DIVERSIFICATION OF THE STRUCTURE OF EXPORT ACTIVITIES UNDER CONDITIONS OF ECONOMIC CRISIS AND LOSS OF FOREIGN MARKETS

Markets The article is aimed at analyzing the theoretical and methodological approaches to diversification of Ukrainian exports under conditions of economic crisis and loss of foreign markets. The essence and reasons for export diversification are considered, the structure and tendencies of development of national exports are explored. The carried out analysis of the structure and dynamics of Ukrainian exports showed the need to diversify Ukraine’s products with the purpose to gradu ally turn into a State with an innovative knowledge-intensive economy. This will help to restore economic growth and achieve a certain level of competitiveness. According to the results of the analysis, a large diversification of Ukrainian exports due to the gradual decrease in Ukraine’s focus on the CIS markets and, in particular, on the Russian market, is specified. Ukraine for now insufficiently uses trade opportunities with countries such as the United States, Germany, Great Britain, France, Japan and Canada. In general, the State underutilizes the trade potential with 75 world countries and thus underreceives about 6 billion US dollars. It is substantiated that in the conditions of economic crisis and loss of external markets it is advisable to use the opportunities of innovative and inertial directions of diversification. A methodology for evaluating export diversification at the regional and enterprise level is proposed, which should become the basis for determining methods of diversification and identifying measures aimed at optimizing the commodity structure of exports. Understanding the main stages of export diversification of enterprise is an important condition for its further

The loss of the Russian market is a serious problem for export-oriented Ukrainian producers, especially in those sectors that are largely dependent on demand from the Russian Federation, e.g., machine building [1]. A greater diversification of Ukrainian exports due to a gradual decrease in Ukraine's orientation to the markets of CIS countries and, in particular, to the Russian market, is observed.
Works The aim of the article is to analyze theoretical and methodological approaches to diversify Ukrainian exports under conditions of economic crisis and loss of foreign markets.
To evaluate export diversification, it is necessary to analyze the structure and dynamics of Ukrainian exports.
According to the World Bank's Special Focus Note on foreign trade, metals and grain dominate the structure of Ukraine export, but in the last decade the focus is shifting from energy-intensive metals to agricultural products [7].
The share of energy-intensive export productscast iron and steel -has decreased due to changes in prices for imported energy carriers. Over the last two decades, economic transformations in Ukraine have been hindered by low energy tariffs inherited from past times, which brought gains to individual sectors in the short term but did not allow to carry out a much-needed industrial restructuring.
The Ukrainian iron and steel industry remains highly energy-intensive: about a quarter of the total output is produced in open-hearth furnaces that have been obsoleted by manufacturers in many countries of the world. Secondly, nature-intensive goods -primarily agricultural products, which account for more than half of the value of export products -have become an important component of Ukraine exports. Thirdly, the share of capital-intensive exports continues declining. Due to insufficient investment, the share of capital-intensive export products decreased in 2017 to a level that barely exceeds 16%. And finally, the share of labor-intensive productswhich is the vastest resource that Ukraine has being one of the largest countries in Europe -remains very low.
A ccording to the National Bank of Ukraine, the export of goods in the 2nd quarter of 2019 amounted to USD11.2 billion. A growth occurred in the following main groups: food products -by 15.1%; mineral products (including ores) -by 30.7%; machinery and mechanical appliances -by 7.3%. At the same time, a decrease was observed in exports of base metals and articles of base metals -by 14.3%; products of the chemical or allied industries -by 13.6%; wood and articles of wood -by 8.8%. Geographically, the largest increase in nominal terms was observed in the exports of goods to EU countries (by USD419 million or 11.3%), their share

As part of marketing
As a way to reduce risks is the process of expanding the company's product line in order to ensure greater stability of its performance results and avoid uctuations in the pro t gained is a method for decreasing the investment risk by dividing cash between di erent investment projects is the process of expanding the company's product line in order to ensure greater stability of its performance results and avoid uctuations in pro ts gained under conditions of economic crisis and loss of foreign markets

Fig. 2. Export growth rates by main commodity groups (July -August 2018)
in total exports increased to 36.8% (from 34.4% in the 2nd quarter of 2018). The exports to African countries increased by USD141 million or 13.3%, their share grew to 10.8% (from 9.9% in the 2nd quarter of 2018). Exports to Russia decreased by USD133 million or 16.3%. The share of Russia decreased to 6.1% (from 7.6% in the 2nd quarter of 2018) [9]. The analysis of the structure of and trends in Ukraine exports showed their low diversification. This is the most significant problem for the domestic economy since its competitiveness depends on the diversification of exports.
In general, diversification can occur in the innovative and inertial direction [10] (Fig. 3).

Innovative export diversi cation
Inertial export diversi cation clustering competitive industries oriented towards the production of competitive high-tech products introducing goods and services that can adjust the current specialization due to expanding the product portfolio, changing production programs in favor of goods that are most in demand on the world market, and increasing sales of services

Fig. 3. Directions of export diversification
Under conditions of economic crisis and loss of foreign markets, it is advisable to use the opportunities of both diversification directions.
Ukraine, as an export-oriented country, is dependent on global processes. The export share in its GDP is more than 50%, with the domestic export structure being dominated by raw materials (70% are raw materials assets). In the case of a slowdown in world trade, the external demand for Ukrainian goods will decrease, which will result in a decrease in domestic production, deterioration in the trade balance, and depreciation of the national currency.
Ukraine has large amounts of debt. In 2019, USD2 bil lion will be required only to service external debts and USD4.3 billion -to pay them off.

МІЖНАРОДНІ ЕКОНОМІЧНІ ВІДНОСИНИ
In the event of aggravation of the global economic crisis, Ukraine will not be able to finance its external debts and attract new financing. This will lead to a decrease in the value of raw materials that prevail in its export structure, and accordingly, foreign exchange earnings will fall. And, as a consequence -devaluation, inflation, impoverishment of the population can occur. S tudies show that Ukraine has not yet been sufficiently using the opportunities in its trade with 75 countries of the world, including the United States, Germany, Britain, France, Japan and Canada, which results in the loss of about USD 6 billion of its potential income (Tbl. 1). Although these indicators take into account the export basket as a whole, this does not mean that they reflect opportunities for expanding trade in each of the existing sectors. In the future, it is necessary to conduct a detailed analysis of markets with great export potential for each of the priority sectors [1]. Ukrainian exports are characterized by the growing presence of Ukraine in new markets, as well as a high risk of a decrease in export volumes and a low probability of creating new products to export. This indicates the unsystematic fragmentary nature of trade relations, which may be a sign of poor product quality [1].
Some scholars emphasize the problems of methodological and organizational support for diversification management at the regional level. The development of a methodology to assess export diversification at the level of a region and enterprise should be the first step in determining mechanisms of diversification, and the results of the analysis should be the basis for determining measures aimed at optimizing the geographic and commodity structure of a region's export.
In the framework of the study, diversification is considered in the context of using a process-oriented management approach in an enterprise. This involves a sequence of stages (actions) aimed at developing various types of activities, improving existing goods, works, services and creating new ones in order to ensure operation of enterprises and enhance their competitive positions in domestic and foreign markets on the basis of the rational distribution and use of resources [11]. For further studying the diversification process, the IDEF0 standard, capable of graphically representing (with the help of graphic description language) business processes, is applied. An IDEF0 model presents a set of hierarchically interconnected diagrams, each of which is its structural unit.
To make effective management decisions regarding the export policy of an enterprise, the process of assessing the diversification of the enterprise is of importance. Its general scheme is given in Fig. 4. It can be seen that each of the functional blocks (steps) also comprises a set of corresponding actions. In particular, the "Analysis of diversification measures" block, which is among the key ones in the model, includes the following components: determining the level of diversification of production; determining the stages of obtaining added value (assessing its share in the value of marketable products); determining sales diversification (assessing the diversity of sales markets and their segments); determining the degree of similarity of types of economic activity [12].
It is also important to dwell on the main approaches to assessing enterprise diversification, which are summarized in Fig. 5 based on the results of theoretical and practical analysis [5; 6; 13].
In general, the composition, content and sequence of the basic stages of assessing enterprise export diversification are determined by the following factors: availability of appropriate resources, size of the enterprise, level of staff qualifications, level of management effectiveness, foreign market research, internal motivation and goals of export activities. Understanding the main stages of enterprise export diversification is an important condition for its further implementation.

CONCLUSIONS
In the course of the research there obtained the following results:  the carried out analysis of the structure of and trends in Ukraine export activities revealed its low diversification, which is the most significant problem for the Ukrainian economy since its competitiveness depends on export diversification. Today, diversification of domestic products, which aims to gradually transform Ukraine into a state with an innovative knowledge-based economy, is required. This will restore economic growth and achieve a certain level of competitiveness;  a greater diversification of Ukrainian exports due to a gradual decrease in Ukraine's orientation to the markets of CIS countries and, in particular, to that of Russia, is noted. Ukraine has not yet sufficiently used the opportunities in its trade with  75 countries of the world, including the United States, Germany, Britain, France, Japan and Canada, which results in the loss of about USD6 billion of its potential income;  under conditions of economic crisis and loss of foreign sales markets, it is advisable to use the opportunities of innovative and inertial directions of diversification;  a methodology for assessing diversification of potential exports at the level of the region and enterprise, which should be the basis for determining methods of diversification and identifying measures aimed at optimizing the commodity structure of exports, is proposed.  LITERATURE