INNOVATIVE ECONOMICS AND MANAGEMENT

27-33

Authors: GULIKO KATAMADZE, IRAKLI ABASHIDZE

Amongst different types of internet marketing, social media marketing gives one of the most favorable opportunities to small business for boosting its competitiveness. Social network is a space where equal opportunities are available for small and big companies. Consumers are able to make choices between numerous alternatives. Thus, it is vitally important for small business to utilize social media effectively. To achieve this goal, it is necessary to possess relevant competences and elaborate strategy. Basic principles, opportunities and challenges of social media marketing are discussed in this article in terms of supporting small business competitiveness. Besides, a marketing campaign conducted by the authors in Facebook is provided as an example. Practical recommendations are suggested as a conclusion in the final part.

42-47

Authors: EDUARD MIKELADZE

Unfortunately, time management is not drawn the relevant attention to in Georgia. As a rule, there are half-loaded working processes. Moreover, it can be estimated as a chaotic state from the point of view of time managing, as well as the working processes are not oriented on the results. The same can be said about drawing up and accomplishing the plan of operational and strategic development, which do not meet the desirable rate. The decisions made without relevant discussions, and consequently, business meetings are not effective. Everyone confesses that “time is money”. And money is one of the essential factors for existence. You have no opportunity to succeed if you are not able to manage time properly. A great number of people simply waste their time, which is impossible to stop or take back. This is why each person should create a modern time-managing machine individually. According to the world-wide recognized scientist-economist I. Capleroy “God gifted mind to humans to perceive that mysterious order that governs the universe, and this perception should be the basis for humans to create their own environment.” According to Dibro “it’s useful to know that the desire of doing something encourages you and simplifies your job.”

56-61

Authors: NATALIIA KHOLIAVKO

The article defines the role of higher education sector in modern processes of information economy formation. The author analyzes current tendencies of financing of higher education institutions in Ukraine, with an emphasis on financial aspects of research activity. On the bases of the study of typical models and financing methods of the higher education sector in Ukraine, the author identifies the prospects of finance sources diversification in conditions of both information economy formation and scientific-educational area globalization and internationalization.

70-79

Authors: MAKSYM SLATVINSKYI, LIUDMYLA CHVERTKO,

The article is aimed at studying the dependence between the level of national security and foreign direct investments inflows on the basis of which certain directions of the state investment policy in the context of strengthening national security are determined. The basis for the analysis was data on the level of national security of a number of countries with its different levels in order to compare with data on foreign direct investments inflows in these countries. The authors determine the behavior of investors in countries involved in conflicts. It is found that the presence of threats to national security is reflected negatively on the level and trends of foreign direct investments. In turn, the behavior of investors cannot be considered unambiguously, since not all of them refuse to invest in conflicting countries. The graphic analysis of investment and macroeconomic indicators that allowed asserting the presence of their coherent dynamics and formulating the hypothesis about the dependence between foreign direct investment inflows and the level of national security is carried out. The degree of this dependence and its orientation are determined using the Granger test. The authors proposed main directions of the state investment policy aimed at ensuring national security on the basis of their calculations.

85-89

Authors: BOBIR TURSUNOV

In this paper have been discussed problems of increasing effectiveness of usage textile enterprises` capacity on the basing of industrial stocks management. By the author classified modern management methods of managing industrial stocks and some ways of achieving effective inventory management at textile enterprises.

96-101

Authors: REZO JABNIDZE, NANA JABNIDZE

Grape-growing and wine-making has received the highest raising in 20th century, the vintage area has exceeded 120 000 ha; wine factories have been built; scientific centers for the field management have been established. Notwithstanding the fact that this sector has undergone hard disruption, and today the vine planting is decreased to 40-60 thousand ha, and the grape producing has gone down from 550-560 thousand tons to 150-220, In spite of this vine-growing and wine-making are still the leading fields of always been rendered as the business of the high priority. Climate changes provide exceptional conditions for spreading of the grape main pests and diseases, reproduction and spreading of which significantly relate to the temperature and moisture conditions, especially in Adjara. We are familiar with the optimal conditions necessary for their reproduction and spreading increase or decrease of which might cause grape damage intensity significant change, and influence negatively the grape harvest and its quality. Due to all that it is necessary to define the correlative relation of the temperature and moisture change over spreading of these dangerous pests and diseases. The climate change will impact the vine in the following direction: changes on grape phenology; harvest, quality, replacement of the grape spreading borders, style, assortment of species or vine-growing directions, the negative impact of the extreme weather shall be taken into account; avoidance high level and increased need for the irrigation water, etc. Adaptation might soften the negative effects caused by such changes.

111-120

Authors: NAZI BARATASHVILI, ZAZA PHARSENADZE,

The step towards the liberalization of trade in the international labor distribution should be considered as the most important event for Georgia’s economic development. One of the most important part of the Association Agreement between Georgia and the EU is the Deep and Comprehensive Free Trade Area Agreement, which covers liberalization of trade for goods and service. The economic goal of the agreement between Georgia and the EU is to support the modernization process of Georgia’s economy, to support and expand trade with the EU and World’s largest trading partners Based on the EU’s best practices through reforms, which will stimulate to reach highest levels for Georgia-EU economic integration. The core of Association Agreement’s economic part includes both tariff and non-tariff barriers in trade, in addition it covers obligations taken by the both sides. The agreement will benefit Georgia in terms of increasing prosperity of its citizens, who will have access to higher quality products in the domestic market, and with a more distant prospect their income will be increased due to new business opportunities and economic growth promoted by the European integration.

15-22

Authors: TAMAZI GAMSAKHURDIA, TEIMURAZ PESTVENIDZE

The paper deals with the international image of the country and the Georgian nation on the critical edge. The reasons are considered to be the unresolved problems in the country such as the low level of economic development, human constitutional rights and infrastructure. It is worth mentioning that the weakening of the nation and the village is the destruction of the country's history and traditions. It is necessary to improve the demographic situation. One of the main directions of the demographic policy is to create stimulating and facilitating effective conditions. Special attention should be paid to the reduction of child mortality and the improvement of healthcare in general. Establishment of harmonious relationship between people and state institutions will promote the welfare of the country and its population. All these should be based on the consideration of the traditional values of the nation, overall care of the people and the country's well-being. The main resource of the country must be a healthy, well-educated, morally formidable and patriotic spirit. The priority of the country should be the introduction of innovations in all areas. There are many competitions among young people, innovative clubs are created, finances are spent and the result is that distinctive young people are taken abroad to study. Unfortunately, the best of them do not come back anymore, who returns they are without prospects, because there is no environment here where they can use their knowledge. Be¬ca¬use of the errors in education we do not have a qualified staff, we lose the interest of education and labor, there is the sharpest decline in living standards, the deepening of alienation, the demographic situation worsens, the feeling of unconsciousness increases, the emigration increases, the national values are evaluated, damaged, and ruined. The national treasures are on the critical edge. The country's ecology is dramatically worsening, as a result of the unexplained exploitation and misuse of spoilages made a negative effect on the ground that is already blown out. Even in the Colchis Valley, the initial processes of desertification are observed. Create a legal base in order to monitor strictly the terms of the contract with investors. There are all conditions in the country to use our natural resources reasonably and use the country’s regions effectively. The decisive measures in the country should be taken to create such a legislative basis for the rational use of natural resources, in the management of investments which will damage less the interests of the country and will benefit more from its economic development. One of the most important steps for the growth of economic is the creation of new types of products, diversification of new markets and mobilizing new resources. More activity is needed to implement innovations in the economy and activate still unused resources. These and other negative developments in the country have had a negative effect on the living conditions of the country's population. The attention of the agro-sector that is the vital importance for the country has relaxed. That left most of the population behind the poverty line. One of the main goals of the government is to increase the global competitiveness of the country. There is still a shortage of innovations and scientific researches, which is caused by ineffective reforms of the education system, deliberate attacks on scientific institutions and the intellectual drive out of the country. Because of this the index of country's global competitiveness is quite low.

27-30

Authors: LASHA-GIORGI DATASHVILI, DAVID DZOWENIDZE

At the end of the twentieth century and the beginning of the twenty-first century, globalization and trans nationalization became the main process of world economy. These processes determine the level of living and social-economic situation in the country, most of which are involved in transnational companies, since they are the main participants of regional integration and development of social economies. The development of today's economy and technology is through them.

49-53

Authors: KESO SUMBADZE

The environmental is Regularly changing, accordingly manager requests to take decisions in extreme timetables, need it fast react and correct decision. The issue is relevant, accordingly many scientist is interested study of the decision making process. There are studies at different times and places with relevant results, as well as different methods of decision-making, theories and models. In the article we will consider diferent decision makings methods, theories, and models by various scientists.The managers can use models of decision-making in their activity to be more effective.

63-72

Authors: SHALIMOVA NATALIIA

The traditional approach to define the essence of the audit is based on the fact that it is often viewed as a special kind of entrepreneurial activity since this aspect visibly emerges in the conditions of a market economy and it is the key in the development of legislative documents for the audit regulations. But there is a number of scientific problems that were not studied fully and first of all, it concerns a statutory audit being the initial one in the history of the formation of an audit as an element of social and economic relations in a society. The necessity to perform a statutory audit arises if the state wants to protect information rights and legitimate interests of the group in obtaining reliable information about the activities of individual entities. In other words the state carries out the function of regulating the production and distribution of informational products which are essential for the development of a society. This creates more or less equal opportunities in the consumption of information products because the interests of the society require much of the information to be available, so the state should create the mechanism to ensure access to information. Thus, a statutory audit should be considered as a public good and its functions go up to a higher level, since the state considers the obligation to reduce the information risk, primarily its own, and not the responsibility of a shareholder. The relations arising in the course of a statutory audit have to a large extent public and legal character and act as a tool to reduce or prevent a conflict of interests. Although the choice of the auditing organization and payment of the services are carried out on a commercial basis within the framework of a civil law contract, by its objectives, purpose and functions a statutory audit is performed in the interests of a certain group of people that can not be determined in advance and the state. So these are public interests. Statutory audit should be considered as a public service based on public (social) interest that is a socially significant activity regulated by the law, which in turn needs additional requirements for the activities of such subjects of auditing activity and the content of statutory audits. It should be noted that indirectly the recognition of statutory audit as a "public (social) service" is confirmed by the fact that the European Community legislation uses the term "public interest entities" to define criteria for the statutory audits; it is considered that the degree of significance of public interests should determine those entities that must necessarily be subject to annual audits. These entities include enterprises of significant public interest due to the following factors: type of business, volume of activities, number of employees, corporate status which provides a significant number of shareholders (credit institutions, insurance companies, investment firms and funds, pension firms and funds, and listed companies). The establishment of the institution of statutory audit in Ukraine was conditioned by the state's demand in the conditions of property relations reform and only later the need of "classical" users of the audit results appeared that determined its formation in the world economy. It is necessary to understand and use all the advantages of auditing activity from the point of view of its social benefit in the system of social and economic relations. Despite the difficulties that arise while performing a statutory audit it is difficult to deny the need for its application, since, as J. St. Mill underlined "there are things where the intervention of the law is not necessary in order to rethink the judgments of people about their own interests, but in order to give these judgments a real power because people themselves are not able to do this differently than by mutual consent. And such consent will not be valid unless it is reinforced or sanctioned by the law". Sometimes only a joint agreement can ensure the coincidence of private and public interests and to provide the necessary level of social utility which is completely true of the statutory audit.

93-101

Authors: LALI BOCHORISHVILI, NANA GVINIASHVILI,

Financial analysis is the element of financial management and audit. As the cognition method of economic processes it holds a prominent place in the factory management system and is a prerogative of top echelon of management structures. Under contemporary economic situation the independence of enterprise when taking management decisions permanently grows. Economic status of enterprise and its financial independence and stability are depended on correctness of decision taken. The goal of financial condition is getting the most quantity of key parameters giving objective and exact picture of financial status of enterprise: its profits and losses, changes in actives and passives, settlement of accounts with debtors and creditors and identification of the most effective ways of attainment profitability and stability. As the subject of financial analysis is selected the specific Electric Enterprise of Georgia, financial information (accountability) of which meets all requirements, such as: validity, openness, clearness, utility and significance, completeness, consistency, comparability, carefulness, neutrality etc. As is known financial status of enterprise is characterized by the unity of indicators reflecting the process of establishment and application of its financial resources. Analysis of complete financial status includes consequent implementation of following types of analysis: financial indicators in the accounting period, financial stability of enterprise, solvent, creditworthiness and liquidity of enterprise; financial results; potential bankruptcy of enterprise. In the process of analysis of financial accountability of Energy Enterprise over the last 3 year period has been calculated a number of absolute and relative financial indicators. One of the most important tasks raised before us when determining financial status of Energy Enterprise was a study of indicators of financial stability of facility. As a result of carried out work is identified that at the given specific enterprise indicators of financial stability are expressed in positive dynamics, i.e. state of its accounts guarantees or almost guarantees paying capacity of enterprise. Paying capacity is of the key signs of normal (sustainable) financial status of enterprise.

124-137

Authors: MERAB VANISHVILI, BADRI GECHBAIA

The latest literary sources and the rich factual materials, consistently studied the behavior of financial features in Georgia. The methodological basis for Economic Cooperation and Development / International Financial Education Network (OECD / INFE) developed by financial education and financial inclusion measuring 2015 manual. OECD / INFE-'s manual makes it possible for information to be collected and rescued dogs or cats-Neil for determining the level of financial behavior scores. Georgia, the collected data is entered OECD / INFE-'s 2016 international comparison report, which will identify common challenges and similarities between the countries, and indicates a number of effective solutions. The article deals with the financial behavior of important issues, such as basic financial concepts, knowledge and real-life application of skills, personal and household financial management, financial goals and achieve them to take concrete steps, saving and budgeting, financial unexpected circumstances and the age of retirement readiness, borrow and Ali's management, financial products and other awareness and usage. According to the survey, the total rate of the financial behavior of the positive behavior of all counts, which are discussed in the field of answers to the questions have been revealed. Financial behavior of a maximum rate of 9 points, while the minimum value - 0 points. OECD / INFE-'s methodology, 6 or more points higher compared to the behavior of the indicator considered. The score only 36% of respondents in Georgia. At the same time, a majority of respondents positive behavior characterized by: 5% of the population to 28.7, while 19.2% of them - 4 showed a positive behavior. The average population of a behavioral indicator of the maximum 9 points and 5.0 points. The data obtained as a result of the survey have been important for the setting up of certain standards and orientations towards the financial behavior of the population, as well as for the development and implementation of separate programs within the National Strategy of Financial Conduct. In order to encourage useful financial behaviors, it is important to have special channels where reliable and comparable information is available, such as resource centers, Internet portals and mobile channels. In addition, it is recommended to activate campaigns on savings benefits and develop and disseminate different mechanisms for promoting savings.

143-148

Authors: MARIAM IASHAGASHVILI

At present, the largest part of the financial sector is held by the commercial banks. The role of the capital markets is modest. For the development of the capital market it is essential to make legislative amendments, to improve many regulatory or legislative acts and to comply with the international practices. In this regard, the most important is to review and improve the tax code, since a lot of vague and ambiguous records in the tax code need to be specified, to become more simple and understandable to the reader. The current approach to the taxation regime shall be changed and the burden shall lay on the net investment income instead of transactions. This does not meant to provide tax privileges, but to provide a fair and economic growth-oriented approach.

157-159

Authors: NINO KAVTARADZE

Nowadays, it is considered that the preparation of budget by the program budgeting style is the most important achievement for Georgia. It should be admitted, that the researches show, that by the transparency of its budget Georgia is on the one of the leading positions among the numerous countries. The great value of program budget is, that it relies on the main priorities of the country, which main goal is to achieve them and get desired results, for these proposes are determined future relevant measures, valuing indicators and sources of financing. Each program has its title, executive- spending institution and its description from its purposes. It should be emphasized, that despite some achievements and significant progress in the the method of program budget, there are still some problems, focusing on solving them and making changes will lead to the real and effective results of program budgeting.

166-174

Authors: OLGA PUGACHENKO

Economic evaluation as one of the evidentiary arguments has been used since the time of Aristotle, Demosthenes and Xenophon. The evaluation is aimed at studying the financial and economic activities and includes examination of accounting and tax accounting documents, researching financial, economic and credit activities of economic entities. The evaluation on economic issues is appointed on general grounds in compliance with the requirements of the Law of Ukraine "On Forensic Examination" and the procedural legislation. The performance of the evaluation is in the subordination of the Ministry of Justice of Ukraine. The framework of the judicial economic examination includes the following: examination of documents of accounting, tax accounting and reporting; examination of documents on the economic activities of enterprises and organizations; examination of documents of financial and credit operations. The Tax Code of Ukraine contemplates the examination in the case when special knowledge in the field of science, art, technology, economy and other industries is needed to solve tax control issues. The specifics of performing economic evaluations in the Criminal Procedural Code of Ukraine, the Civil Procedural Code of Ukraine, the Economic Procedural Code of Ukraine and the Code of Administrative Proceedings of Ukraine make it possible to assert that, in general, the procedure for the appointment and performing forensic economic examination, as well as the rights, duties and responsibilities of forensic experts in Procedural legislation are similar. According to the procedural legislation of Ukraine the experts perform primary, additional, repeated, commission and complex examinations. The duration of the examination is determined depending on the complexity of the study, taking into account the workload of the experts. During evaluations (expert studies), in order to fulfill a certain expert task, the experts apply the appropriate research methods, methods of performing forensic examinations, normative and legal acts and regulatory documents, as well as the existing standards of the former Ukrainian SSR and state classifiers, industry standards and technical conditions of the former USSR, scientific and technical, reference literature, software products and so on. The selection of the way of performing the examination (the choice of certain methods, (methods of investigation)) is carried out within the competence of an expert. The basis for the examination in accordance with the current legislation is a procedural document (decision, specification) on the appointment of examination drawn up by an authorized person (body), or a written appeal of the victim or a party to the defense of criminal proceedings, which necessarily specifies the requisites, a list of issues raised to the expert, as well as the objects to be investigated. The results of expert studies are presented in a written form as the expert's conclusion or a report on the impossibility of giving the opinion. The expert’s report is made out on the form of the expert institution and signed by the expert conducting the research. The signatures in the final part are certified by the seal of the expert institution on each page of the text of the final conclusions.

185-190

Authors: IOSEB MAMUKELASHVILI

Education is a catalyst through which major societal changes take place. This paper is based on the premise that Georgian state-owned joint stock companies need financial statements in order to improve its capital structure. The above-mentioned premise is also based on the assumption that implementation of high quality accounting standards is crucial to the provision of financial statements that are necessary for joint stock comapanies to improve its owner’s equity financing opportunities. Therefore, the role of education must be examined in the context of implementation of International Financial Reporting Standards. The research process was organized as follows: the Global Comepetetiveness Index of 2014-2015 by Klaus Schwab published by the World Economic Forum was obtained as a source of data to examine educational systems and the implementation of IFRS in various countries of the world. It was evident that Georgia’s educational system and the level of IFRS implementation both need improvement. The goal of this research was to study if there is any cause and effect relationship between the quality of educational system and IFRS implementation in 144 countries of the world, including Georgia. Empirical evidence suggests that the quality of countries’ educational and research institutions are a 57% precondition to the successful implementation of IFRS. Furthermore, collaboration between educational institutions and private sector entities is a 62% precondition to the full implementation of IFRS

202-206

Authors: NANA AKHALAIA, MANANA VASADZE

Unemployment is one of the major problems of Georgian society, which is more or less equal to all social groups. One of the main priorities is to address the problem of unemployment in the country. In recent years, the hotel market has a healthy and rapid growth in tourist destinations. Tourist sites and the whole tourist market are developing attracting foreign investments. Hotel business is the most dynamically developing subdivision of the tourism industry that brings millions of profits to the economy in many countries. Hotel business development is a crucial factor in tourism development. Growth of tourist flows and efficient functioning of hotel facilities create jobs and provide filling up regional and national budgets. The leading role in Georgian economy belongs to trade and service sectors where the most people are employed

211-216

Authors: MERAB ONIANI

Knowledge of the theory of personality gives a manager an opportunity to create a certain opinion about the person’s psychological characteristics and his/her nature as well as helps him to develop his management techniques. George Kelly’s Personal Construct Theory views a person as a unique creature. The theory studies and touches upon: the actual difference in perception of the world subjectively and considering these similarities and differences in the process of management. the person’s desires to enquire about the future and make proper interpretations. the issue of successful communication being dependent on mutual knowledge, opinions and actions. the issue of impossibility of changing the already happened events and creating the experience of successful management through proper interpretations of the facts. the issue of working out the effective management strategies through managing objective reality in the perceptions of people.

225-229

Authors: GEORGE GABEDAVA

Transport is the most important field, which defines the socio-economic development of the state. Georgia’s strategic location gives the opportunity to become logistic hub of the Caucasus, but to achieve it the number of activities must be carried out towards the transport infrastructure. Georgia has a real chance to deliver and send additional cargoes, which leads to increase in income and improves conditions of production and trade development. Main issue for cargo owners is to offer profitable conditions and its practical implementation, for that the necessary conditions are: safe transportation of cargoes, their rapid delivery and reduction of shipping costs. Through the implementation of seaports infrastructure and new technologies, Georgia has a real chance to become main logistic hub for the Caucasus and Central Asia. Which will increase the role of Georgia as a transit corridor, but rather a contributing factor to the development of the country's economy.

234-237

Authors: TINATIN MEDZMARIASHVILI

The state procurement is one of the most important spheres of the country, where 12% of the gross domestic product comes from it. Therefore, the significance of importance is given to the government financial resources rational spending, fair and non-discriminatory environment formation, development of healthy competition in the state procurement process and the information transparency. For state and private sectors the functioning of the state procurement is important. Until 2010, state procurement in Georgia was carried out through means of a paper. Since December 1, 2010, the new procurement system was launched. Due to lack of proper transparency, there was discriminatory approach and corruption, availability of information was limited, high fees in tender participation and territorial inequality restricted competition. All tender procedures were carried out through means of a paper. Currently operating state procurement electronic system is characterized with a maximum transparency. The system can be used by the purchaser, supplier and any person interested in it.

245-251

Authors: NINO ZURASHVILI, DAVIT NARMANIA

In the modern world within the development processes of urbanization, it becomes actual urbane politics, which is implemented by the governments of the cities. In tight urbanization conditions, it is especially increased demand from the customer to the flats and homes in the cities. Accordingly, to the demand from the customers in the capital of Georgia Tbilisi and other important cities of Georgia (for example Batumi) begin massive construction processes. Chaotic buildings create ecological problems, which makes environments in bad conditions to live. Therefore, it is very actual how is regulating construction in Georgia. In the precede article it is discussed urbane politic, which is implemented in the capital of Georgia from the founded to the present time. In the article analyzed legal acts which are regulating construction development in Georgia.

257-262

Authors: NANA RUSADZE

During the last decades, the efforts of Governments across the world have been directed towards creating an effective civil service. Modern requirements pose new challenges for the organs of state administration, and they have to re-examine traditional administration methods and be constantly mindful of increasing the effectiveness of their activities. It is obvious that local authorities also face similar challenges. One of the main objectives of municipalities is to exercise their own powers completely and to offer appropriate services to the population. For the purpose of assessing the effective exercising the own powers of municipalities provided for in Local Self-Government Code of Georgia, in April 2017, we conducted a survey of 520 respondents in municipalities of Imereti (12 municipalities in all). For each parameter, we derived the arithmetical average, which formed tha basis of the calculation of the overall index of analysis parameter. Analysis revealed that the relatively better situation is observed with establishing the municipal preschool (kindergartens) and out-of-school education institutions and with ensuring their functioning. It is noteworthy that the index appropriate to this kind of services is higher than the highest index existing between municipalities (3,40>3,14).The index of water supply, water carriage and melioration is also high (3,1). We believe that within their framework of powers, municipalities have to attach more attention to the regulation of street-trading, exhibitions, markets and fairs, disabled people, as well as to sheltering and registration of the homeless. It is desirable to conduct the similar surveys in all regions of Georgia every year that will contribute to identifying the weak points and resource mobilization to address the encountered challenges.

271-280

Authors: YEVGEN PANCHENKO, NATALIIA RUDUKHA

The features of the world market of banking services, of which the European Union is a part have been analyzed in the article. Features, scale and dynamics of this market, its role in the socio-economic development of the EU member states have been shown. The characteristics of cross-cultural differences in the functioning of banking systems in different EU member states have been given. The socio-economic nature and modern mechanisms for regulating banking activities have been disclosed in the interests of stabilizing the macroeconomic indicators of the national economy and improving business performance. The advantages and weaknesses of the liberal and administrative concepts of banking regulation have been shown. Differences in the functioning of national banks in the EU member states have been disclosed. The role and mechanism of the European Central Bank's influence on the social and economic development of the European Union have been analyzed. The problems of the functioning of the banking system of the EU after the withdrawal of the Great Britain from the European Union have been revealed. The article describes the ways of integration of the banking system of Ukraine into the financial structure of the European Union in the context of the implementation of the Agreement between Ukraine and the EU on a free trade area. Attention have been drawn to the need to take into account the significant differences in the levels of development of the banking business of Ukraine and the EU, in particular the ratio of net loan portfolio and gross domestic product, which in Ukraine is respectively 0.45, and in Poland 0.7 with double the GDP. The directions of the convergence of the European and Ukrainian banking systems have been shown on the basis of the increase in the European international trade turnover.

285-292

Authors: PAATA AROSHIDZE

By the end of 2014, the central government of China declared the readiness to develop “alter of the Great Silk Road" – “One Belt - One Road". According to this project, China will economically be connected to Europe, the central and South-West Asia, Africa and Australia. The goal of this project is to export technology and "know-how" from China, high-speed railways, infrastructure development and service delivery to the whole world. Instead China will be able to import agricultural, health care and energy products, also other important commodities that are essential for China. The modern version of the “Great Silk Road” has the serious basis to fully change the global economic landscape. China from "World Factory" will become the main exporter of technologies and techniques, "World Trade Center" and the main hub of central electronic trade. "One Belt - One Road" will not only increase cargo turnover between China and the rest of the world, but also will make it possible to exchange experience between Europe and Asia. The project includes the following directions: 1. China-Central Asia-Russia-Europe (with the Baltic Sea); 2. China-Central Asia-West Asia-Persian Gulf-Mediterranean Sea; 3. China-North-East Asia-South Asia-India Ocean. The international economic corridors are planned to be created in these directions of: "China-Mongolia-Russia", "China-Central Asia-West Asia", "China-Indochina", "China-Pakistan", "Bangladesh-India-China" and "China-Mediterranean Sea". Implementation of this project is important for Georgia, because the economic corridor of China-Mediterranean Sea borders the territory of Georgia and the country's favorable geopolitical location can be used in this context. It should particularly be noted that in May 2017, the Free Trade Agreement was signed between Georgia and China, and China expressed readiness to establish an international bank in Georgia with a capital of 1 billion US dollars. Especially important is the prospect of the use of marine ports of Georgia. On the official map, which includes the project “One Belt - One Road” the Deep Sea Port of Anaklia is marked. It can be said that the new project of China will give a new possibilities to the transit function of Georgia, which will facilitate the country's geopolitical strategy and should be the basis for political security and economic growth of the country.

297-302

Authors: MZIA DIASAMIDZE, IRMA TAKIDZE,

The course of the vessel in relation with the wind is an angle between the direction of the wind and the midship line of the vessel. One of the most widespread use of the wing is its application in the wind-driven ship. But these ships are not so fast. But there also is an alternative way to use wind for ship movement despite wind speed and stream force – the application of Magnus Effect, which is the result of mutual impact of the physic phenomenon, such as Bernoulli effect and creation of border layer around streamlined object. Using this effect, the first rotor vessel was created. In 1980s more complicated form of turbo sail was developed by French engineers under supervision of oenologist Jacques Yves Cousteau. In comparison with the best of the usual sails, the turbo sail provided 3,5-4 larger propulsive coefficient. It was supposed to install turbo sails to the tankers, bulkers and the large ships to decrease fuel consumption rate. Nowadays there are attempts to put rotor sails into mass usage. The rotor sails give possibility to save 30-40% of fuel at 16 knots speed. The experience of German shipbuilders will show if it is useful to develop the sails, working in application of Magnus effect. We hope, that in future the world navigation will apply the principle, described by the talented German scientist more than 150 years ago.

13-15

Authors: GELA MAMULADZE, NATIA BERIDZE

The article presents the Electronic-business development trends in the world. It also provides Georgian Electronic Stores in the classification depending on the types of goods and services. The paper deals with development problems of Georgian electronic stores. The creation of the Internet network, and rapid development of information technology, systems and advancing their interactions led new directions formation of E-business. Business activity in the Internet is much effective than traditional business activities. For companies, operating business using the internet means transferring the business activities in the electronic network. The company uses traditional methods by using e-business and adds them virtual opportunities. Major direction of E-business are electronic stores, which largely determine its development and growth dynamics. It should be noted that the development of electronic stores in Georgia is revealed by its problems related signs, when around developed countries, namely the United States and the European Union it is defined by the accumulation of experiences and achievements in the context of the analysis.

20-25

Authors: NATALIA KHARADZE, EKATERINE GULUA

Proper usage of the time, leisure time management and healthy lifestyle is basic of preparingvaluable work force. Their physical and mental condition depends on proper time management. The article presents the time management research of MA students’ of Batumi Shota Rustaveli State university. The object of our study was wholly 523 MA students in Georgia. The questionnaire consisted of 37 questions with 117 possible answers. The results of this research are processed by "SPSS Statistics" program. It was the first time that such a large scale research had been conducted in Georgia. The study has revealed peculiarities of real self-management culture in real and potential labor resources; Based on the analysis the relevant recommendations were developed.

34-39

Authors: SALOME JAPARIDZE

In this article describes potential of the sea regions, that promotes its economic development. Basic principles, goals, positive and negative aspects of creating Free Economic Zones. As well Dubai is an example of a positive functioning of the Free Economic Zone. Focusing on the Georgia sea potential: Batumi, Poti, Anaklia and Kulevi Sea Port. Following and studied the example potential of the Batumi Sea Port. Batumi Sea Port comparative analysis represents its development trends and opportunities, prospects of the free economic zones and potential in the economy of the country.

48-52

Authors: LEILA TSETSKHLADZE

There are discussed notions of “Infrastructure” and “Infrastructure of small and medium business” in the article. One of the main reason of successful acting in the market of small and medium business is infrastructure and infrastructure condition. There are represented main elements and objects of enterprise infrastructure in the following article. We can see essential role of government support in small business infrastructure for promotion future economic development of country.

57-59

Authors: MARINA PUTKARADZE

The article is devoted to the analysis of the share of maritime transport in the system of international commercial traffic. Key transport conditions of the foreign trade contract identified, which highlighted the role and structure of the transport component in the contract. It was shown the comparative analysis of the share of the main modes of transport in international business by country and by type of transportation. The dynamics of the impact of maritime transport was shown on the development of international business transactions in general. It was determined the factors affecting the servicing of international business operations, which specifically refer to the role of maritime transport. It was determined the main problems hindering the active development of sea transport and was proposed the ways of their possible solutions.

66-71

Authors: LIDIYA ZLOTNIKOVA

The urgency of addressing to the problem of gender contradictions of social development is due to many reasons. First, the widely rooted stereotypes of perception of life, the sources of its development. Secondly, the use of economic theory and the humanities of axiomatic methodology. Third, the domination of narrow specialization and differentiation of research subjects in economic theory, sociology, psychology, etc. Fourthly, despite radical changes in the structure of development sources, economic science shyly uses new concepts, studies new processes and phenomena. The most important at the moment are human or hidden capital. Formation of the latter to the present day remains the most important duty of women.

76-80

Authors: IRMA CHKHAIDZE

Nowadays demographic problems, which threaten separate nations including the Georgian nation, are very important. During more than two decades Georgia faces this threat which is caused by a difficult economic situation and an unstable situation in the country. This article deals with studying of the reasons of the demographic problems in Georgia (annual reduction of the population, falling of the level of birth rate to the crisis point, high number of mortality and stillbirth, decrease in natural growth of the population, reduction of the number of able-bodied population, a tendency of growth of population aging, large-scale external and internal processes of migration) and the analysis of the current problems of the changes in this sphere. Since the end of the 20th century the main reasons of population aging and decrease of population are high rate of mortality and stillbirth, falling of the number of birth rate to the critical point, large-scale internal and external processes of migration (migration of rural inhabitants to the cities). It is recommended to carry out active consistent policy by the state to prevent these migration processes. Thus, demographic development of the country, migration processes and natural movement of the population significantly influences social and economic development of the country.

87-105

Authors: LAMARA QOQIAURI

Complex state investment policy, directed towards creation of advantage investment surrounding in the country, its regions and fields of industrial production, essentially grows inflow of investment resources into the economy. For this the state must process firm conception of investment policy, in which the most central place is occupied by the methodology of estimation investment consisting parts of the economy. Relatively wider investment consisting part of the economy is the totality of normative-legislative, social and ecological conditions, which defines type and dynamics of the process of further production, which provides trustfulness and effectiveness of the invested capital. A role and importance of investment policy is large in the business of economical development of the country. Effective usage of investment potential existed in the national economy and its appropriate resources greatly depends on it, which finally conditions achievement of firm economical growth, recovering of investment potential, further production of basic industrial funds and this is achieved by processing investment policy of modern type. State regulation of investment processes – this is totality of those forms and methods, which provide: unity of private and state interests; formation of rational proportions among usage, accumulation and investments; correlation between prediction of at investment market, indicated regulating and activities of state influence. Therefore, the necessity to regulate the state legal regulation of the investment process is raised on the foreground in our work, searching of new state instruments of regulation is necessary in the investment domain; they must form advantage climate for capital investments, which will be adequate to the objects of stimulating savings and cardinal changing of total economical situation, real alternatives for coming out of investment crisis situation are not oriented towards resources of savings, which are made by the market subjects. Today it is necessary to direct even small savings to the investment domain by protecting marketing principles for solving the most important problems in the sector of private industry.

111-115

Authors: VLADIMIR MELKO

The article deals with the public regulation of insurance of construction activities in Ukraine. The dynamics of the construction industry development and insurance products supply are analyzed. It is proved that the construction industry and insurance products in the area to diminish construction risks are developing now in Ukraine very dynamically. It was concluded that it is appropriate to introduce total insurance coverage instead of individual risks coverage. In this case insurance protects against significant financial lost and eliminates the need for maintenance of reserve funds, diverting investment capital.

4043

Authors: LELA KOTCHLAMAZASHVILI , TEIMURAZ KANDASHVILI

The world's most developed country experience clearly shows that the export policy production, investing its national economy and foreign investments in terms of priority areas improves the competitiveness of domestic production and is realistically possible to achieve economic growth. Georgia has a very important economic, industrial and labor-technical potential, as well as natural - climatic conditions, which ensures a high level of scale and export potential. The paper deals with potential export of the nuts, subtropical crops and blueberries, which is demand in neighboring markets as well as in European markets. According to statistical data of the three products in recent years, demand has increased significantly. It is desirable to develop a similar program for the citrus production and a special program for blueberries, under which the Ministry of Agriculture emissions subsidies, which will help to further the export of Agriculture and the country's economic growth.