Determinants and conditions for the development of Ukraine’s foreign trade relations in the early 1990’s

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Paper dwells upon main conditions and factors of Ukraine’s foreign trade relations formation in the early 1990’s. Author determines socio-political and economic preconditions of Ukraine’s becoming as a full-fledged subject of international economic relations, including the Soviet economy crisis, macroeconomic recession, social and political transformations, the deterioration of the USSR’s international position. It was defined that with the declaration of independence, a course was taken on realizing Ukraine’s export potential, its competitive advantages in foreign markets, establishing diversified trade, industrial, cooperative, scientific and technical ties. The tasks were carried out in complex external and internal conditions, among which, on the one hand, was the reduction of tensions on the world stage, the development of globalization and regionalization, the activation of integration processes, the liberalization of foreign economic activity, and on the other hand, the difficult domestic and economic situation of Ukraine, noted by falling production, hyperinflation, declining national income, economic shadowing, corruption development, increasing country’s import dependency, deepening of social differentiation etc. The author substantiates impact on the development of the foreign trade activity of Ukraine by the system of endogenous factors, in particular, natural-geographical (favorable geographical position, rich natural-resource, and labor potential), socio-political (change of political regime, development of democratic institutions, considerable military potential), socio-economic (pluralism of ownership forms, development of entrepreneurship and market infrastructure, liberalization of domestic foreign economic activity, etc.). The paper establishes a system of determinants of exogenous influence on strengthening the competitive position of Ukraine, among which author highlights the role of supranational institutions, the internationalization of production, the transformation of the European division of labor, liberalization, and intensification of cooperation between the countries of Western and Eastern Europe, etc.

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