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Influence of the Mechanism of Foreign Economic Activity of Aviation Industry Companies upon their Financial Independence

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  • Piletska Samira T.

    ()
    (National Aviation University)

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    Abstract

    Financial independence of a company is a state when the company stays capable of satisfying requirements of operational activity with own or borrowed funds under conditions of influence of external environment. Financial independence of an industrial aviation company as a subject of foreign economic activity (economic component of foreign economic activity), on the one hand, is also an element of foreign economic activity and a measure of its effectiveness and, on the other hand, consequence of effectiveness of foreign economic activity. If originally financial independence is absent, then it is formed through formation of an effect, as it is envisaged in a contract, in other words, through interconnection with the organisational component of foreign economic activity. Achievement of financial independence, envisaged by a foreign economic contract, is possible through adoption of tactical measures on minimisation of currency risks. Quality characteristic of the content and justification of the form of the contract, especially when we speak about long-term contracts, constitutes the basis of interaction of a company with foreign economic partners irrespective of political changes that take place in different countries.

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    Bibliographic Info

    Article provided by RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE), Kharkiv National University of Economics in its journal Business Inform.

    Volume (Year): (2013)
    Issue (Month): 6 ()
    Pages: 52_56

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    Handle: RePEc:idp:bizinf:y:2013:i:6:p:52_56

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    Web page: http://www.business-inform.net

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    Keywords: financial independence; foreign economic activity; foreign economic agreement; mechanism; currency risks; effectiveness; contract;

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