Forming a Methodical Approach to Identifying «Under-Served» Foreign Markets
The article is concerned with testing the methodical approach to identifying the «under-served» foreign markets. The key challenge in activating the export activity and improving its efficiency is finding new, more attractive, markets with easy access and better terms of trade. In order to solve the...
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| Format: | Article |
| Language: | English |
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Research Centre of Industrial Problems of Development of NAS of Ukraine
2019-08-01
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| Series: | Bìznes Inform |
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| Online Access: | http://www.business-inform.net/export_pdf/business-inform-2019-8_0-pages-34_45.pdf |
| Summary: | The article is concerned with testing the methodical approach to identifying the «under-served» foreign markets. The key challenge in activating the export activity and improving its efficiency is finding new, more attractive, markets with easy access and better terms of trade. In order to solve the task of finding new markets, a methodical approach is developed and tested on practical data. The method of identifying the «under-served» markets includes the 4 stages, where the selection of markets takes place according to different criteria. Export opportunities are evaluated in the first stage, which defines availability of the appropriate specialization in the export of products of the selected commodity group and the share of domestic exports in the world market. The second stage includes an evaluation of the potential for the development of external market. At this stage, the potential for the development of external markets is evaluated, which defines whether there are prospects for the development of a market in a certain commodity group. The third stage identifies the markets that have the largest volumes of imports of products and the share of domestic products on them. As a result, countries that consume significant amounts of goods to be exported are defined. The fourth stage evaluates the prospects for exports to «under-served» markets. According to the chosen criteria of market availability and the best terms of trade, prospective markets to which products can be exported are selected. At each stage, the structural blocks of the method of identifying the «under-served» market are considered; based on the practical data the markets for the production of 1101 «Flour from wheat or from wheat and rye mixture» are analyzed; the potential markets to which national enterprises can increase exports are identified. |
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| ISSN: | 2222-4459 2311-116X |