The structure of resources and the level of technological knowledge of each country are different.

It is clear that these proposals will be ineffective in case of refusal to develop and implement a long-term program for the development of the insurance industry.

Confidence in insurance companies can be ensured by conducting audits at least twice a year by the Insurance Supervision Committee of insurance companies, and thus prevent mass closures, timely prevent financial difficulties of insurers.

Ukrainian insurance companies, at least those that strive to be the best, may not wait for parliament to amend the law, but increase public confidence in the insurance industry on their own.

The law prescribes the minimum conditions for capitalization, but no one forbids increasing the statutory funds to amounts that would actually cover the risks, and to contribute to these funds real money, not property. These companies can also increase the number and quality of services provided to the population to best meet their insurance needs, such as pension insurance, which exist even today.

As the market develops, the risks increase. Therefore, it is necessary to ensure joint and several liability by pooling insurance companies into pools (or other forms).

Necessary resources and conditions

Most of the proposed proposals require effective legislative, analytical and managerial work by government organizations. Most Ukrainian insurance companies are also facing difficult times, which will require difficult decisions to increase their competitiveness. It is likely that the process of merging insurers, the transition of some of them from the insurance business to the business of insurance brokerage will become widespread.

This process may take 7-10 years. After its completion, if the changes are not slowed down, our domestic insurance companies will actually be able to compete on an equal footing with foreign insurers, although foreign companies will have better expertise and access to global reinsurance markets.

According to analysts, it may happen that Ukrainian insurance companies will tend to occupy niches in certain industries, as has already happened in Russia, and there they will be able to offer their services at competitive prices.

These positive developments may occur earlier if the government sooner makes the necessary changes to the legislation, stabilizes economic growth, and is able to overcome, or at least reduce, the negative effects of corruption and bureaucracy.

Conclusions. In Ukraine, the insurance market was created in the early 90’s. Foreign insurers are entering the market together with new Ukrainian companies. The Decree of the Cabinet of Ministers of Ukraine "On Insurance" and the Law of Ukraine "On Insurance" laid the foundations for the regulation of the insurance services market and supervision of insurance companies.

Despite the positive changes that have taken place in the field of insurance since its inception, there are many problems that hinder its normal functioning and development. Among the main ones are: the lack of a code of insurance activities; the presence of a large number of requirements and barriers that restrict competition in the market; low level of capitalization of enterprises; insufficient development of brokerage services in the market; low public confidence in insurance companies; in addition, the problems that exist in the Ukrainian economy in general and affect, in particular, the insurance industry.

Some of the most important proposals for overcoming difficulties in the industry are as follows: streamline insurance legislation; achieving the optimal structure between different forms of insurance; raising insurance funds for investment needs; creation of associations of insurers in order to strengthen their financial position; increase the level of capitalization of enterprises; implement real measures that would reduce opportunities for corruption and bureaucratic obstacles; develop effective mechanisms to protect the interests of policyholders.

An important measure in the development of the insurance business is the development and implementation of a strategy for its development. Among the alternatives to the strategic development of insurance are the approach of rapid liberalization and gradual development. The liberal path presupposes complete reliance on market mechanisms for the functioning of the industry, both in terms of domestic and foreign markets. Gradual development involves state protection of national insurance companies until they become competitive.

According to analysts, after the implementation of the proposed measures there will be a process of merging insurers, the transition of some of them from the insurance business to the business of insurance brokerage and more. After its completion, domestic insurance companies will be able to compete with foreign insurance companies, although foreign companies will have better expertise and access to global reinsurance markets.

According to analysts, it may happen that Ukrainian insurance companies will tend to occupy niches in certain industries, as has already happened in Russia, and there they will be able to offer their services at competitive prices.

References

OD Vasilik. Theory of finance. – Kyiv: 2000.F. S. Mishkin. Economics of money, banking and financial markets. – Kyiv: 1999 chapter 9 summary animal farm.V. D. Bazilevich. Insurance market of Ukraine. – Kyiv: 1998.O. D. Zaruba. Insurance business. – Kyiv: 1998.T. M. Artyukh. Insurance. – Kyiv: 1998.S. Chervachidze. Barriers slow insurance industry growth. / Kyiv Post. Business. 06.09. 2001

06/08/2011

Types of international trade and international trade policy. Abstract

Two main models of international trade: protectionism and free trade. International movement of factors of production. International specialization of production. Trade policy instruments

Two main models of international trade: protectionism and free trade

Despite the fact that international trade is theoretically beneficial for the country, there may be a situation where the government decides that sacrificing the interests of domestic producers for the benefit of consumers – too much for consumers, or vice versa, when it is urgent to raise ratings, the government "throws a piece" consumers to the detriment of producers. Such activities are carried out using customs tariffs and non-tariff methods such as quotas, voluntary restrictions on trade, dumping and others. All together it is called "protectionism".

M. Porter proved that protectionism in certain sense can be effective and even necessary. The conditions are as follows: when in a foreign market, producers of any product face fierce competition, without rivals in the domestic market.

Then, to encourage producers who are almost monopolists in the domestic market (but not at all in the foreign market), and to strengthen domestic competition, the state makes sense to take measures that increase profits in this area and attract new producers, ie in including protectionist measures. Porter formulated three conditions for effective protectionism [8, 52]:

The presence of competitors in foreign markets. Availability of potential for the development of national industries. Limited protectionism in time.

Thanks to free trade, which is based on the principle of comparative costs, the world economy can achieve a more efficient allocation of resources and a higher level of material prosperity. The structure of resources and the level of technological knowledge of each country are different. Thus, each country can make certain goods at different real costs.

Each country must produce those goods whose production costs are lower than those in other countries, and exchange the goods in which it specializes for products whose production costs in the country are higher than in other countries. If each country arrives in this way, the world can take full advantage of geographical and human specialization. That is, the world – and every free-trading country – can get more real income from using the amount of resources they have.

Protectionism – barriers to free trade – reduces or nullifies the benefits of specialization. If countries cannot trade freely, they must shift resources from efficient to inefficient use to meet their diverse needs.

A side benefit of free trade is that the latter stimulates competition and restricts monopoly. Competition from foreign firms is forcing local firms to switch to lower-cost production technologies.

It also forces us to innovate and keep abreast of technological progress, improving product quality and using new production methods, and thus promote economic growth.

Free trade consumers gives the opportunity to choose from a wider variety of products. The preconditions for trade preferences are essentially the same for which competition should be stimulated. There is nothing remarkable about the fact that the vast majority of economists assess free trade as an economically sound phenomenon.

International movement of factors of production

We have considered the question of why countries that have comparative advantages in the production of a product is more profitable to partially specialize in its production and export it to other countries.

But the question of why such advantages arise is left aside. This question was asked in the 20s of XX century, two Swedish economists E. Heckscher and B. Olin and, finally, formulated their own theory in this regard, called the Heckscher-Olin theory [7].

It is based on two main points:

in the production of different goods, the participation of different factors is different: for the cultivation of wheat land is needed to a much greater extent than the hardworking Japanese, and for the assembly of televisions – vice versa; different countries have different factors of production to varying degrees.

The theory is that if a country has a surplus factor (not only absolutely, but also relatively, ie the price of this factor in relation to other factors is lower than in other countries), then this country will export those goods in the production of which the share of this factor prevails.

If there are many Japanese in the country who are capable of long-term hard work, and if there is a product in the world that requires a lot of such work to produce it, then it is not surprising that most TVs will soon show off "Made in Japan".