Instituto de Estudios Políticos y Derecho Público "Dr. Humberto J. La Roche"
de la Facultad de Ciencias Jurídicas y Políticas de la Universidad del Zulia
Maracaibo, Venezuela
Esta publicación cientíca en formato digital es continuidad de la revista impresa
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Vol.41 N° 76
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Vol. 41, Nº 76 (2023), 259-273
IEPDP-Facultad de Ciencias Jurídicas y Políticas - LUZ
Production of engineering products as
an element of social growth in the global
world: legal factor of development
DOI: https://doi.org/10.46398/cuestpol.4176.14
Viktoriia Nekhai *
Yuliia Voloshchuk **
Larisa Satyr ***
Kateryna Voloshchuk ****
Oleg Kravets *****
Abstract
The purpose of the article is to justify the need to develop
the production of engineering products as an element of social
growth in the global world and to improve the legal environment
as a basis for this development. The research methodology
is based on empirical, analytical methods, legal means of
prevention, regulation and resolution of business development problems.
Competitive struggle stimulates the development of enterprises, the
problem creates new opportunities for business and market development
stimulates social growth. The dened development chain is an element
of globalization. It conrms the expediency of improving the legal eld of
activity of Ukrainian enterprises developing machine-building products
in the direction of promoting the progress of their enterprises, import
substitution and popularization of Ukrainian products. In the conclusions,
it is recommended to use dierentiation as a promising method of bringing
Ukrainian enterprises to new markets, reaching foreign consumers and
establishing them as a priority supplier of high-quality machine-building
products.
Keywords: internationalization; dierentiation; globalization; legal acts;
technical means and society.
* Dmytro Motorny Tavriya State Agrotechnological University. ORCID ID: https://orcid.org/0000-
0003-1184-6776
** Higher educational institution "Podillia State University". ORCID ID: https://orcid.org/0000-0002-
5629-9502
*** Bila Tserkva National Agrarian University. ORCID ID: https://orcid.org/0000-0003-0040-6863
**** Higher educational institution "Podillia State University". ORCID ID: https://orcid.org/0000-0003-
0855-8781
***** Dmytro Motorny Tavriya State Agrotechnological University. ORCID ID: https://orcid.org/0000-
0002-5643-0910
260
Viktoriia Nekhai, Yuliia Voloshchuk, Larisa Satyr, Kateryna Voloshchuk y Oleg Kravets
Production of engineering products as an element of social growth in the global world: legal
factor of development
Productos de ingeniería como elemento de crecimiento
social en el mundo global: factor jurídico de su
desarrollo
Resumen
El objeto del artículo es justicar la necesidad de desarrollar la producción
de productos de ingeniería como elemento de crecimiento social en el
mundo global y mejorar el ámbito jurídico como base de este desarrollo.
La metodología de investigación se basa en métodos empíricos, analíticos,
medios legales de prevención, regulación y resolución de problemas de
desarrollo empresarial. La lucha competitiva estimula el desarrollo de
las empresas, el problema crea nuevas oportunidades para los negocios
y el desarrollo del mercado estimula el crecimiento social. La cadena de
desarrollo denida es un elemento de la globalización. Se conrma la
conveniencia de mejorar el campo legal de actividad de las empresas
ucranianas que desarrollan productos de construcción de maquinaria en
la dirección de promover el progreso de sus empresas, la sustitución de
importaciones y la popularización de los productos ucranianos. En las
conclusiones, se recomienda utilizar la diferenciación como un método
prometedor para llevar a las empresas ucranianas a nuevos mercados,
llegar a los consumidores extranjeros y establecerlos como un proveedor
prioritario de productos de construcción de maquinaria de alta calidad.
Palabras clave: internacionalización; diferenciación; globalización;
actos jurídicos; medios técnicos y sociedad.
Introduction
The beginning of the process of globalization, that is, worldwide social,
economic, political, cultural, integration is connected in time with the
transition of the economies of developed countries to the post-industrial
phase of development.
For enterprises in those industries that produce technical means and
for which, most often, production is multi-series, it is especially important
to develop individual strategies for conquering the market, that is,
consumer preferences. Productions with simple technologies are more
exible and can quickly adapt to new needs, and for the high-tech eld of
mechanical engineering, it is necessary to search for new modern methods
of development.
It is a responsible link in management activity, it needs a scientic
approach that harmonizes economic and social growth. Legal support for
261
CUESTIONES POLÍTICAS
Vol. 41 Nº 76 (2023): 259-273
the development of these enterprises is important. It is necessary to take
part in the formation of laws, norms and development programs under
the conditions of knowledge of the needs not only of producers, but also of
society. To solve such a task, it is necessary to nd or independently develop
and implement global strategies of activity in the market of machine-
technical products. The development of enterprises - producers encourages
social growth. Improving the legal framework for their development is an
urgent need.
1.Objectives
The purpose of the article is to justify the need to develop the production
of mechanical and technical products as an element of social growth in the
global world, and to improve the legal eld as the basis of this development.
2. Materials and methods
Using general scientic methods of analysis and synthesis, complexity,
empirical research, expert comparison, the stages of development of the
machine-building complex of Ukraine, the eld of agricultural machine-
building, were investigated. The obtained knowledge allows us to draw
conclusions about the existence of a number of problems in the development
of enterprises and promising solutions. (Nikitenko et al., 2023) As methods
of positive inuence on development, it is advisable to adopt the following:
a method of dierentiating technical products taking into account the
specics of demand, a method of ensuring the eect of its uniqueness,
additional value for the consumer, a method of ensuring a combination of
value for the consumer and utility for the producer.
The methodology of social growth is formed due to the selection and
combination of individual methods of inuencing this process. In addition
to direct methods of provision, there are indirect ones. Such methods are
more complex and require concentration of eorts not directly on the
object, but on factors that indirectly aect the object. In the global world,
it is the indirect methods of inuencing the level of social growth that form
a larger share of inuencing factors. Such factors, in particular, include
those that inuence the development of the machine-technical products
market. These products ensure the production of means of production and
consumer goods.
The positive results of the production process are conrmed by the
successful sale of products. The formation of methodological principles
for the organization of the sale of mechanical goods requires a perfect
262
Viktoriia Nekhai, Yuliia Voloshchuk, Larisa Satyr, Kateryna Voloshchuk y Oleg Kravets
Production of engineering products as an element of social growth in the global world: legal
factor of development
knowledge of technical characteristics, the use of dierentiation as a
method of meeting the needs of buyers with dierent requirements for
product quality, which is also a factor of social growth.
The negative processes of the development of machine-building
enterprises take place against the background of the absence of legal barriers
for the factors that prompted them. This fact requires the application of
the method of adjusting the legal basis of the enterprise’s activity. Changes
and additions to the legal acts of this area should be based on a deep study
of the principles and circumstances of the activity, which is the task of
practitioners and scientists.
The legal acts in this area are:
Law of Ukraine “On stimulating the development of domestic
engineering for the agro-industrial complex” (dated February 7,
2002 No. 3023-ІІІ);
Decree of the President of Ukraine “On measures to develop the
domestic machinery market for the agro-industrial complex and
increase its production volumes” dated November 3, 2001 No.
1039/2001;
Resolution No. 1158 “On Approval of the State Target Program for
the Development of Ukrainian Villages (September 19, 2007, the
Cabinet of Ministers of Ukraine”.
Changes and additions to these and other legal acts were also adopted.
But in recent years, the task of providing the village with equipment and
import substitution has not yet been fullled. According to the aspirations
of the drafters of the new legal acts, their approval should stimulate an
increase in the volume of sales of domestic equipment for the agro-industrial
complex from 3.6 to 8.2 billion hryvnias. Their adoption does not require
additional nancial costs from the State Budget of Ukraine.
3. Results and discussion
The exceptional value of the machine-building complex of any country
lies in the fact that it provides tools for material production and the service
sector. Technical products are the basis of production. The machine-
building complex is the basis for the development of almost all branches
of production. Mechanical engineering is complex and structurally
dierentiated from branches of industry (Nekhai et al, 2011; 2021; 2022).
Researcher of socio-economic geography Josip Gіletsky, Roman Slivka,
Mark Bogovych noted that together with metalworking, it includes up to
200 dierent sub-sectors and industries.
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CUESTIONES POLÍTICAS
Vol. 41 Nº 76 (2023): 259-273
They can be grouped by the time of their origin, old, new and emerging
industries can be distinguished. It can be grouped by purpose (with a
selection of general, transport mechanical engineering, electronics and
electrical engineering, as well as agricultural, construction and road
mechanical engineering, instrument engineering, etc.), according to the
features of technological and spatial orientation... In the era of scientic
research and development, world mechanical engineering as a whole
became much more science-intensive. In advanced countries, it accounts
for more than 2/3 of all costs for research and design work in industrial
production. The transition from universal to more highly specialized
enterprises also became a general trend (Gіletsky et al., 2005).
The process of globalization aected both legal, economic, political
and cultural integration, as well as social development. It happened at
the intersection of the industrial and information eras. Let’s analyze how
globalization has aected the activities of enterprises producing mechanical
and technical products.
Globalization aected the production of mechanical and technical
goods already at the beginning of the 20th century. Emphasis in the
development of the production of machine-technical products was placed
on agricultural and transport engineering. It should be noted that even
in the past, agricultural machine building was a leading sub-branch of
machine building, which was aected by the demand for machines due to
the lack of labor in the agricultural steppes, as well as the availability of raw
materials (supplied by metal centers) and fuel.
Before the First World War, there were 138 medium and large
agricultural machine-building plants in Ukraine, which produced about
40% of all machine-building in Ukraine. Agricultural machine building
was concentrated in Bila Tserkva, Kharkiv, Odesa, Yelysavetgrad
(Kropyvnytskyi), Oleksandrivskyi, and Berdyansk.
The owners of factories for its production were mainly foreigners. And
yet, agricultural machine building did not cover the country’s demand,
and more than 40% of machines were imported from abroad, mainly from
Germany (Gіletsky et al., 2005). That is, the process of globalization touched
this industry quite a long time ago. Obviously, this industry provided jobs,
and its development was an impetus to increase the number of educated
people, to the development of society.
Let us present the view of economic globalization researchers Susan
Douglas and Samuel Craig on the main trends of globalization. “Such
trends lead to the fact that in many industries, competition does not take
place on the national or even regional market, but on an international scale.
As a result, in order to compete eectively, companies must develop global
marketing strategies...
264
Viktoriia Nekhai, Yuliia Voloshchuk, Larisa Satyr, Kateryna Voloshchuk y Oleg Kravets
Production of engineering products as an element of social growth in the global world: legal
factor of development
Dierences in the relative cost of labor, energy and other resources lead
to countries having dierent technologies, and this also aects the denition
of business... Dening the company’s driving force means identifying the
key aspects of the strategies on which attention will be focused. However,
this does not necessarily imply disdain for other aspects. Concentrating
major eorts on technology or product oerings does not mean that the
ability to meet market needs or identify key target segments can be ignored.
Rather, it allows you to determine priorities when allocating management
eorts and when evaluating new projects (Douglas and Craig, 1985).
Researcher Researcher David Buisson notes:
Trade in standardized goods is the largest business in the world, and every
year its volume continues to grow. 70% of the 125 most important sectors of the
world economy receive more than half of their export revenues from the sale of
primary products. The ever-changing situation, ever-increasing competition and
the increase in the number of large multinational companies aect the nature
of global product markets, while the role of marketing as one of the aspects of
business activity is increasing (Baker, 2002: 577).
The author points to competition as a force that aects the development
of enterprises, but one should not forget that it can lead to the disappearance
of an enterprise, and sometimes an industry.
Such a threat exists, obviously, for many branches of the economy of
Ukraine. For example, for the country’s agricultural machinery industry,
a situation has arisen when foreign-made machinery enters the country’s
market in large quantities. The purchasing power of domestic agricultural
producers is low, so the market oers used foreign machinery.
At the same time, domestic factories for the production of agricultural
machinery, components and repair kits for it produce products that are quite
aordable in terms of price indicators, but improper sales organization is
noted and, as a result, preferences on the side of foreign models.
Jean-Jacques Lambin points out the driving forces behind
competitiveness management in an industry:
A rm’s ability to gain a competitive advantage in its base market depends not
only on the direct competition it faces, but also on other forces such as potential
market entrants, substitute goods, buyers and suppliers. The rst two forces are
threats, and the other two are indirect, depending on their ability to dictate their
demands. The company’s prot potential in the commodity market is determined
by the complex inuence of all ve forces (Lambin, 2006: 303).
With this statement, Jean-Jacques Lambin indicates that the
development of enterprises under the conditions of dierentiation of
production solves such social issues as providing consumers with more
unique goods, those that have a greater value for consumption, and needs
are satised most fully. In addition, the degree of awareness of novelties
increases, which generates new requests.
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CUESTIONES POLÍTICAS
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The withdrawal of the machine-building complex of Ukraine from the
crisis requires, in particular, the development of a national program for
the development of agricultural machine-building, which provides support
at the legislative level for the production of technological complexes of
machines and equipment for agriculture, food and processing industry,
bringing the production of new types of nal products and parts to the level
of ensuring domestic needs of farmers by 70%.
Without eective legislative and nancial support, powerful plans for
the development of the agricultural machinery industry cannot be achieved.
An investment program in this industry with the involvement of foreign
capital can provide an opportunity for the development of enterprises. The
development goals must be consistent with the legal framework, so it is
necessary to focus on its improvement and bringing it closer to reality.
Thus, the authors of scientic research and development on the
development of the machine-technical products market are united in the
fact that they consider it an important element of social growth in the global
world.
The state of the modern world economy determines the situation when
increasing production volumes is no longer synonymous with success in
business. These circumstances became an incentive for a large number of
companies to improve the eciency of existence, change their strategy in
the market and move from the principle of “produce as much as possible”
to the principle of “maximally satisfying the client”. The “seller-buyer”
relationship has also changed signicantly, the emphasis has shifted to the
“buyer” (client).
The rule “they will buy everything we make” stopped working, and
the term “customer-oriented company” appeared. The erce struggle
for customers continues, which requires exibility, new ideas, products
and services, quick access to new markets, cost reduction, etc. (Strategic
directions of the development of agriculture of ukraine for the period until,
2020). In this way, the strategic directions of the development of agriculture
and agricultural engineering in Ukraine were determined.
Thus, the main factors of development and transition to market
economic conditions for enterprises that produce technical means are the
need for means of production and competition. Social challenges dictate
the need to develop this market. Enterprises that produce standardized
goods primarily became participants in globalization.
We will analyze the factors and stages of development of enterprises
in the eld of mechanical engineering and its sub-sector (agricultural
mechanical engineering), as an element of social growth in the global world
(table 1).
266
Viktoriia Nekhai, Yuliia Voloshchuk, Larisa Satyr, Kateryna Voloshchuk y Oleg Kravets
Production of engineering products as an element of social growth in the global world: legal
factor of development
In such conditions, the struggle for a buyer is erce for enterprises in
those industries that produce technical means of production.
In the market of such goods, the «seller-buyer» ratio was in favor of
the buyer. And the process of globalization of markets has contributed to
this – goods that are a signicant competition for domestic producers enter
the national markets. If the national industry is strong, it will overcome
the competition. If it is weak, the prerequisites for its collapse may arise
due to the gradual exit from the competitive struggle of individual domestic
enterprises.
Already now, the process of globalization has aected the development
of various branches of the Ukrainian economy in a certain way. The
enterprises of some entered foreign markets and got the opportunity to
distribute their products more protably than in the domestic market, the
enterprises of others, on the contrary, suered a signicant defeat, which
was manifested in a decrease in sales gures, and, as a consequence, in loss
of prots, reduction of jobs, loss of personnel, which was manifested by a
decrease in the level of social growth of the population.
These negative processes took place against the background of the
absence of legal barriers for the factors that prompted them.
Globalization has aected the eld of mechanical engineering for
agriculture. The situation with the production of agricultural machinery
is ambiguous: many enterprises have sharply reduced production in
conditions of economic instability, and some are gradually modernizing
and re-equipping.
Thus, the Kaliniv factory (Vinnytsia region) recently produced new
planters with the help of Germany (the planned capacity is 3 thousand
planters per year, which fully meets the needs of Ukraine). Small enterprises
producing modern grain harvesters, which correspond to Western
analogues, operate in Kharkiv, Berdyansk, and Kherson. Machine-building
enterprises of Melitopol expand the range of hydraulics, mechanisms and
components for agricultural machinery and conquer new world markets.
It is quite clear that agricultural engineering must adapt to the
interests and needs of farmers in full accordance with the plans for the
development of the agricultural sector. There are 370 enterprises operating
in domestic machine building for the agro-industrial complex, of which
120 are specialized. Almost 70,000 workers work at the enterprises and
organizations of the industry, more than 4,000 names of machines
necessary for the execution of technological processes in agro-industrial
production are manufactured.
The capacities of enterprises in the industry allow production of products
worth 10.0 billion hryvnias. At the same time, agricultural machinery is
267
CUESTIONES POLÍTICAS
Vol. 41 Nº 76 (2023): 259-273
constantly being imported into Ukraine, which signicantly narrows the
domestic machinery market for domestic machine-building enterprises for
the agro-industrial complex.
Table No. 01: Evolutionary factors (internationalization, globalization) of the
development of the machine-technical products market.
Period Accents of activity Factors
The rst half of the
19th century
The appearance of the
rst enterprises for serial
production of means of
production (mainly tools) for
agriculture
The need for means of
production to replace
manual labor and
intensify the production
of agricultural products
The second half of the
19th - the beginning
of the 20th century
(internationalization
of the world economy)
Expansion of production
due to the production of
machines and equipment for
sugar factories and oil mills
The need for funds for
enterprises processing
agricultural raw
materials
The beginning of the
20th century - the
beginning of the
First World War
(internationalization
of the world economy)
The emphasis in the
development of mechanical
engineering was on
agricultural and transport
mechanical engineering.
Agricultural mechanical
engineering is becoming
a leading sub-branch of
mechanical engineering
Growing demand for
machines due to the
lack of labor in the
agricultural steppes, as
well as the availability of
raw materials and fuel
The First World
War - the beginning
of the 50s
(transnationalization
as the next stage
on the way to
globalization).
The beginning of the
globalization process is
connected in time with the
transition of the economies
of developed countries to
the post-industrial phase of
development. In Ukraine,
138 medium and large
agricultural engineering
factories produced about
40% of the country’s entire
engineering
Growing demand for
agricultural machinery.
Agricultural machine
building did not cover
the country’s demand,
and more than 40% of
machines were imported
from abroad, mainly
from Germany
The 80s - the
beginning of the
2000s (globalization
of the world economy)
The dierence in the relative
cost of labor, energy and
other resources has led
to the development of the
latest technologies for the
production of agricultural
machinery. Increasing the
volume of production of
agricultural machinery is
no longer synonymous with
success in business
The need to develop
a strategy for market
activity and to move
from the principle of
«produce as much
as possible» to the
principle of “maximum
satisfaction of the need”
268
Viktoriia Nekhai, Yuliia Voloshchuk, Larisa Satyr, Kateryna Voloshchuk y Oleg Kravets
Production of engineering products as an element of social growth in the global world: legal
factor of development
Modernity
(globalization of the
world economy)
To compete eectively,
engineering companies must
develop global marketing
strategies. It is important
to work out individual
strategies for winning
consumer preferences.
There is an element of social
growth in this.
The need to develop
methods of inuence
on the market in order
to cause the emergence
of a need and the
formation of a consumer
segment
Period Accents of activity Factors
The rst half of the
19th century
The appearance of the
rst enterprises for serial
production of means of
production (mainly tools) for
agriculture
The need for means of
production to replace
manual labor and
intensify the production
of agricultural products
The second half of the
19th - the beginning
of the 20th century
(internationalization
of the world economy)
Expansion of production
due to the production of
machines and equipment for
sugar factories and oil mills
The need for funds for
enterprises processing
agricultural raw
materials
The beginning of the
20th century - the
beginning of the
First World War
(internationalization
of the world economy)
The emphasis in the
development of mechanical
engineering was on
agricultural and transport
mechanical engineering.
Agricultural mechanical
engineering is becoming
a leading sub-branch of
mechanical engineering
Growing demand for
machines due to the
lack of labor in the
agricultural steppes, as
well as the availability of
raw materials and fuel
The First World
War - the beginning
of the 50s
(transnationalization
as the next stage
on the way to
globalization).
The beginning of the
globalization process is
connected in time with the
transition of the economies
of developed countries to
the post-industrial phase of
development. In Ukraine,
138 medium and large
agricultural engineering
factories produced about
40% of the country’s entire
engineering
Growing demand for
agricultural machinery.
Agricultural machine
building did not cover
the country’s demand,
and more than 40% of
machines were imported
from abroad, mainly
from Germany
The 80s - the
beginning of the
2000s (globalization
of the world economy)
The dierence in the relative
cost of labor, energy and
other resources has led
to the development of the
latest technologies for the
production of agricultural
machinery. Increasing the
volume of production of
agricultural machinery is
no longer synonymous with
success in business
The need to develop
a strategy for market
activity and to move
from the principle of
«produce as much
as possible» to the
principle of “maximum
satisfaction of the need”
269
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The 2010s -2022s To compete eectively,
engineering companies must
develop global marketing
strategies. It is important
to work out individual
strategies for winning
consumer preferences.
There is an element of social
growth in this.
The need to develop
methods of inuence
on the market in order
to cause the emergence
of a need and the
formation of a consumer
segment
Source: (Gіletsky et al., 2005).
It is quite clear that agricultural engineering must adapt to the
interests and needs of farmers in full accordance with the plans for the
development of the agricultural sector. There are 370 enterprises operating
in domestic machine building for the agro-industrial complex, of which
120 are specialized. Almost 70,000 workers work at the enterprises and
organizations of the industry, more than 4,000 names of machines
necessary for the execution of technological processes in agro-industrial
production are manufactured.
The capacities of enterprises in the industry allow production of products
worth 10.0 billion hryvnias. At the same time, agricultural machinery is
constantly being imported into Ukraine, which signicantly narrows the
domestic machinery market for domestic machine-building enterprises for
the agro-industrial complex.
Further stagnation of machine-building and equipping the agricultural
sector with foreign machinery will lead to complete dependence on its
supply and will create a direct threat to the food security of the State, since
the countries producing machinery will be able to dictate the nomenclature
and volume of production of Ukrainian products to the agricultural sector
of Ukraine (The system of material and technical support in Ukraine and
the formation of the means of production market, 2019). In order to avoid
this, it is necessary to develop our own mechanical engineering for the agro-
industrial complex and, in the conditions of the global nancial crisis, to
support the domestic manufacturer by limiting the import of machinery for
the agro-industrial complex into Ukraine.
The purpose of the adjustment of the national legislation is to limit
the import of foreign machinery into Ukraine, both new and used, and to
prohibit the use of funds provided to agricultural producers by the State
budget under all budget programs as aid, subsidies and support for the
purchase of foreign machinery production.
There is no doubt that in the era of globalization, the driving force
behind almost all processes taking place in the economy is competition.
Thanks to the management of this process, the process of transition from
one permanent state to another takes place.
270
Viktoriia Nekhai, Yuliia Voloshchuk, Larisa Satyr, Kateryna Voloshchuk y Oleg Kravets
Production of engineering products as an element of social growth in the global world: legal
factor of development
It was she who gave rise to a whole series of bankruptcies of enterprises
during the transition to the market. Industries have disappeared in some
countries. Most often, this was explained by the severance of economic
ties with enterprises located abroad. Not everyone managed to recreate
past relationships or not as quickly as they would have liked. Changes in
the world and in individual countries took place at dierent speeds. Some
connections did not renew and were not replaced by others.
For the economies and industries of the countries of the post-Soviet
space, globalization processes are an impetus for development, but also
a signicant test. Those economic structures that have established an
eective management system taking into account market requirements and
focusing on the needs of society managed to survive the competition.
Thus, A. Chernyavskyi characterizes the impact of globalization on
development as follows:
The most favorable economic results from globalization are obtained by
industrially developed states. Due to trade, investment, access to external sources
of resources, developed countries as a result of globalization have the opportunity
to constantly replace low-skilled labor, using its inow from other countries.
Globalization poses the greatest threat to developing countries, which experience
a signicant lack of qualied personnel, economic infrastructure, institutions, and
economically determined programs for the realization of available opportunities
(Chernyavsky, 2000: 37).
But, in our opinion, one should not completely agree with such a harsh
assessment of the author. The need for qualied personnel, economic
infrastructure, institutions, and economically determined programs for the
realization of available opportunities entail the need for jobs and solve the
problems of employment of the population, which raises the social level.
Taking into account the peculiarities of the machine-building industry
product, it should be pointed out that the organization of the promotion
of machine-technical products should begin at the production stage with
eorts in the direction of dierentiation.
Jean-Jacques Lambin noted:
Pointing out dierent ways of winning in the competition, the author
emphasizes the special power of dierentiation, which is very important for
industries that produce means of production and for which victory in the
competition has not yet acquired certain dened forms: In order for the strategy of
dierentiation to lead for a positive result, the following conditions must be met:
dierentiation should lead to the emergence of something
unique, and not to a simple price reduction;
the element of uniqueness must represent value for buyers;
this value may reect increased eciency (more complete
satisfaction) or reduced costs;
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the process of dierentiation must be permanent so that
competitors cannot reproduce it in the near future;
the price premium that buyers are willing to pay must exceed
the inated costs incurred by the rm in the process of creating
and maintaining an element of dierentiation;
nally, in the case when the element of dierentiation is not
too obvious and not familiar to the market, the rm must
develop a certain system of signals with the help of which the
consumer can learn about the appearance of a new element
(Lambin, 2006, p.650).
Dierentiation can direct machine-building enterprises to new markets,
help to reach foreign consumers, and establish itself as a priority supplier of
high-quality engineering products. This chain of development is an element
of globalization. Thus, competition encourages development, the problem
creates new opportunities, and market development - social growth in the
global world.
Comparing all the specied conditions with the circumstances of the
mechanical engineering industry, whose products are goods of industrial
purpose and standardized, we can agree that these conditions are acceptable
for the studied industry. Dierentiation is necessary for the products of the
engineering industry. The specicity of the method of dierentiation of
mechanical engineering products is that it is focused on the nal consumer,
who is himself a manufacturer (manufacturing enterprises).
It should be implemented in the form of quality improvement, price
optimization, service provision, and consulting. Staying competitive in
the era of globalization of engineering markets means updating the range.
This means constant eorts to improve the organization of production
management and the need to support activities at the level of legal regulation
of economic relations.
Conclusions
The machine-building complex is the basis for the development of other
branches of production. Factors and stages of development of enterprises
that produce mechanical and technical products, in particular, mechanical
engineering for agriculture and legal support for their development, are
analyzed.
For the enterprises of the countries of the post-Soviet space, globalization
processes are a test and, at the same time, an impetus for the realization
of available opportunities. Competitive struggle encourages development,
272
Viktoriia Nekhai, Yuliia Voloshchuk, Larisa Satyr, Kateryna Voloshchuk y Oleg Kravets
Production of engineering products as an element of social growth in the global world: legal
factor of development
a problem creates new business opportunities, and market development -
social growth. Such a chain of development is recognized as an element
of globalization. The statements of the authors of scientic studies give
reasons to believe that the production of machine-technical products is
becoming an important element of social growth in the global world.
It is recommended to use dierentiation as a promising method
of directing Ukrainian enterprises to new markets, reaching foreign
consumers and establishing themselves as a priority supplier of high-
quality engineering products.
Legal acts regarding the activities of agricultural engineering enterprises
are characterized as not perfect and partly irrelevant.
The expediency of improving the legal eld of activity of Ukrainian
enterprises-manufacturers of mechanical and technical products in the
direction of promoting the development of their enterprises, import
substitution and popularization of Ukrainian products is substantiated.
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Esta revista fue editada en formato digital y publicada
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Universidad del Zulia. Maracaibo-Venezuela
Vol.41 Nº 76