Globalization and Business

11-21

Authors: Emil Avdaliani

Regional or international trade has always played a central role in the history of Georgia. Trade routes made it possible to establish close political, cultural and economic relations with neighboring as well as distant countries. The kingdom of Georgia’s territorial expansion towards Arran, Shirvan, and Armenia in the 11th-13th centuries was largely driven by economic and trade reasons, namely the desire to control the regional trade routes which criss-crossed Dvin, Barda, Ganja, Tbilisi, Ani, Trebizond, Ahlat, Tabriz and many other major cities along Georgia’s southern borders. The present article will also pay attention to the changes to the trade routes in the Caucasus region caused by the Mongols and how their invasions changed the kingdom of Georgia’s position in the regional commerce. By mid-13th century new major trade corridors connecting Asia with the Middle East and the Black Sea were geographically distanced from Georgia harming the latter’s geopolitical position in the region.

49-55

Authors: Mariam Sharia

Tourism is a vital economic driver for countries worldwide, fostering growth and diversification across various sectors. However, the issue of financial leakage poses a significant challenge, particularly for countries heavily reliant on imports. This article delves into the strategic direction required to mitigate financial leakage in the Georgian tourism industry. The study identifies rural and gastronomic tourism as promising avenues for addressing this challenge through a comprehensive methodology encompassing in-depth interviews, statistical analysis, and literature review. By leveraging Georgia’s diverse culinary heritage and distinctive cuisine, these alternative tourism forms promote local products and services and offer tourists authentic experiences. The research underscores the growing global preference for authentic and unique tourism experiences, aligning with the shift towards locally sourced, high-quality offerings. Through strategic initiatives focused on rural and gastronomic tourism, Georgia can differentiate itself as a leading destination while ensuring equitable distribution of tourism benefits within local communities. This study contributes to the broader discourse on sustainable tourism development, emphasizing the importance of local resources, traditions, and community involvement in shaping the tourism landscape.

71-87

Authors: Rachid Mansour, Mokhtar Tahraoui

This study aims to identify the factors influencing the use of e-banking services among clients of Algerian banks. To this end, a theoretical model was proposed based on the technology acceptance model (TAM) and the concept of electronic word of mouth (eWOM). To validate the variables of the proposed model in the Algerian context, we conducted a qualitative study using semi-structured interviews, which were carried out with 17 clients from various cities across Algeria, including those in the east, west, north, and south of the country. The data collected were subjected to thematic content analysis using a constructivist research approach. The results revealed significant effects of perceived usefulness, perceived ease of use, perceived trust, and electronic word-of-mouth (eWOM) on the use of e-banking services among clients of Algerian banks. The results also uncovered other variables that are expected to have a significant effect on e-banking use in Algeria, namely perceived costs and perceived service quality.

98-101

Authors: Tamta Cheishvili , Tinatin Kostava

In the modern world, in the field of international security, one of the important challenges is the information war. On the other hand, information is a universal and cheap weapon with a limitless scope and high efficiency. Therefore, it can be more dangerous than any conventional means of warfare. During its implementation, the attacking side achieves the desired outcome through the psychological manipulation of common beliefs. During the last ten years, the rate of disinformation has increased sharply. Also, propaganda, espionage, uncontrolled dissemination of state secrets and personal information, massive cyber-attacks and so on. Both states and terrorist organizations use such mechanisms. Today, the most functional means of information in this field are used by terrorist organizations, which often use social media to recruit so-called “Islamic Fighters” and lay out fundamentalism. Cooperation at the international and regional levels is important in fighting cybercrime and protecting critical information infrastructure. For this purpose, within the framework of the Council of Europe, the European Union, the United Nations, NATO, and other international organizations, it carries out active activities on cyber security topics. In addition, protecting against cyber intrusion, even on a small scale, is in the country’s national security interests, and it is crucial to involve each state in the proceeding discussion about information warfare.

111-119

Authors: Tsiskara Zarandia, Vakhtang Taktakidze

To strengthen the export potential of Georgian bees and intervene in international markets, it is necessary to make a comprehensive and profound analysis. The article discusses the influences of market segmentation, consumers’ preferences, international trading agreements, legal regulations, product certification, technological innovations and competition on the development of marketing and branding strategies, supporting the efficient positioning of the high-quality Georgian bee products on the international markets and increase in export. Competition evaluation is critical for determining market possibilities and positioning Georgian beekeeping on global markets. The physiological and qualitative functions of the Georgian mountain grey bee must be emphasized: its gentleness, excessive productivity, and resistance to ailments. The article additionally mentions the importance of a strategic method to boost export capability in integrating technological improvements and contemporary advertising strategies, which include digital technology and database analytics, which will have an instantaneous effect on increasing the charm of beekeeping products. Determining purchaser preferences, cooperation with international organizations and obtaining first-rate certificates are crucial for the global reputation of Georgian beekeeping manufacturers and gaining agreement with customers. Market analysis, contemporary branding, and dynamic marketing are considered the basis for the hit export of Georgian beekeeping products and their established order in international markets.

129-149

Authors: Tengiz Verulava

Hospitals are being expanded all over the world. Hospitals are becoming larger (i.e., increasing patient admissions each year) and more complex (i.e., offering a wider range of services to patients with more diverse medical care needs). In the hospital sector and other branches of the economy, economies of scale are important, according to which the volume of medical services can be increased by reducing average costs and increasing quality. However, measuring this relationship between the volume of medical services and costs is difficult because hospitals differ substantially in terms of specialization, patient composition, and other parameters that affect the volume of costs. The paper discusses the features of economies of scale in the healthcare sector and the dependence of the volume of medical services on costs and quality. Studies confirm that the influence of various factors on the costs and quality of medical services depends on the environment and the system of incentives in which hospitals operate. Relationships between patients and healthcare providers based solely on price negotiations do not ensure adequate healthcare quality. Due to informational asymmetry with respect to the real cost of hospital services and quality of treatment, medical service buyers cannot influence cost reductions and increase the quality of treatment, which increases hospital power. Thus, when evaluating the impact of hospital competition on costs and quality of care, we must remember that market mechanisms in health care do not always increase public welfare.

15-24

Authors: Riadh Kadri, Hacen Kahoui, Abdelkader Sahed

The pivotal role of electrical energy in propelling a nation's economic development cannot be overstated. A deficiency in the efficient consumption of electricity not only acts as a hindrance to economic growth but also constitutes a potential threat to national security. Recognizing the gravity of this relationship, scholars and policymakers have directed substantial attention towards the exploration of electricity consumption patterns and the development of predictive models. Consequently, a diverse array of models and methodologies has been employed to forecast electrical energy consumption. Within this context, the present research delves into a comparative analysis of two prominent forecasting methods, ARIMA and GM (1,1) grey modeling techniques, with a specific focus on predicting electricity consumption in Algeria. The assessment of these models' performances was conducted using the average percentage of absolute MAPE, employing annual data collected from Algeria spanning the extensive period from 1982 to 2020. The research findings underscore the paramount importance of accurate forecasting in this domain. Notably, the ARIMA model (1,1,0) emerged as the frontrunner, exhibiting superior predictive capabilities when juxtaposed with the GM (1,1) model, as evidenced by the MAPE standard. This nuanced examination contributes to the scholarly discourse on electricity consumption prediction, offering insights that can inform strategic decision-making and policy formulation in the pursuit of sustainable and secure energy practices.

47-53

Authors: Shorena Pharjiani

Georgia, with its open policy towards foreign investment flows, was one of the first countries in the Post-Soviet space. From the day of gaining independence, FDI has become the most important indicator of the country, and the assessment of the volume of foreign investment flows carried out in the country, statically or dynamically, has not lost its relevance to this day. Present article explores the volume of foreign direct investments made in Georgia, in dynamic; From the total indicators, in terms of geography, the largest investor countries are identified; In the period 2013-2022, the structure of FDI is expanded according to components and the percentage distribution of share capital, reinvestments and debt obligations from the total indicators is highlighted; The impact of FDI on economic growth indicators has been determined using correlation-regression analysis. The article also provides global figures for foreign direct investment, including countries receiving the largest FDI flows; In order to assess the investment environment, in dynamics, the sovereign credit ratings of Georgia evaluated by the leading rating companies are presented. Statistical observation, collection-grouping and analysis techniques and methods are used in the research process.

65-68

Authors: Rusudan Mikautadze

In Georgia, as in other developing countries tourism has positive and negative importance and influence. It may affect the national cultural values, and in order to get economic benefits, the host may temporarily forget the so-called "disguised arrogance", which is typical for a local, Georgian resident based on the perception of the uniqueness of his own culture and give priority to the cultural values characteristic of a tourist. Today, the tourism sphere in Georgia is quite highly paid one. Besides, it allows culture to be not only an aesthetic resource, but also beneficial. Interaction between these two spheres and proper management promotes the direct and indirect influence of culture on the economic potential of Georgian regions. Under direct impact we mean cultural institutions (such as cinemas, museums, theaters, concert halls, galleries, etc.) which bring the economic income, and under indirect, those events, which may have a greater influence because it contributes to social stability, population employment growth, the reduction of unemployment, and an increase in the well-being of the local population through the development of "associated professions" like transportation, catering, and more. Communication in the field of tourism increases relations between people of different backgrounds, reduces conflicts between cultures, instilling a sense of pride in local people in the need to preserve their cultural heritage and identity.

77-97

Authors: Irakli Leonidze, Zurab Sherazadishvili

The availability of internships is determined by the interest of accepting interns if the conditions are agreed. Georgia is a legal and social state which means that the main function of the legislator is to establish the new norms in the relations of the parties, or to stop actions from regulation. The state and universities have a special functions. There are numerous relations between the economic and legal meanings. The role of the state is considered ambitious. Not only regulation, but also abstention may be a defining the role, so that the legal context does not constrain economic significance. It is necessary to determine which should be implemented on the relations between the parties. The basis of the legislative change may be determined by various reasons but the purpose of this change should be correctly seen.

111-117

Authors: Besiki Tabatadze

The visualization of accumulated data is an important aspect of managing learning processes. The digitization and automatization of educational management systems, along with the increasing adoption of modern technologies, empower professors to track and analyze student performance across various platforms. This paper presents the implementation of a modern software extension (plugin) for Moodle, a popular and flexible learning management system, to visually represent the grades accumulated by students in various course activities. These software extensions possess robust capabilities for the visual presentation of statistical data, utilizing data from points accumulated in assessment components such as quizzes, presentations, midterms, final exams, etc. By employing these extensions, professors can easily observe the distribution of grades earned by individual students. Modern approaches to the management of learning processes increasingly embrace the power of data visualization, simplifying and enhancing the overall experience. Visualizations allow educators to quickly identify patterns, trends, and areas for improvement within their learning processes. This timely and insightful information facilitates informed decision-making and efficient resource allocation. By readily identifying areas of strength and weakness, educators can implement targeted interventions and adjustments to ensure all learners receive the optimal learning experience. This ongoing monitoring and refinement contribute to continuous quality improvement within the educational environment. Visualizations provide stakeholders with a clear and accessible overview of learning progress and outcomes. This transparency fosters open communication, collaboration, and trust among educators, learners, and administrators. To effectively leverage the power of data visualization, modern learning management systems (LMS) increasingly integrate with specialized software extensions. This paper discusses two particularly powerful plugins for the Moodle learning management system and their effectiveness.

27-32

Authors: Mariam Matcharashvili

This paper examines the effectiveness of the Convention on the Prohibition of Nuclear Weapons (TPNW) toward deterring nuclear escalation, which entered into force in 2021 and prohibits the creation, possession, proliferation and use of nuclear weapons while also responding to a number of demands related to denuclearization. For the in-depth analysis of the theme, the regimes theory in International Relations and the criteria of the theoretical explanation of the regime effectiveness are selected. The paper is built around the basic premise that the Convention is ineffective in achieving its intended goals and discusses three main arguments: (a) normative incoherence, (b) lack of institutional mechanisms, and (c) neglect of the global security and strategic context. To prove the latter, the paper analyzes the Russian war against Ukraine and the importance of nuclear deterrence in the background of the nuclear warnings coming from Russia. Despite the reasons listed above, the main drawback of the Convention is the refusal of the nuclear-weapon states to ratify the agreement. On the one hand, the anarchic international system creates a solid basis for mistrust and asymmetric gains between states, and on the other hand, the Convention does not offer them security guarantees. Accordingly, the Convention represents an idealistic view of international organizations and civil society.

49-53

Authors: Besik Tabatadze, Giorgi Asanidze

The advancement of modern technologies and the evolution of the web have led to a multitude of technological innovations. Concurrently, web projects have become increasingly diverse and iterative. The emergence of complex systems has presented challenges that existing approaches cannot adequately address, thereby necessitating the development of novel architectures, technologies, and methodologies. Notably, adopting microservice architecture has effectively resolved issues encountered in large-scale projects and significantly enhanced their manageability and flexibility. Similarly, in response to the requirements of client-side applications, a demand for adopting a novel architectural approach has arisen. The work presents the usefulness of using Monorepo and Micro Front-end architecture in technological projects and private web development in a single workspace. This method is suitable for the development of large-scale, complex projects. The architecture of client-side Angular and server-side NestJS technologies will be discussed in this article. Huge corporations such as Google, Facebook, and others employ these tactics. The paper clearly demonstrates why this architecture is the ideal answer for online projects and the benefits it provides developers over other existing and experienced alternatives. The work is useful both theoretically and practically.

57-61

Authors: Manana Mchedlishvili, Naira Tabatadze

In the process of carrying out financial operations, modern technologies represent one of the most important challenges. World technological trends have influenced Georgia as well. Technologies play an important role in accounting, nowadays all transactions in accounting have an electronic form, which is securely stored in databases. The use of fintech technologies in accounting helps to save resources and reduce costs. Accordingly, the paper presents the role of technology and its importance in enterprise activity. Effective capabilities of modern accounting computer programs are established, its advantages and disadvantages are highlighted. Research has been conducted on the possibilities of companies' work on the RS portal in the direction of accounting activities. Conclusions and recommendations are formulated. In particular, the simplification of the barriers to entering the technology market, which will increase the level of competition and accordingly, the development of this sector will take place. Also cooperation with successful foreign fintech companies and improvement of cyber security. creation of innovative hub and regulatory space, where enterprises will have the opportunity to create prototypes of their products and adjust the created application. as well as establishing effective tax incentives for investors, specifically in the direction of financial technologies. Strengthening the ability of professional accountants to move to the Net-zero model, all of the above is a prerequisite for creating a healthy business environment in the country.

76-82

Authors: Maia Azmaiparashvili

Climate change is a well-known global megatrend, a macroeconomic and geostrategic force affecting the present and future of the Earth, the global economy, tourism, business, heritage, society and individuals. Timely awareness of these threats by all states, taking responsibility and joint efforts to combat climate change is the only solution. Eco-innovations play a major role in ensuring sustainable development in the new era. The process of tourism growth poses new challenges for researchers. Our research object is related to sustainable challenges, green economic development, rate of sustainability of tourism resources in tourism cluster. Eco-initiatives, green economy initiative, green investments in business, environmental protection and preservation of a safe environment for future generations are significant in the aspect of sustainable management of the destination. Environmental protection issues, green production, green skills detection, shadow side detection, widening possibilities and introduction of new perspectives are important tasks of research. The methodological basis of the work is qualitative research methods, interviews with selected focus groups, data analysis, processing of analytical material presented in open sources.

90-97

Authors: Ana Elizarova

This article examines the problems related to gambling, particularly in the context of Georgia, while exploring global approaches that promote responsible decision-making. It discusses various forms of gambling, including lotteries, sports betting, electronic gambling machines (EGMs), and casino games, and their associations with problem gambling. The article highlights the link between high gambling involvement and problem gambling, emphasizing that the level of engagement in gambling activities has a greater impact on behavior than the specific type of game played. The role of advertising in promoting gambling is discussed, with a focus on the marketing strategies employed by the industry. Additionally, it provides an overview of the Georgian gambling market and the legislative provisions implemented to mitigate the adverse effects of gambling on society. Moreover, the article emphasizes the importance of broadcast media monitoring in academic research, particularly in assessing the effects of gambling advertisements on individuals' behaviors and attitudes. The article concludes by highlighting the importance of comprehensive analysis combining statistical indicators with social studies to assess the effectiveness of gambling regulations and reforms. It emphasizes the need for ongoing research to understand the complexities of gambling behavior and develop strategies to promote responsible gambling practices.

116-121

Authors: Tengiz Verulava

The purpose of the research is to study the strategic management process in Georgia's hospitals. As part of the quantitative research, a survey of managers of hospitals was conducted using a pre-structured questionnaire. A relatively small number of hospitals attended strategic planning lectures and pieces of training (13%), Only one hospital had a strategic planning committee (4.3%), 87% of hospitals had a documented strategic plan; Strategic planning was primarily engaged by the management board (69.6%), with doctors participating to a lesser extent (30.4%). Only 34.8% of hospitals develop their budget according to the strategic plan. Resources (43.5%), allocation of budget funds (47.8%) and identification of additional financial resources (47.8%) are not made in accordance with the goals of the strategic plan. Most hospitals are less likely to compare the evaluation results of goal achievement indicators with other hospitals (52.2%), and 43.5% report the values of actions taken to accomplish the strategic plan's goals to the hospital. Most of the hospitals rarely do benchmarking of other hospitals' goal-achieving measures (78.3%). Small number of clinics have a strategic management process that, as a consequence, affects their success in the healthcare market. Hospitals develop a strategy plan, but its implementation is poorly monitored and not based on scientific methods. It is reasonable for the state to impose a legal requirement that hospitals produce a written strategic plan. Providing educational training on the strategic management process in hospitals is essential.

141-148

Authors: Mirza Khidasheli, Teona Grigolashvili

Money was a centre of economic gravity from its inception. It evolved from gold to fiat currency, and now we face a new era of monetary evolution. Every step of development gives him new power to influence society by reaching more and more aspects of social life. With its influence were unknown risks and concerns toward monetary systems flexibility and sustainability. Using a promise to pay as money (banknote) has several critical legal and technical inconsistencies with the token-based CBDC system. One significant limitation is that promissory notes may not have a unique serial number like physical currency printed by central banks. In the modern hybrid monetary system where only cash has a unique serial number and banks’ electronic payments work on an account-based approach, the incompatibility of promise to pay with real money is not visible widely. Overall, the role of fractional reserve banking and the money multiplier in a token-based CBDC system will play a different role than in traditional banking systems, given the unique characteristics of digital tokens and the role of central banks in issuing and controlling them. By analyzing these key aspects, this paper aims to provide a comprehensive understanding of the potential effects of CBDCs on fractional reserve banking. The findings of this research will contribute to the ongoing discussions and debates surrounding the adoption and implementation of CBDCs, enabling policymakers, regulators, and banking institutions to make informed decisions in this challenging era of digital currencies.

155-159

Authors: Tinatin Mshvidobadze

In recent decades, the structure of international exchange has undergone significant changes, and the role of various services is increasing, the range of which is expanding under the influence of the scientific and technological revolution. At the same time, the regimes of international trade in services, as well as approaches to its national and multilateral regulation, are becoming more complex. Digitalization has become one of the main characteristics of development. The digital transformation of international trade is shaping the new "digital reality" of the industry. The statistics of the official regulators of international trade confirm these changes. The paper analyses the dynamics of changes in international trade in services in the context of the global crisis and the impact of digitalization on it. The interdependence of countries in the conditions of increased economy and new models of international exchange of services are shown. The paper presents a quantitative assessment model of the level of systemic risk causing the financial crisis.

20-27

Authors: KALENIKE URIDIA

The relevance of labor laws in labor legal relations was highlighted in the introduction. Due to the topic's distinctiveness, emphasis was placed on the service contract, its substance, and function in legal interactions. The labor contract was examined, as well as its defining qualities and the differences between the labor contract and the service contract. The employment contract's minimal standard of protection for the employee was emphasized. Based on the nature of the work, emphasis was placed on the motivation of the employer when signing a service contract with the employee rather than an employment contract. The benefits to the employer of entering such an arrangement with the employee were explored. The consequences of signing a service contract rather than an employment contract were brought to light. In the mentioned instance, a decision was taken about the need for contract cancellation and the legal measures for employee protection. The emerging topic drew attention to judicial practice, which was created by the general courts within the framework of Georgian legislation. The practice of Western European and American courts in respect to the matter under debate was referenced to support the argument. Finally, the author's position was stated as a conclusion.

51-57

Authors: FRED KASIRYE

This paper reviews the literature on teaching in educational institutions at the current time and its ability to match the demands of industry, and produce competent human resources for today and the future generation. The study was conducted to shape and inform new-generation teachers of the aspects they need to take into consideration in order to keep themselves relevant, instrumental, and capable of supporting the future of learning, relearning, and unlearning experiences in a globalized setting as the 4th Industrial Revolution unwraps its presence. A careful review of works obtained from Ebsco host and google scholar for the past five years(2017 – 2022) was done to establish the key shifts in paradigm, and practice as well as establish the challenges and opportunities at play. Key aspects informing the re-imagination are but not limited to digitization, Artificial Intelligence, Data analytics, the Information age, the Internet of things, entrepreneurship, and employability among others. In the face of these widely appreciated aspects of daily living, teaching as has been over the ages finds itself at crossroads. In order to be an effective tool to transform the generations as has been over the years it is key for the sector to consider a review of the way it thrives in order to support today’s expectations and also to help address the expectations of tomorrow which are largely anticipated but unknown. A review of the delivery, assessment, and practice of teaching is urgent and necessary across the globe to meet these expectations of the learners.

69-74

Authors: TSITSINO DAVITULIANII, MAIA AZMAIPARASHVILI

Karst relief is widespread in western Georgia, on the southern slopes of the Caucasian Mountains, from the river Psou to Lake Ertso. There are more than 1000 karst caves, which led to the formation of Georgia as a classic country of karst caves. Karst forms have been studied by many scientists, but the pioneer was Vakhushti Bagrationi. Our region Imereti is especially distinguished by karst caves, where "Imereti Caves Protected Areas" has recently been created. According to the tourist motivation, there are 3 distinguished directions of speleotourism: extreme (Caving), spectacular (Show Cave Tourism) and medical (Speleotherapy). All these three directions are developed in our country, but at different levels. Among protected areas of Georgia most visitors come to karst natural monuments. For almost a decade now, priority is given to Prometheus Cave. The pandemic all over the world has reduced the number of visitors, but nowadays much is being done to attract them. In 2021, a new – White Cave was opened, where one can taste the wine made in the same cave. Soon the Satsurblia Cave will receive the first visitors, who are interested in speleotherapy. Despite the above mentioned, there are still many potential cave resources to be explored that are little known but important. Among them I would like to distinguish a 13-storey Tsutskhvati cave, which has no analogue in the world. The aim of our paper is to get acquainted with such sites and to study their development perspectives. The inclusion of such landmarks in the list of natural tourist sightseeings of Georgia will increase the awareness of Georgia and the influx of visitors to our country.

83-87

Authors: LALI KAPANADZE

The USA and China are the two most powerful and accountable states in the world. As for the right, 7 countries have access to the China Sea. The countries maintain intensive relations using economic ties and maritime routes. The US is trying to gather more allies to prevent Chinese hegemony. The United States is also not going to lose its strong position in Asia, which can be expressed by trying to put pressure on other countries in the Asia and Pacific region. At the same time, its main interest in the region is to ensure freedom and safety of navigation. The area is attractive because of its abundant supply of organic fertilizer, which is very popular in world markets. This is why the US is interested in the region, and Beijing wants to have the largest fleet and infrastructure in the region.

17-24

Authors: Revaz Gvelesiani, Givi Bedianashvili

The starting point for economic policy analysis is the difference between what exists and what should exist. Therefore, opinions (views) about what should be, can be used to assess the observed economic situation and development. It is possible to come up with recommendations on how to avoid the differences between what exists and what should exist. In reality, we find factual events that any person can check. There are also desirable events that go beyond such a check. It is on the basis of their comparison that the content of both evaluations and recommendations is formed. Normative views express subjective desires, so the result of the evaluation can not be considered "right" or "wrong". It is possible that the entity (or economic interest group) will consider them acceptable or even reject them. As a result of the significant increase in economic uncertainty in modern conditions, the complex presentation of the targeted aspect of economic policy, as well as the substantial improvement of the degree of policy adaptability itself, taking into account the requirements for ensuring the continuity of systemic long-term forecast work, are especially relevant.

30-34

Authors: Lela Bakhtadze

The article addresses the issues of ensuring the exchange rate stability of GEL - the national currency of our country and effective management and regulation of public debt as well as attaches weight to the mechanisms for overcoming the challenges of economic development in the country and to the selection and use of flexible tools. The article highlights the efforts of the leaders of the government and the National Bank of the country in developing and implementing the optimal macroeconomic policies, as well as in maintaining monetary policy stability and achieving sustainable economic development. Furthermore, considerable attention is given to the GEL exchange rate not only against to major currencies - the USD or the euro - but also to the currencies of the other partner countries of Georgia. The article analyzes the dynamics of changes in the GEL exchange rate against the currencies of partner countries, based on the statistical data of the National Bank of Georgia. Factors influencing both effective nominal and real exchange rates as well as government domestic and external debt are also assessed at different time intervals. Thus, the purpose of this article is to identify the issues related to the management and regulation of public debt based on the analysis of the dynamics and structure of public debt of Georgia, as well as to study the factors that have a positive and negative effect on them. This article aims to identify the issues related to the management and regulation of public debt obligations, on the basis of public debt sustainability analysis. The article, on the basis of statistical data, analyzes the dynamics and structure of public debt in 2010-2020. The problematic issues in the financial and monetary system are also identified and their determinants are investigated. Recommendations have been developed to reduce the debt burden and overcome the negative consequences caused by them. Based on the analysis of the economic situation in Georgia and the dynamics of the exchange rate, the recommendations for stabilizing the exchange rate of the financial sector, effective management of public debt and achieving sustainable economic growth have been developed in this article. Subject and object of research. The subject of the article's research is to identify problems related to the fluctuation of the Georgian national currency exchange rate and public debt regulation. While the object of the article is monetary policy that have been developed and implemented by the National Bank of Georgia and the Ministry of Finance of Georgia. Research methods. Relevant scientific literature as well as statistical data from the National Bank of Georgia, the Ministry of Finance and the National Statistics Office of Georgia were found at the initial stage of the research. In addition, the studies and articles by Georgian and foreign scholars on public debt issues and the materials of the International Monetary Fund were used. The scientific value of the article. The article analyzes the dynamics and structure of the GEL exchange rate and public debt in 2010-2020 based on the statistical data of Geostat and the Ministry of Finance of Georgia. Problematic issues in the field of finance and monetary-credit have been identified and their causes have been investigated. The recommendations have been developed to alleviate the debt burden of Georgia and overcome the negative consequences caused by them. Based on the analysis of the economic situation in Georgia and the dynamics of the GEL exchange rate, the article develops recommendations for improving the financial sector, stabilizing the exchange rate and ensuring effective public debt management and sustainable economic growth. It should also be noted that, the article addresses and assesses the approaches of the leaders of Government of Georgia and the National Bank to ensuring the formation and improvement of a stable macroeconomic environment. The role of monetary policy in ensuring the sustainable development of the economy is revealed. In addition, the mistakes in exchange rate regulation and public debt management are also identified and assessed. The article substantiates the crucial role of ensuring the stability of the GEL exchange rate in achieving economic growth. Besides, reviewing the GEL exchange rate is important not only against the USD, but also against the currencies of other trading partner countries. Accordingly, the paper, based on the statistical data, also analyzes the dynamics of changes in the GEL exchange rate against the currencies of partner countries. The article also analyzes the key factors affecting both effective nominal and real exchange rates, as well as domestic and external debt at different time intervals.

35-38

Authors: Jemal Kharitonashvili

The paper discusses the influence of the proportions of production factors on the establishment of public equilibrium. The theory of production factors occupies an important place in the history of economic thought. The creator of the theory of factors is considered to be the famous French economist Jean Baptiste Say (1767-1832). J. B. Say campaigned against mercantilism and protectionism and advocated a policy of free trade. Factor theory finds significant application in the international division of labor. Another French economist, Frédéric Bastiat, developed the theory of economic harmony. In this theory F. Bastiat sought to reach an economic agreement between different groups of the society, through their cooperation. Canadian engineer-technologist P. Monsarov developed a theory of four factors. Nowadays, Heckcher-Ohlin Theory is widely used in the international division of labor.

51-56

Authors: Vakhtang Charaia, Mariam Lashkhi, Mariam Lashkhi

Paper provides an analysis of FDI challenges and their impact on the service sector of Georgia, under the covid-19 global pandemic, along with the armed conflict factor in Eastern Europe, between Ukraine and Russia. The article also discusses such issues as public debt, economic growth, employment, international rankings, trade, tourism and etc. Since the cases of different countries vary according to their economic structure, political reality, and even the readiness to overcome those newest and unprecedented challenges, the case of Georgia provides a great example of a small, democratic, developing economy, which significantly depends on foreign direct investments both inward and outward, regional stability and not the least - western cooperation and support.

61-64

Authors: Manana Kharkheli

In the first half of 2020, as a result of the spread of coronavirus in the world and the implementation of preventive measures, the volume of production was sharply reduced, there were shortages in the supply of goods the service sector was limited. Additional difficulties for Georgia and many other developing countries have been created by the sharp decline in remittances from our citizens in other countries, which has become one of the reasons for the decline in retail trade. Countries whose tourism accounts for a significant share of their economy have been particularly hard hit. In countries where restrictions were delayed, more massive pandemic outbreaks occurred, with high mortality rates and severely restricted business activities. As a result, unemployment and poverty rates have risen. After the "repulsion" of the first wave of the virus, in many countries, including ours, there was a certain revival of the economy. However, this increased mobility has led to an even more devastating second and subsequent waves of the virus and the world is currently fighting yet another wave. The pandemic factor in Georgia, in parallel with the second, third and subsequent waves, was accompanied by an unstable political situation. This has become an additional pressure and impacted the economic downturn and the devaluation of the Georgian Lari. As in the rest of the world, the coronavirus pandemic in Georgia has had a direct impact on human capital, with a negative impact on education and human health. Unlike natural disasters, devastating effects of which on physical capital are far greater than on human, the pandemic has left factories, plants, infrastructure intact, but has had an extremely negative impact on human health, disrupting the learning process of pupils and students. The closure of schools and colleges and the transition to distance learning have resulted in the loss of much of the school year. A separate problem is the less efficiency of the distance learning process and the difficulties associated with knowledge testing. At the same time, the current situation exacerbates the divergence between different social strata in terms of access to full-fledged education. Pandemic kills thousands of people. Many of those who recovered from the pandemic suffer from both health and psychological problems. In the current situation the health sector is not given the full opportunity to deal with other diseases. Once the pandemic is over, significant investments will need to be made in both education and healthcare. The level of human capital development is an important factor for the economies of all countries. Differences between countries in GDP by 10-30% are caused by differences in the level of human capital development. It is noteworthy that the current shortcomings caused by the pandemic in the development of human capital will have a negative impact on many in the coming years. Since 2018, the World Bank has been implementing the Human Capital Development Project. Within the framework of this project, a so-called The Human Capital Index (HCI) was developed, which shows the productivity of the next generation of workers compared to the standard of complete education and perfect health. Due to the pandemic, this index has deteriorated in all countries of the world, including Georgia.

73-82

Authors: Murman Tsartsidze

In the interests of economic development and economic efficiency, in the current global crisis, priority is given to the development of human capital, increase the competitiveness of the workforce, creating fundamentally new mechanisms to stimulate labour, this, in turn, ensures an increase in labour productivity, its quality and efficiency. The successful solution of this problem requires the improvement of the organization of wages and its optimal state regulation. In the conditions of the current global crisis, role of the state in the field of wage regulation is more social in nature and its main function is to ensure a minimum level of income for the population. This last one, should be carried out by establishing a real subsistence minimum, a minimum wage and establishing an optimal ratio between them. In developed countries, the minimum wage is regulated on the basis of economic development, labour productivity, the level of average wages and the real value of the minimum consumer budget. The specific amount of the minimum wage is set at the national level by the legislature of the country, and its size in a particular area or region is determined by agreements concluded between trade unions and representatives of trade unions. In determining it, the following shall be taken into account: the needs of workers and their family members; the overall level of wages in the country; the value of life and its change; factors of economic development; level of labour productivity and opportunities to achieve and maintain a high level of employment. The purpose of establishing a minimum wage is to provide social protection for employees. Indeed, "The minimum wage has historically been a social protection mechanism which should protect low-wage workers and their families from poverty" (Khelaia, 2020,2). This problem is especially relevant for our country, because to date, there is no comprehensive mechanism for state regulation of the minimum wage and its defining Legislative Framework. In a scientific article is presented the formation of the minimum wage and its peculiarities of regulation, analysis of the related legal framework from the Soviet period to the present day in Georgia. Is established the basic principles, goals and objectives of minimum wage formation. Particular attention is paid to the assessment of the pros and cons of the legally established minimum wage. The final section presents the main directions for calculating the minimum wage and improving its state regulation in Georgia.

99-106

Authors: Nana Jgharkava

Development of the demographic aging is one of the characteristics out of many challenges of the modern world population. Demographic aging is demonstrated in increased number of the older population and is the sign of the aging structure evolution. The results of the demographic aging are obvious in many countries of the world, including Georgia. The outcomes are reflected in various fields, like family structure, savings, economic development, change of consumption forms, the balance of demand and supply at the labor market, healthcare and social protection services. Increased number of the elderly people will raise the costs of the retirement allowance and care and will be the kind of test for the country economy (Bruni …2017, 20) Despite the trend of increasing proportion of the elderly population in the world, demographic aging is characterized by significant variety. The paper reads the demographic indicators (evaluations and predictions), describes period between 1990-2050. The portion of the population above 65 in entire world of the period was increased from 6.2% to 9.3%. According to the UN scale the world is aged, though least developed countries still maintain demographic youth, though according to forecast, the mentioned counties will be aged from 2030. Based on estimation of the correlation between demographic aging coefficient and factors influencing it there are the following findings, in particular, correlation between demographic aging and birth general coefficient (-0,876) for entire world, as well as total birth coefficient (-0,812) is strong. The linkage between less developed regions is the same, while there is average linkage in the developed regions. As for relationship with migration it is average in developed regions, while it is weak in less developed regions and countries. The most important correlation was identified between the demographic aging and median age reaching almost full relationship (0,973-0,981). It shows that change of median age is the key indicator influencing demographic aging. Demographic changes has been started by reduction of the birth rate since 19th century in Georgia, while portion of the elderly population exceeded 8% since 20s of the twentieth century. The paper refers the data from the public census for description of the demographic aging stages in Georgia according to the age groups (1897-2002); the factors influencing demographic aging are also learnt. The aging index within Georgian population corresponds to the index of the developed regions; this is why the influencing factors on the aging (birth, median age, life-span) mainly look similar to developed regions’ tendencies. It was reflected and will be reflected in aging and the rate forecasted by the UN for 2050 is around 21.8. As for migration, considered as one of the influencing factors on aging, it has a negative impact, characterized for less developed countries. According to the UN forecast migration coefficient for 2020 was 2.5, actually it reached 4.2, what can be the result of COVID 19 pandemics. As for the demographic aging linkage with the influencing factors in Georgia, the correlation of birth indicator is medium (general birth rate is 0.395, total birth rate is 0.612), while the strong linkage was identified between the migration and median age (median age was 0,935; migration was 0,988). The changes derived from demographic aging are reflected in the age structure of the work-capable population, reduction of labor supply. The paper provides three age groups of the labor-capable population (1994-2020), where there is the reduction by 42% of 15-29 age group compared to baseline period. This is the most serious result of the demographic aging. Reduction of the youth share among the work-capable population can have significant losses in terms of innovation, as well as less adaptation to the technological development. It was more obvious during the COVID 19 pandemics. The pandemics highlighted unequal access of the population to the digital technologies. Elderly people are more digitally-isolated and have barriers in accessing commodities and services which are provided online more and more (Ageing in the Digital Era, 2021). The same problem is faced by the population of pre-retirement period as during working processes appliance of digital technologies has been increased in the services. It is estimated that when younger part of the work-capable population be in the young adulthood age, the access to the modern requirements and media literacy will be increased, it will reduce the risk estimated by many scientists on slowing economic development down due to demographic condition during the next few decades. The economy is able to adjust to the changes of the population age structure due to new technologies.

111-114

Authors: Tinatin Mshvidobadze

The article describes the impact of digital technologies on the level of social and economic development of the society, provides a rating of the largest IT companies in terms of the volume of business capitalization. The necessity of digital transformation of the management of the socio-economic development of society and organizations is substantiated. The research used groupings of economic activities that directly influence the development of the digital economy. Using the data of regression models, the coefficients of GDP elasticity from the development of the studied sectors were calculated and used to forecast GDP under the development influence of the studied sectors while maintaining the existing trends. A forecast of GDP growth in Ukraine has been constructed, taking into account the processes of digitalization of the economy in accordance with certain trends. The forecast dynamics of changes in GDP under the influence of the IT sector development until 2023 was also illustrated. The results showed that stimulating the development of information and communication technologies has significant prospects for activating digitalization processes in all spheres of the economy and society and increasing GDP.

128-133

Authors: Tamar Makasarashvili, Giuli Giguashvili

Tourism and hotel businesses are the sectors most affected by the COVID-19 pandemic in the Georgian economy. Despite the gradual removal of restrictions imposed during the pandemic period in early 2022, despite the transition to the tourism industry recovery phase, it is important to assess the impact of the pandemic on the hotel sector to better identify post-pandemic challenges and plan sustainable business development measures. The paper analyzes the impact of the global pandemic and other negative factors on the development of the hotel business in Georgia, the main challenges, measures taken to mitigate the damage caused by the pandemic to the hotel sector, and the measures taken to save the hotel business. The paper is based on a review of leading scientific publications and statistical data, an assessment of the main directions of the state anti-crisis policy, government program 2021 - 2024 "Building a European state". Opinions are expressed on the mobilization of existing opportunities in the process of hotel business development in Georgia in the post-pandemic period and the emergence of new perspectives; in the new reality with the services traditionally considered for the hotel business, the introduction of innovative technologies and innovative products.

134-137

Authors: Ioseb Kartvelishvili, Tea Todua

In today’s globalized, dynamic world, organizations’ dependence on information and, consequently, their interest and demands for information is growing. Information technologies play a crucial role in effective functioning and control for modern companies and business. In the conditions of operational accessibility of necessary information it is possible to adequate evaluation of current situation and to make timely decision. At the same time, information must be available only to those to whom it is intended and unavailable - to all remaining. Computers are integrated into a common network for fast data transfer and efficient interaction. This connection must be reliable and secure. Modern companies are interested in possibility of using Internet channels. However, the principles of building of the Internet give the chance to malefactors to steal and distort information purposely. Corporate and broadcasting networks which are based on TCP/IP protocols and are constructed on standard Internet applications (E-mail, Web, FTP) have no warranty from invasion of unauthorised persons. In article the technology of creation of the virtual private networks (VPN), which is one of the optimal variants for creation of secure channel of communication, is considered.

143-148

Authors: Paata Beridze

The world experience confirms that the state-supported / operating enterprises are often inefficiently managed, which is a precondition for statization and privatization of state-owned enterprises. The policy of the state towards insolvent enterprise implies to conduct bankruptcy-liquidation procedures, however, at the same time, the establishment of the state-supported entrepreneurial entities is underway. The most state-owned enterprises are unprofitable enterprises, which are also characterized by a very low degree of accountability, which in turn prevents formation of an optimal business strategy. The main purpose of this paper is to study the mechanisms for improving the management policy of the enterprises owned by the Autonomous Republic of Adjara and municipalities and to develop proposals for its further implementation in practice. The theoretical significance of the paper lies in the fact that the results of its main research can be used to further improve the legislative and normative acts in the field of management policy of the existing, as well as state-supported enterprises and enterprises supported by the Autonomous Republic of Adjara and municipalities, and the practical significance is reflected in the fact that the results, conclusions and proposals obtained in the process of researching the paper can be used directly in the field of management of the existing, as well as state-supported enterprises and enterprises supported by the Autonomous Republic of Adjara and municipalities.

154-159

Authors: Ana Elizarova

Since the dawn of the computer and internet era, many online users have exploded, and more people are using the Internet to spend their money online. Georgia is well-known and well-positioned as a regional gambling hotspot. Gambling is a strategically vital and financially lucrative industry for the country. Gambling business plays a crucial role in the Georgian economy by contributing to its budget revenues via income generated from licenses and spending of foreign tourists and increasing employment by hiring a steadily increased number of employees in the field. Gambling is a steadily growing industry with an increasing number of players raises several behavioral questions on why so many people decide to play online and the main factors that determine and affect their choices. Even though online gambling is a strategically important and financially attractive field for Georgia, it is, at the same time, a source of many social problems such as gambling addiction, the involvement of adults, and financial problems. Gamblers maintain behavioral habits by attempting to deny concerns and a false sense of control. As a result, gambling becomes the most important activity in a person's life. Its nature is so broad that it complicates the process and makes it difficult for gamblers to recover. Therefore, this case requires a thorough study from various perspectives. These aspects lack scientific studies of the local market or other related research papers that add novelty to the Georgian online gambling segment. This research examines several traditional approaches to gambling behavior, their proclivity for problem gambling, and the primary elements that influence it.