Globalization and Business

13-17

Authors: Ramaz Putkaradze

The worldwide processes of economic globalization and integration are irreversible. This, on the one hand, provides significant opportunities for small countries and contains some threats on the other hand. There are the following integration groups in Europe: the European Union, European Free Trade Association and CIS (Eurasian Union). Despite the current hard challenges it is facing, the European Union is the most developed integration group, as well as one of the largest markets in the world. It should be noted that in recent years Georgia has achieved significant progress on the path of economic integration with the EU; in particular, we mean the Association Agreement signed between the European Union and Georgia, Deep and Comprehensive Free Trade Area is the part of this Agreement. The Association Agreement between EU and Georgia has fully entered into force. The Agreement suggests Georgia to adjust trade-related legislation and regulations to the EU standards. As indicated in the paper, although Georgia is not a member of the CIS, the country has quite close trade relations with the CIS member states, which have been characterized by increasing trend recently. Of course, we are not against trade relations between countries; however, future risks and challenges should be studied and analyzed. CIS member states accounted for almost 35% of Georgia’s export, while the average corresponding indicator for CIS member states was 16-17%. For example, CIS accounts for 23% of Armenia’s export, 7% of Azerbaijan’s export, 21% of Moldova’s export, 17% the Ukraine’s export, etc. The processes globalization and European integration are irreversible and Georgia has to use the current processes for the development of its economy. The country has chosen the appropriate foreign political and economic priorities and therefore it should continue its way towards the EU towards establishing closer ties with the EU. It would be desirable for Georgia to use the experience of leading European countries, as well as new EU member countries while implementing economic reforms.

22-28

Authors: Demur Chomakhidze

Georgia is represented in almost all fields of energy (Hydropower, Thermal Power Plants, Electrical and Heat networks, Fuel mining industry, non-conventional energy). The article analyzes the level and dynamics of the production of energy in Georgia; Energetic, including electrical balance, external energy relations. Macroeconomic and Energetic indicators are compared with each other and with the energy indicators of abroad. There is formed energy development concept in Georgia, taking into consideration as new constructions, as well as activation of existing reserves.

32-38

Authors: lamara Qoqiauri

Scientific work “In Search of the complex way of devaluation of Lari in Georgia” is an original research devoted to actual and practical items of Georgian currency. Nowadayin Georgia, it is necessary to study current basic changes in Georgia, to find out and eradicate subjective and objective causes of falling down of Lari course, to stop the existing extreme situation in money turnover and avoid possible inflation, to collaborate trustworthy ways to survive national currency. Global circumstances such as long-term temper of “external and internal factors” on Lari course, as well as political-economic processes in the neighbouring countries of Georgia unstable development of economics in the country“investment starvation”, incorrect coin and fiscal politics, and other objective and subjective reasons caused a fall down of Georgian national course. In the work, based on practical materials, the necessity and inevitability of devaluation of Lari is scientifically explained. In the article based on the analysis of devaluation of Georgian Lari the authors have given the urgent opportunities and recommendations to stop the formed extreme situation in the economics of the country and avoid possible inflation of Georgian currency. in the work the results of the research is introduced by the recommendations of economical solution of problems. Realization of these recommendations will support the development of Georgian economics, to stop the devaluation and stabilization of Georgian currency lari.

44-46

Authors: Nino Kavtaradze

One of the most unsolvable problems for developing countries still remains the drop of their national currency course, it is the result of many factors that take place in economy overall and also of the errors that are committed by the central banks of these countries. All that triggers the impoverishment and decreases the level of earning of population. The central bank should choose floating or fixed currency system, as for developing countries it is extremely important to stabilize the national currency course.

51-55

Authors: Ambrosi Grishikashvili

Iran’s political and economic situation is less known in Georgia. Our seclusion in Russian Empire and isolation from the outer world during decades was the reason of unawareness of these processes. Despite Georgia’s independence witnessed in recent years, the situation has not improved. This article serves as filling of the mentioned gap. Iran’s political and economic history of 20th century briefly can be considered according to the following stages: Issuing of the concession on the extraction and processing of oil deposits to the Great Britain, which was against Iran’s interests; Emerging of the renting economy with the elements of colonialism; Moderate growth of the economy between 30s and 50; Decrease of the economy during the Second World War and political conflicts; Nationalization of assets; Reform of 1953-1978; White revolution and dependence on foreign capital and oil; Fast growth of Iran’s economy from the mid 50s to mid 70s. Starting from 1978 the state economy is determined by oil and gas.

60-62

Authors: Lia Pitiurishvili, Gia Buchashvili

This article deals with the foreign exchange market, its essence and meaning in the world and in Georgia. Wide spectrum of foreign-economic settlements, tourism, capital, and labor migration, as well as other ongoing operations are carried out on foreign currency markets. It envisages usage of foreign currencies by buyers, sellers, intermediaries, and other financial companies and firms. Georgian foreign exchange market can be considered as a less diversified market. Necessity of elaboration of the correct foreign exchange policy should be defined. For the purposes of mitigation of the strong fluctuation of the domestic currency, the currency market and the National Bank of Georgia should jointly workout the strategy which would allow the national currency to maintain its stability.

67-74

Authors: Tea Munjishvili

In the article the existing systems of collection of knowledge are analyzed, need of computer simulars of creation for collection of knowledge in economy is checked, necessary conditions for their functional capabilities and use are defined, the initial computer simular for the collection of knowledge created by us is figured. In the article the existing systems of training of the financial analysis are analyzed. One of the ways in improving of quality of e-learning of objects of an economic profile is development and applications during training of simulator. In the article the technology of preparation and training of the financial analysis with use of an assessment bankruptcy of the enterprise by means of the logician - probability and the Z-score of models, the developed author of software package TRAINER1 the exercise machine. The TRAINER1 used for the multiscenario analysis and generalization of results to predict assumptions of possible errors and to create recommendations of their correction.

79-82

Authors: Ramaz (Isac) Meparishvili

According to the poem by Shota Rustaveli the human is the basic idea, a human has changed, changes and will change for different period of time. A human is always in search of something, this has caused aesthetics of thinking, this thinking leads us to world culture. That is why religious, political, ethical, philosophical ideas ultimately form the cultural integrity. Such a clear example is Shota Rustaveli's poem “The Knight in the Panther's Skin”. The core of the "Knight in the Panther's Skin" is a culture in which the diversity of cultural life is revealed. The concept of the poet's thinking comes from the cultural paradigm that underlies the world culture.

90-95

Authors: Ganna Zhosan

The impact of the complex index of social responsibility in general indicators proven productivity of the enterprise activity interpolation using spline interpolation of the third degree. This relationship is nonlinear. The economic-mathematical model of the impact of the complex index of social responsibility for synthesis rate productivity of the enterprise activity and is displayed graphically.

100-104

Authors: Giuli Giguashvili

Turism is considered as the largest and fastest growing industry in the World. Tourism’s impact on the economic and social development of a country can be enormous: opening it up for business, trade and capital investment, creating jobs and entrepreneurialism for the workforce and protecting heritage and cultural values. This sphere can bring much profit as to private firms, also to concrete countries, Revenues from tourism sector grow on annual basis and reach record figure. Over the past 10 years, tourism is an only sector in Georgian economy that grows on annual basis. It should be also noted that tourism sector has become one of the important sources for currency inflows to the country. According to the statistics of national tourism administration, the year of 2016 and the beginning of 2017 were especially successful in terms tourist and currency inflows from tourism sector. Tourism in Georgia is an important component of the economy of Georgia. International tourism is a rapidly growing industry. In 2015 it employed around 158,500 people, producing 6.7% of Georgia’s GDP by providing US $1.94 billion of revenue. 2015’s tourists numbers reached a record high of 2,278,562 people. In 2016, international tourist arrivals increased again, reaching 2,714,773, with resultant revenue estimated to exceed US $2 billion. Revealed 6,350,825 international visitors arrived in Georgia last year, which is 449,731 more than the year previous. The largest number of tourists is reported to come from Azerbaijan (1,523,075, an increase of 9.3%) Second place is Armenia (1,496,246, an increase of 1.9%) followed by Turkey (1,254,089 – a decreased of 9.9% from last year). In the fourth place was Russia with 1,037,564 tourists visiting Georgia in 2016, a full 12% more than in 2015. Visits from Ukraine increased by 21.8%, amounting to 172,631 people. The latest data indicate year-on-year visitors from Europe also show positive signs; with the total number of travellers from Lithuania, Latvia, Czech Republic, Bulgaria and Germany all significantly increasing. An exceptional increase in tourism was observed from the following countries: Iran (+485%), India (+ 199%), Saudi Arabia (+ 116%), the Philippines (+ 89%), Oman (+ 75%), and China (+46%),” Chogovadze said. The newly-established visa-free travel represents the most important achievement for Georgian citizens that will further deepen and encourage contacts, business relations and tourism. Development of turistical business and involve in the economical service of the country is the most important and active problem of the development of market economics. For its regulating and arranging the state must do the best.

109-112

Authors: David Lolua

Rural tourism is a rest in the countryside. People, who have a small farm, are hosts for arriving guests and they have the opportunity for their accommodation and can offer a variety of activities. In recent years the popularity of rural tourism has grown considerably in the developed countries. In this direction there is a growing interest of foreign tourists to the Georgian villages, too. Rural tourism provides very interesting opportunities for business development in the village. Theoretically, any resident of the village who has time, desire and organizational skills can be engaged in the rural tourism. Georgia has great potential for rural tourism development: natural beauty, rich flora and fauna, a lot of cultural and historical monuments, folklore, cuisine and more. The aim of the research is to study the prospects for the development of rural tourism in the country, as additional employment opportunities, together with or on the basis of its own housekeeping rural areas. Research methodology: Theoretical and methodological basis of the study are the works of Georgian and foreign specialists in this field, Legislative acts, as well as methods of the survey, analysis, conclusion. Results and implications: Research into the causes of poverty in the villages of Georgia showed that most of the respondents consider the low incomes and unemployment to be the main source of the poverty. To improve this situation, it is important that the rural population has been able of additional employment together with a private household, or based on it. Such a possibility is the development of rural tourism and homestead tourism. Conclusion: Development of rural tourism in Georgia will contribute: 1. The creation of new jobs in rural areas. 2. The improvement of the living standards of village inhabitants. 3. The creation of tourism infrastructure. 4. The reduction of seasonality of tourism to nothing (rural tourism is functioning year-round). 5. The development of entrepreneurial activities in the village. 6. The restoration of cultural and natural monuments in rural areas. 7. To attract tourists in the villages. The proposed works suggest the creation of facilities for alternative, organic, ecologically pure, harmless, energysaving materials, such as wood, clay and stubbles. Based on the research, it was found that the stubble eco-house is very attractive, cheap and convenient for consumers, because of its thermal characteristics, including accommodation, such materials are acceptable for residential and hotel buildings, for recreation of tourists and protected areas,also in agricultural buildings (farms, warehouses ...), cottages, etc.

116-119

Authors: Nana Nadirashvili, Lela Inasaridze

During managing the marketing system with scientific methods, especially with synergism and synergetic ideas, we are introduced to new innovative methods as a result of which we get a completely original group. Usage of synergetic ideas helps us to increase management effectiveness, particularly to realize and become aware of important defects and their remedies without special expenditures. Such method makes it possible to conserve-minimize resources and costs.