Determining the Competitiveness of Participants of the International Economic System in View of the Customs Factor

• Main Author: Shpak Nataliya G.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2018-12-01
• Series: Bìznes Inform
• Subjects: competitiveness; international economic system; customs clearance; self-cost; producer; sales market; profit
• Online Access: http://www.business-inform.net/export_pdf/business-inform-2018-12_0-pages-149_155.pdf

The article is aimed at identifying the reasons for changing the competitiveness of participants of the international economic system in view of the customs factor, as well as determining the equilibrium volumes of each participant’s product supply to the market. The research made use of the methods of mathematical modelling. As a result, the intervals of competitiveness of both domestic and foreign producers when selling products in the national market are defined. It is determined that when the self-cost of production of domestic producers increases so much that foreign producer becomes competitive in terms the national market, the volume of products in the national market decreases. However, this decline in output is not as drastic as it was when foreign producer had been forced out of the market, that is, the presence of foreign producer smooths the decline in output. It is noted, that at increase of the self-cost of production of domestic producer the latter becomes uncompetitive, and the national market deals only with the production of foreign producer. Scientific novelty – it is proved that one of the key factors that ensure competitive advantage of the produced products is the scale of production, which can be achieved by expanding the market and reducing the self-cost of production.