The article expounds the need of transformational changes in Ukraine by the model “from the planned to market economy”, demanding a new institutional format. It would require a transition to a new level of application of institutional factors enabling the transformation of the role of institutions as organizational structures, and relevant regulatory actions that would make it possible to raise the innovation-oriented investments to a new level. Success of transition to innovative investment model of economic growth of Ukraine is determined first of all by how well developed is institutional environment and specific institutions that promote the implementation of the projects of both macro- and microeconomic modernization. It is important at the same time to improve efficiency and to deepen market relations in the institutional environment of business with the goal of accelerated development of productive forces in Ukraine based upon capitalization of the economy. The capitalization should be the foundation of the processes of broadening of the scale of corporatization and should reach such a level of concentration of capital that can sustain the development of one of its most effective institutional forms, which is a modern corporation.

 

Key words:
Transformational changes, institutional capacity, technological creativity, institutional environment, modernization, bourgeois rationality, corporation.

The problem competitiveness decrease in the domestic sphere of science and technology and intellectual capacity outflow were explored. The comparative analysis of the global competitiveness index, which confirmed the existence of the policy "gaps" in the innovative development of national economy was performed. The lack of the strategic competitive advantage prerequisites was indicated. The structure of export of goods in Ukraine according to innovative technologies level was analyzed. The analysis results of institutional mechanisms designed to ensure the transition of the national economy to an innovative model of development were synthesized.

 

Key words:
Innovative development, competitiveness, innovation, technology, technological set-up, knowledge intensiveness.

The creation, evolution and features of implementing the North American Free Trade Area are considered. The precondition of creating and subsequently operating the North American free trade zone became "Plan Abbott," the main purpose of which was to stimulate American investment in leading Canadian industries. Having signed an agreement on liberalization of trade, the automotive industries of the US and Canada negotiated and signed the US-Canada Free Trade Agreement. The main provisions of the North American Free Trade Agreement, which concerned primarily the removal of all tariff and non-tariff barriers on produced and sold commodities in North America for fifteen years after the agreement came into force are characterized. Other main objectives of the FTA in North America are as follows: an increase in employment rates and improvements in working conditions and living standards; intellectual property rights; management of trade relations and disputes; performance of labour, environmental laws and regulations; cooperation in terms of regional and multilateral trade forums. The performance of economic reforms in Mexico towards liberalization of protectionist trade and investment policies aimed at attracting foreign direct investment and economic growth stimulation are estimated. Measures in the field of removal the tariff and non-tariff instruments made by Mexico after it became a member of the General Agreement on Tariffs and Trade (GATT) are analyzed. The implemented measures of liberalization trade allowed Mexico to transform from one the most protectionist economies in the world to one of the most open. The different opinions on the NAFTA creation and its impact on the economic development of member countries are considered. The supporters argued that the agreement would help to create thousands of jobs, reduce income inequality within region, and support the further deepening of economic relationships of the USA and Canada with Mexico. At the same time, opponents believe that a free trade zone in North America will lead to huge job losses and wage reductions in the USA. The effects of NAFTA on production, employment, trade and investment environment of the USA with member countries of the integration union are investigated.

 

Key words:
Integration processes, free trade zone, American-Canadian Free Trade Agreement, the North American Free Trade Agreement (NAFTA), trade liberalization, tariff and non-tariff instruments, partner countries, foreign direct investment (FDI), economic impact of NAFTA.

The main issues of the Ukrainian Foreign Exchange legislation are considered in the article. Its connection within Poland’s legislation and expertise is explained, which was used as the model. The author analyzes the logics of a further development of Ukraine’s FX legislation and emphasizes the need of its improvement on the base of Monetary Policy Concept, which should be reconciled on all branches of the Authority.

 

Key words:
Foreign Exchange Regulation, exchange rate, convertibility, foreign exchange control.

The evolution of the theory of optimum currency areas is researched and the positive and negative effects of monetary integration are examined. The main criteria of the theory of optimum currency areas are summarized and their value is shown. The reasons for losing the independence of monetary policy in the process of monetary integration through the prism of a so-called «incompatible triangle» or «impossible trinity» are highlighted. European way to overcome the «impossible trinity» is demonstrated and the role of the theory of optimum currency areas for the European Economic and Monetary Union is considered. It was argued that there are no prerequisites in the nearest future in Ukraine to pass all stages of integration needed to join the monetary union. Theory of OCA could be helpful for estimation the overall appropriateness of monetary integration, analysis of its potential benefits or disadvantages and selection of instruments for exchange rate policy.

 

Key words:
Optimum (optimal) currency area, monetary union, regional monetary union, monetary integration, single currency, monetary policy, «impossible trinity», the European Monetary System.

In modern conditions the radical changes of management of economic processes, that caused by development of market economy, rapid changes of internal and external factors of economic entities environment functioning, cause a threat to its financial interests, high level of financial risk, which leads to the need of improvement the concept of ensuring effective enterprise and management. The company’s ability to withstand external threats in the market environment that can lead to violations of balance in security depends on many factors, quantitative and qualitative parameters. Determination of basic classification signs of system factor: effects scale, intensity rate, impact time, scope of use, exposure time, the complexity of development, perspectives and effectiveness of influence makes possible to analyze and determine the impact of each factor on economic security of enterprise, identify the reserves of financial protection increase for proper management. Therefore, taking steps to reduce their impact is the key to successful operation of subjects on the market. The existence of effective system of financial security that will protect enterprises from threats is one of the most important conditions for smooth growth of the company and formation of positive results of its financial operation in a long-term period.

 

Key words:
Financial security, economic security management, classification characteristics, strategic factors, rational use, solvency, competitiveness, economic potential.

The existing financial information, presented in a traditional financial statement is insufficient for the stakeholders functioning in the conditions of market economy focused on knowledge and information; therefore financial reporting is subject to transformation. The analysis of financial reporting theory and practice allows distinguishing several directions of the occurring changes. The transformation of financial reporting is dominated by the practice, which “dictates” the need for extended information. The theory still seeks a scientific justification for practical applications. The scope of presented information was extended from financial, numerical and retrospective information to non-financial, descriptive and prospective information. Therefore a financial statement is evolving towards a financial report and a business report, to end up as an integrated report.

 

Key words:
Financial reporting, transformation, directions of changes.

The question of economic feasibility of tariffs for energy, particularly natural gas, both imported and domestic is analyzed in the article. It is concluded that the population's needs can be fully satisfied by Ukrainian gas, and prices of wholesale gas markets should be formed as a result of long-term contracts between producers and buyers. Special attention is focused on the inadmissibility of the use of any rent payments in the gas pricing in Ukraine. Priority measures to reform Ukraine's gas sector, including reasonable use of energy saving technologies and adaptation of European experience of gas and heating pricing for the population, are determined.

 

Key words:
Natural gas pricing, tariffs, European gas market, domestic gas market, energy sector reform.