financial forecasting, enterprise. Preparation of the pro- which should include, as we be- jected reporting of enterprise will lieve, preparation of budgets and provide managers with basic sce- financial reports; nario, which in terms of financial - current activity budgets; and economic instability can only - cash budget; be short-term.

Issue 1. 2014 Electronic scientific publication

GLOBAL AND NATIONAL PROBLEMS OF ECONOMICS

Issue 1

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