Organization and economics aspects to foreign economic activity agrarian enterprises in globalization

Abstract

In the dissertation work, the theoretical and methodological foundations are confirmed, and practical suggestions for organization and economics aspects to foreign economic activity agrarian enterprises in globalization are formed. The dissertation aims to demonstrate the organizational and economic activities of Chinese agricultural enterprises, analyze the theoretical basis of their external activities and establish effective mechanisms to ensure the sustainable development of Chinese agricultural enterprises. The theoretical part reveals the basic characteristics of the globalization process on the external activities of Chinese agricultural enterprises, and studies and compares the different views of scholars on the external activities of Chinese agricultural enterprises. Many scholars study the organization and economic activities of Chinese agricultural enterprises, and find that Chinese agricultural enterprises choose to invest abroad to further promote the economic growth of Chinese agricultural enterprises. Based on various industries, China's foreign investment in recent years has been rapid and long, both in terms of its total volume and in its flow. In agriculture, although the foreign investment is small, it is also on a rising trend. In order to meet the increasing demand of the world for food and other agricultural products and ensure national food security, China has increased foreign investment in agriculture year by year, from 281 million to $3.29 billion in 2016, and 1.2.8 times from $834 million to $14.89 billion in 2004.Entering 2015, China's agricultural enterprises have begun a wave of foreign investment, and Chinese agricultural enterprises have broader investment prospects for foreign countries. Based on the conducted research, currently, some domestic agricultural firms boast robust capital and advanced technical capabilities. However, they face constraints due to the scarcity of land, water, and other natural resources resulting from population growth. In recent years, an overemphasis on rapid national income and GDP growth has led to the inefficient use of natural resources, pollution, and an exacerbation of resource scarcity. The per capita farmland area is decreasing annually, leading to rising food supply issues and increasing agricultural product prices. These challenges hinder the progress of agricultural enterprises, forcing China to heavily depend on agricultural imports and placing significant strain on the domestic economy. For domestic agricultural enterprises, the expansive foreign market presents an opportunity. By enhancing foreign investment, these enterprises can tap into foreign resources and play a pivotal role in fostering their development. Currently, Chinese agricultural enterprise foreign investment remains modest. The coverage of agricultural foreign investment in countries is only a third of that in all Chinese industries, contributing to just a fifth of the economic output value. Throughout foreign activities, agricultural enterprises encounter numerous challenges. Addressing these issues is crucial for ensuring the stable development and competitiveness of Chinese agricultural enterprises in the international market. Unlike Chinese agricultural enterprises, foreign investment in western countries has a long and rapidly evolving history. Initially, Western enterprises invaded other countries, introducing industry and agriculture to colonies. Today, they implement systematic foreign investment cooperation strategies. Leveraging their strong financial and technical advantages, Western enterprises have gained absolute control over resource allocation. While China can draw insights from the rich foreign investment experience of Western enterprises, it's essential to recognize that these experiences are not entirely applicable. Chinese agricultural enterprises must develop their own foreign investment characteristics, considering the current strategic landscape and policy guidance. Meeting these challenges is imperative for China's agricultural enterprises to thrive in the international market. With the development of Belt and Road, China's agricultural enterprises in China's agricultural mainly foreign investment, through agricultural cooperation with other developing countries to accumulate investment experience, lack in practice and theory, research is basically static, in the face of the current changing international market environment and investment environment, countries, especially developed countries to strengthen investment barriers, should introduce dynamic research strategy, adopt dynamic policy implementation. With the current situation and situation of Chinese agricultural enterprises, this paper studies the external activities of Chinese agricultural enterprises and the dynamic policy orientation under the new situation. The foreign activities of Chinese agricultural enterprises is based on a new mode of foreign activities under the background of "Belt and Road" strategy. This work mainly focuses on the foreign investment situation, investment mode, risks, influencing factors of foreign investment and implemented policies, summarizes experience and absorbs the lessons of foreign investment from foreign developed countries, and puts forward the new foreign activities under the new situation, which can better promote the development of Chinese and Ukrainian agricultural enterprises. The scientific novelty of the obtained results lies in the substantiation of theoretical foundations and the development of practical recommendations regarding the impact of China agrarian enterprises, the selection of research methods to determine more effective forms of China agrarian enterprises outbound investment activities. The main provisions of this paper bring them to the level of scientific and applied development, and put forward relevant countermeasures and suggestions for the sustainable development of Chinese agricultural enterprises under the background of globalization. Their implementation will help to boost China's economic growth. The practical significance of the obtained results is that the theoretical provisions and methods proposed in the work deepen the research and practice of external activities of agricultural enterprises in China and provide the possibility of more effective management. The main theoretical provisions outlined in this work have reached the level of methodological developments and practical recommendations, are used and implemented in management practice. In particular, a system of risk assessment indices for foreign investment projects of Chinese agricultural enterprises in the context of globalization has been developed, which is aimed at a comprehensive dynamic assessment of existing risks in investment projects based on existing index systems and relevant research results, including the guidance of the Ministry of Trade on cooperation with foreign investments in order to promptly adjust the management strategy, as well as to mitigate potential investment risks. The theoretical and methodological foundations of the theory of empirical study of the behavior of direct investments of agricultural enterprises (Empirical study of direct foreign investments and their selection) have been improved; applied principles of forming an organizational and economic mechanism for realizing China's foreign economic potential against the background of the One Belt One Road strategy through the strengthening of international cooperation, the location of the global chain of agricultural industry; creation of an information platform for agrarian investments, increasing the ability of enterprises to withstand risks; formulation of an ideal policy of support for Chinese agricultural enterprises; conceptual principles of building an organizational and economic mechanism for realizing the foreign economic potential of Chinese agrarian enterprises in accordance with the "One Belt One Road" policy. The optimization of the foreign investment strategy of China's agricultural enterprises at the level of the government, industry and enterprises as part of the implementation of the "One Belt One Road" strategy opens a new path of development for Chinese agricultural enterprises. The author has developed a model for the implementation of the state policy for the regulation of foreign economic activity of agricultural enterprises based on the construction of an integrated institutional matrix for the systematization of the process of state regulation of economic activity, which is based on effective consolidation of the efforts of different levels of management, a clear demarcation and consolidation of the functions of authorities with an analysis of the actions of responsible persons in order to achieve the set goal; creation of a protective mechanism to protect the legal rights and interests of enterprises, improvement of foreign investment approval policy and streamline the approval process, strengthening of bilateral cooperation with the government; provision of tax benefits for foreign investments in agriculture; increasing investments in research funds for key areas of agricultural foreign investment; external financial support of agriculture through the introduction of a fund of direct foreign investments in agriculture; implementation of the system of insurance of foreign agricultural investments; strengthening the guarantor role of the state to prevent the risks of foreign investors to China's agricultural enterprises in the conditions of globalization.