The Journal of International Economic Policy

17

Authors: Tatyana Deyneka

Modern global society is becoming increasingly controversial. Under such conditions, the question of prospects for life of megasociety, which demands theoretical and methodological research from the economic science, as well as a thorough analysis of empiricists, becomes of special relevance. The publication presents the concept of systemic transformation of the global economy and global community. The following is defined: subsystems (spheres) of transformed community system (economic, political, social, spiritual); objects of transformation, the change of which is essential for the acquisition of a new quality by the system; causes and determinants of system transformation. Based on this, it is proved that the system of world community harmonized in its internal composition is integrity, each of its subsystems corresponds to the imperative of humanism. If this equirement is fulfilled, the world community will be able to move to a higher level of civilization development. In the process of studying transformation of the global society, a methodology has been used to identify these changes in the mega-society and describe them with a model. Choosing the defining parameters of the model allowed to answer the following questions: what is the purpose of humanity, radically changing its life; what are the structural transformations; in what way will community evolve; how the relations in such a society will be institutionalized. On the basis of the applied theory and methodology, the following is substantiated: The purpose of social dynamics is the comprehensive development of man and the creation of a society based on the principles of noosphere; changes in the structure of social system occur simultaneously with changes in subsystems and are subject to the imperative of continuous enrichment of the potential of society development; innovation as a basis for social reproduction in all its spheres is a way of society evolving; the systematic institutionalization of social relations is a cumulative effect of institutionalization of relations according to areas (post-industrial in the economy, polycentric international order in politics, nostalgic relations of harmonization of interests and ensuring mutual agreement of subjects in the social sphere and relations stipulated by the ideology of humanism — in the spiritual sphere); the reason and determining factor of the transformation of the system is aggravation/resolution of the contradiction between global capital and civil society, which is objectified in all spheres of community's life. According to the parameters of prognostic representation of the transformation of a global community, the transformation of each of its spheres — economic, political, social and spiritual — is described according to single methodology and identification parameters.

20

Authors: Mykola Burmaka, Fedir Zinchenko

The article is about the research of processes of global transformation of stock exchanges through the mechanisms of internationalization, corporate and network consolidation, and technology. Objective processes of internationalization in stock markets affected by financial globalization and arising global information resources create new challenges for stock exchanges that can be overcome by adequate development strategies. The growing competition between stock exchanges and new capital institutes requires stock exchanges to use modern exchange technologies, primarily innovative, in order to maintain liquidity and increase investment attractiveness. Have been analysed the newest tendencies and determinants of modern global financial institutional architecture construction, the leading role in which are starting to play new stock exchanges and stalk exchange platforms, formed in growing financial centres of the world. Have been identified he main components of international stock market restructurization in the process of financial globalization, one of the attributes of which turned out to be a certain fragmentation of markets and their universalization. Through the example of US and EU financial market modernization processes of the last decade have been analysed financial and legal mechanisms of the national and regional levels, which are designed to ensure sustainable development of the global economy at the postcrisis stage. Have been diagnosed international activity of stock exchanges through the quantity indexed of foreign companies in listing, volume of trade with foreign financial instruments, and participation of foreign investors in exchange trade. Have been offered and calculated indices of internationalization of the world’s leading stock market. Have been analysed consolidation processes of the leading stock exchanges and new electronic trading systems at the regional, meso-global and global levels, which resulted in formation of powerful stock holdings able to meet the needs of a wide range of traders and investors with diversified investment strategies. Have been identified key factors of world stock exchange restructurization under the influence informatization, networking and technologizing processes. Have been revealed motivation, mechanisms, and consequences of stock markets in European Union, the USA and Asian region at the modern stage of development

21

Authors: Volodymyr Panchenko, Nataliia Reznikova

The article summarizes the main concepts of the policy of protectionism. It was proved that the shaded or semi-open nature of protectionism of the 21st century model does not fall under classical manifestations of protectionism recorded in the WTO documents, and therefore further hybridization of its forms actualizes the need for their classification in order to attract the attention of the scientific community to new challenges to the global regulation of the system of international economic relations. It was discovered, that protectionism in the process of economical globalization has evolved from trade policy based on introduction of tariff limitations, and later from non-tariff protection instruments, into a complex comprehensive state mechanism for increasing competitiveness of the national economy in the process of globalization, which we call neo-protectionism. Was provided a classification of neo-protectionism and were singled out forms of manifestation of each of its types. Were established country features of neo-protectionism policy. Was established that flexibility of tools for implementing neo-protectionism policy, absence of a unified approach to interpreting the methods of achieving goals announced by the state, differences in priorities and unity of the goals of all instruments, which are to stimulate restoration of economic growth, can be considered as determinative signs of new regulation. It was found that state intervention becomes an inherent characteristic of liberal politics. Was observed that neo-protectionism with its flexible instruments becomes a policy of reducing asymmetric distribution of benefits from globalization and reaction to global imbalances, which again emphasizes the thesis that state participation in regulation of economic processes is an objective reality, and we are witnessing transformation of the previously announced trend towards deregulation into re-regulation.

42

Authors: Zoriana Lutsyshyn, Elnur Mekhtiiev

The article is dedicated to investigation of the place and role of offshore financial centers in financial globalization system, and of the reasons for using offshores in assets securitization mechanism. Numerous offshore and other preferential zones enabling to avoid the effective national and governmental tax regime are important attributes of global financial system and redistributive links of world financial flows. At present, around 70 countries and territories offer their offshore services for foreign capital, bank transactions, profitability from activities in financial markets proper. The global offshore business concentrates large amounts often having no relation to the country of origin, the so-called cosmopolitan capital (wandering). Although in the early 80's of the XXth century offshore companies were considered to control approximately 500 billion dollars, it was already in the early 90's that this amount doubled and was estimated as 1 trillion dollars. Today, from ⅓ to half of the world capital turnover goes through offshore business channels, and therefore, almost half of non-resident bank deposits are concentrated in world offshore centers. These are the world financial centers comprising international capital markets that provide for the accumulation and redistribution of world capital. From the process of reproduction (circulation of capital), the world financial centers plunge out the most homogeneous and mobile element — money, and freely manipulating with them, concentrate huge economic power in their hands. The role of world financial centers was also enhanced by the latest achievements in computer science, allowing execution of instant transactions and movement of huge amounts to any point of the world within the shortest possible time. The world financial centers consist not only of powerful banks and financial institutions operating on the international scene, but also have currency, stock and other exchanges as their integral parts concertedly working under increasingly unified rules. The world financial centers are establishing new criteria for economic activity, modifying its motivation and priorities. Basically, these changes are aimed at shortening the activities timing and advancing profitability over all other criteria. As a result, substantial portion of funds is directed not to production, but to purely financial transactions. The matter is not only that with significant financial resources available, the volume of competitive production facilities according to international standards is limited and often burdened with increased political risk. The financial sector itself is artificially creating particularly favorable conditions for itself, at the same time generating risks to be mitigated and securitized.

19

Authors: Tatyana Tsygankova, Anna Ishchenko

In context of post-industrial development of global economy, escalating competition in international goods markets, the definition of competitive export is proposed based upon both existing criteria – sustainability, effectiveness, adaptivity and fair competition, and on those described in the work – ecological performance, service maintenance, brand awareness and high technology. Given that, it is proved that with the aim of detailing the elements of competitive export, the latter should be typified depending upon the performer (export competitiveness of a company, country, region) and subject (export competitiveness of goods, services, rights upon intellectual property objects), keeping in mind universal and specific features of export criteria proposed to be characterised through a range of indices on corporate and state levels. Groups of factors affecting export competitiveness building are systematized (institutional, financial and economic, marketing, foreign trade, scientific and technological, resource-related and social and ecological). Marketing technologies are typified on corporate level under the following criteria: novelty, object, creative component availability, internationalization stages, international marketing forms, digitalization level, management functions, customer-centreness scale, international marketing activity stages, financial security, specific features of intercorporate coordination. The practice of applying international marketing technologies by companies is investigated. In context of necessity to overcome crisis phenomena and increase competitive export volume, an assessment is made of integrating national manufacturing into regulated global chains of creating added value with the relevant rating, in particular, depending upon the available potential, minimality of technical and organizational changes, marketing relevancy, enabling to determine the manufacturing areas most prepared to cooperation, and estimate marketing contribution into market success.

19

Authors: Oleksii Chugaiev

The economic power of a country is the ability of all its residents to influence the other subjects of international economic relations by economic means and to withstand external impact. The abstract nature, multidimensionality and complexity of the concept of economic power determine the plurality of methods for its quantitative measurement. The examples of the existing assessments of countries' economic power at the beginning of the 21st century are given based on its key determinants. The methods based on the criteria of GDP, national wealth, trade sphere of influence, multi-component indices and subjective assessments are preferably used. Most assessments show the distribution of economic power between countries in a fairly similar way. However, the methods based on national wealth and its components give a distinct advantage to developed countries, and the methods of subjective assessments in individual countries can show unexpected results. The problematic aspects of the existing methods include the failure to take into account economic dynamics, informal economy, environmental impact, non-periodicity of statistical data publication, coverage of a part of economic entities, one-dimensionality, arbitrary weighting coefficients of factors or duplication of information. We propose the economic power index based on fixed values and dynamics of adjusted net national income. The application of such index made it possible to assess the economic power of the vast majority of countries and a number of integrated entities. The leading countries, i.e. USA and China, were similarly assessed. Taking into account the incomplete integration, the EU takes the third place. The developed countries account for a half of economic power of the world’s countries, the newly industrialized countries — for more than one third, the least developed countries — for less than 1 per cent. The enhancing effect of integrated entities on their key member states was assessed. The advantages and disadvantages of the proposed method of assessment were presented. It has advantages when comparing countries with similar economy size and does not have any significant advantages in relation to the method of GDP when comparing economies of a significantly different sizes. The proposed method points to the relatively larger power of the North American countries, developed countries and East Asian countries as compared to their share in the gross world product.

26

Authors: Liubov Galperina, Yuliia Klen

The article explores conditions, factors and results of mergers and acquisitions in international business with the example of the energy industry. The directions of world energy market transformation in the framework of PESTLE analysis have been determined by the factors influencing the efficiency and future of the companies that have effected mergers and acquisitions. The transformation of the global energy market is associated with changes in the main market parameters that affect the sectoral and regional structure of international mergers and acquisitions. Including: growing demand for energy from the growing population of the planet, including due to an increase in the middle class share; fluctuation of world oil market prices; the growth of supply of shale oil changing the transnational flows of trade in primary petroleum products; rising demand for renewable energy as a result of cheapening technologies and diversification policies; the growth of renewable energy sources supply; increase in demand for atomic energy; improvement of energy infrastructure; introduction of energy efficient and low carbon technologies; introduction of safe technologies by energy companies; reduction of transaction costs in power grids due to optimization of modes at application of Smart Grid at all levels (local, on-site, regional, national, international); the expansion of the world-leading countries in the primary energy markets; demonopolization of national energy markets and liberalization of energy markets of the EU, USA, Japan, South Korea, Australia, etc. The world market of mergers and acquisitions has been characterized with the definition of key features of its development. International mergers and acquisitions in the energy sector are analysed on the basis of regional and industry characteristics. The international mergers and acquisitions in the energy sector has been analysed, taking into account the main scenarios for the development of the global energy market (reform, restoration, competition). The tendencies of mergers and acquisitions in energy in the context of the energy markets transformation have been revealed, including, but not limited to: the increase in the number and value of transactions in renewable energy under any scenario of the global energy market development; the cyclical nature of the mergers and acquisitions development; synchronization of mergers and acquisitions cycles in energy and world market of mergers and acquisitions; increase in the number of transactions; involvement of innovative energy companies that implement energy-efficient production, intelligent technologies, and robotics in the consolidation processes; increase in the share of cross-border mergers and acquisitions; accelerated regional growth in the number and value of mergers and acquisitions transactions in the developed countries of Western Europe, North America (USA, Canada), Asia-Pacific (China, India, Australia); the high growth rates of international mergers and acquisitions among developing countries in the countries of Central and South America (Mexico, Brazil), as well as in some African countries where the renewable energy is being rapidly developing (Kenya, South Africa, Nigeria).

30

Authors: Svitlana Radziyevska, Ivan Us, Dmytro Pokryshka

The end of XX – the beginning of the XXI century was marked by the bright discovery that Chinese economy became one of the leading factors in global development, the powerful locomotive of globalization. On the background of negative impact of the global financial crisis of 2008-2010 the People’s Republic of China (PRC) has proven to be the most stable and able to definite development, though at a slower pace on the vast majority of countries in the world. Only due to China the centre of world progress started shifting from Western Europe and North America to the APR. An analysis of peculiarities of the course of globalization processes shows that China, under the slogan of open peace-loving politics, actually strengthens its political and economic activities aimed at transformation of the existing unipolar world headed by the United States into a multipolar world. China's foreign policy is aimed at achieving the status of a superstate until the middle of 21st century. In the article PRC Concept “Belt and Road Initiative” is considered as a proof of existence of such a strategy. At the same time, attention is drawn to the fact that in order to achieve its goal, China establishes trade ties with all countries of the world, primarily through the introduction of free trade zones (FTAs) and an increase in investments, which is clearly manifested in its Eurasian policy, as well as in the implementation of the Concept of “Belt and Road Initiative”. The article proves the expediency of establishing an FTA between Ukraine and China and more active involving Ukraine in the implementation of the New Silk Road project based on the analysis of trade and economic relations between Ukraine and China and based on the specific state of its economy in the conditions of geopolitical and geoeconomic instability. The article covers the key tendencies of Ukraine’s foreign trade cooperation with China in the context of the FTA initiative. The main goods, which account for the majority of exportimport operations from both countries are determined. The customs tariffs of Ukraine and China for individual goods, export of which is important for the Ukrainian economy are analysed. As a result of this analysis, it was determined that the main issue of potential negotiations on FTA with China is the need for a significant reduction of China’s tariffs on wheat and maize, which is 65%. The political risks of concluding an agreement on the FTA, in particular, because of the possible negative impact of such an agreement on the prospects of Ukraine’s EU membership, were identified, and recommendations were made to relevant government bodies both to ministries and to the profile committee of the Verkhovna Rada of Ukraine.