THE CHANGES OF FOREIGN TRADE CONDITIONS OF SMALL AND MEDIUM BUSINESS IN THE CONTEXT OF EUROPEAN ECONOMIC INTEGRATION

Abstract

This paper analyses the changes of foreign trade conditions of small and medium-sized enterprises after Lithuanian becoming the member of the EU. Small and medium-sized enterprises, presently, play the main role in the Lithuanian economy. Lithuania is a small open market, thus its economy largely depends on foreign trade. Small and medium-sized enterprises play the main role in Lithuanian foreign trade. Lithuanian integration into the EU opened huge possibilities for Lithuanian foreign trade. It was determined that in recent years export of Lithuanian small and medium-sized enterprises goods into EU countries and import from the EU comprised the biggest share of all export and import. However, in Lithuania is observing unevenness of small and medium-sized enterprises foreign trade development by counties.

The analysis of scientific ideas and attitudes helped to distinguish various attitudes of scientists towards problems of the gains from small and medium-sized enterprises foreign trade. In the scientific literature benefit of foreign trade for country is evaluated using indicator of trade conditions which is calculated as proportion of country’s export price index and import price index. This indicator helps to form country’s foreign trade policy. The aim of the research is to examine the changes of foreign trade conditions of Lithuanian SME in the context of European economic integration and foresee the ways of improvement. Seeking for this aim, in the paper are presented the basic indices of estimation of foreign trade conditions; analysis of foreign trade condition’s indices of Lithuanian small and medium-sized enterprises. Lithuanian foreign trade conditions of SME are estimated by counties and ways of improvement of foreign trade conditions’ situation are presented in this paper.

The object of this research is Lithuanian foreign trade conditions of small and medium-sized enterprises.

The methods of research are: analysis and synthesis of the scientific literature discussing the problems of foreign trade conditions; the systematic statistical data analysis of Lithuanian foreign trade of small and medium-sized enterprises.

The analysis showed that interregional contradictions increase due to uneven development of territories. Therefore, regional policy performed by the state must pay attention to peculiarities of their development. Complex of means for security of stability and sustainability of development of Lithuanian regions is necessary. In decreasing interregional contradictions special role may be played by purposeful support provided to export by the state that would help to diversify its marketable structure and extend assortment of imported ready production. Encouraging export development it would be purposeful to improve export credit insurance system. These means would help to develop export of small and medium-sized enterprises.