ECONOMICS AND MANAGEMENT OF PRODUCTION | |
ArticleName | Improvement of estimation method of export efficiency |
ArticleAuthor | Ilichev I. P., Brinza V. V., Ugarova O. A. |
ArticleAuthorData | National University of Science and Technology “MISiS”, Moscow, Russia I. P. Ilichev, Assistant Professor, Head of the Chair of Applied Economics, e-mail: iip2006@mail.ru |
Abstract | An important aspect of making Russian metals companies is strengthening and expanding its presence in world markets. The successful solution of this task depends largely on the effectiveness of the export of metal products. This article concerns issues of economic efficiency of export. It gives suggestions to improvement methodology to determine economic efficiency of export. The paper considers the problem of assessing the effectiveness of the export transactions. Current situation of export performance assessment methodologies do not ensure effective decision-making about the usefulness of export transactions. This is due to the fact that they did not take into account marginal profit from export transactions, as well as the capacity utilization level of enterprises. On the basis of the provisions of marginal analysis to devised new procedural provisions that enable an enterprise to choose cost effective deal. Performance evaluation of supply of products for export should include the four stages. In the first phase of the estimated risks of anti-dumping investigation and the appointment of anti-dumping duties on the proposed export transaction. If the analysis reveals that the deal is likely to lead to anti-dumping sanctions deal should be rejected. Further, based on the margin of profit is assessed the effectiveness of export transactions. Then, when a positive profit margin load capacity is parsed. If it turns out that when marginal profit is positive, the production capacity of the company is manufacture of products needed for the export transaction, export transaction should be recognized as effective. In case of insufficiency of production capacity, is another stage in which comparative effectiveness will determine the production of export products. Application of a new methodological approach improves the accuracy of the assessment of the effectiveness of export transactions and reduces the risk of making no effective solutions. New methodology brings down mistake risk of export decisions. |
keywords | Efficiency, export, margin, marginal profit, production capacity, profits, costs, margin analysis |
References | 1. Available at : http://www.zakonprost.ru/content/base/153096 |
Language of full-text | russian |
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