Globalization and Business

17-20

Authors: Izet Zeqiri, Fitim Deari, Sadri Aliji

The role and place of information in financial decision making process is undisputed. The financial decision that doesn’t rely on information would be inaccurate and costly. Information serves and helps in the decision making process both information users, internal and external. Thus, nowadays firms pay enough attention to the construction of appropriate information systems. Such information systems should be able to provide information in time, valuable, and with many rest qualities which are required by user’s needs. In the firm context, different levels of government have different needs. Whereas, the strategic level requires information that is linked with future and a longer time, the tactical level requires such information which includes recent past and future. Or, the operational level requires such information which includes the current state and has informative character.

26-31

Authors: Dmitrijs Oļehnovičs, Inta Ostrovska, Viktorija Šipilova, Elita Jermolajeva, Ludmila Aleksejeva

Nowadays, much interest is devoted to the use of innovative (or wise) methods in assessing regional development. Rural areas have particular importance in ensuring sustainable development of any state; moreover, smart approaches to the assessment of regional development potential help determining common trends in the socio-economic development of the state as a whole. The present study shows the possibility of an integrated use of quantitative and qualitative methods in the assessment of the sustainable development of Latgale region (Eastern Latvia). The assessment was carried out within the framework of the project 5.2. of the national research program EKOSOC-LV. The quantitative assessment was based on scientific and practical experience taking into consideration the peculiarities of the development of Latvian regions and districts and resulted in the establishment of an integrated index (Smart Development Index), which comprises four dimensions – Resources, Population, Economy, and Management. The qualitative assessment was based on the viewpoints concerning the cornerstones of smart specialization and the factors influencing it expressed by experts representing the state administration, business and scientific environment. Expert opinions were collected by using the AHP method. The results of the research can contribute to the development of a scientifically grounded state and regional policy that reveals the full potential of smart development of rural areas, taking into account the rate of the regional socio-economic development. The case and the methodology of the present study can also be interpolated to other regions experiencing the need for creating an integrated, scientifically grounded, balanced and sustainable policy of regional development. The research is supported by the State Research programme 5.2. “Economy transformation, smart development, management and legal framework for the sustainable development of the state and the society – new approaches in the development of sustainable knowledge society (EKOSOC-LV)

36-43

Authors: Jeton Mazllami, Izet Zeqiri, Brikend Aziri

The economy of the R.M. did not have the necessary immunity to face the worldwide consequences of the global financial crisis that hit most of the western national economies a few years ago. In order to prevent and alleviate the negative consequences, the government of the RM during the period from 2008 to 2010 has taken some anti crisis package of measures. The government has introduced four packages of anti-crisis measures in the period 2008-2010. The aim of this paper is to analyze how the government of the Republic of Macedonia facing with the 2008 financial crisis, how the government was implement the anti crisis measures and finally what is the impact of financial crisis in the business sector with special emphasize the Pollog region. A large scale survey in SME’s has been conducted in order to get a clearer picture from the business point of view.

55-57

Authors: NIKOLOZ BAKASHVILI

Humanity has a lot of challenges in regard of social, political, ethnic, religious, gender etc. direction within the context of modern globalization, but innovative reveal of the natural regularities in regard of the globalization process characteristic of legislative and social-economic systems taking place willfully or involuntarily, can be considered as the most important one among the mentioned challenges. Sensitivity of business to the internal or external environment characteristic of business within the conditions of globalization can be considered as especially sensitive at all stages of the social-economic formation. If we take into consideration the impact of external factors, affecting social-economic systems, on the economic behavior of the mentioned business structures, the problems related to globalization can have extremely important impact together with the positive events. The latter, on its side, causes the start of so-called “natural survival process” of existing business structures. Business is the field of activity of society distinguished with special requirements. Transparency and legitimacy of the financial-economic situation can be considered as the most important among the mentioned requirements. Since the globalization process is accompanied by the strife for survival in a form of business subjects relevant resources (labor, financial, material and/or other material or non-material) will be provided. This may contain: ability to make law-abiding maneuvering within the legislative system, attractiveness of investment, image of honest taxpayer, compliance with the international harmonized customs tax system, establishment of trust and transparency by the participants of partner and/or equity capital, confirmation of stable financial image with possible contractors and so on. All the above mentioned can be achieved through proper working of the most important segment of market infrastructure such as audit. Materials of audited financial statements form the basis of transparency of working of business subjects, financial stability, image of honest tax payer and obtaining of desired partner status. Herein, business adaptation process is accompanied by the relevant increase of load of audit segment and inevitability of additional requirements and regulations for the field of audit within the globalization process. It should also be noted that important challenges can be perceived in regard of audit profession and auditorial activity as well that is caused by the process of globalization. That caused a number of legislative and structural changes in the country on its side.

63-70

Authors: Madona Gelashvili

At current stage, deepening of the trade & economic relations with the developed countries is of greater significance than with the countries at the same development level. This is mostly caused by the increasing technological dependence on the developed countries. For the developing and transition economies it is of critical significance to attract foreign investments providing the basis for economic development,exports growth and integration into the world trade and economics. To evaluate the directions of the foreign trade relations of Georgia, the work offers discussion of the foreign trade turnover, export & import, the largest trade partner countries, the largest groups of import and export goods and other indicators. Georgian government supports the idea of export oriented policies. Reduction of import tariffs and liberal local policies of recent years is best suitable for such approach. Export-oriented policies imply entry to the foreign markets and improvement of situation, with respect of production and costs in domestic export sector. Both of these aspects are subject of trade agreements, determining the conditions for opening markets for one another by the trade partners. And such negotiations deal not only with the tariff and non-tariff barriers but legislation regulating and forming the markets in general, as well. Trade policies of a country comprise significant part of the economic politics, as exports promotion is associated with economic growth, especially, where the trade partner, e.g., such as EU, implements the policies oriented towards foreign markets.

76-80

Authors: Lela Kamladze

This study reviews the Member States’ experience with codes of conduct and conflicts of interest affecting the partnership arrangements under the European Structural and Investment Funds. The focus is on conflicts of interest affecting the Monitoring Committees under the European Regional Development and European Social Fund. The study reviews the rules and other approaches to deal with conflicts of interest, discusses best practices and ends with conclusions and recommendations advocating a complementary rule and value based approach supported by transparency and ethical leadership.

91-95

Authors: Natela Vashakidze, Dezdemona Maglakelidze

Financial instruments are a delivery tool to provide financial support from the EU budget. Financial support provided to final recipients through financial instruments may take the form of loans, guarantees and equity investments. If properly implemented, financial instruments provide two specific benefits compared to grants: — the possibility of leveraging the public funds (i.e. mobilising additional private and public funds to complement the initial public funding); and — the revolving nature of their capital endowment (i.e. the use of the same funds in several cycles). The fact that loans have to be paid back and guarantees have to be released or, in the case of equity investments, returned should also have an impact on the behaviour of final recipients, leading to the better use of public funds and reducing the likelihood that the final recipients will become dependent on public support. We analysed the use made of preferential and risk-sharing arrangements with private partners and of tax agreements in this regard. Commission’s measure of leverage for financial instruments does not properly take into account the extent to which public financing mobilises additional funds need for more differentiated leverage ratios to obtain meaningful measurements Difficulties in identifying leverage of additional private and public capital for shared management instruments.

100-102

Authors: Givi Bakradze, Nanuli Dzimtseishvili

The present article discuses peculiarities of existing tax legislation of Georgia. Study reviews the necessity of current tax legislation improvement towards business stimulation approach. The recommendations are given for the improvement of tax system and tax policy

106-108

Authors: Liudmila Demydenko

The article deals with the drafts of two versions of tax reform, which were represented in 2015 by the Ministry of Finance of Ukraine and by the Committee of the Verkhovna Rada of Ukraine for tax and customs policy. The authors have represented the types of tax reforms on principles and methods of implementation tax policy in Ukraine. Insignificant positive changes were created in the tax system due to the adoption of compromise amendments to the tax legislation. A substantial reduction of the Unified Social Tax (UST) can be considered an important contribution for improving the business climate in Ukraine. It was concluded to provide radical tax reforms in the nearest future.

114-122

Authors: Łukasz Ambroziak

The aim of the paper is to present changes in Polish exports of food industry products in 2000–2014 using trade statistics in value added terms. They allow to decompose gross exports by the origin of the value added content, i.e. domestic and foreign inputs. For this purpose, the World Input-Output Database (WIOD Release 2016) was used to create a matrix of value added flows in the world economy According to the investigation carried out, in 2000–2014 the share of domestic value added content of Polish gross exports of food industry products dropped by nearly 10 pps. In 2014, slightly more than 74% of those exports was value added created in Poland, whereas foreign value added accounted for the remaining almost 26%. In comparison with other economic sectors, the share of domestic value added content of Polish exports of food industry products was relatively high. In this respect, the figure for Poland was also above the EU average.

126-129

Authors: Manana Aladashvili

In contemporary terms, tourism is a highly complex, multifunctional, multidimensional, and dynamic category of national and international significance. Therefore, it is necessary to primarily consider and analyse the very concept of tourists and tourism; its essence, structure, types and forms in which it primarily exists as a social, cultural and economic phenomenon, as a practice and a science. Globalization is a relatively new concept in economics, and it refers to the opening of individual national economies to the world economy, with mutual strong co-operation with as few legal barriers as possible. Sustainable development is also a recent economic concept, and it refers to the adjustment of economic development of a certain country to its natural resources, but also the resources of other countries that the respective country uses for its economic activities. The abovementioned differences in the outlook on tourism, globalization and sustainable development indicate that tourism is a very heterogeneous social phenomenon, and that different approaches and conclusions arise from these differences. Such activity has prompted the need for better linking of economic and political systems of different countries. It is indubitable that the boost of contemporary globalization is related to economic growth and depletion of natural resources at the global level. This indicates that the globalization process in terms of energy and environmental constraints could have a self-annihilating character. Simultaneous effects of tourism, globalization process and sustainable development will significantly affect future development of overall economic and social changes worldwide.

133-136

Authors: Darejan Bitsadze, Ia Goderdzishvili

Research reviews the ways of improving competitiveness and anti-crisis efficient management of automobile transport for both cargo and passengers, discusses numerous ways of improvements in these fields. Based on analysis of correlative connections of inner and outer factors, publication assesses the competitiveness of transport companies.

142-150

Authors: Quji Bichia

Automation brings new opportunities and new challenges to the economy. Economic environment is changing with fast pace and this has a huge impact on labor market. Problem of employment is becoming more challenging as robo technologies are replacing labor force. Economists started looking for solutions to this problem and one solution they are considering is universal basic income. The idea of distributing equal income to every citizen has caused different reactions in economists. Even if wages from working makes the income different, many look at the program skeptically. Nonetheless, the idea is being tested in different countries and the results will show how widely the universal basic income may be implemented. Though, more pragmatic approach to the problem would be to help workers adjust their effort towards occupations that would be more demanded in future economy.

155-158

Authors: Naira Galakhvaridze

The article is about importance of the landmarks and monuments in cultural tourism and it gives the specific information how to run management of such places. The term “World Heritage” has the most important place in the hierarchy of monuments. The landmark or the monument, which happens to be on the list is rightly considered to be unique and it is assigned the rank of the world’s treasure and it means, that the landmark or the monument is the most important thing of culture and history. Once the monument is included in the “UNESCO World Heritage” list the country should provide to check the legislative base systematically and to renew it if necessary. It is very important to protect and keep the monument’s the characteristics and value that were the crucial points in recognizing the above mentioned place to be authentic and important for the mankind. In case of damaging the monument that is in the World heritage list the monument is immediately taken from the list. It’s our duty to take care of the places of such great importance in order to keep them for our future generations.