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Published byBrice Hines Modified over 9 years ago
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Enterprise is as a subject of foreign economic activity of the enterprise
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Entrance to the external market The main directions of foreign economic activity of the enterprise Competitiveness of the company and its products in the foreign market
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All companies with the status of a legal entity, regardless of ownership-manufacturers of the products or services that can be sold on the external market, or have the appropriate currency for export purchases, have the right to conduct foreign trade.
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They are free to determine the form of this activity within the framework of existing laws, objectives, forms and methods of its implementation to be opting for foreign partners, the range of goods and services for the conclusion of international trade transactions independently determine the price, the value of contracts and the timing of their implementation.
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Access to foreign markets, enterprises can perform both independently and using the services of foreign trade intermediary organizations.
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It may last resort as small and medium-sized and large enterprises that do not have property of their respective units in the structure. In this case, the object of the relationship may be not only the sale or purchase of goods, but also other intermediary services, such as loans to customers, contracts with transport and insurance companies, brokerage in payment transactions and others.
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Sometimes foreign trade firms carry out pre-training products, increasing their competitiveness. On the effectiveness of the use of intermediaries is evidenced by the fact that in recent years more than half of world trade is carried out through the intermediary firms.
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Entrance to the foreign market provides its real participation in international economic processes in the international division of labor, which allows us to achieve profit maximization through the extensive use of their own advantages, namely: high quality, low cost, and its al. However, output Business the foreign market means and its involvement in a very tough international competition that involves the obligatory presence of competitive products and services.
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In addition to the fierce competition in the foreign economic activity of enterprises in foreign markets is also affected by many other factors, including: the condition and stability of the national economy; world prices for the relevant products and services; the legal system of their own country and the legal systems of the countries in which the company is engaged in foreign operations; the state of trade and economic relations of the country with foreign countries and its cooperation with international economic organizations; relationship with the WTO and other unions, and others.
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High integration of developed countries united politically and economically, leading to an organized coordinated counter output to foreign markets businesses, especially manufacturing high-tech, knowledge-based competitive products.
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In the country, these enterprises enter into a broader scope of relations with the state, as expanding the legal framework to regulate their activities is primarily related to tariff and non-tariff regulation, the system of exchange control, credit and insurance, vehicle maintenance.
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Despite these challenges of enterprises in foreign markets, increasing their interest in this sphere, a number of reasons, namely: the desire to increase profits by expanding markets, the need to acquire modern technology and equipment abroad; the need to obtain access to modern information technology; the need to increase the life cycle of industrial products due to trade with the different levels of development; need for raw materials, parts, available in foreign markets.
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