Foreign trade: economics, finance, law

ENERGY SECURITY OF THE COUNTRY

Anatolii MAZARAKI, Tetyana MELNYK — Thu, 11 Apr 2024 00:00:00 +0000

In the conditions of armed aggression against Ukraine, ensuring energy security becomes an important object of state policy. This requires constant and well-coordinated management in order to ensure the energy independence of the country and the reliable operation of the infrastructure, which directly affects the functioning of the economy and the lives of citizens, and determines the need for constant research on changes in the energy markets of Ukraine and Europe, which from the point of view of economic, social and energy integration with the EU is a very urgent task. Therefore, the purpose of the article is to study the current state of the Ukrainian energy industry for the justified choice of tools and implementation of the energy policy of Ukraine, strategic planning in the field of energy security. The research was conducted using the methods of generalization, analysis and synthesis, comparison, scientific abstraction and systematization. It was established that as a result of the military aggression in Ukraine, there was a regrouping of flows in the world energy market – the energy system of Europe is being transformed, expanding its sources and strengthening its integration with the LNG market. In addition, decisive measures related to the consumption, supply and storage of natural gas and fiscal relief measures aimed at supporting national enterprises and households have been taken at the EU level. During the full-scale invasion, the russian federation has already destroyed 30-40% of renewable energy sources in the southern and southeastern regions of Ukraine. In February 2023, Ukraine temporarily lost 44% of its nuclear generation, 75% of thermal power plants, and 33% of block thermal power plants. In the conditions of permanent risks of mass rocket fire, energy with a high level of stability is needed. The Ukrainian energy system showed itself as such: in war conditions, its operation was preserved, it was synchronized with ENTSO-E, and electrical energy supplies to the EU began. Conclusions have been made about the need at the international level to further limit the import of russian energy sources and the collapse of prices for energy products, and at the national level – urgent reforms of the coal industry and the spread of decentralized energy and energy self-sufficient regions.

INTERNATIONAL TRADE IN THE CONDITIONS OF GLOBAL TRANSFORMATIONS

Tetіana CHUNIKHINA, Marina KORZH, Valerii KRASNOSHCHOK — Thu, 11 Apr 2024 00:00:00 +0000

This article explores the impact of global changes on alliance strategies and trade policy in the context of todayʼs global landscape. It has been examined how companies and states are adapting to new challenges and opportunities arising from geopolitical upheavals, economic instability, and technological innovation. The key trends, strategic solutions and examples of best practices in the field of alliances and trade policy in the era of global shifts have been revealed. Understanding the impact of global shifts on foreign trade, including changing alliances and trade policies, is critical to developing the scientific basis and developing strategies to manage the conditions of the global economy. The goal of the study is to identify such influences and develop practical recommendations for adaptation and innovation in the changing global trade environment. In the course of the study, a hypothesis was put forward, that global changes significantly affect the dynamics of foreign trade, creating new challenges and opportunities for business and politicians. The research methodology is based on collected theoretical and statistical data, their analysis and comparative assessment to study and draw conclusions about the impact of global shifts on alliances and trade policy in the field of marketing and international relations. According to the results of the study, it was concluded that the changing landscape of international alliances and the revival of protectionist policies lead to disruptions in global supply chains, the growth of trade barriers and tensions between globalization and deglobalization processes. The study also identifies strategies that government, business and other stakeholders can adopt to adapt to the changing trade environment, including diversifying trading partners, investing in emerging markets and promoting regional cooperation. The article highlights the importance of understanding the impact of global political changes on foreign trade and emphasizes the need for business and policymakers to remain flexible and adaptable in the face of new challenges and opportunities. The changing global political order, characterized by shifts in alliances and changes in trade policy, creates both challenges and opportunities, which directly affects the economic stability of countries, the business operations of transnational corporations, and the general state of the global economy.

EVOLUTION OF CONCESSION OPERATIONS

Mykola DIADENKO — Thu, 11 Apr 2024 00:00:00 +0000

In todayʼs dynamic world, it is important to understand the roots and evolution of key economic and legal mechanisms. The article is devoted to a detailed analysis and description of concession operations during various historical stages: from ancient times, the Middle Ages, stages of development in the 19th and 20th centuries, analysis of its modern trends in the 21st century. The relevance of the research lies in the in-depth disclosure of the mechanisms underlying concession operations and their impact on the economic, social and cultural development of the society. Studying the history of concessions will help specialists and researchers to better assess current trends and predict future developments in this field. The aim of the article is to characterize the key evolutionary stages of concession operations in order to understand their essence and critical features, based on the hypothesis that they have transformed from simple agreements to complex multi-stakeholder contracts for various public services and goods. The research methodology is based on an integrated approach, which includes historical, comparative and analytical research methods. As a result, the research is provided a holistic view of the evolution of concession arrangements, their significance and role in the formation of economic relations at various stages of historical development.

CAPITAL CONCENTRATION: DIGITAL-NETWORK DIMENSION

Yuriy SHVED, Bohdan TYTYSH — Thu, 11 Apr 2024 00:00:00 +0000

The basis of network businesses is the use of network effects, and more precisely: the possibility of network effects monetization determines the revenues of the owners of such networks (platforms), while the insignificant impact of the growth of networks on the costs of platforms (in particular, in the calculation per one transaction) contributes to the growth of their profitability. Therefore, it is fair to assume that the concentration of control over networks leads to an increase in the competitive advantages of the relevant market participants, which in turn contributes to the concentration of capital and a decrease in competitiveness. To test this assumption, the study summarizes and analyses the key features of network businesses (in comparison with other industries inter alia) and the realization of network effects, which lead to the concentration of capital and the strengthening of the influence of large actors. The first part of the article examines the mechanism of manifestation of the unique characteristics of network business in the context of capital concentration, in particular, stimulation of organic and inorganic development, availability of financing and control over data. The mechanism of influence of each of these factors on the concentration of capital is determined from the point of view of both promoting the capitalization of individual platforms and limiting the actions of competitors, thus emphasizing the favourable influence of such factors for large actors who gain an advantage by using network effects for capital concentration. In the second part, a generalized model of the interaction of network effects and capital concentration is proposed, when the impact of the network effects of the existing platform contributes to its organic growth, which allows further development through inorganic growth to expand the functionality and / or increase the number of users, which in turn starts a new stage of organic growth; each of these growth cycles results in an increase in the capitalization of the platform, and therefore the concentration of capital in the corresponding market segment. Thus, the general tendency to reduce competitiveness in platform businesses due to the interaction of network effects and capital concentration is explained. Finally, in the third part, the main approaches to the assessment of network effects are considered, with the provision of typical models used in the practice of capital concentration in platform businesses through mergers and acquisitions or gaining access to the stock market.

MOBILE DIGITAL MARKETING TECHNOLOGIES IN E-COMMERCE

Tetiana IANKOVETS — Thu, 11 Apr 2024 00:00:00 +0000

The development and spread of digital technologies in the world have led to an increase in the number of online users, and the growth in the number of mobile devices, especially smartphones, has led to the development of e-commerce and mobile marketing. The use of mobile technologies in e-commerce contributes to the improvement of user experience and, accordingly, to the increase of financial results of economic activity. The research was conducted using scientific methods of analysis and synthesis, system-structural analysis, comparison, systematic, and logical generalization. The article examines the development of e-commerce and mobile marketing technologies, identifies the advantages of e-commerce using smartphones: mobile analytics, personalization of the offer, simplification and acceleration of online shopping, and the latest opportunities for mobile promotion of goods and services. The author identifies the technological trends in e-commerce and mobile marketing in 2024: one-click shopping, visual search, voice search, mobile applications, additional offers, virtual and augmented reality technologies, omnichannel marketing, NFC technology, focus on TikTok promotion, the use of native advertising, the increase of video content, the integration of real-time online broadcasts with instant shopping opportunities. The main goal of mobile marketing is to improve the user experience on mobile devices and smartphones by personalizing offers and making transactions fast and convenient. The goal is achieved by using key mobile marketing tools: a mobile website, a mobile app, mobile banners, SMS content, chatbots, icons, and promotion for the Store. When creating a mobile website and an app, which have their advantages and disadvantages in comparison, it is important to take into account marketing aspects that facilitate promotion in the digital environment and user experience. The author suggests applying a strategic approach to mobile promotion in the image and product areas. The strategic goals, objectives and tools of mobile advertising as a means of mobile promotion are systematized, and the advantages of mobile advertising are presented. This approach will improve the image of enterprises in e-commerce, increase sales, financial performance, brand value and capital.

ESG RISKS OF BANKS

Nataliya SHULGA, Volodymyr OMELENCHUK — Thu, 11 Apr 2024 00:00:00 +0000

The Eurozone countries have begun to actively implement the European Green Deal, which is based on the support of the proposed three key pillars from the point of view of the finance component: The Taxonomy Regulation, the Directives and Regulations on the formation of non-financial reporting and additional prudential regulations by the European Banking Authority (EBA). This has led to the need to implement ESG (Environment, Social and Governance) considerations in the activities of both domestic banks and their clients, taking into account the latest developments of the European financial community, which is steadily moving towards a declared Green Deal. In the near future, domestic banks, especially those belonging to the category of small and medium-sized banks, may face difficulties in assessing the creditworthiness of borrowers, taking into account their ESG factors, as well as forming a risk management infrastructure with a focus on sustainable financing, the main component of which is "green" lending. The purpose of this paper is to disclose the ESG risks of foreign banks in terms of compliance with the key pillars of the European Green Deal, proposed in the finance component, and to implement their findings in the activities of domestic banks, taking into account national peculiarities. In the course of the research, a set of well-known methods of scientific cognition were used: comparison, analysis and synthesis, grouping, abstraction, observation, etc. The article outlines the content of the proposed key pillars of support for the European Green Deal from the point of view of the "finance" component. ESG factors have been identified and their impact on the traditional bank risks has been determined. The practice of taking into account ESG factors in the process of risk management of individual European banks is considered. The difficulties that domestic banks may face today in carrying out a comprehensive assessment of the ESG risks of their borrowers have been identified. In order to overcome them, the measures at the macro level are justified (to form mechanisms for insurance, public and private protection of the countryʼs transition to the European Green Deal); micro level (to determine the risk appetite and implement ESG risks in the operational activities of banks; develop tools for assessing ESG risks, procedures for forming reserves to cover expected losses, taking into account the "environmental" component of borrowers and issuers of securities; assess the level of ESG risks of borrowers and carry out their clustering; develop internal management reporting on sustainable financing).

RESILIENCE OF EU HEALTHCARE SYSTEMS

Larysa LEBEDEVA, Diana SHKUROPADSKA — Thu, 11 Apr 2024 00:00:00 +0000

The article highlights the critical role of healthcare system resilience in responding effectively to public health crises, with a particular emphasis on financing, effectiveness, and preparedness. It delves into a comparative analysis of healthcare costs and system effectiveness in several EU countries, revealing that higher expenditure doesnʼt always equate to greater resilience. The article also highlights the lack of investment in preventing measures, even in economically developed countries, resulting in minimal improvements in healthcare system resilience. It has been noted that there is no correlation between strict government measures during the COVID-19 pandemic and healthcare system effectiveness. The importance of synergy between government epidemic control actions and healthcare system resilience is emphasized. The key factors that influenced healthcare system resilience during the pandemic, including proactive preparedness, resource allocation, data analytics capabilities, communication, public trust, and adaptive policies have been identified in the research. To enhance healthcare system resilience, it is recommended to focus on financial resilience, healthcare personnel resilience, and health infrastructure resilience. Strategies to achieve this include effective governance, flexible financing, resource availability, and adaptable service delivery. The multifaceted nature of healthcare system resilience and the need for a comprehensive approach to its provision in the conditions of emergency situations in the field of healthcare are emphasized. The authorsʼ analysis reveals a complex interplay of factors that contribute to healthcare system resilience, which can be used by government officials as a roadmap for strengthening the healthcare systems in the context of future challenges.

IMPLEMENTATION EUROPEAN SUSTAINABILITY REPORTING STANDARDS

Kostiantyn BEZVERKHYI — Thu, 11 Apr 2024 00:00:00 +0000

The introduction of European sustainability reporting standards into the process of corporate reporting can have a significant impact on the development of sustainable business and increase its social responsibility to society as a whole. The implementation of the requirements of the EU Directive 2022/2464 "On corporate sustainability reporting" into the general practice of reporting in Ukraine involves a detailed study of its requirements, as well as implementation into national legislation through standardization, clarification and the provision of methodological and methodical recommendations for the creation of corporate sustainability reporting. The purpose of the study is to identify the conceptual foundations of ESRS for the development of approaches to their implementation in the national practice of corporate reporting, which will allow the implementation of the requirements of EU Directive 2022/2464 in Ukraine. The general scientific and special methods were used: trend analysis, dialectical method, method of induction and deduction, analysis, synthesis, method of concretization, generalization, systematization, visualization, hypothetical method and bibliometric analysis. The study is designed to improve the theoretical and methodological provisions regarding the implementation of ESRS in Ukraine by developing an authorʼs approach to their implementation. This made it possible to develop the basis for the introduction of European reporting standards on sustainable development into the national reporting practice. In the article a three-stage approach to determining essential information about risks and opportunities associated with sustainable development was characterized; the composition of the European sustainability reporting standards was analysed and their characteristics were provided; the stages of application of European sustainability reporting standards in the countries of the European Union were investigated; the advantages and disadvantages of reporting on sustainable development based on European sustainability reporting standards were analysed; a matrix of the ratio of European sustainability reporting standards to other regulations in the field of reporting on sustainable development has been developed; approaches for further implementation of ESRS in the national practice of reporting in Ukraine have been proposed.