#Шевченко І.Ю. Administrative methods of state regulation of the automotive industry development

Economic sciences / 15. State regulation of economy

Shevchenko I.Yu., PhD in Economics

Kharkiv National Automobile and Highway University, Ukraine

Administrative methods of state regulation

of the automotive industry development

The automotive industry is a wide range of companies and organizations involved in the design, development, manufacturing, marketing, and selling of motor vehicles [1]. 
It is one of the most important sectors that influence on the level of social, economic and environmental development of the country.
State regulation of the automotive industry development traditionally carried out such methods as legal, administrative, economic, social and psychological methods.
Administrative methods include brand licensing, certification, standardization, patents, rationing, quotas and government business.
Brand licensing means renting or leasing of an intangible asset. It is a process of creating and managing contracts between the owner of a brand and a company or individual who wants to use the brand in association with a product, for an agreed period of time, within an agreed territory [2].
Certification refers to the confirmation of certain characteristics of an object, person, or organization [3]. 
Now in the automotive industry there is one main standard - ISO/TS 16949. The ISO/TS16949 is the technical specification aimed at the development of a quality management system that provides for continual improvement, emphasizing defect prevention and the reduction of variation and waste in the supply chain. ISO/TS16949 can be applied throughout the supply chain in the automotive industry. Certification takes place on the basis of the certification rules issued by the International Automotive Task Force (IATF) [4]. 
Standardization is the process of implementing and developing technical standards [5]. Now the main institution engaged in the development of technical standards in the automotive industry is World Forum for Harmonization of Vehicle Regulations - a working party of the Inland Transport Division of the United Nations Economic Commission for Europe (UNECE). It is tasked with creating a uniform system of regulations, called UN Regulations, for vehicle design to facilitate international trade. As of 2015, there are 135 UN Regulations appended to the 1958 Agreement; most regulations cover a single vehicle component or technology [6].
Patents are a set of exclusive rights granted by state to an inventor or assignee for a limited period of time in exchange for detailed public disclosure of an invention. Under the World Trade Organization's (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights, patents should be available in WTO member states for any invention, in all fields of technology, and the term of protection available should be a minimum of twenty years [7]. 
The most popular in the automotive industry is patenting of the industrial design. An industrial design right is an intellectual property right that protects the visual design of objects that are not purely utilitarian. An industrial design consists of the creation of a shape, configuration or composition of pattern or color, or combination of pattern and color in three-dimensional form containing aesthetic value. Under the Hague Agreement Concerning the International Deposit of Industrial Designs, a WIPO-administered treaty, there is a procedure for an international registration of the industrial design right [8].
Rationing is the controlled distribution of scarce resources, goods, or services, or an artificial restriction of demand. Rationing is often done to keep price below the equilibrium (market-clearing) price determined by the process of supply and demand in an unfettered market. Authorities which introduce rationing often have to deal with the rationed goods being sold illegally on the «black» market [9].
Quota is a government-imposed trade restriction that limits the number, or in certain cases the value, of goods and services that can be imported or exported during a particular time period. Quotas are used in international trade to help regulate the volume of trade between countries. They are sometimes imposed on specific goods and services to reduce imports, thereby increasing domestic production. In theory, this helps protect domestic production by restricting foreign competition [10].
Government business includes enterprises that has all of the following characteristics: it is a separate legal entity with the power to contract in its own name and that can sue and be sued; it has been delegated the financial and operational authority to carry on a business; it sells goods and services to individuals and organizations outside of the government reporting entity as its principal activity; it can maintain its operations and meet its liabilities from revenues received from sources outside of the government reporting entity [11].

References:

1) Automotive industry [E-resource]. - Аccess mode: https://en.wikipedia.org/ wiki/Automotive_industry. - Title screen.

2) Brand licensing [E-resource]. - Аccess mode: https://en.wikipedia.org /wiki/Brand_licensing. - Title screen.

3) Certification [E-resource]. - Аccess mode: https://en.wikipedia.org/wiki/ Certification. - Title screen.

4) ISO/TS 16949 [E-resource]. - Аccess mode: https://en.wikipedia.org/wiki/ ISO/TS_16949. - Title screen.

5) Standardization [E-resource]. - Аccess mode: https://en.wikipedia.org/wiki/ Standardization. - Title screen.

6) World Forum for Harmonization of Vehicle Regulations [E-resource]. - Аccess mode: https://en.wikipedia.org/wiki/World_Forum_for_Harmonization_of_ Vehicle_Regulations. - Title screen.

7) Patent [E-resource]. - Аccess mode: https://en.wikipedia.org/wiki/Patent. - Title screen.

8) Industrial design right [E-resource]. - Аccess mode: https://en.wikipedia. org/wiki/Industrial_design_right. - Title screen.

9) Rationing [E-resource]. - Аccess mode: https://en.wikipedia.org/wiki/ Rationing. - Title screen.

10) Quota [E-resource]. - Аccess mode: http://www.investopedia.com/ terms/q/quota.asp. - Title screen.

11) Definition of a Government Business Enterprise [E-resource]. - Аccess mode: http://www.frascanada.ca/standards-for-public-sector-entities/resources/ reference -materials/item55469.aspx. - Title screen.