GLOBALIZATION AS A CHALLENGE TO UKRAINIAN EXPORTERS OF IRON ORE RAW MATERIAL

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  Olha Hrybinenko

  Svitlana Shahoian

Abstract

The purpose of the article – to identify the main characteristics of iron ore mining and beneficiation enterprises that allow carrying out income-generating export activity in terms of increasing the level of globalization of the country. Methodology. Information background of the research consists of publications of KOF rating of the level of globalization of countries of the world (1991–2016), annual reports of the United States Geological Survey (1995–2016), statistical data of the State Statistics Service of Ukraine (2012–2016), scientific publications and findings of experts of the national and world markets for iron ore. Achieving the purpose of this article provides for the following stages and methods of scientific research: time series analysis – for evaluating dynamics of globalization index for Ukraine, dynamics of global iron ore production and export of iron ore raw material by Ukrainian producers; vertical analysis – for determining the structure of global iron ore production; methods of qualitative analysis (expert estimation) – for defining characteristics of mining and beneficiation enterprises that allow ensuring competitiveness in the global market; generalization – for determining options of sales of Ukrainian iron ore production in international markets in terms of globalization. Results. High-level globalization of Ukraine makes it significantly dependent on the condition of global markets of key export branches of the national economy. Ukraine belongs to the top ten countries with the largest reserves of iron ore and its production in the world; however, an insignificant part of the market doesn’t allow influencing its condition. The surplus of iron ore and deficit of iron-ore pellets in the global market stimulate the interest of Ukrainian mining and beneficiation enterprises in projects on improving their existing production facilities. The volatility of the global market for iron ore raw material increases the level of financial and investment risks. Practical significance. The established trends in globalization of Ukraine and the status of Ukrainian producers of iron ore raw material in the global market allow us more thoroughly analyse their competitive advantages in the long view and develop risk reduction programs. Alternatives to sales of Ukrainian iron ore production of vertically-integrated holding under globalization are made. Value/originality. Determined advantages of Ukrainian exporters of iron ore raw material in the global market that, in terms of high-level globalization of the country, are provided by the corporate synergy of the transnational vertically-integrated exporting company.

How to Cite

Hrybinenko, O., & Shahoian, S. (2018). GLOBALIZATION AS A CHALLENGE TO UKRAINIAN EXPORTERS OF IRON ORE RAW MATERIAL. Baltic Journal of Economic Studies, 4(1), 85-92. https://doi.org/10.30525/2256-0742/2018-4-1-85-92
Article views: 408 | PDF Downloads: 179

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Keywords

globalization, iron ore global market, export of iron ore raw material, transnational companies, international mining and smelting holding, export strategy in terms of globalization

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