THE CONSEQUENCES OF UKRAINE'S ACCESSION TO THE

WTO FOR THE DOMESTIC MARKET.

Student: Evgeniya Litvin IE-09Scientific supervisor: Serhii V.Kuzminov

D. Sc. (Economics) Language consultant - Cand. Sc. (Pedagogy),

Associate Professor Miasoid G.I.

««INSAMINSAM»»««INSAMINSAM»»

OUTLINEOUTLINE

1. The WTO and its cooperation with Ukraine;

2. Assess of the "INSAM" status and prospects of

company development and metallurgical sector ;

3. Ways of «INSAM» activity improvement.

The objective of the research The objective of the research : to analyze the consequences of

Ukraine's accession to the WTO for the national market

Research tasks:Research tasks:

- to describe the features of the WTO and its cooperation with Ukraine;

- to make a general characteristic of the enterprise;

- to evaluate the economic efficiency of the project.

The research object:The research object: the LLC. "INSAM" .

Subject of research: Subject of research: is the `INSAM` nowadays changes and export

development

THE WTO AND ITS COOPERATION WITH THE WTO AND ITS COOPERATION WITH UKRAINE UKRAINE

• WTO - an international organization that regulates trade among nations;

• World Trade Organization began its activity in 1995;

• On 16 May 2008 Ukraine became the WTO`s 152 member;

ConsequencesConsequences

Positive Negative

‘INSAM’•Factory of producing high-tech aluminum composite panels;

•Operates in the market of metal products since 2005 year;

•Occupies 25% of ACP in Ukraine

•In 2007-2009 had a state of crisis;

• Since 2007,working capital started to increase

and till the 2012 company reached financial stability

Industry January (%)

January-February

(%)

January-March

(%)

January-April (%)

Metallurgy, manufacture of fabricated metal products, except machinery and equipment 90,1 89,6 89,4 88,8

Metallurgical production 89,1 88,6 88,6 88,4

Manufacture of fabricated metal products, except machinery and equipment 94,2 93,7 92,6 90,6

Metalworking and coating of metals; machining metal products 81,0 88,8 82,4 83,7

Manufacture of other fabricated metal products 102,8 97,1 95,2 92,6

Industrial production indexes by activity in 2014

WAYS OF "INSAM" WAYS OF "INSAM" ACTIVITY IMPROVEMENT ACTIVITY IMPROVEMENT

•Strategy for improvement of the LLC “INSAMINSAM” - expand markets and increase turnover through the development of the export market for Russia (Rostov and Belgorod region)

Why Russia?Why Russia?• Territorial proximity• Similarity of production standards• Large market

NPV=

NPV= 1369516 $

Economic efficiency of the projectEconomic efficiency of the project

where, NCFi - net cash flow for the i-th period; INV – initial Investments; r – discounting rate.

So (NPV> 0) is satisfied

Russia Ukraine

36 $ ~26 $

Price per m2

Despite the fact that the Ukrainian ACP have a quality advantage, Russia produces more than 40% of Russian ACP, and the price is about the same as that on the territory of

Ukraine.

Thank you Thank you for attentionfor attention!!