MODELING THE IMPACT OF THE EXTERNAL ENVIRONMENT ON THE FOREIGN ECONOMIC ACTIVITY OF EU ENTERPRISES
DOI:
https://doi.org/10.31891/mdes/2023-8-13Keywords:
modeling, impact of the external environment, foreign economic activity, EU enterprisesAbstract
The article examines the process of modeling the impact of the external environment on the foreign economic activity of EU enterprises. 4 models were constructed regarding the impact of Enterprise Performance Indicators on the foreign economic activity process. The choice of a way or strategy to enter the international market depends on the new restrictions (economic, political and legal) that the company faces in other countries where it wants to enter and in which it wants to stay.For this reason, it is important that the influence of foreign economic activity agents is present, so that the company can determine its interest in foreign economic activity in an international marketing plan that allows it to compete and support itself in foreign markets.
From the data presented, it can be seen that the impact of capital investment, leverage variables, and intangible growth rates is almost negligible in all three models. Empirical results do not demonstrate a significant effect of these three variables on the degree of foreign economic activity. GDP growth or domestic market growth rates show a negative and very significant impact in the random effect model, but this variable becomes insignificant in the GMM model. It seems that activity in the manufacturing sector has a positive impact on foreign economic activity. Therefore, based on these results, it is concluded that factors such as size, age, productivity, foreign ownership or industry are very important factors in the degree of foreign economic activity, but capital investment, leverage, growth of intangible resources and the growth rate of the domestic market do not have a statistically significant impact on the degree of internationalization.
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