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Managerial Decisions in Conditions of Uncertainty of the International Business Environment
Lezhepokova V. G.

Lezhepokova, Viktoriia G. (2023) “Managerial Decisions in Conditions of Uncertainty of the International Business Environment.” Business Inform 7:15–21.
https://doi.org/10.32983/2222-4459-2023-7-15-21

Section: International Economic Relations

Article is written in Ukrainian
Downloads/views: 15

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UDC 339.977

Abstract:
The article is aimed at developing a methodical approach to assessing the favorability of the business environment in the process of making managerial decisions under conditions of uncertainty. The necessity of making sound managerial decisions when an enterprise carries out international activities is proved. It is noted that from the point of view of studying the conditions of international business activity, the concept of uncertainty characterizes a situation in which there is no reliable information about the possible state and trends in the factors of the business environment of the host country. A thorough analysis of the current state and trends in the transformation of business environment factors in foreign markets contributes to minimizing uncertainty. It is underlined that the use of such common global analytical systems for rating economic processes as the Global Competitiveness Index, the Ease of Doing Business Index and the Index of Countries’ Involvement in International Trade to assess the business environment is currently impossible. The author proposes to use the KOF Globalization Index, the Index of Economic Freedom, the Global Innovation Index, and the Human Development Index, which are the result of global studies of the business environment of countries. The general characteristics of each of the indices are provided, development trends are determined, the five leading countries and Ukraine’s positions are presented according to the results of the published ratings for 2022–2023. To assess the country’s favorability in carrying out international activities in terms of uncertainty and instability of its business environment, an approach to calculating the aggregated indicator based on indicators of the KOF Globalisation Index, the Index of Economic Freedom, the Global Innovation Index, the Human Development Index, combined by the PEST analysis methodology, has been developed. The use of the proposed methodological approach will help to increase the thoroughness of managerial decision-making in the implementation of international activities by the enterprise.

Keywords: managerial decisions, uncertainty, international factors, international rating systems, aggregated indicator of assessing the state of the country’s business environment.

Tabl.: 2. Formulae: 1. Bibl.: 11.

Lezhepokova Viktoriia G. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of World Economy, Kyiv National University of Trade and Economics (19 Kіoto Str., Kyiv, 02156, Ukraine)
Email: [email protected]

List of references in article

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“Index of Economic Freedom“. Heritage Foundation. https://www.heritage.org/index/
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