The Impact of World Trade Liberalization on the Development of Domestic Brewing Companies

Abstract

The aim of the article is to study the impact of world trade liberalization on the development of domestic enterprises (using the example of the brewing industry). The conceptual basis for the introduction of liberal regimes for international trade is considered. Modern approaches to simplification of customs barriers to export and import operations are analyzed. The main advantages and disadvantages of liberalization of foreign trade are identified. The beer market in Ukraine and the main trends in it are analyzed. The geographical structure of Ukraine’s beer export and import is investigated. The main stages of the brewing industry entering international markets are considered. The construction of a gravity model makes it possible to make qualitative forecast of the development state of markets for economic agents of the national economy. That is, the gravity model is primarily a tool for modeling trade flows of a particular product among countries. Based on the gravity model, it is possible to assess effectiveness of international trade. In our case, as a result of constructing the gravity model and testing it using forecast indicators, the most promising markets for export activities of brewing enterprises are determined. The gravity model of international trade in beer based on the trade balance is adapted. The constructed model is tested, and potential partner countries for export operations are identified. A set of proposals is worked out for the development of beer export to the recommended countries.

Keywords

• liberalization of international trade
• market conditions
• international trade
• brewing industry
• efficiency of export activity