Theme 1. The object and purpose of discipline “Management of FEA”

1.The nature and content of notion “Management of fea”

Management of fea – management of production and commercial activity of an enterprise, related to its business abroad

Management of fea – complex of purposeful and systematic actions aimed at stable economic growth and increasing of int’l competitiveness

Functional structure of management of fea

Factors, having influence on foreign economic activity:

External '

globalization of international business;

growth and diversification of international trade in services;

intensification of concurrence between countries and its groups;

technological development;

international integration of countries;

existence of legal, socio-cultural and economical skewness between countries.

Internal

financial and material resources and manpower, that determine production and marketing potential of an etreprise;

experience of employees;

organization structure of a company.

Management of foreign economic activity -

complex functional system, realed to different kinds of economic activity, namely trade management, hr management, production management, marketing management, innovation management, financial management

Management of fea has 2 aspects. They are theory of management of fea and mechanism of management of fea

2. Goal and tasks of management of foreign economic activity

The goal of management of foreign economic activity - creation of efficient mechanism of international business in order to maximize the profit.

Main objectives of management of foreign economic activity:

-new outlets, that give an opportunity to increase production and minimize costs;

-possibility to avoid internal concurrence;

-decrease of dependence from national resources suppliers;

-acquisition of rare resources;

-diversification of sources of sales and supply;

-minimization of dependence of conjuncture changes;

-stabilization of sales and its efficiency.

Means of management of fea

Operational – import and export; operations on international transportation; leasing; franchise; direct and portfolio investment.

Functional – production; marketing; accounting; financial activity; HR; customs regulation.

Tasks of management of fea

Search of market niche abroad – conjuncture of efficient marketing police

Search of cost minimization reserves – realization of efficient purchase, logistic and production policy

Profit maximization – financial policy optimization

Risks minimization – realization of efficient risk policy

Capitalization grow – realization of efficient investment policy

3. Principles and functions of management of fea

Principles of management of fea:

-General – optimal combination of centralization and decentralization;

Scientific management;

System approach;

Combination of rights, charges and responsibility;

Private liberty;

Profitability

-Specific – Freedom of fea;

Legal equality and non-discrimination;

Supremacy of Law;

Interest protection;

Equivalence of exchange.

Functions of management of fea

Executive, organization, administration. They include Information support (accounting, control, analysis, rationing, forecasting) and Decision making (organization, planning, programming, regulation)

Theme 2. Theoretical and methodological principles of management of FEA