THE INFLUENCE OF THE EXTERNAL ENVIRONMENT OF HOST COUNTRIES ON MANAGERIAL DECISIONS ON COMMODITY EXPORT OF BUSINESS UNITS

Abstract

The paper presents an algorithm for studying the external environment of host countries for the managerial decision-making process. It can be used by small and medium enterprises deciding to enter foreign markets. It is shown that the decisions made on the introduction of commodity export operations are preceded by the analytical work on the company’s internal potential, the choice of entry strategy, and the country for export. A modified PESTEL analysis was performed to analyze the external environment of the host countries. It was the basis for conclusions on the state of the elements of the external environment of two countries: the Netherlands and Turkey. The external business environment of Turkey is characterized by: 1) the number of problems related to the rule of law, political instability, low efficiency of the government, assessment of the quality of legislation, corruption; 2) deterioration of the economic environment since 2016 due to political instability: unemployment and inflation rate have increased, the negative international trade balance has increased, the country's global competitiveness has declined; 3) the improvement of the social component: growth of the Human Development Index, life expectancy, and population; 4) despite the improvement of the legal environment for starting and running a business, there are problems in the legal field. Ukraine does not have a free trade agreement with Turkey. The external business environment of the Netherlands is characterized by: 1) favorable political climate for doing business: the high rule of law, political stability, the absence of corruption; 2) favorable economic situation and development: GDP (PPP) per capita, export, and import have increased, the unemployment rate has declined, the country has a high position in international rankings. Economic problems include rising inflation, excessive tax burdens, and excessive government spending; 3) the improvement of the social component: growth of the Human Development Index, life expectancy, population, and average wage; 4) high appreciation of the rule of law. Ukraine and the EU have a free trade agreement. The investigation of the external environment of the Netherlands and Turkey to assess its impact on future foreign economic operations has shown that the Netherlands has a more favorable external environment than Turkey. The Netherlands is a more attractive market due to the free trade agreement and therefore zero duty rate and fewer documents that need to be processed in the export process, long experience of cooperation between countries, higher prices for Ukrainian corn in the Dutch market.