Machine building development strategy

The growth trends of machine production at the beginning of the last decade were marked by positive dynamics. A favourable situation on the global market and growth of incomes in export sectors — mostly metallurgy and chemis­try, resulted in growth of the domestic demand for industrial products.

The main consumers of machine building. products were ferrous metallurgy, agro sector, coal industry, electric energy sector and the machine building sector itself.

At the same time, the foreign demand played a significant role in increasing exports. Exports included electric equipment, transportation, and machine building, The destinations of exports were Russia, Belarus, Turkmenistan, Kazakhstan, Uzbekistan, Hungary, Poland, Chech Republic, Turkey, Germany, Australia, Italy, India and China, The basic machine building products for export were automobiles, aviation products and means for water transportation.

But the current situation is rather precarious for domestic producers because import penetration is fairly high. Ukraine with its large export volumes, has an import penetration of 2-7 times more in terms of ma­chines, equipment, than in developed countries. The Ukrainian machine building sector attempts to preserve its competitive position in only a number of sectors — aviation, space and water transportation equipment.

All other sectors require a financial support for preserving and devel­oping their scientific-technical potential. Investments on research will help improve both quality and competitiveness of products. Also it is nec­essary to protect the domestic market from the import of the equipment of the same or even lower quality than certain domestic products.

Economic regulations aiming for industrial growth and development should include the following steps:

• setting up preferences for the import of technologies — but not products — in the high-tech-sector;

• transition to engineering production, assembly, installation and ser­vice;

• establishment of banks that will provide long-term loans for large enterprises against the fiscal interest, stimulating insurance of cred­its and state guarantees on the basis of collateral;

• decrease taxes for enterprises of the machine-building sector and im­plement sector taxes;

• support of Ukrainian producers through the preservation of the po­sitions of the traditional foreign markets and the increase in the number of export destinations;

• promoting programs aimed at raising competitiveness on global markets under the condition of preserving the competition on the corresponding Ukrainian markets;

• protection of the domestic market in terms of certain traditional types of products;

• widening of the mutually beneficial co-operation between Ukraine and members of international unions in the sphere of competitive policy.

**Task IV. Translate the following word-combinations into English:

сприятлива ситуація на світовому ринку, збільшувати податки, місце призначення імпорту, підвищення конкурентоспроможності, сучасна ситуація, намагання зберегти позиції, інвестиції у дослідження, монтаж та установка, впроваджувати високі технології, нижча якість товарів, позики на довгий термін, стимулювати страхування кредитів, взаємовигідне співробітництво, проникнення імпорту, об’єми експорту, захистити внутрішній ринок, підтримка виробника

Task V. Find words and phrases in the text that fall under the following cate­gories:

export items; import penetration; consumers of machine building products; economic regulation of development; aviation products; protec­tion of domestic market.

Task VI. Match the words with their definitions:

** Task VII. Answer the questions on the text:

1. What were the causes of the positive dynamics of the growth trends of machine building production?

2. What are the consumers of machine building products?

3. Did the foreign demand play a significant role in encreasing exports?

4. What are the destinations of exports?

5. Why does the Ukrainian machine building sector require afinancial support?

6. Is it necessary to protect the domestic market from import?

7. What are the steps to regulate the industrial growth?

***Task VIII. Speak about the problems of machine building in Ukraine. What are the ways to solve them?

Контрольні питання

* Другий рівень – середній. Знати слова та словосполучення з теми та вміти використовувати в реченнях; знати основні поняття та правила.

** Третій рівень – достатній. Знати основні визначення, поняття та правила. Вміти використовувати їх в зв’язному мовленні. Відповідати на питання.

*** Четвертий рівень – високий. Визначати проблемні питання. Вміти логічно та вільно висловлюватися в межах вивчених тем.

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