The role of international trade in strengthening the competitiveness of the national economy

The article explores the role of international trade as a key factor in strengthening the competitiveness of the national economy, taking into account current global challenges and the specific features of transition economies. The relevance of the study stems from intensified competition in the global economic environment, increasing complexity in accessing foreign markets, and the urgent need to shape an effective foreign economic policy capable of ensuring sustainable growth and economic security. It is established that international trade is not only a source of foreign exchange earnings and a means of expanding sales markets, but also serves as a driver of structural reforms, enhanced innovation activity, and production modernization. The research reveals theoretical approaches to understanding the interconnection between foreign economic activity and competitiveness, particularly in the context of classical and modern trade models. Considerable attention is paid to analyzing global trade trends, such as the fragmentation of global value chains, the rise of protectionism, the digitalization of trade processes, and the greening of exports - all of which significantly alter the operating conditions of national economies. Special focus is placed on transition economies, for which international trade offers both growth potential and a number of systemic constraints arising from institutional instability, low export diversification, and limited innovation capacity. Key factors influencing the effectiveness of foreign economic activity are identified, including the institutional environment, innovation, the quality of human capital, and the adaptability of the economic structure. A systemic approach is proposed for assessing the impact of international trade on competitiveness, which includes consideration of economic, institutional, innovation, and social parameters. The article puts forward practical recommendations for improving state policy - in particular, the need to develop institutional infrastructure, support innovative activity, promote the export of high value-added products, and diversify export markets. It is emphasized that only a combination of strategic vision, institutional capacity, and effective partnership between the state and business can ensure stable integration of the economy into global trade processes based on its own competitive advantages.