Economics, Entrepreneurship, Management. – 2019. – Vol. 6, No. 1

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Economics, Entrepreneurship, Management / Lviv Polytechnic National University ; editor-in-chief O. Kuzmin. – Lviv : Lviv Polytechnic National University, 2019. – Volume 6, number 1. – 130 p. : il.

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    Cross-correlation relationship between intellectual property objects value and its price-forming factors
    (Lviv Politechnic Publishing House, 2019-02-26) Pozdnyakov, Y.; Lapishko, M.; Skybinska, Z.; Ukrainian Appraisers Association (UAA) Member; Lviv Polytechnic National University
    Valuation/appraising of intellectual property rights objects, such as brands and goodwill, using the Costs Approach, is based on different economic indicators of enterprises business activity. These indicators are used as a primary data for market value determination. These indexes are differently related to the cost of brands, and statistical relationship between these parameters researches, indisputably, presents both theoretical and practical interest. Because of the cross-correlation relationship closeness between assets market value and these primary data parameters directly depend estimation results accuracy and reliability. The work is verification of basic hypothesis, in obedience to that at the valuation/appraising procedure performing as primary data may be recommended to use those indicator parameters, which are characterized with the closest statistical relationship and, respectively, the highest crosscorrelation coefficient. We assume that these intangible assets are able to change value characteristics in both directions and change the annual depreciation sign during the separate periods of economic life, made it positive or negative. The purpose of the article is to define the quantitative estimations of cross-correlation coefficients, which determinates statistical relationship closeness between primary data economic parameters in Costs Approach. To analyze the question of selling, general and administrative (SG&A) expenses part choice, which must be attributed to the trademark value; to execute this index optimization. To perform the comparative analysis of cross-correlation relationship between the intellectual property objects value and most widely used price-forming factors. To execute the got results interpretation; to execute the analysis of economic measurements reliability improving possibilities, performed by independent expert appraising/valuation methods, by its accuracy increasing. It means researching and determination the most suitable primary data indexes for the market value and depreciation/obsolescence dynamic time changes indexes of intangible assets special kind, such as trademark and goodwill. The general methodological base of the article is scientific and special for the subject sphere of knowledge methods of scientific cognition. The choice of methodological approaches is conditioned by the specific of the economic measurements which are executed by independent expert appraising/valuation methods. The research is grounded on mathematical simulation and mathematical statistic quantitative methods. Research methodology also envisages generalization of previous publications results from scientifically-research sources and open information reports about the enterprises economic indicators. Base principles of independent expert appraising/valuation made the general methodological basis of the article, in particular - principles of Utility, Substitution and The Highest and of The Best Use. To the certain methods of research belongs the method of cross-correlation analysis and specialized methodologies of optimization with the use of results error minimization criterion. The time value of money theory implementation, in particular, is well-proved for the past periods cash-flows transforming to the modern valuation date, by compounding operation performing. It is set that the closest is statistical relationship between the appraised trademark value indexes and accumulated costs of advertising expenses, which are the part of selling, general and administrative (SG&A) expenses. At brand appraising/valuation procedure is not recommended to apply any accounting book-keeping amortization indexes, as they are not the reliable indicator of Depreciation/Obsolescence. It is educed that these types of the researched assets depreciation sign depends on their information support and development expenses cash flows, invested by owner. It is set that during the period of trademark existence a multiple change of depreciation sign on the separate time periods is possible. It depends on sufficient informative and advertisement support implementation. Certainly the list of these price-forming factors must be taken into account at market value and Depreciation/Obsolescence determination procedure. It is well-proven that this class intangible assets estimation value in general case of normal profitable enterprise activity must be determined with application of increasing market value model with negative Depreciation/Obsolescence.
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    Study of the current conditions and prospects of dairy production development in Ukraine
    (Lviv Politechnic Publishing House, 2019-02-26) Kubrak, N.; Kuzo, N.; Kosar, N.; Stepan Gzhytskyi National University of Veterinary Medicine and Biotechnologies; Lviv Polytechnic National University
    Analysis of marketing information conforms that the branch of milk production is of great importance in support of human balanced diet. Nowadays, Ukraine is a great producer of milk and takes the tenth position in the world rating of the largest producer countries. The aim of the article is to study peculiarities of development of the branch of dairy production in Ukraine under current conditions and in the future. To achieve the set goal, the authors of the work used the methods of comparison, statistical and system analysis, and forecasting based on trends. Basing on the analysis of secondary information it is argued that considerable reduction of milk production in Ukraine has lately caused reduction of the output of some kinds of dairy products. To estimate impact of the level of milk consumption and consumer price index on milk production in Ukraine, the authors of the research have developed a double-factor econometric model. According to the results of econometric modeling, it is determined that growth of consumption of milk and dairy products per 1 person in Ukraine by 1 % will cause increase of the output of milk by 1.327 %, while increase of the index of consumer prices for food products and soft drinks by 1 % will cause reduction of milk output by 0.255 %. A negative effect on development of the dairy market is done by deficiency of raw material and its low quality. It is determined that, according to expert estimates, Ukraine has great prospects in the field of dairy products export, and it is expected that until 2030, the world demand for dairy products will grow and it will be hardly satisfied by the principal countries, exporting those products. However, to increase export of their products, milk-processing enterprises of Ukraine should sufficiently improve parameters of dairy products quality. It is studied that growth of export of dairy products can result in deficiency of those products at the domestic market, because a considerable reduction of milk production in Ukraine has recently caused reduction of the output of some kinds of dairy products. Analysis of the market of dairy products also confirms that it experiences a severe competition and producers should actively introduce innovations in their marketing activity to be competitive. According to the research results, milk-processing enterprises can get competitive advantage due to introduction of advanced technologies, supply of new products at the market, production of organic products, opportunity of re-use of packaging, intensification of flexible pricing, expansion of the area of sale and attraction of new intermediaries, formation of consumers’ loyalty to the brand, choice of trade agents with the good image.
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    Marketing communications as a necessary prerequisite for efficient work of a philharmony
    (Lviv Politechnic Publishing House, 2019-02-26) Karyy, O.; Protsak, K.; Prosovych, O.; Lviv Polytechnic National University
    The purpose of the article is to summarize the peculiarities of marketing communications in the field of culture and arts and philharmonic in particular, to consider the financial component of the activities of the philharmonic and to propose measures for its improvement. Analyze modern creative means and tools of communication marketing and adapt them for activities of philharmonic. The article investigates that organizations of the sphere of culture and arts and philharmonic society, in particular, operate in conditions of instability, great competition and uncertainty. Their success depends directly on the number of visitors. Therefore, marketing communications play an extremely important role in the life of cultural and arts organizations and the philharmonic. In general, the marketing of organizations of the socio-cultural sphere and the philharmonic, in particular, consists of the same components – good, price, place and promotion, but in the philharmonic they have their own specific, which is that the product can be divided into the main and the additional. It is also noted that the implementation of philharmonic events non-commercial and commercial marketing leads to the same effects – a high commercial outcome. The difficulty in promoting of philharmonic arts services is due to lack of funds for such events. In order to realize marketing measures of a flexible strategy of cultural and arts organization, it is proposed to implement the latest financial technologies – fundraising and crowdfunding. Elements of scientific novelty can see in construction of an algorithm of action in the application of fundraising, as well as in generalization of modern types of marketing communications tools for the philharmonic. The practical value of this study is to elaborate on the application of four possible to promote the future of the Philharmonic's concert, namely Event- Marketing, Art-Marketing, Entertainment Marketing and Guerrilla Marketing. The advantages, disadvantages and costs of each of these promotion methods are outlined. The research found that Guerrilla marketing or Art-marketing is inappropriate due to its quot; aggressive" way of promoting and possible problems with obtaining permission, while Entertainment-marketing and Event marketing are recommended for use in the Philharmonic. Also the main stages of the use of Event-marketing are described in detail. It is recommended to borrow foreign experience. For the Philharmonic, it is suggested to use the experience of the world class chamber orchestra of Manchester Kamerata. This orchestra promotes its cultural product very flexible and attract the maximum number of viewers. Further research will address the more detailed study of the effectiveness of marketing activities of the cultural and arts organizations.
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    Retrospective and modern trends of development of Ukrainian Customs system
    (Lviv Politechnic Publishing House, 2019-02-26) Melnyk, O.; Adamiv, M.; Kots, I.; Lviv Polytechnic National University
    At the present moment, Ukraine's customs system is at the stage of becoming an independent executive body in the system of state authorities. This phase launches a fundamentally new vector for the development of the national customs system, which should ensure the progressive improvement of the work of customs authorities in accordance with European principles, norms and standards. The reform of Ukraine's customs system should be based on the identification of key problems in the customs sphere and the development of effective measures for their solution. In this context, the necessity of researching the retrospective and current trends of the development of the national customs system of Ukraine is being updated, which will enable to form a substantiated information base. On the basis of studying and analyzing the history of the development of the customs system in the terms of independent Ukraine, four key stages were identified according to the organizational and structural principles. In particular, the first stage of development of the national customs system in the conditions of a sovereign state is connected with the creation and operation of the State Customs Committee of Ukraine (1991–1996); the second stage can be identified with the activity of the State Customs Service of Ukraine (1996– 2012); the third stage in the history of the development of the national customs system concerns the functioning of the customs authorities within the structure of the Ministry of Revenues and Collections of Ukraine (2012– 2014); the fourth stage is connected, first of all, with the reorganization of the Ministry of Revenues and Collections into the State Fiscal Service of Ukraine, which includes customs authorities (from 2014 to the present). It was established that the first stage in the history of the development of the customs of independent Ukraine was characterized by significant problems related to the withdrawal of Ukraine from the USSR, the formation of an independent state and the transition of the domestic economy from the administrative-command type to the market model. Despite difficult circumstances, this period reflected the first positive changes in the development of the national customs system on the basis of strengthening its key functions. At the second stage, the qualitative improvement of the organizational structure of the customs authorities and the active development of international customs cooperation took place. It was determined that the third stage became a critical turning point, which led to the gradual destruction of the national customs system in the context of tax and customs union. The fourth stage was a continuation of the previous stage and only deepened the unjustified priority of the fiscal function, the abandonment of security-protective, service, control-regulating functions, as well as international customs cooperation. It is proved that such tendencies are ungrounded in the conditions of European integration and necessitate the launch of a new fifth stage of the development of Ukraine’s customs system, which will represent a large-scale structured and systematic reform of the customs sphere and bring it out of a state of prolonged stagnation to a qualitatively new stage of development. On the basis of the comparative analysis of key time and cost indicators of customs servicing of international trade in Ukraine, countries of Europe and Central Asia, as well as countries of the Organization for Economic Cooperation and Development with high income, according to the International rating “Doing Business", it was established that today Ukraine still has rather low places, but at the same time demonstrates the gradual improvement of most customs parameters. This confirms the fact that the domestic customs system is still characterized by the existence of a number of significant problems of an objective and subjective nature, related to the low level of efficiency of measures to simplify customs procedures and promote legal international trade, high level of bureaucracy of customs formalities, the presence of corruption component, low level of development of customs infrastructure and logistics of customs bodies, inconsistency and nonharmonization of customs legislation with European standards, lack of efficient management of customs authorities, etc. In the context of intensification of European integration of Ukraine, such problems should be properly resolved on the basis of large-scale and substantiated reform of the national customs system, which will enable to intensify the international economic relations of the state, foreign economic activity of domestic enterprises, increase the level of national security and ensure the progressive development of the national economy
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    An approach to modelling the Impact of international migration on the economy of receiving country
    (Lviv Politechnic Publishing House, 2019-02-26) Chernobay, L.; Adamyk, V.; Malibroda, S.; Lviv Polytechnic National University
    Being an objective element of the global economic system, international migration produces a significant impact on the performance of individual countries nowadays. The economic impact of international migration is driven by various factors, primarily the type of international migration (labour migration, refugee migration, family migration, or student migration) and the legislation of a receiving country which determines the ability of international migrants to interact with the host country’s economy and to produce the respective impact. The hypothesis of this study builds on the premise that legislation of the receiving country determines the “capabilities of migrants”, that is a set of actions that can be performed by an international migrant on the territory of receiving country, the consequences of which will produce an impact on the economy of receiving country. We identified the following capabilities: the ability to enter and stay in the country; the ability to be employed; the ability to obtain social protection, education and citizenship; the ability to own and dispose of property. Capabilities are not firmly attached to particular types of international migration. For example, the capability to be employed is associated with such types of migrants as labour migrants, refugees, family and other migrants, depending on the country. The influence of international migrants on the economy of receiving country is determined not by the type of migration, but by the combination of actual capabilities that correspond to certain types of migration. We found five combinations of migrants’ capabilities that determine four types of economic relationships between the migrants and the receiving country’s economy. Each type of economic interaction produces a different effect on the economy of receiving country and can be changed by means of expanding or constraining certain capabilities of migrants, which requires that respective amendments be introduced in the legislation of the receiving country. The scientific appropriateness of our approach to modelling the impact of international migration on the economy of receiving country is based on the analysis of the global legal framework for purposes of identifying the rights that ensure the respective capabilities of migrants, as well as on the application of SNA-2008 principles to modelling the impact of international migration on the economy of receiving country. In this study, we used the method of analysis to single out the rights that ensure the migrant’s capabilities; the method of generalization to reveal attributes, based on which separate rights could be matched with respective capabilities; the method of explanation to describe the notions of “migrant’s capabilities” and “type of economic interaction”; the method of classification to separate specific types of economic interaction; and the method of modelling to describe the relationship between the legislation of the receiving country, the migrants’ capabilities, the types of international migrants, and the impact of such migrants on the economy of receiving country.
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    Strategic planning of a city development on the results of the previous strategic plan of its development
    (Lviv Politechnic Publishing House, 2019-02-26) Karyy, O.; Hlynskyy, N.; Girna, O.; Lviv Polytechnic National University
    The goal of the article is to study the practice of strategic management of the development of territorial communities in Ukraine and to formulate recommendations on the principles of updating long-term and medium-term priorities of local development on this basis. According to the analytical review and the results of empirical studies, the main types of possible reactions of local authorities to change have been substantiated, among which are singled out the following ones as disregard of changes, delay of reaction, symptomatic response (reaction), partial gradual changes, radical changes. The analysis of the historical background and substantial logic of strategic planning practice transformation were carried out at the municipal level. Estimation of the current state of strategic planning of social-economic development of cities in Ukraine was conducted; the factors of influence on the formation of methodology of strategic plan development, which were implemented in local conditions, were defined. Based on the critical analysis of the methodological tools of strategic management of local development it is proved that the time for which strategic planning of city development is done, irrespective of time frames it is determined, contradicts the assumption of immutability of key environmental factors. On the basis of this, the problem of updating key categories of a strategic plan as a document that plays a formalizing role in the management of socio-economic development of the city for the long term period is particularly important. On the analysis of the case of updating strategic plan of development of town Korosten it is shown that essential political, social, economic and demographic changes in Ukraine don’t allow to replicate the goals and directions of the development of self-governing territorial communities for a future period by establishing only new indicators and parameters. Consequently, it is necessary to review desirable trajectories of development as well as criteria on the basis of which evaluation of the success of this process will be made according to requirements of a changing external environment. It is found that the effectiveness of the implementation of the previously adopted strategic plan of local development is a prerequisite for awareness of the local community about the relevance of the development and adoption of a new strategic document for the next period of time. At same time it was found that the significant changes that have occurred not only in our country but the whole world for the past 5–10 years require a substantial rethinking of priorities virtually for all Ukrainian cities. It is proved that the development of a new strategic plan should be based on an assessment of the city progress on the basis of statistical indicators, on the level of achievement of planned in the previous strategic plan goals and evaluation of the city by its inhabitants and local entrepreneurs. It is simultaneously necessary pay special attention to new opportunities and threats that have emerged since the development of a previous strategic plan.
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    Social-culturological aspects of competition
    (Lviv Politechnic Publishing House, 2019-02-26) Zakcharchyn, G.; Lyubomudrova, N.; Lviv Polytechnic National University
    The social-cultural aspects of competition are highlighted as consistent pattern of its evolution. The role of social capital and social values in the competitive environment is emphasized. The accent is made on the refocusing of the key functions of the competition towards socialization. The importance of the development of fair competition, the emerging of the contemporary ethical competencies and culture of market behavior are stressed. Generalized and analyzed theoretical assertions of the past and modern researchers have caused the hypothesis of this study, which consists in assumption about the inevitability and objectivity of the spread of socio-cultural trends in the economic space, influencing the formation of the main directions and concepts of competition, rethinking the nature of competition, its content characteristics and basic functions. The scientific validity of the theses, covered in the article, is based on such approaches: the necessity of transition from the paradigm of “competitive struggle” to the paradigm of development of fair competition is substantiated; it is argued that the functions of competition will be transformed with the processes of socialization of labor, the growth of the role of social capital and the value of human factor in economic processes; it is proved that in the conditions of the expansion of integration processes and the growth of cultural integration, competition is filled with new content and requires an adequate mechanism; the position has been developed to identify the factors, forms, and the main positive and negative aspects of competition. An important component of the researches is the emphasizing of the role of social values as a motivator, aimed at the ethical relationships forming in a competitive environment.
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    Reserve and regulatory objects in accounting theory and practice: origins and evolution of the world accounting thoughtwithin the framework of the developments by the Western Ukrainian scientists of the 19th – middle 20th cent. (Opinion from the modern age perspective)
    (Lviv Politechnic Publishing House, 2019-02-26) Yaremko, I.; Lemishovska, O.; Lviv Polytechnic National University
    There are growing risks in the conduct of financial and economic activities by economic agents in the conditions of the modern economy, and because a reliable information base is needed both for management purposes and for market counterparties regarding the means actually available at an enterprise to overcome the risk of loss (reduction) of capital. Accounting and public reporting is the only tool that provides information in formalized data on the size of the reserve and insurance potential established by an entity. However, there are a number of problematic issues in modern theory and practice regarding the objective display of reserve and regulatory objects in the accounting and their provision in the public financial (corporate) reporting that actualize the multi-vectoral research both in the subject area of knowledge and in the system of interdisciplinary researches. The hypothesis of this research is the assumption of elaboration in past developments, including Western Ukrainian scholars, relevant to the modern theory and practice of ideas that can objectively be considered appropriate for the improvement of modern accounting of capital reserves, a means to enhance the validity of managerial decisions to a more adequate information provision. The article analyses the historical stages of the development of reserve and regulatory objects of accounting, evaluates the fundamental principles of the formation of accounting reserves in different accounting concepts in the evolutionary aspect by distinguishing the relevant ones among them for modern research. The scientific legitimacy of the ways and approaches proposed in this article to improve the conceptual foundations of the reservation system in modern accounting rests upon the use of historically formed ideas and is based on the following approaches: it is argued that accounting tools are an important component of any paradigm of reserve management, the only formalized information tool for disclosing the real state of the security of the capital employed by an enterprise; the formation of reserves is a consequence of one of the principles of accounting – the assumption of continuity of an enterprise, embodied in the modern concept (paradigms) of sustainable development. Using general scientific and interdisciplinary methods of cognition, traditional methods for historicalanalytical analysis (historical and retrospective, historical and comparative methods) and the techniques special for the sphere of accounting, the theoretical generalization was conducted of systematic approaches to organization of computational practise, evolutionary disposition of reserve and regulatory articles in accounting system and their characteristic positioning in separate accounting concepts and theories. A separate component of the study is the historiographical analysis and assessment of accounting reservation in unexplored works of Western Ukrainian theoreticians and in the practice of accounting. On the basis of the performed exploration, the following reasoning was provided regarding the author's conclusions about the appropriateness of the use of certain aspects of the historical developments in respect of regulatory principles in modern norms and regulation in any system of accounting standardization and the suggestions were substantiated about ways to adapt public accounting and financial reporting needs of modern economic conditions. On the basis of the received results, the expediency of use of approaches and techniques of organic and econometric balance theories was substantiated for the development of modern accounting reserve and regulatory objects, which confirms the relevance of research of such direction in general, and of this one in particular.
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    The development of synergistic effect in the diversified company
    (Lviv Politechnic Publishing House, 2019-02-26) Kozyk, V.; Zalutska, Kh.; Zalutsky, V.; Lviv Polytechnic National University
    The provision of effective activity of business entities requires a proper arrangement of work of all their structural subdivisions and their interaction, in particular, by making timely and informed strategic decisions. These decisions must include all areas and directions of activity, in particular, the relations with suppliers, consumers, contact audiences, market power in relation to main competitors, implementation of investment development programs, etc. Under such conditions the formation of a strategic set becomes of a particular relevance. Being a set of strategies of all levels, it will allow covering the maximum of each area of business entity activity. The article studies the possibility to make effective interconnections not only between the strategies of different levels but between the strategies of different business units of a diversified enterprise as well, which, taken together, will lead to the formation and use of synergistic effect by the enterprise at all levels of a strategic pyramid. Replacing a strategic set with a synergy strategic set for diversified enterprises, thus, will ensure their economic growth in a long-run period without the attraction of significant additional funds. Such development is caused by the formation and application of optimum (the most efficient) methods for enforcing the activity of one business units with others. The efficiency of a synergy strategic set is confirmed by a significant improvement of “Zakhar Berkut” ski resort activity during several years after its implementation. Such results cannot be achieved in one year, since it takes a certain time to combine and allow for all possibilities of the enforcement of one business units with others.
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    Economic evaluation of administration systems in the context of management business processes reengineering
    (Lviv Politechnic Publishing House, 2019-02-26) Kuzmin, O.; Ovcharuk, V.; Zhezhukha, V.; Lviv Polytechnic National University
    The article deals with the peculiarities of an economic evaluation of administrative systems in the context of management business processes reengineering. In particular, methodological approaches to the economic evaluation of such systems are described and characterized. It is concluded that under present conditions most of the projects on construction or improvement of administrative systems belong to the category of investment projects, which, accordingly, are related to investment costs. Consequently, this necessitates the implementation of commonly used in investment management methodical approaches for the economic evaluation of the investments’ efficiency in the administration systems. The main approaches to the economic evaluation of administrative systems in the frameworks of management business processes reengineering are outlined and characterized. They include traditional financial methods, probabilistic methods, qualitative analysis tools, financial, qualitative or combined models, portfolio analysis, budget approach, project approach. Thus, the traditional financial methods of the economic evaluation of the administration systems in the management of enterprises provide for the calculation of the payback period, the net present value, the internal or average rate of return, the profitability index, the level of investments’ return, etc. Among the methods and approaches to solving the problem, the estimated Total Cost of Ownership (TCO), IT Scorecard (consideration of customer projections, finance, processes and training and development in the frameworks of administrative processes in the enterprise and administration systems) on enterprise and administration systems), Activity Based Costing (ABC), Cost/Schedule Control Systems Criteria (C/SCSC), Applied Information Economics (AIE), Total Value of Opportunities (TVO), Total Economic Impact (TEI), Rapid Economic Justification (REJ), etc. The hypothesis about the influence of administrative systems on the resulting indicators of a business entity was confirmed based on the results of calculations. This problem has been solved using correlation-regression analysis. Net income from sales of products (which is known to be one of the most representative absolute indicators of the economic efficiency of production and economic activity of the enterprise) was selected as the resulting (or dependent) variable. Among the independent variables (factor characteristics), the indicators of the level of administrative systems formation (R ) and the level of their stability (R ) were chosen to solve the problem. Appropriate calculations to verify the hypothesis were done for the activities of a number of domestic business entities.
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    Financial flows in the field of insurance
    (Lviv Politechnic Publishing House, 2019-02-26) Alieksieiev, I.; Mazur, A.; Moroz, A.; Lviv Polytechnic National University
    The introduction of an insurance culture in Ukraine should be based on theoretical studies in this area. The authors carried out a certain review of Ukrainian scientific publications devoted to the development of the insurance market, the analysis of the state of insurance and insurance companies, historical experience and comparative analysis of insurance activities of Ukrainian and foreign insurers. This allowed us to formulate a proposal for a research typology and supplement it. The typology of directions of insurance problems studying, which are conducted by Ukrainian scientists taking into account generalizations of foreign experience, is given. At the same time, our research direction is oriented to one segment of the insurance market, namely, health insurance. As a result of the review of scientific publications on this topic, attention was drawn to the absence of research into financial flows in Ukraine in such segment of health insurance as medical insurance for Ukrainian students studying at foreign universities. It is well-known that Ukrainians do not use health insurance at home. This also applies to students studying at Ukrainian universities. Instead, according to foreign experience, medical insurance is compulsory to study abroad at universities. This prompts entrants, who become students of European universities, to buy health insurance policies. It is clear that such insurance is preferable if the insurance company is chosen in the country of residence of the student. It is proposed to supplement the typology of financial flows of the insurance market by the category of “insurance cash flows”. The proposal is based on the fact that there are practically two streams of medical insurance for Ukrainian students studying abroad. There are two directions of the movement of funds: payment of insurance policies by insured persons and payment of insurance funds in the insurance case by the insurer. For each of these two streams, it is suggested to use the definition “insurance cash flows”. The methodological principles for conducting research are formulated. The indicators for calculations and comparison, as well as the composition of the initial data for calculations are determined. The calculation and comparison of the volumes of insurance flows connected with medical insurance of Ukrainian citizens studying at foreign universities of five countries is made. In particular, settlements for insurance terms of Austria, Bulgaria, Germany, Poland and the Czech Republic are made. The comparison is made in euro currency and hryvnia – the national currency of Ukraine.