PROBLEMS OF COMPETITIVENESS OF DOMESTIC MACHINE-BUILDING ENTERPRISES AND TRANSNATIONAL COMPANIES IN UKRAINE
Abstract
The activity of machine – building TNCs on the territory of Ukraine is investigated. In 2020, there were about 20 such enterprises. It was found that their share in the production of machine-building products was quite high. In particular, the largest share of TNCs in the output of motor vehicles, trailers and semi-trailers and other vehicles - 46.28%. The competitive advantages of machine-building TNCs and national producers are outlined, in particular, it is noted that the competitive advantages of domestic machine-building corporations are enhanced with state support and protection of national producers' rights. As TNCs have extensive experience in oversaturated countries, the Ukrainian market, which is free from oversaturation and has a favorable geographical location, is attractive for the creation of machine-building industries. In some segments of machine building in Ukraine, production volumes decreased significantly due to reduced competitive advantages of domestic enterprises compared to products of foreign companies, which are characterized by lower cost, high quality, originality and active stimulation of demand for their products. Therefore, TNC units are already operating in these segments (or may potentially operate in the future), given the release of niches in the Ukrainian market. The influence of external and internal factors on the development of machine-building companies in Ukraine is compared. The most critical domestic machine-building industries, which may eventually become uncompetitive, along with TNCs: production of components and spare parts for cars, production of machinery and equipment for special purposes, production of cable products. The problem of passenger car production was singled out as critical for Ukraine in the context of growing import dependence (16% of imports of mechanical engineering products are cars). Today the production of cars in Ukraine is practically stopped. Significant impact on the development of Ukrainian engineering unstable political and economic situation. In particular, a significant number of plants in Ukraine closed in 2014 due to the war. Instead, the invasion of Russian troops into Ukraine in 2022 will have more critical consequences for the domestic engineering industry and Ukraine's economy in general. The main problems are outlined, as well as recommendations for the development of domestic machine-building companies in Ukraine.
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