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.

4

Authors: PAATA AROSHIDZE

After the collapse of the Soviet Union, the Caucasus and the Caspian region to establish a special situation. The battle for the development and transportation of Caspian oil. On the agenda was the question of resolving the legal status of the Caspian Sea. The decision of the legal status of the Caspian Sea is of great importance in order to select a route for the transportation of energy resources. Today, through the territory of Georgia laid the Baku-Tbilisi-Ceyhan and Baku - Supsa oil pipeline and South Caucasus gas pipeline, which run parallel to the Baku-Tbilisi-Ceyhan pipeline. The Baku-Tbilisi-Dzheyhan- first direct route for transporting oil between the Caspian and Mediterranean seas, the total construction cost of which amounted to 4 billion. US dollars. This route is economical and allows for safe transport of oil over long distances. In addition, the existing oil reduces oil transportation in large numbers across the Bosporus

5

Authors: ANZOR DEVADZE

Management of tourist enterprises is quite a complicated process, which requires activation of logistics systems in order to optimize economic flows that have a significant impact on the company's financial results. Logistics is being discussed as one of the most effective methods of tourism management. Logistics of Tourist Company represent specific logistics activity, the essence of which lies in the planning of operations, in management and control, which is carried out during development of the tour and during the time of delivering the finished product to the consumer. Logistics of Tourist Company also provides processes of supplying relevant information, storing and processing. Also logistics is a competitive tool in the market and a management philosophy in the tourism. According to the integrated paradigm, logistics system is viewed as a unified whole, as an integrated system that combines the tourism product formation, production and realization of the entire life cycle according to the Customers Demands. Thus, the paradigm represents organization's situational and combined perspective of tourism business on the inside-company and outside-company levels. Logistics principles represent consumer priorities. Therefore, the level and type of service, which are offered to customers, are being advanced to the foreground, while the reduction of the time and improvement of performance reliability are being considered as the ultimate goal of logistics. Based on the logistics approach, the ideal system of management is system that is based on an integrated approach and allows purposefully manage effective activity reserves of the tourist enterprise.

5

Authors: SALOME JAPARIDZE

In this article describes structure of the Human Resource Management system. The basic principles are recruitment, assessment, training/education and motivation action plan. This method examines in detail and focusing the selection process of personnel. It gives a detailed analysis of methods of conducting interviews during the selection. Interviews and focus groups are the most common methods of data collection. Focusing on the existence of valuation system in the company and its positive aspects. Following the example of the French company "Lafarge", it is developed methodology systems for assessing and the competence.

5

Authors: TAMTA VARSHANIDZE

In the modern world economic trends are directed toward the democratization of property. Which deepened our interest in the diffusion of property rights, law enforcement and determining the direction of the limits of property rights. We believe that The country's long-term economic success, especially in the field of agriculture and the protection of property rights is almost impossible without receiving a transparent system of land ownership.

6

Authors: IRINA TAVADZE

Georgia, as an independent country and plenipotentiary member of the world community of nations, appeared on the political map 18 years ago. But it doesn’t mean that its state history is limited to this 18 years. Georgia has a history of many centuries (Three thousand year anniversary of Georgian state was officially celebrated in 2000). So long is the history of the emission and circulation of Georgian money as well. The first coin in Georgia was in VI century BC, large denomination of the so called “Colchis tetri” – Tetradrachma. It belongs to the number of rarest coins, whereas small denominations (Triobolis) are known thousands from the historical territories of Colchis, which mainly cover West Georgia. The emission of Georgian money lasted for centuries; however, circulated money of the territory of the country was not always original national currency. But as the foreign political pressure weakened, Georgian government immediately implemented its sovereign regalia – cut its own money. At the beginning of XIX century, after Georgia was converted within Russian Empire, with the loss of independence Georgia ceased the emission of the so called “Sirma abazi” the last Georgian money, which was very popular in the whole Caucasus. This was followed by the emission of Russian-Georgian coins in Tbilisi mint. In 1918-1921, there were produced Bonis of Transcaucasia Commissariat and Democratic Republic of Independent Georgia, and Georgian and Transcaucasia Federation Bonis as well, released after Soviet Russia annexed and occupied Georgia, in 1921-1924. On April 9, 1991 Georgian independence was announced. From April 5, 1993 to October 2, 1995 circulated Coupons of Georgian National Bank. On October 2, 1995, new Georgian National currency “Lari” was announced as a legal tax means on the whole territory of the country. It undergoes modification in order to be perfect: 1999, 2000, 2004, and 2016. The emission of Georgian money for National economic development is unequivocally determinant.

7

Authors: LYDIYA ZLOTNIKOVA, OLHA RUDENKO,

The summary Relevance of the appeal to a problem of man's domination in economy is caused by decrease in its efficiency, need of search of new sources of development. During reforming of society socialization of the person, having received the status of service, I have worsened an economic situation of women. There are unresolved problems of the theory of the latent capital, determination of its value. Still economic science does not pay due attention to forming of a social capital in a family. Still economic science doesn't pay a due attention to forming of a social capital in a family. Costs for education of the new person, forming of bases of moral, social and economic conduct are theoretically not proved, are practically recognized the personal record of a family. In incomplete families most often the woman bears material, moral and social responsibility.

8

Authors: GULADI TKHILAISHVILI

Georgian agrarian market to become part of the global market at the modern era of globalization, the formation of the production is essential for the agricultural products in the process of ensuring comp¬liance. The regulation improvements of the international trade relations are the key objective of the World Trade Organization, because it takes into account the globalization of the economy and the rapid variation of the current occasions, bilateral economic relations and strengthening of the integration process. At present, the Ministry of the Agriculture of Adjara is facing new challenges. The question arises as to what the new role to play in the region's agricultural economy? The issue of concern remains the po¬tential in this scope, whether the comparative advantages of trade and production in rural areas should be given special devotion to local needs and whether it meet the needs of export markets. Adjara region con¬sumes more imported food products than it produces. Hence we need to observe what place it takes in the sectorial structure of the region, whether is it worth to focus on agriculture priority recognition policies or not. The Adjara AR agricultural sector in the production and export development problem possible exists only by properly arranging the organizational and legal forms of agricultural enterprises, their entrepr¬eneurship and establishment of favorable conditions for the effective use of their productive potential.

10

Authors: OLENA GRISHNOVA, MARIIA NAUMOVA

The paper reflects on the relationship and interdependence of social entrepreneurship, the general enabling environment for social entrepreneurship and quality of life in the world (across countries contexts) for 2009 and 2015 using k-means cluster analysis. It was found that differentiation of the countries analyzed by the level of social entrepreneurial activity (SEA) and its significant correlation with enabling environment for social entrepreneurship development and quality of life in general. Global Entrepreneurship Monitor Consortium has calculated the SEA rate for each participating country for 2009 and 2015. Comparative analysis of SEA rate at the international level revealed new trends and to draw general conclusions of the importance and direction of social entrepreneurship development in each country that it forms the relevance of the paper. The main objective of the paper is to comprehensive evaluate the developments of SEA rate at the global level and to identify the interdependencies their links to creating environments conducive to social entrepreneurship development and growth in the quality of life. We have applied k-means cluster analysis in order to analyze the situation in SEA level development in the world for 2009 and 2015, and clustering of countries according to these indicators in 2015: 1) favourable environment for the activities of social enterprises (according to the international agency Thomson Reuters) 2) quality of life (social progress index, developed by the non-profit organization Social Progress Imperative). The statistical values were standardized for each clustering to account for different value units. This approach method enabled a conclusion that in the complex of countries for each clustering are clearly distinguished four clusters, but components of the clusters are differ in variety of researched characteristics. The global distribution of the countries into four clusters by the k-means cluster analysis, based on the SEA rate for 2009 and 2015, allowed to indicate that the SEA indicator has grown 2,52 times in 2015 in comparison with 2009 is a testimony to social entrepreneurship ever increasing popularity. According to the model of Hofstede's five cultural dimensions were properly analysed the characteristics of mentality and behavior norms of social entrepreneurs that were specific to the countries all over the world. We assert, drawing upon the cluster analysis undertaken as part of the paper, that growth of social entrepreneurship would be a significant advancement to improving the quality of life of the population and, consequently, socially oriented states has a special interest in assisting and the high level supporting for social entrepreneurship. We demonstrated that favourable conditions for the extensive SEA development really correspond to level of social entrepreneurship development in the countries, cultural factor shaping the behavior of social entrepreneurs largely.

24

Authors: LAMARA QOQIAURI

Creation of effective system of innovative business requires a Theoretical Basis, Etymological Unit, Adequate Instruments. Creating an affective forms and methods of Innovative Management determines their goals, subjects, management tasks. Thus, in the article we thought it is necessary to define the concept and conceptual issues of the above questions. This will allow us to reflect fully and accurately the content of the innovative process as the management unit. Any news can be transferred into innovation only in case, society recognize, estimate and determine the appropriateness of its use. Innovation transformed into innovation after the Innovative Process. The article shows a new effort to define a scheme of innovative process. Innovative Process- this is the process of transforming scientific knowledge as the innovation. It includes a sequential chain of events: “Science, Technology, Manufacture.” In other words, it implicates the creation of new coherent scheme, which performs a variety of functions: Procedural, Additional, Basic, Productive and so on. Thus, the innovative process is to receive news and to make its commercial realization. It includes not only scientific technological processing and manufacturing, but also its exchange and consumption. The article shows a new effort to define a scheme of innovative process.

3

Authors: MAIA GELASHVILI

The establishment and development of market relations is impossible without the successful operation of the commercial banking system, since it plays an intermediary role between the creditors and the debtors and practically defines the vector of its development and officially plays the role of the implementer of monetary policy. Worldwide experience in banking practice reveals that adoption of new types of financial reporting, which, in turn, along with the transparency of banking activities considers the development of risk management and corporate governance of banks, comprehensive analytical and complex assessment of the opportunities, should be taken into account in the process of the functioning of the banking system in Georgia. The main problem of commercial banks is the credit portfolio risk analysis and assessment in the critical conditions; banks have to develop an effective credit risk management system. Successful realization of a bank’s commercial objectives is impossible without a fundamental reorganization of its risk management system. Credit risk management field related to physical and legal entities, requires a particular change. Improvement of Commercial Bank's risk management system should be tailored to each category of customer, however the development of interest rate, market and operational risk management systems should be considered as well, that is a main task of banks. The main goal of operational risks should be elimination of drawbacks that are associated with simultaneous removal of the surplus control mechanism. The work shall be based on: • Deeper inventory of expected operational risks; • Assessment of expected economic outcomes of operational risks; • Economic analysis of the control system; • Qualitative modernization in regard to market risks considering financial risks. Accordingly, the processes associated with the credit risk require adoption of fundamental changes: 1. Development of a system for each client which will allow the client to openly assess the expected level of the credit risk; 2. In case of commercial lending commercial priorities coherent to risk assessment; 3. In the decision making process to increase the role of the function, when the credit is developed by several persons reviewing the risk management. We conditer a number of measures that should be taken for the operation of changes of commercial banks and its effective development. In particular : a) to introduce new types of financial statements, it will significantly contribute to the decision-making process and to the usage of new products by the customers, as well as raising public awareness and increase the confidence to the banks; b) the reforms that reduces the risk for creditors and depositors will improve the commercial bank’s activity transparency.

4

Authors: BADRI GECHABA, GELA MAMULADZE,

Role of innovations and innovative development in economy of modern EU is defined by lack of additional comparative advantages in the power industry and limited possibilities of additional attraction foreign investments in economy. Role of an innovative factor in economy development in EU increased in the last two decades significantly. Thus, it is necessary to recognize that further opportunities for growth are doubtful and limited. In the article the analysis of the main tendencies of development of innovative economy of the European Union at supranational level is carried out. The main results of formation of innovative economy, and also problem of further realization of innovative capacity of EU are shown. The author considers that realization of strategy of innovative development of EU’ economy will provide the European economy to an overcoming from the developed debt, financial and economic crisis.

4

Authors: NANA SHONIA, NANA SHENGELIA

On the national insurance market liability insurance is characterized by low demand, in spite of the idea implied under the insurance product. Liability insurance is an essential attribute of the financial and insurance system and it is difficult to imagine a modern, highly developed country without it. It can be said that along with the development of the socio-economic system of a developing country the insurance, and in particular, liability insurance, should become more accessible to people. It should not be a burden for the society, but should give the customers the feeling of peace and security. Therefore, it is necessary that the insurance premium for the policyholder was smaller than a potential loss or damage. Georgia experiences a number of problems in liability insurance like in many other types of insurance business in general. It should be noted that the following problems, as a result of which the society will feel more secure, can only be solved by the state. However, it is necessary to carry out the relevant actions with the insurance companies involved. It is possible to divide the problems of liability insurance into several closely related categories, namely: at present on the national market there is a liability insurance product for physicians, but survey has shown that the product is used only by 0.3%. So, we believe that it is necessary to make the product mandatory with the assistance of insurers and medical institutions. They can protect professional liability of each physician against the accidental risks. It is possible to implement an appropriate scheme through a specially designed program where medical institutions and insurance companies will serve as the mediators between the state and a physician. In addition, we consider it necessary to note that, like in any other relations it is necessary to maintain the element of competitiveness between the state and insurance companies, which will make the insurers take care of their clients in order to attract new customers and keep the old one. As a rule, the information about any innovation that should be provided to the civic society needs to be correctly, timely and purposefully disseminated. Preferably, the traditional media and the Internet media should take responsibility to periodically and comprehensively disseminate the information about the social-economic aspects of liability insurance as a well-informed society is an educated civil society. This is directly proportional to the socio-economic progress of liability insurance in Georgia.

4

Authors: EVGENI BARATASHVILI, TAMAR LAGVILAVA, MANANA BERUASHVILI

Clusters are usually formed within the next three programs the subject of one of the initiative, including: Own small businesses, local authorities and / or large corporations. Clusters integration process itself Continue from property assets and their management control. It can be done in two ways. The first way can be found in the production and sale of goods, is expanding the company's internal sources. The second ways suggests to expand business to other companies or to buy assets at the expense of being a classic form of integration. of overseas experience to the Clusters integration process would be advisable to try to use in the Georgian reality and consolidation efforts in the field of innovative small enterprise development.

4

Authors: NAZI GVARAMIA, NANULI DZIMTCEISHVILI

Key questions of accounting and audit regulations, exists in Georgia nowadays and correspondingly, legal changes, executed towards the above said direction is given in this scientific thesis. The task of this thesis is to present the audit role and possibility of accounting in modern management system, and it is not covered only by the registration of economical operations, but it is also the necessary instrument of financial information, linking ring among the economical activity and the entities, who make the decisions, which have the great meaning in functioning of economical subjects in order to make correct management discussions. Practical realization of a problem, made in our country was done by the Georgian professional accountants and audit federation (BUF), which was created in April 1998 on the result of confluence of Georgian accountant club and Georgian accountant association. On the way of accounting activity’s improvement, important step was taken by the mutual force of Georgian professional accountants and audit’s federation and USA international development agency (USAID), which has the law “about accounting and calculation”, adopted by the parliament, by which, the Joint stock companies, from January 1, 2000, Limited liability companies and cooperatives are making the accounting and calculations from January 1, 2011 in compliance with the international accounting standards. Due to it, the aim of this research is to represent the experience, existed in the sphere of accounting and audit of Georgia, criteria of accounting professional acknowledgment and correspondingly on the base of legal bases of changes, executed on the modern stage. World known practice of accounting activity reveals, that role of international accounting standards and the meaning, is gradually increased and it is said by increasing of world economical globalization, which means the participation of world’s capital in separate countries’ economy. Follow from this, interested investors, creditors and etc. need timely and hopeful information in return for the invested capital about get a possible economical profit, getting of such information is not possible without foreseeing of international standards principles of accountant in national calculation system.. For nowadays, sharing of international experience in accounting is very urgent and correspondingly its introduction in accounting and calculation sphere. Follow from this, world known concepts, settled in the modern accounting and audit sphere is discussed in this scientific research, including, the experience of European countries and USA towards the abovementioned direction.

4

Authors: ZURAB MUSHKUDIANI, NANA SHONIA

The objective of this paper is to examine the interaction of the new model of IFRS 9 with supervisory rules. It discusses potential implications for financial stability. We assess whether the IFRS 9 expected credit loss model better reflects credit quality of financial assets and whether it reduces the pro cyclicality of loan loss allowances as compared to the IAS 39. By benchmarking the IAS 39 and IFRS 9 models, we find that the expected credit loss model of IFRS 9 includes a significantly larger set of information relevant for identifying future expected credit losses. IFRS 9 requires earlier and larger impairment allowances, which will limit the possibility of distributing, overstated profits in the form of dividends and bonuses. Above these, it will reduce the build-ups of loss overhangs and the overstatement of regulatory capital in boom periods, which in turn, will mitigate capital inadequacy concerns in a downturn. IFRS 9 can mitigate the amplifying effect of the incurred loss approach on pro cyclicality and enhance financial stability.

4

Authors: Manana Vasadze, Tsiuri Duruli, Ia Mosashvili

The Technology of Hotel Guest Service procedure is the core factor that affects not only the quality of service in general terms, but also it affects hotel income and management process. For the same type of Hotels the technological procedures – transactions - are typical. Meanwhile there are different approaches to hotels differing by location, standard of service, type of guests, size of the hotel. Four phases constituting the guest cycle are shown in Figure 1. In each phase of the cycle there are certain standard transactions which occur between the guest and the hotel. Different transactions and services are shown. They are involved in the different phases of the guest cycle. These are listed below: • reservations • check-in and registration • uniform service and baggage handling • telephone calls and messages • handling guest accounts • check-out and bill settlement The Four phases of the guest cycle and the various transactions and services within each phase are explained and identified. The First Phase is connected with Reservations. Reservations can be booked in a number of different ways, including through a local reservations clerk, or through a nationally centralized reservations system, or through Global Distribution Systems The Second Phase – is associated with a greeting and registration. A doorman or a porter is a position in most medium to large hotels. It is individual of great importance to the reputation of a hotel. Registration or check-in transaction is provided by room clerk. If the guest has booked a reservation in advance the reservation information must be verified. Room assignment, Issuing Keys and Baggage handling are accompanying transactions of the second phase. Most hotels require guest to pay for their room in cash at check-in or guarantee payment through a credit card. After registration a room assignment is made or key card is issued. The Third Phase is an Occupancy or Communication Phase. Traditionally messages, mail and other valuable information about restaurants, theatres, and tourist attractions are provided. The Forth Phase – recording all guest charges and issuing the final statement at guest check-out. A copy of the statement is picked up at departure. This Phase includes several transactions as follows: bill settlement, baggage handling and, in most cases, it includes an additional service -transfer to the airport. Most Hotels know through experience that they will incur some no-show reservations. To combat this loss of income overbooking of rooms is a relatively common practice. Apart of overbooking the hotels may cater for guests with no advance reservation which means that the First Phase in the Guest Cycle is annulated.

5

Authors: ANZOR ABRALAVA

Today, in financial and economic crisis conditions, effective means represents mobilization of organization’s internal resources, development of innovative processes, creation and implementation of new social technologies of human resources management, which will be directed to minimal material costs to possible to achieve the maximum effect. It will arise the demand of development development of innovative processes. The introduction of innovation represents a result of innovative process, which implements the transformation of scientific knowledge in innovation. The main difference between the innovation process from innovative activity, is expressed to ending mandatory innovation. So, to get the results, which is suitable for practical implementation. In innovation practice, there are several models of innovation process: for describe its internal structure: from simple model of innovative chain to the among-function and multi institutional structure’s interaction model. When the organization becomes wider innovative system’s (WIS) element

5

Authors: VAKHTANG DATASHVILI, MAKA BUGHULASHBILI

Historically, management consulting grew with the rise of management. Nowadays with the knowledge democratized and more and more information available for everybody the role of management consulting is growing. Applying for management consulting services is increasing trend among companies which try to solve existing organizational problems through getting deep, functional expertise and feasible recommendations in the form of strategy consulting, operational consulting, marketing consulting, financial consulting and so on. Therefore management consulting is considered as one of the most rapidly grown interesting, intellectually stimulating and financially rewording work available in the professional services market. Management consulting includes a wide range of activities and most management consulting firms define their practices in different manner, either according to professional area of expertise, such as competitive analysis, corporate strategy, operations management, or human resources, or they view the process as the sequence of phases like entry, contracting, diagnosis, data collection, feedback, implementation, or according consulting purposes. The aim of this article is to clarify and analyze fundamental purposes of management consulting, because when there is clarity about the activities and the purpose both parties the consulting service provider and the company which needs these kind of service are more likely to be involved in the engagement process more satisfactory.

5

Authors: YEVHEN ROMANENKO, IRYNA CHAPLAY

This paper puts forward providing of practical recommendations in order to solve public administration-related tasks in various areas of the society functioning and, as a result, augment the spiritual values and national wealth of Ukraine

6

Authors: NATALIA VDOVENKO

It is theoretically proved and empirically confirmed that among the main segments of the livestock products plays an important role in the fish production with all infrastructure. On a global scale aquaculture is a young industry of agrarian sector of economy. The volume of aquaculture production over the last 50 years grew to 55.1 million tons in 2009 and 58.3 million tons in 2010, and to 66.6 million tonnes in 2012. Studies have shown that if current rates of development, it is projected that by 2030, half of the produced fish and other aquatic biological resources will be of artificial origin. Proved the mechanism of realization of state policy in the sphere of fisheries and fish industry, protection, use and reproduction of water living resources, fisheries management, safe navigation of vessels fleet fisheries. Proven that government regulation of fisheries, formed on similar principles of the current legislation of Ukraine, and in other branches of agriculture. However, the paper notes that the fisheries sector has its own technological features that determine the specificity and production and organizational structure of the industry, represented by companies specializing in the production, cultivation, processing of fish. The work proves that the calculations, over the past 10 years indicate a significant budgetary allocations aimed at financing the spawning-nursery fisheries, hatchery, nursery, plant-eating fish hatcheries ordinary fish, sturgeon and trout plants. They have a tendency to a gradual increase from 33.9 million USD (including costs of fisheries regulation) to 116,4 million USD per year. Also noted that the current system of budget financing of fisheries is being substantially improved. Earlier, the public expenditure was carried out on one item of expenditure on the reproduction and protection of water live resources and fishery regulation. Today there are separate articles for the organization of activities of bodies of fish protection and reproduction. Justified to achieve the increase of competitiveness of aquaculture production, it is necessary to create conditions for the effective operation of the Law of Ukraine "On fishery, industrial fishing and protection of aquatic bioresources". Undoubtedly also to fulfill the tasks set in the current and developed with the help of the author of "State target economic program of fishery development for 2012-2016". This will enable to accelerate the process of raising effective ownership in the enterprise sector and to create necessary mechanisms for internal and external investors. Systematic suggestions for improving the methodological tools of regulation of economic activities in fisheries. In pespective necessary to Refine the technique of counting fish at all stages of development to determine aggregate supply and the method of determining the fair value of material for breeding of aquaculture and commercial fish given the prices of the active market. Asked to summarize methodological approaches to the formation of a competitive system of regulation of the agricultural sector at the level of international standards and to substantiate scientifically balanced distribution of functions, powers and responsibilities between the regulatory bodies in the field of fisheries to achieve consistency and effectiveness of economic processes.

9

Authors: MERAB VANISHVILI, LEVAN KALATOZISHVILI

In the article, the latest literary sources and rich factual materials, is consistently analyzed and assessed the level of competition in the banking sector. The study established and economic life has been confirmed that the banking market competition has some specific features, making it different from other markets konkurentsiebisa it. One important difference is that the bank's money market operation, the liquid goods, which can not be replaced by other goods. The second major feature is related to the banking sector and financial capital mobility. It is concluded that the Georgian economy has a low level of debt servicing burden of each borrower is too hard, leading to higher interest rates and shorter maturities determined. Accordingly, the reduction of interest rates is desirable not only for the overall economic development, but also a necessary prerequisite for the further growth of banks.