Modeling the sustainable development of the foreign economic activity of agricultural enterprises (case for Ukraine)

Abstract

The level of any country’s involvement in foreign trade significantly influences its economic situation, primarily because it is a major channel of foreign exchange earnings. The development of agriculture in Ukraine is the basis for increasing the gross domestic product, as it provides jobs to a significant part of the population. The success of foreign economic activity of agricultural enterprises is primarily determined by their level of strategic competitive advantage in the world market. Making management decisions on foreign economic activity, according to the position of competitiveness of agricultural enterprises, is a rather complex process, which should be preceded by analysis and assessment. Building strategic competitive advantages of agricultural enterprises ensures the efficiency and effectiveness of their foreign economic activity. The article deals with a methodical approach to classifying agricultural enterprises in Ukraine according to the degree of foreign economic activity, which includes calculation of the regional index of export competitiveness of agricultural enterprises and their grouping by the degree of foreign economic activity. For grouping, we propose to use a simple method for one grouping feature at regular intervals. As a result, three groups of agricultural enterprises of the regions of Ukraine are singled out in accordance with the degree of development of the foreign economic activity, namely with a low, medium, and a high degree of development.