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Foreign economic activity. Composition of foreign economic functions of export-oriented enterprises (the most important)

Lecture notes, cheat sheets

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3. Composition of foreign economic functions of export-oriented enterprises

The process of foreign economic activity includes a set of elements in the composition of the foreign economic functions of export-oriented enterprises, which are closely interconnected in the process of implementing an export strategy.

Foreign economic functions are the main activities of an enterprise aimed at achieving the common goal of entering the foreign economic market and concluding contracts with foreign partners.

All foreign economic functions of export-oriented enterprises are divided into three groups:

▪ production and economic;

▪ organizational and economic;

▪ operational and commercial.

Production and economic functions are aimed at::

▪ search and creation of an export product

▪ assessment of the competitiveness of the export product;

▪ ensuring technical and economic parameters and requirements for export production;

▪ forecast of internal production resources;

▪ search for sources of material resources;

▪ ensuring the production of export products;

▪ choice of an enterprise’s export strategy;

▪ establishing connections with internal partners.

These functions are implemented in the process of a comprehensive study of foreign markets, the results of which exporters lay in the basis of current and long-term programs of their activities.

The dynamics of internal production resources, variable components in the sources of their replenishment, external conditions for the activities of exporting enterprises are predicted, the degree of their business activity is outlined. The forecast of the future state of external economic conditions is based on an assessment of upcoming changes in the market conditions, as well as related markets for materials, components, transport, insurance, financial and similar services.

Then there is a choice of commodity items and the assortment structure is determined in accordance with the code of the commodity nomenclature of foreign economic activity. The competitiveness of the goods is assessed, i.e. calculation of a complex indicator that provides for a multi-stage evaluation of the criteria for the characteristics of a product, depending on the ability of the exporter to adapt to market conditions.

The basis of foreign economic activity of enterprises, associations and organizations is the production of export products and their promotion to the foreign market, which is provided in the framework of foreign trade activities both by the exporting enterprise and by the intermediary.

Organizational and economic functions include:

▪ marketing research of foreign markets;

▪ analysis of export market conditions;

▪ search for a foreign partner;

▪ study of the circumstances of work in the foreign partner’s market;

▪ choice of forms and methods of work in the foreign market;

▪ ensuring access to the foreign market;

▪ organization of foreign trade advertising;

▪ planning foreign trade operations;

▪ logistics;

▪ involvement of an intermediary.

The functions of this group are aimed at finding and choosing forms and methods of work in a foreign market, studying the procedures as part of the technological process of entering a foreign market and the circumstances of the presence of a foreign partner on the market in the country, planning a foreign trade operation and organizing advertising.

The choice of forms and methods of work in foreign markets is carried out within the framework of the chosen export strategy of the enterprise, existing possible types of foreign economic activity, organizational forms of international trade, depending on the specific nature of the goods and established traditions in world practice.

Operational-commercial functions businesses include:

1) preparation of a foreign trade transaction:

▪ establishing contact with a partner;

▪ calculation of export price;

▪ conducting negotiations;

▪ preparation of a draft contract;

▪ agreement on the terms of the transaction.

2) choice of the subject of the transaction:

▪ product;

▪ work;

▪ services.

3) selection of the type of transaction:

▪ purchase and sale;

▪ rental;

▪ contracting;

▪ compensation.

4) determination of the main terms of the contract:

▪ basic terms of delivery;

▪ type of transportation;

▪ terms and forms of payment, etc.;

5) Signing the contract;

6) Execution of the contract.

Author: Bobkova O.V.

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