WAYS OF PROMOTING UZBEKISTAN’S FOREIGN ECONOMIC ACTIVITY IN WORLD MARKETS
Maftuna Imamova A’zamjon qizi
UWED, IEM faculty, 1st year student
+998977546445
Abstract: This article is based on elucidating the measures aimed at the further development of Uzbekistan’s foreign economic activity and its leading positions in world markets. Today, carrying out innovative foreign economic activity is one of the main criteria for every country. Nowadays, it is no exaggeration to say that the place of Uzbekistan in the world markets is incomparable. In order to further develop it, it is necessary to pay attention to certain factors.
Key words: Foreign economic activity, world market, foreign trade policy, free trade, protectionism, export, import, diversification, international trade.
Foreign economic activity consists in being able to conduct economic relations in world markets and thereby develop the economy of one’s country. The basis of foreign economic activity is the right foreign trade policy.
Foreign trade policy is a form of macroeconomic policy, which is a set of measures to regulate the volume of foreign trade of the state through trade restrictions. Foreign trade policy can be divided into free trade and protectionism according to the state’s level of intervention in foreign trade. The free trade relationship, as its name implies, reflects trade that develops freely, that is, on the basis of supply and demand, with minimal government intervention.
Protectionism is a state policy aimed at protecting the domestic market from foreign competitors through the use of tariffs and notary measures. There are more than 50 types of foreign trade restriction methods. Some of them are aimed at filling the state treasury, some are aimed at limiting imports in general, and still others are aimed at limiting or encouraging exports. In practice, tariff and notary methods of foreign trade regulation are used. Tariff methods include the introduction of import and export duties, notarial methods include giving subsidies to exporters and producers, quotas, licensing and other types.[1]
Protectionism – restrictive measures in foreign trade, have a short-term effect. In the long run, only a free trade economy will allow efficient use of resources. Free trade can be beneficial from the point of view of the global economy, but from the point of view of the interests of individual countries, free trade is not always beneficial.
In order for Uzbekistan to occupy one of the top positions in the world markets, it must produce the quality of the goods and services it produces in accordance with world standards, saturate the domestic market with all goods as much as possible, and only then export them, import goods and it can try to create services in itself and thereby increase exports compared to imports, and as a result, it is possible to increase the balance of the trade balance. Through this, it is possible to establish strong economic relations with many countries of the world.
International trade in world markets is very important for every country, especially for Uzbekistan. Because it is the basis of the global economy, and having international trade partners in the world market helps the country’s economy to develop further. The importance of international trade is very important for every country because the development of this country is closely related to its status in the international arena. If we analyze this situation in the example of Uzbekistan in Table 1 below, the volume of foreign trade turnover of Uzbekistan in 2021 increased by 7 times compared to 2000. The volume of exports increased 5 times over 21 years, while the volume of imports increased 8.6 times during this period. The increase in the volume of imports was not due to the decrease in the volume of exports, but due to the increase in the entry of equipment, equipment, and technology to expand production. This situation can be considered a positive situation for economic development.
It can be seen that the geography of foreign trade has diversified over the years, the share of the CIS countries and the countries of the European Union and South-East Asia in the composition of exports and imports has also increased. Foreign trade with the CIS countries increased by almost 7 times, while with other countries it increased by 6.7 times.
| Foreign trade of the Republic of Uzbekistan[2] | ||||||
| Indicators | 2000 | 2005 | 2010 | 2015 | 2020 | 2021 |
| million US dollars: Foreign trade turnover | 6 212,1 | 9 500,1 | 22 199,2 | 24 924,2 | 36 256,1 | 42 170,5 |
| export | 3 264,7 | 5 408,8 | 13 023,4 | 12 507,6 | 15 102,3 | 16 662,8 |
| import | 2 947,4 | 4 091,3 | 9 175,8 | 12 416,6 | 21 153,8 | 25 507,7 |
| trade balance | 317,3 | 1 037,0 | 3 847,6 | 91,0 | -6 051,5 | -8 844,9 |
| including: with the CIS countries | 2 297,8 | 3 403,4 | 9 369,2 | 9 548,9 | 11 826,4 | 15 920,4 |
| export | 1 172,2 | 1 722,6 | 5 647,7 | 5 230,3 | 4 106,4 | 5 433,8 |
| import | 1 125,6 | 1 680,8 | 3 721,5 | 4 318,6 | 7 720,0 | 10 486,6 |
| trade balance | 46,6 | 41,8 | 1 926,2 | 911,7 | -3 613,6 | -5 052,8 |
| With other countries | 3 914,3 | 6 096,7 | 12 830,0 | 15 375,3 | 24 429,6 | 26 250,1 |
| export | 2 092,5 | 3 686,2 | 7 375,7 | 7 277,3 | 10 995,8 | 11 229,0 |
| import | 1 821,8 | 2 410,5 | 4 545,3 | 8 098,0 | 13 433,8 | 15 021,1 |
| trade balance | 270,7 | 1 275,7 | 1 921,4 | -820,7 | -2 437,9 | -3 792,1 |
| Compared to last year, in %: Foreign trade turnover | 97,9 | 109,6 | 104,7 | 90,5 | 86,8 | 116,3 |
| export | 100,9 | 111,5 | 110,6 | 92,3 | 86,5 | 110,3 |
| import | 94,8 | 107,2 | 97,2 | 88,8 | 87,1 | 120,6 |
| including: with the CIS countries | 128,2 | 113,3 | 117,0 | 79,0 | 81,8 | 134,6 |
| export | 119,3 | 112,7 | 144,0 | 77,2 | 65,9 | 132,3 |
| import | 139,0 | 114,0 | 91,0 | 81,2 | 93,8 | 135,8 |
| With other countries | 86,0 | 107,6 | 97,2 | 99,6 | 89,5 | 107,5 |
| export | 92,9 | 110,9 | 94,0 | 107,4 | 98,0 | 102,1 |
| import | 79,2 | 102,9 | 102,0 | 93,5 | 83,6 | 111,8 |
In order for Uzbekistan to enter the world markets and occupy high places, it is desirable to have an effective strategy that illuminates excellent foreign economic activity. For this, a perfect strategy can be presented by analyzing several factors. We would like to pay special attention to the following important factors.
1. Providing effective offers for the global market
Any successful plan for foreign economic activity must begin with the production of high-quality, unique products. For this, countries must first of all perfectly determine their internal capabilities, advantages and advantages, as well as the world market situation. In most cases, copying existing goods and services in the market can deter new entrants from entering the market. Because experienced manufacturing countries that have already established themselves in the market have a higher advantage. If the goods that are necessary and relevant for the current period are delivered to the world market, and there is a special development strategy for this, several advantages can be achieved as a result.
2. Excellent analysis of foreign market opportunities
Creating a separate strategy for global markets requires extensive market research. In this regard, a country that wants to enter the world markets, that is, Uzbekistan, should thoroughly study and analyze the situation in the international market, improve its capabilities, study the strength of its competitors in the world with equal status and, most importantly, bring it to this market. Having studied the demand and supply for the product he wants to enter, he should develop a unique business proposal that is worthwhile for the world market.
3. Use of modern logistics services
Supply chain issues such as management and logistics are of great importance in entering global markets. When exporting goods directly or selling goods to foreign buyers, whether the delivery address is familiar or new, the main task required of the seller is to ensure that the goods are delivered safely and reliably at the lowest possible transport costs. consists of delivery without If it is possible to win the trust of the buyer, this will be one of the main steps taken to enter the world markets.
4. Compliance with generally recognized norms of international law
There are 3 main types of legal considerations when entering the global market. That is:
– the main internal laws of the country;
– the laws of the partner country;
– laws regulating international market relations.
One of the most important requirements is to always follow the above 3 main laws and conduct foreign economic activities in the world market based on these rules. Of course, it is also important to involve a strong legal team. Even a country that wants to conduct foreign economic activity will not be harmed by the help of such a strong legal team, because they are aware of the latest and most important news that is happening in this country.
5. Establish strong relationships with strategic partners
Finding strategic local partners from the country of foreign economic activity can be a solution to the problems encountered in most cases. Having reliable connections and a network of partners to avoid problems such as opening new offices in a partner country, expanding business, and eliminating logistics and trade gaps can facilitate such difficult processes. Qualified local partners can provide reasonable assistance in dealing with the disadvantages of working in a new location.
6. Reduction of taxes and granting of tax benefits
Changing the amount of taxes can in some cases benefit both consumers and producers. For example, a change in export or import duties allows consumers to buy goods at lower prices, allows producers to export or import more of these goods, and producers can use the profits to renew their capital. All these actions increase efficiency, which helps to develop the economy.
7. Existing infrastructure to promote economic growth
The role of infrastructure facilities that help the movement of goods and services and deliver them to the consumer in the most convenient way is incomparable, they are the basis of the market economy. It means having an effective infrastructure and providing half income. Spending on infrastructure will pay for itself twice and ensure economic development. Infrastructural facilities should be created and put into operation not only by the state but also by private sector initiatives in the market economy.
8. Insuring risks and having immunity against them
Diversification of the market and sales methods, goods, and services in the world market is the best opportunity to insure risks and have immunity against them. In most cases, prioritizing orientation to the domestic market reduces resistance to competition in the world market and weakens innovative activity. Focusing more on global markets in their external economic activities than domestic markets can provide long-term effective economic growth. Updating product types and assortments, creating new markets, and bringing sales methods to the level of customer orientation also serve as the basis for obtaining high income.
In conclusion, it can be said that the success and economic growth of Uzbekistan in the world market outweigh the difficulties of doing business in the international arena. There are ways to promote the foreign economic activity of Uzbekistan in the world markets, apart from the above-mentioned points, but if all of them are combined and carried out effectively as a single strategic model, Uzbekistan will also take high positions in the world markets and achieve success.
List of used literature:
- Principles of Economics, 6thEdition.N. Gregory Mankiw. ISBN 13: 978-0-538-45305-9. USA, textbook. 2012. Cengage Learning. 890 p.
- World economy and international economic relations. Textbook, ed. A.S. Bulatova. Moscow.: KNORUS, – 2017, 916 pages.
- Information of the State Statistics Committee of the Republic of Uzbekistan. T.: 2022. www.stat.uz
[1] Principles of Economics, 6-Edition.N. Gregory Mankiw. ISBN 13: 978-0-538-45305-9. USA. 2012. Cengage Learning. Page 686.
[2] Source: Information of the State Statistics Committee of the Republic of Uzbekistan. T.: 2022