, PhD in Economics, Associate Professor, Kharkiv, Marshal Bazhanov, 17

In heading

Economic theory;

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Issues number

2020 - № 3 (42)



Type of articles

Scientific article

Code UDK


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Problem setting. Existing methods for assessing the effectiveness of foreign economic operations make it possible to conduct research at any one level: either micro or macro level. At the same time, it is necessary for all participants in foreign economic activity to have a complete picture of the implementation of foreign trade. Under the influence of many external factors, the main of which are political and natural-climatic, the structure of foreign trade is changing not only by countries, but also by regions. Consequently, an assessment algorithm is needed that will create a complete picture of foreign economic relations for subjects of all levels engaged in foreign trade.
Recent research and publication analysis. A large number of specialists are engaged in research and proposal of methods for assessing the effectiveness of foreign economic activity. Basically, it is proposed to evaluate the effectiveness of foreign trade using such groups of indicators as absolute and relative indicators, indicators of structure and efficiency in a certain period or in retrospect [1–4]. There are also methods in which it is proposed to use a model of preliminary, operational and subsequent assessment, as a result of which the specialization of foreign trade participants is determined, but the prospects for their development are not considered [5]. Sometimes the method of assessing the export potential [6] is used, as well as the method of assessing the relationship between foreign trade and government policy in this area [8]. The methodology considered in the work [8] which suggests using six methodological approaches to assessing foreign economic activity is of interest.
Paper objective. The purpose of the article is to develop an algorithm for assessing the effectiveness of foreign economic operations to overcome problems with the definition of assessment criteria and obtain the opportunity to apply its results in the process of forming foreign policy at all levels of the economy.
Paper main body. The paper proposes an algorithm for assessing the effectiveness of foreign economic operations which makes provisions for the following tasks:
1. Formation of the information base of the assessment. At this stage, the process of forming a certain database is necessary for a subject of foreign economic activity of any level. In this paper, to determine further prospects for the development of foreign trade, it is proposed to consider the commodity pattern and geographical structure of exports and imports. Analytical tables can be compiled both for the country (as it is done in the work), and separately for the enterprise-subject of foreign trade. Determination of the most promising commodity items and partner countries makes it possible to determine effective directions of the development.
2. Determination of the system of evaluation indicators. It is noted in the work that at the moment the most often used are direct indicators of efficiency assessment. For the state, these are the coefficients of export and import participation, foreign trade balance (surplus) and turnover, growth rates of exports and imports, as well as export, import and foreign trade quotas. For an enterprise, such indicators are gross and net profit, profitability of foreign economic activity, export and import, efficiency of export and import investments. A separate group of indicators are indices (indices of terms of trade, geographic concentration, diversification and concentration of exports). However, the author proposes an analysis and subsequent accounting of indirect indicators. Such indicators should be Quality of life index, Purchasing Power Index, Cost of Living Index, Property Price to Income Ratio, which are represented by the global Numbeo base. These indicators will help to understand the possibility and feasibility of entering new sales markets and assess the prospects of markets in which the subject of foreign economic activity is already operating.
3. Evaluation of the feasibility and prospects of the subject of foreign trade based on the data obtained at the first two stages.
4. Identification of real competitors. It makes sense for the state as a participant in foreign trade to analyze competitors by a similar commodity structure, and for enterprises – by the direction of activity of competitors and their scale. Such an assessment will make it possible to determine the possibility of producing related goods and entering untapped sales markets.
5. Comparison of the results obtained at stages 1 - 3 with the data of competitors. In this case, it is necessary to identify the level of the development of subjects in comparison with competitors. If the identified level is higher than that of a competitor, it is recommended to use a further development strategy. Otherwise, it is necessary to conduct a comprehensive assessment of one’s own potential, determine promising areas of the development
based on the newly obtained results, assess the possibilities of using innovations and attracting investments, and develop a diversification or growth strategy.
6. Determine the directions of activity that can bring the subject of foreign trade to a new level of implementation of foreign economic activity.
Conclusions. The conducted studies of existing methods for assessing the effectiveness of foreign economic operations made it possible to build an algorithm for such an assessment which provides for the formation of an information base for assessment, the use of direct (quantitative) and indirect (qualitative) assessment methods, as well as to determine promising strategies for the further development of a foreign trade entity.
Short Abstract for an article
Abstract. The article highlights the problems of assessing the effectiveness of foreign economic operations. It is noted that it is necessary to create a certain information base, which will be the basis for a comprehensive assessment of the effectiveness of foreign trade. An assessment approach is proposed using not only direct (quantitative) indicators, but also indirect (qualitative) indicators, the consideration of which will allow to form an
effective strategy for the development of foreign trade both for the state and for enterprises-subjects of foreign economic activity. An algorithm is proposed for assessing the effectiveness of foreign economic operations and, in general, foreign economic activity at various levels of functioning of the economy.


efficiency, assessment, foreign economic activity, foreign economic operation, foreign trade, export, import.


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