Despite the challenges Ukraine will remain an attractive destination for investment. The country is a large consumer market with considerable growth potential and relatively low competition in many sectors. It has highly educated and skilled labor force. Ukraine’s location between the European, Russian and Asia markets, extensive railroad system and Black Sea ports make it a competitive platform for manufacturing and exporting to the neighboring countries and beyond.
International investors will appreciate the investment opportunities in agriculture, energy efficiency, IT and software development and infrastructure. With the development of the public-private partnership model international investors will be able to take advantage of investing in large infrastructure projects.
Boasting of over 30 % of the world’s most fertile black soils, favorable climate conditions and proximity to markets Ukraine is a perfect location for industrial or organic agriculture. Ukraine is already one of the top players in the global markets for grain and sunflower oil and a major supplier of high-protein based foods. With improvements in market regulations, increasing availability of agricultural infrastructure and introduction of new technologies there is considerable room for efficiency gains and profitability growth.
Experts estimate the need for investment in the agribusiness sector in the range of 25 billion USD. The recent IPOs of Ukrainian agribusiness companies on the LSE, LSE AIM and WSE point to investors appreciation of the sector’s potential.
Energy and energy efficiency
Ukraine’s economy is around three times as energy intensive as that in the EU. This means that on average, Ukrainian companies use more energy to produce the same output as EU companies. The potential for energy efficiency in Ukrainian companies is huge, even with today’s Ukrainian energy prices, which are low compared to EU levels. While the market for energy efficiency investments in Ukraine is still in its early stage of development, the drive to lower energy consumption will open new opportunities for providers of energy efficiency technology and solutions.
Ukraine has provided incentives to green energy projects, including production of bio-fuels and wind energy. The ‘green electricity’ tariffs are among most favorable in Europe and electricity distribution companies are required to connect generators of green electricity to the grid at the distributors’ cost.
IT and software development
Ukraine’s IT and software industry includes areas as diverse as outsources software development, software maintenance, digital content, enterprise solutions, payments, geospatial and communications technology. Ukraine is building its reputation as the leading provider of outsourced IT and software development services in the Central and Eastern Europe. This is the result of growing global demand for outsourced services, availability of qualified local IT professionals, and interest from domestic and international investors.
Directory of Ukrainian outsourcing companies:
Ukraine needs to modernize its infrastructure across all sectors of the economy. The sectors where investment is critical include energy (gas supply and distribution), transportation (airports, railways and stations, highway network, sea ports), agriculture, and public utilities (water, waste management, heating). The development of the framework for public-private partnerships will enable foreign investors to participate in large-scale infrastructure investment projects.
Investment climate overview
Ukraine encourages foreign investment and investors are able to purchase businesses and property (but not agricultural land), repatriate revenue and profits, and receive compensation if property is nationalized. In the most recent move to improve business climate, Ukraine has eased business start-up by reducing the minimum capital requirement, streamlined construction permitting, and simplified tax compliance by introducing and continually enhancing an electronic filing system for value added tax.
Ukraine has signed a number of bilateral agreements which may extend additional protection, guarantees or incentives to foreign investors.
In 2005 the government has set up InvestUkraine, Center for Foreign Investment Promotion, to facilitate entry of foreign investors into Ukraine by providing advice on regulations and investment opportunities, linking investors with potential business partners and government, and assisting with settlement of disputes.
12. Blue-chip companies
Blue chip (stock market)
According to the New York Stock Exchange, a blue chip is stock in a corporation with a national reputation for quality, reliability and the ability to operate profitably in good times and bad. The most popular index which follows US blue chips is the Dow Jones Industrial Average. The Dow Jones Industrial Average is a price-weighted average of 30 blue-chip stocks that are generally the leaders in their industry. It has been a widely followed indicator of the stock market since October 1, 1928.
Blue-chip company used in the context of general equities. Large and creditworthy company. Company renowned for the quality and wide acceptance of its products or services, and for its ability to make money and pay dividends. Gilt-edged security.
Companies whose shares are traded in the market and which have a high market capitalization. In the US it's sometimes used as a synonym for the companies that make up the Dow Jones Industrial Average.
Presumably so called because blue poker chips are worth more than red or white ones.
UBS Financial Services, Inc. chose companies that have at least four of the six following characteristics to be considered a blue chip:
rated Buy by the Sponsor (See "UBS Investment Research Ratings System" in the prospectus);
market capitalization in excess of $5 billion;
financial strength, a record of profit growth and reputation for skilled management;
established, well-known company considered to be stable and mature with a reputation for providing high quality goods and services; and
leader in its market niche.
In addition, companies are analyzed for their record of earnings over a relatively long period of time and future potential. Dividend payments, while not required, are considered.
Other terms that are often used in conjunction with blue chip include "bellwether" and "Market Capitalization." Bellwether is a term used to describe a company that is recognized as the leader in its industry. For example, Microsoft would be considered a bellwether stock for computer software. Large cap is a reference to the size of a company in terms of total market capitalization. Market capitalization is simply calculated by taking the number of shares outstanding and multiplying by the stock's current price per share.
13. Building stable relationships with foreign partners
Hegemonic Stability Theory (HST) is a theory of international relations. Rooted in research from the fields of political science, economics, and history, HST indicates that the international system is more likely to remain stable when a single nation-state is the dominant world power, or hegemon. When a hegemon exercises leadership, either through diplomacy, coercion, or persuasion, it is actually deploying its "preponderance of power." This is called hegemony, which refers to a state's ability to "single-handedly dominate the rules and arrangements ...[of] international political and economic relations."
Courses at high school for a specialist in international economics
The department provides teaching disciplines cycle general training for bachelor: a theory of international relations, international information, international organizations, international relations and world politics, public international law, diplomatic and consular service, Ukraine's foreign policy, international private law, information-analytical work in international relations, democratic governance and a culture of peace, diplomatic protocol and etiquette cycle disciplines of professional and practical training: the history of international relations, Ukraine's economy, the entry into specialty INTERNATIONAL ECONOMIC RELATIONS, global economy, a system of technologies, international economic relations, economic and mathematical modeling of global economic processes , international monetary relations, theory and practice of foreign trade, world finance, management FOREIGN ECONOMIC ACTIVITY, FOREIGN ECONOMIC ACTIVITY management company, the foundations of modern geopolitics, investment, insurance, international business.
Special courses for specialists in international economic relations: the global financial environment, post-socialist countries in the world today, international economic law, global macro-economic policy, economy international transportation, foreign trade activities in Ukraine, EU regional policy, regulation FOREIGN ECONOMIC ACTIVITY, innovative economy, intellectual property , international stock and currency markets, corporate business, transnationalization of the world economy.
Special courses for masters in international economic relations: global macro-economic policy, theoretical seminar "Actual problems of the world economy and INTERNATIONAL ECONOMIC RELATIONS», Ukraine in the system of world economic relations, regulation FOREIGN ECONOMIC ACTIVITY, regional development strategy: a European context, the international currency and stock markets, modern infrastructure of the world, intellectual property, innovation economy, derivative securities, the European integration.
14. Criteria of choosing the location of manufacturing operations around the world