Globalization and Business

11 - 15

Authors: Cheberyako Oksana, Nikytenko Dmytro, Varnalii Zakhariі, Kolesnyk Viktor, Borysenko Oleksandra

n the era of digitalization of the world economy, the main resource is comprehensive, reliable, truthful and up-to-date information. The field of the information technology has become a producer of innovations that are beginning to be widely used outside their industry.The research paper considers the innovative blockchain technology, which has been tested in the financial sector using cryptocurrency. Its scope is not limited to the financial sector, it creates social networks, online voting systems, various applications for supply chain control, and etc. Generally, this technology is becoming a factor in the transformation of relations 'state-business', 'business-business', 'population-state', as well as a modern factor of economic development at all hierarchical levels of the economy.The main task of blockchain technology was to ensure trust in society that eliminates confidence by default, as trust is a necessary, but not sufficient, institutional factor for the development at the different levels of the economic system. The paper presents the areas of application of blockchain technologies, most of which were previously under the strict centralized state control, the advantages and disadvantages of this technology were identified. Blockchain technology is being considered from two sides: in terms of its ability to ensure efficiency and productivity at different levels of the national economy (efficiency function) and as an institutional technology - an innovative form of economic coordination that will be an alternative to established conservative forms. The paper shows the practical application of blockchain technology in Ukraine and prospects for its development.

25 - 34

Authors: Avtandil Sulaberidze, Joseph Archvadze, Nino Gomelauri

Aspects of behavior and functioning of every state, social institute, human are rapidly changing in the modern world. The pandemic occurring at the current stage of societal life has had an essential impact on the development of the society. This was reflected in the changes of humans’ sociological, economic, psychological, educational, cultural and other types of behaviors. In the fight against the global pandemic we notice a societal regress and therefore a wide study of the societal losses caused by the pandemic and coming up with preventive measures on the global as well as regional scale occupy an important place on today’s agenda. Gradually, an opinion to the effect that the world will change and never be the same takes root in a society. Consequently, scientists must answer the following questions coming from the society: how will the coronavirus develop and reach its end, will there be other waves of the virus and how much more dangerous can they be compared to the first one? What will be the new format of the fight against it? How will economy, education, science and culture develop? What kinds of risks and threats are expected to rear up in the world, on its certain continents, countries, etc.? The issue is all the more pressing and urgent not only because of the display of the pandemic’s peculiarities today and in the previous period with regard to various fields of societal development, but also as a result of the need to analyze the possible scenarios and trends of the post-pandemic period in regional perspective. The above-mentioned indicates the necessity of establishing the newest interdisciplinary field of science – pandemology. The fact of the matter is that as opposed to the existing science field of epidemiology, the research object of pandemology is broader and is derived from the global character of pandemics. Epidemiology belongs to the sphere of medicine whereas pandemology has to study not only medical domain but also the consequences caused by economic, demographic, sociological, psychological and other types of behavioral changes itself occasioned by the pandemic on the global scale as well as differentially, according to certain continents and countries. In this regard, we present regional peculiarities of the results of a research conducted in some fields of pandemology, namely, sociology of pandemics and economy of pandemics in Georgia at the initial stage of the coronavirus. Against the background of risk perception and knowledge of the threat of pandemic, the article discusses the self-preservative preventive behavior of the population. It further analyzes the results of the population’s self-caring and economic behavior under those social-economic conditions which are brought about by the pandemic.

43 - 49

Authors: Mikheil Bichia

Protection of the private sphere has become particularly important in the context of the pandemic, due, on the one hand, to the increasing use of technical means and, on the other, to the use of personal data to prevent infection. Accordingly, the purpose of the study is to define the scope of the concept of a private sphere in order to determine which relationships the public sphere applies to and when privacy begins. In this context, it must be clarified what the reasons are for intervening in the private sphere during the pandemic and whether a limitation of the right can be considered permissible (legal). Using normative-dogmatic, comparative, sociological methods, as well as analysis and synthesis of problems, it was established that the public and private spheres intersect in the information society, which makes it difficult to separate these spheres. However, the increased use of technology during the pandemic was found to pose a greater threat of interference in the private sphere. In this regard, it is important to establish strong and effective cybersecurity mechanisms. Thus, it is true that technological development benefits society and is perceived as a good thing, but at the same time contains the threat of invasion of privacy. This is especially true for the use of personal data during a pandemic to ensure public health. In this case, a conflict of interest arises between the private sphere and public health, which must be resolved by careful examination of the case and taking into account the principle of proportionality, so as not to violate an unreasonable right. A study of European practice has shown that interference in the private sphere is permissible if the restriction of the right (a) legally, (b) serves the legitimate public interest, (c) such restriction is necessary in a democratic society through the application of other, less restrictive measures. In this regard, it is advisable to determine the priority interest on the basis of a scrupulous analysis using the weighing method and the circumstances outlined above, which will prevent unreasonable interference with someone's rights.

59 - 65

Authors: Metin Mercan

This article investigates the link between commercial bank risk-taking and various factors. I use a panel data model to look at bank-specific and macroeconomic factors in order to evaluate bank risk-taking using sample evidence from Georgian commercial banks. The time span chosen, 2006-2014, considers the impact of the country’s persistent financial and economic difficulties. I look at capitalization, efficiency, capital structure, size, profitability, non-deposit financing, economic growth, revenue diversification, industry concentration, interest rates, inflation, and as variables that influence bank risk.

74 - 79

Authors: Nino Zhorzhikashvili

Before the global financial crisis, it was widely believed in academic circles, that there was a conflict (inflation / financial stability) between monetary policy and prudential policy, which justified the separation of monetary and prudential functions. Due to this approach, a significant trend of segregation of functions was observed in some countries. Weaknesses of this approach became apparent after the crisis, thus countries actively began to adopt macroprudential policy integrated with monetary policy, which ultimately increases the effectiveness of both policies in terms of achieving the stability of country's economic, banking and financial sectors.

87 - 91

Authors: Demur Chomakhidze

Factors acting on tariffs are characterized including the state of utilization of existing natural energy resources, the structure of electricity generation, energy efficiency, energy balance, the role of society in energy development and globalization. It has been concluded that in Georgia, as well as in the world, there is a tendency to increase tariffs. This is due to the need for increased and continuous investment in the extraction (production) of increasing amounts of energy resources, the tightening of environmental requirements, and so on. According to the author, in order to improve the technical and economic indicators in the field and reduce tariffs, it is necessary to introduce scientific-technological and managerial progress at a higher rate compared to the existing challenges.

97 - 100

Authors: Mariam Jibuti

Research covers the study of old technologies and approaches towards sustainable building, plant/tree medicines and non-timber forest products, ways of maintaining water purity and harvesting rainwater, urban farming and energy efficient lifestyle. Implementing these techniques into the framework of our society, will cause an economic awakening. A shifting to new realizations that the current stream contains much waste and unproductivity, which can change by harmonizing old and new technologies. Knowing how to apply these in modern life, is essential for the ecological economic growth of the future. It is a way of thinking, within all sectors, to enhance not only peoples’ daily lives and atmosphere, but the self-reliance and health of the nation itself. The study highlights the importance of the art of building with stone for sustainable housing and tourism development; while the usage of trees and herbs provides not only healing benefits but also business opportunities. The health of the country is as good as the purity of its water, in so many places there is little or no water, when the rain water provides an abundance of this vital source, but only when it can be collected and stored by proper facilities. Urban farming connects the new generation back to nature and gives knowledge of food production within industrialized society. With the mentioned tools, we can set an ever-increasing long-term goal to sustainable economic growth. This work was supported by Shota Rustaveli National Science Foundation (SRNSF) (PHDF-18-627, Spatial-Territorial Planning and Economic Development Opportunities of Regions).

108 - 111

Authors: Neli Sesadze, Valida Sesadze, Anzori Kevkhishvili

Modern education is a very complex system that exists in an unstable society. Therefore, it would be useful to consider the problem of human education from the standpoint of a synergistic approach. Self-study and mutual learning of students take place as a part of small permanent student groups. The project is considered completed if each student is a member of the team in equal degree explains the solution to the problem and answers all questions of the teacher. Synergistic effect is expressed in a change in the attitude of students to study, an increase in motivation to acquire knowledge, the formation of abilities for self-learning and mutual learning, the ability to find effective ways of solving problems.

121 - 126

Authors: Maia Azmaiparashvili

Due to the pandemic we discussed the challenges of the tourism industry. Problems of affected sectors close to the sector were identified. We got acquainted with the opinions, forecasts and assessments of the National Bank data from internal research sources in Georgia. We rely on the research conducted by Geostat, the analysis of the decrease in international visitors, the reduction of costs, the main part of tourism statistics. We reviewed assessments and observations by the World Tourism Organization and European organizations. Opinions of Galt & Taggart’s unparalleled expertise analysts on the current reality of tourism and tourism recovery. We compared the indices with foreign countries. For the purpose of this paper, it is important to analyze the socio-economic situation in the post-pandemic conditions, what are the indicators of restored tourism in Georgia, a global trend. Restaurants are open on weekdays for both indoor and outdoor service, and opened at weekends from 21 May for outdoor service only. Delivery/drive-through services operate every day of the week. Kindergartens and classroom schooling has resumed although distance learning remains in some cases. Shopping malls and open-air markets are open. Systematic COVID testing of staff working in trading, catering and teaching professions is taking place. Working from home continues to be recommended where possible. It is mandatory to wear masks inside shops, hotels and restaurants, and in outdoor public spaces. Failing to do so can result in a 20 L fine for an individual or 500 L for a legal entity. Tourism development priorities need to be defined according to market segments. If neighboring countries choose to vacation at sea and consider visiting mountainous regions in integration, European tourists are mainly interested in our old culture. Ecotourism and gastronomic tourism, which is an expression of the nation's identity, history and traditions, are also discussed in a harmonious union. Stimulating domestic tourism and involving self-governments in tourism management is essential. Domestic tourism will become a good platform for preparation for future tourist flows. Initially, stimulating domestic tourism will be necessary to start a commercial "movement" in the tourism sector. Obviously, different cities will have different challenges in this regard.

133 - 138

Authors: Salome Sulaberidze, Murman Tsetskhladze

The paper analyzes the possibilities of making full use of the agro-tourism potential in the Guria region on the basis of agricultural development, engaging tourists in agricultural activities and promoting various spectacular events, promoting the colorful or cultural individuality of the region. Recommendations for overcoming the problems in the development of agro-tourism in the region are proposed.

143 - 147

Authors: Victoria G. Hranovska, Liudmyla O. Aleshchenko

The article identifies the strategic priorities for the development of tourism in the Kherson region and develops proposals for the realization of the tourist potential of the region during the pandemic in the article. It is established that the development of domestic tourism in the Kherson region during the pandemic requires a number of tasks: ensuring the accessibility of tourist facilities. The goal will be achieved with the introduction of a multilingual marking and navigation system in the Kherson region; organizing and creating route maps for landmarks of history and culture of the region; marking the routes of the hospitality and tourism industry; improving conditions and providing tourist routes with infrastructure for tourists to visit. The advantages of Kherson region as a territory for active development of the hospitality and tourism industry in the era of the pandemic are highlighted. It is determined that for the active and successful development of the tourism business of the region during the pandemic COVID-19 it is necessary to coordinate the implementation of measures by the authorities and economic agents: to improve the quality of tourism services; create conditions for the promotion of the tourist product; extend the tourist season; to promote the development of entrepreneurship, including in rural areas; create conditions for the development of domestic tourism; support for craft production.

152 - 156

Authors: Grigoriy Gurbanov

Any country’s economy benefits significantly from the sector of information technologies. As the data demonstrate, the global information technology market has not only remained stable, but is expected to expand in 2021 due to changes in social life, employment, and education caused by the global COVID-19 virus pandemic. While information technology is vital to any country’s advancement, its growth in developing countries is being hindered by lack of skilled labour force, underdeveloped market infrastructure, insufficient financial mechanisms to stimulate innovative projects, and weak legislative framework. IT companies are characterized by a high degree of risk and uncertainty, a reliance on external sources of financing in the early stages, and an unattractiveness to conservative investors. In this regard, the issue of capital formation for innovative companies in the IT sector to ensure their effective functioning becomes especially important. The purpose of this study is to analyze the formation of financial sources and capital structure of Georgian IT companies based on the analysis of 50 IT companies in Georgia. The analysis is based on the usage of the main financial ratios of companies’ performance, taking into account the specifics of the IT sector companies. The study revealed that the capital structure of Georgian information technology firms is more consistent with the Pecking order theory, with almost no long-term loans and a small share of short-term loans. Equity and retained earnings are the primary sources of funding for IT businesses. This was supported by the legal exemption of corporations from income tax payments in the case of net profit non-distribution.