Globalization and Business

10-12

Authors: TINATIN GUGESHASHVILI

investment banking services to the European Union’s 28 member countries and beyond. When the United Kingdom leaves the EU and its single market by the spring of 2019, UK-based financial firms will lose their passport to do direct business with EU27 clients. Brexit thus leads to a partial migration of financial firms from London to the EU27 (EU minus the UK) so that they could continue to serve their customers there. We provide a comparison between London and four major cities that together will host most of the new EU27 wholesale market: Frankfurt, Paris, Dublin and Amsterdam. We also give a detailed picture of the wholesale markets (foreign exchange, securities and derivatives trading), the largest players in these markets (the major banks) and the underlying clearing infrastructure. London is an international financial centre, serving European and global clients. A hard Brexit would lead to a partial migration of financial firms from London to the EU27 (EU minus UK) to ensure they can continue to serve their EU27 clients. Four major cities will host most of the new EU27 wholesale markets: Frankfurt, Paris, Dublin and Amsterdam. These cities have far fewer people employed in finance than London. Moreover, they host the European headquarters of fewer large companies. The partial migration of financial firms will thus have a major impact on these cities and their infrastructures. Banks are the key players in wholesale markets. United States and Swiss investment banks, together with one large German and three large French banks, will make up the core of the new EU27 wholesale markets. Some Dutch, Italian and Spanish banks are in the second tier.

18-20

Authors: Nana Benidze

Actuarial profession is one of the few small and prestigious occupations in the world. That’s actuaries have the knowledge and skills that are necessary for financial analysis and assessment of long-term liabilities. Accordingly, actors work in a field where it is necessary to assess financial uncertainty. The typical tasks to which the actors perform are: Assessment of insurance risks from which the insurance tariffs are determined; Calculation of Technical Reserves; Statistical analysis of claims; Participation in corporate planning (for instance when companies are merging); Determine the fair price of a new insurance product; Participation in predicting the financial results of disasters; Investment programs analysis and more.

29-31

Authors: Maia Chania

We consider Georgian Social-economic safety as country’s, its regions’ territorial economic development as maintaining vitality and development, fulfilling its material and mental needs, providing steady conditions in given economic system as well as in given geographic area, providing individuals’ and society’s well-being is possible by fulfilling social, ecological and economical needs only in harmonic governing conditions. Making one of these blocks a higher priority and making them develop surely will cause frightening events. Conference designated and recieved 5 documents: • Rio de Janeiro’s declaration about development of the environment. • XXI century’s agenda • Statement on the principles of dependence on forests; • united nation’s conference about changes in climate • convention about biodiversity

39-43

Authors: Mikheil Chikviladze

There is a very important theme. The main accents there are made on the amendments in the Budget Code in 2016- 2017, namely on the distribution of revenues in the state budget of Georgia and between the autonomous republics of Abkhazia and Adjara from January 1, 2016, according to percentage indicators. There is also important space allocated for analyzing the results of implementation of the Unified Treasury Code since January 1, 2016. The topics discussed and analyzed in the article allow us to make conclusions on one hand how the factors challenging mobilizing of tax revenues can be mitigated and on the other hand, it shows how to increase the state budget through transparent revenue mechanisms can be stimulated.

47-50

Authors: Merab Vanishvili, Lekso Lemonjava

Market after the transition radically changed the financial management system in Georgia. The centralized budget system was replaced by a new budget system, based on independence and equality of budgets of different levels. The formation of income by own or regulatory taxes and freedom in their spending is considered. Georgia on January 1, 2008 from the International Monetary Fund introduced the budget classification, which is based on international standards GFSM-2001. This is a new classification, which ensures the correct public finances, fully accounting for modern requirements. Prior to the budget of the organizations using GFSM-1986 classification, classification is already quite old.

56-59

Authors: NAZI GVARAMIA

The scientific work presents the world concepts in the sphere of audit on the modern stage, including, of course, the experience of European countries in the mentioned direction. Main aspects of “social”, “staff” and “personnel audit” been already approved in international practice are discussed, risks connected to social audit are highlighted as well as the types of audit are described and given in Georgian commercial banks according to applicable law in our country. Besides, the work is about major issues of carrying out inner and outer audit. The work emphazises the role and importance of audit in modern management systems and this gives an opportunity to make a clear decision in connection with the quality of effectiveness of a company’s activity and its perfection. Hence, the scientific work is about the problems of importance of development of inner audit institutions in Georgian commercial banks, and recommendation offers and opinions on perfection of methodology of audit are given, accordingly.

63-66

Authors: Olena Dobrotvor

The main interest is to seek for and study new approaches to the process of teachers training in accordance with the basic principles of adult learning (andragogy). The article analyzes the forms and methods of teaching which are common practice in the national Ukrainian postgraduate education. Based upon the available sources are summarized theoretical and practical expert recommendations to overcome the existing problems and improve the training system of postgraduate education. As a result of research excellence, including foreign experience (Russia, USA) is presented the hypothesis of necessary and efficient use of specially organized training reflection for productive updates to improve teaching staff training. The concept of “reflection” has been interpreted by the Russian school of methodology of G. Shchedrovitsky as a person’s alienated idea of their actions in their own mind. The article suggests the description of the specific methods of organizing reflective attitude to teaching, which provides planning qualitative changes and a record of the results.

75-78

Authors: Tamar Beridze, Medea Chelidze, Davit Bibichadze

Time management and synchronization are the ways of time-organizing which we should use for complete realization of our possibilities and skills. According to managers of different levels (upper, middle, low), it is obvious that they don’t work with using daily plans and don’t arrange their affairs in priorities, that’s why most of them have timedeficit and don’t have rational mechanism of time-usage. Accordingly, it’s necessary to know that time-management, setting priorities, limiting useless time-losing and finding simple ways for doing aimed tasks are the guarantee of successful work and career development.

83-87

Authors: Elene Gratiashvili

This article covers the characteristics of Israel Army and Gender issues related to it.Israel is the only country, that has obligatory army service for both, men and women. After finishing school, from the age of 18, it’s necessary for everyone to serve in the military. Since the early days of Israel statehood, women have become the part of the Israel Defense Forces. In Israel, military service is recognized as a hallmark of citizenship. While the Jewish male, who served in combat roles, and risked his life, the Jewish woman in her auxiliary roles was only “freeing man for combat”. Although, women were officially allowed to serve in combat roles, their participation is still limited and Gender segregation remains to be a problem. In the end, gender equality should be promoted for solving the existing problems, that would lead to necessary changes in the Armed Forces.

96-99

Authors: Maia Azmaiparashvili

The work focuses on strategic aspects of tourism development, some of the development of international tourism in Georgia and modern trends. Political decision-making during the new tourist planning, the complex nature of tourism and the long-term perspective of its development should be included. Tourism should be sustainable and must be mixed with nature. There is a tendency of a significant increase in visitors from EU countries: Poland, Germany, France. Georgia has long been dependent on its neighboring countries because the recognition of Georgia in these countries is high. The arrival of these countries is relatively inexpensive and takes a little bit of time. But in a new era when 60% of the world’s traffic is on airways, there is no improvement in air traffic in the country, challenging challenges in aviation, and the right management is necessary to manage the processes. In 2016, the 19% growth is confirmed by the fact that Georgia is a tourist model. However, the questions remain on how this development affects people and their well-being. Following visualization, you need to develop the pace of development. There are important challenges. Georgia should work on new markets, especially in the direction of Asia and the Middle East markets, to accentuate Chinese, Japanese, Korean, Malaysian Thai and Singapore

105-108

Authors: Luara Gvajaia

The article considers the basic problems of estimation of working performance of personnel, as part of the process of organization’s personnel management. Functions of personnel management, factors that have impact on efficiency of estimation, the essence of estimation object, i.e. professional characteristic and skills are considered. The above-mentioned characteristics include the level of participation into solution of organizational problems and general organizational skills. The basic principles of estimation of performance of personnel are determined, including objectivity, purposefulness, versatility, perfection, etc. The techniques of personnel estimation are considered, such as estimation with attestation, standard and self-estimation techniques.

113-115

Authors: Dodo Chumburidze

In this article we are talking about the relationship, which is typical for educational and cultural sphere. It is clear, that successful educational projects have positive impact on cultural sphere. On the development of the educational and cultural Sphere influences social, economic and political current factors in the country. Manager must foresee the relationships and specification of educational and cultural sphere, which is prerequisite of education creative and self-actualize generation. For managers in cultural sphere for reaching successful result is helpful the Strengthen of educational projects. Under The criteria of organizational success is considered the manager with experience, which has good knowledge of the specification of this sphere and owns modern management approaches. It should be noted, that the success of the organization is result of managerial decision.

120-123

Authors: Nino Letandze

In the article the basic concepts of tourism business safety are considered, the author’s classification of the major risk factors arising in the organization of tourist activity is given. The presence of risks and the opinion of the owners of travel agencies proves that this business is not so simple as it seems at first glance. And like any business, it requires a thorough and thoughtful approach. Therefore, planned investments in the tourist business require an assessment of the degree of risk, the determination of its magnitude and the application of measures to a decrease. Monetary policy is an integral part of a single state economic policy. The inflation rate in Georgia in October 2016 compared to the previous month was 0.5%, in comparison with October 2015, the consumer price index decreased by an average of 0.2%, as in our food basket imports are 80%, with an increase the number of tourists, the demand for food products is growing and, accordingly, the demand for imports is growing. The increase in the number of visitors is in favor of the Georgian economy, but according to experts on economic issues, it contributes to inflation processes. We believe that in order to prevent these processes, we need the right monetary policy and effective solutions of the national bank.

10-16

Authors: Givi Bedianashvili

The modern stage of globalization is characterized by a number of specific peculiarities of post-industry development,among which, in our view, the formation of knowledge-based economy (knowledge economy) is important. It is noteworthy that globalization complements the knowledge economy with the dimensions of global scale such as resource-technological, informational, communicative and institutional structures. According to postindustrial theory, the key resource of post-industrial economy is information and knowledge, and the main type of manufacturing activities is the high level of automated production. Among the main technologies, science inclusive technologies are used, and from the types of economic activities, a range of industry services is most common. If in the pre-industrial society agricultural sector was a determining factor, in the industrial society, it is the industry. In the post-industrial society theoretical knowledge in universities (where knowledge is generated and accumulated) becomes the determinant. These features are clearly reflected in the categories, such as the knowledgeable society, the knowledge society and the knowledge - value society. The important thing here is that the core of the society is the knowledge economy, while human capital is the main factor of development. It should be noted that in the process of forming the knowledge economy, the innovative aspect of entrepreneurial activities is of a particular importance in the context of all business entities. Therefore, the effectiveness of the overall innovative process depends on the efficient functioning of knowledge-based entrepreneurship, which in its own turn contributes to the development and implementation of innovative entrepreneurial policies by the state. The innovative entrepreneurial policy should envisage the formation of the institutional component, its systematic modernization in dynamics, compliance and synchronization of general formal institutions and business culture as an informal institution.

21-25

Authors: Mikheil Tokmazishvili

The economic prospects of small countries are associated with the historical and political context of their institutional development, as well as with the rules of economic regulation. These countries have different historical experience and peculiar cycles of the development, which is one of the important criteria for their classification. All small countries have insufficient resources for the development of the economic sectors. Unlike large countries, they experience acute need for regional integration, and compensation of scarcity of the resources is possible only through the development of intensive foreign trade. Dependence on foreign trade relations creates high risks of transferring of regional problems. Accordingly, small countries are painfully impacted by the global economic crises. Comparative analysis indicates that in the last 20 years Central and Eastern European countries are more vulnerable to the economic challenges, rather than the post-soviet countries. During the economic cycles production of industrialized European small countries has failed and the average annual rate of growth has declined, but reducing the economy was lower than in other countries. In the post-socialist small countries of Eastern and Central Europe declining of the average growth rate, also frequency and duration of cycles of the economy were much higher. Integration of these counties into the European markets was more painful than the process of rebuilding of post-soviet countries trade relations in the traditional historical markets. At present the situation is complicated by the fact that the association with the EU and the Eurasian Union (DCFTA and EAEU) are two opposing vectors, which post-communist countries face to, in order to make choice for their future perspectives.

32-35

Authors: Tsitsino Dzotsenidze, Anna Kiriakidi

The choice of physics as a model for the development of economic theory, a methodological direction which has been particularly dominant since the Second World War, has increasingly been criticized by economists, and not only by evolutionary economists, but by members of a variety of schools. Many of these critics see biology as an alternative methodological direction that merits investigation. Modelling economics on biology is not a new idea; it is an attempt to revisit a number of questions which were left behind at the turn of the twentiieth century. Thus the fundamental question is whether the concept of evolutionary economics was abandoned prematurely, or for good reasons. At present, it seems that the unifying position of these different “evolutionists” seems to be a growing contempt with the neoclassical economics, especially to its simplifying assumptions, which take inventions, innovations and dissemination of information as external variables The concepts that Schumpeter used have been a source of inspiration for Neo-Schumpeterian and new evolutionary economics. His indication that evolution is an endogenous change process, his equilibrium propensity, and his non-equilibrium concepts, his emphasis on uncertainty, and his indication that the nature of economics evolution is imbalanced actually demonstrate that Schumpeter could be categorized both in Neo-Schumpeterian and new evolutionary economics categories.

46-54

Authors: Regina Demianiuk

Currently, logistic operators play a significant role in European economies and globally. They enable customers to find an offer which is suited to their individual needs and allow for optimization of their own supply chains. In the article, the author attempts to identify the leaders of European logistic market as well as characterize service activities of selected leader companies. Contract logistics constitutes 41% of the European logistic market. Logistic operators are one of the largest companies of this sector in Europe and around the world. Protection of goods, safety of transport, on time deliveries and care of natural environment are priorities of the activity of TFL entities. Operators, leaders of the European logistic market have developed, dedicated and standardized network. Logistic operators constantly monitor processes in the supply chain and they are able to provide optimal solutions for logistic chains, taking into account needs and specification of each industry. The operators can provide many convenient solutions for their business partners by virtue of highly skilled employees, available infrastructure, processes and innovative systems implemented by the operators.

58-62

Authors: Oksana Cheberyako

The budget system is the leading element of public finances and the structure of state is a determining factor in the formation of the budget system. In the unitary countries, which include Ukraine, the budget system unites two links: budget of central government and local budgets, otherwise in the federal states there is the third link: members of federation’s budgets. Local governments are the largest element of the budget system in Ukraine (totally there were 12,052 independent local budgets to 01.12.2010), but now their number is reduced in the connection with the financial decentralization and the creation of integrated communities. Local governments are independent, and the main sources of revenues are own, fixed revenues and іnter-budget transfers. The main forms of іnter-budget transfers contain the basic subsidy, subvention, reversible subsidy, additional subsidies. Transfers are the most common tools of financial support to local budgets; that the volume of local budget revenues was sufficient to delegated and own powers, and to provide public services is not below the minimum of social guarantees.

71-75

Authors: SHota Shaburishvili

Inclusive business is an emerging field in Georgia. For Inclusive business successful samples and sharing information (as on national level as on international level) are necessary. Inclusive business models include people with low incomes on the demand side as clients and consumers, and on the supply side as employees, producers and entrepreneurs at various points in the value chain. They build bridges between business and people with low incomes, for mutual beneit. The beneits from inclusive business models go beyond immediate profits and higher incomes. For business, they include winning new consumers, expanding the workforce, and strengthening supply and delivery chains. And for people with low incomes, they include meeting basic needs, having sustainable earnings, and achieving higher productivity. In addition, the models can be designed in a way that uses environmental resources sustainably.

82-90

Authors: Gocha Tutberidze, Givi Rakviashvili, Ketevan Pipia

In this paper, the (Generalized) Gini, Hoover, Theil and Atkinson indexes are calculated for the Republic of Georgia, for his neighbor states Armenia, Azerbaijan, Iran and Turkey, for some post soviet countries including the Russian Federation,for leading states of European Union, for USA, China and Japan. Previously only a small part of this indices were calculated,for example by United Nations, World Bank, CIA of USA, University of Texas and so on. An attempt was made to apply these calculations with the aim of building a mathematical model of the economic structure of Georgian society. It was known that Gini and Hoover indexes can be calculated by different formulas, it is proved that these formulas actually give the same results. It is also considered the economical sense of above mentioned indexes in the terms of axioms which L. Bellu defined in some documents of Union Nations.

96-99

Authors: Badri Gechbaia

The rapid industrial development demands the corresponding rate of the agricultural development in order to ensure the reliable food supply for the population. The fall of the agricultural industry, the unprofitability of the agricultural producers do not allow to solve the mission of reliable food supply correspondingly with the social-economical situation. It was stated that an agricultural region may be developed effectively only in case of more or less grouped system of supporting and relational branches that form the clusters in the region.

103-105

Authors: Lashari Kurdashvili

In recent years, tourism has become one of the most dynamically developing priority direction of Georgian economy. Tourism and hospitality industry attractiveness is due to the country's unique diversity of natural resources, cultural and historical monuments, sea and mountain resorts, curative mineral and thermal waters, favorable geographic location and many other positive factors. However, today's post-Soviet Georgia tourism industry is still weak and is in formation-development process. State government realized significant and positive measures to support tourism sector. Improved legal framework, introduced preferential taxes, tourism businesses became available for sale of state and bank loans, foreign investment was attracted to the winter ski resorts, hotels, holiday homes, roads and other tourism infrastructure facility constructions. The author believes that tourism is one of the most dynamic sectors of Georgian economy in recent decades. The objectives of this foundation are: the unique natural resources, convenient geographical location and other factors, which contribute to the attractiveness of Georgia. The paper discusses that the main condition for the development of enterprises of hospitality industry is human capital, shows that the continuous education employees of this area is an important factor in the reproduction of human capital.

109-112

Authors: Tinatin Medzmariashvili

The state procurement plays an important part in sustainable development of national economy. As a result of conducted reforms, the country has acquired the most transparent state procurement system during the past years, which is being permanently improved and enhanced. The continuous process of globalization had an important impact on state procurement policy. State procurement agency accomplished various arrangements within the framework of international cooperation, which will promote the further improvement of state procurement-related processes in Georgia.

123-125

Authors: Irma Dikhaminjia

In the present paper we tried to discuss teaching methods and practices for successful preparation of students for contemporary carriers. The paper discusses teaching methods and practices for successful preparation of students for contemporary carriers. With the fast development of technologies, requirements to workforce are constantly changing. One of the main goals of the university is to equip students with the necessary knowledge and skills for their chosen carrier, therefore it is crucial to define necessary skills, to reveal problems in existing teaching methods and structural approaches, and to transform education philosophy of the lecturer accordingly. Paper describes how previous teaching methods were adjusted to new challenges and how the role of the lecturer as a central figure of the auditorium changed towards more managerial-like duties. The paper also considers the well-established experience practices in foreign universities, considering co-operation and internship possibilities, especially in STEM fields. Work environment for STEM graduates are among the fastest-changings, therefore the university should not only educate students for current job requirements, but also anticipate expected changes and adjust teaching practices accordingly. For this purpose it is necessary that university has constant relation with the possible job market in form co-op and internship. By reviewing various literature in this area and the authors experience, the paper shows the advantages of the students who got real-life practices during their education compared to those who were mostly educated theoretically.

130-132

Authors: Ioseb Kartvelishvili, Tea Todua

In the last period of time, security in wireless networks and quality of service, became very important and it is a subject of active researches. Communication signals which are extended in some environment can be received by someone else. Companies and individual users must recognize potentially existing problems and try to prevent them. Every system which needs to secure has some deficiencies in it. These deficiencies or part of them can be used by attacker. Subsequently, for providing security of the system it is important to consider all possible threats and at tacks which can be performed against the system. Security mechanisms must provide system security by considering the given threats, attacks and deficiencies. In this article questions of security of wireless networks are discussed, it analyzes possible threats and the appropriate mechanisms of protection. The most common forms of threats of wireless networks (non-authorised access, Denial of service, DoS and man-in-the-middle attacks) are described by its own properties and are given recommendations for security issue.

137-141

Authors: Murman Kvaratskhelia

The article discusses the challenges facing Georgia during the globalization period. The peculiarities of transition to the principles of the market economy of the country, analysis of macroeconomic indicators, especially dynamics of GDP (gross domestic product) in recent years. In addition, the essence of economic security and the importance of the country’s economic development stabilization process is analyzed. The main issues that the article highlights are economic security indicators such as demographic safety, economic and economic development trends, economic security, poverty level indicators, population revenue trends, relative poverty and employment issues.

151-154

Authors: George Kuchava

Article represents a short review about how CMS-Content Management System was created and developed, it shows his current environment, also represents its strong and weak sides. In this article you can read comparison analysis of PHP and Python and there are also reccomendations how to fix weakness of CMS and also shows the way how to create new CMS. Creation of new CMS with Python code is on the way.

18-27

Authors: Vladimer Papava

Georgia today stands at crossroads between two alternatives: to continue rapprochement with the European Union (EU) on a basis of the Association Agreement (and to ultimately pursue membership through a lengthy, drawn-out process), or to join the Eurasian Economic Union (EAEU), a much simpler prospect. Georgia has long made clear that it favors engagement with Europe and Euro-Atlantic institutions; however, discussion of Georgia’s rapprochement with Russia is becoming more and more topical as a result of uncertainty in modern Georgia-Russia relations and the establishment of the EEAU. This essay clarifies the main differences between the EU and EAEU in the wider context of Georgia’s future. The EAEU started operations in 2015 and at present includes five member-countries – Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. Georgia is located between two member states – Armenia and Russia – which creates new challenges for Georgia’s development. Georgia and the EU signed the EU-Georgia Association Agreement in June 2014. Despite this agreement, talks on Georgia’s rapprochement with Russia have recently reignited, largely sparked by the establishment of the EAEU. When analyzing the suitability of these two organization for Georgia, it is important to consider the essential differences between them: • The EU was initially set up as an economic union, with the aim of promoting the economic development of its member states. Although the EAEU contains the term “economic” in its title, this union is not so much a means of economic development as it is a mechanism through which Moscow seeks to maintain and increase its political influence on the member states. • The EU is, with the partial exception of some Eastern European member states, an association of developed economies, while the EAEU is comprised solely of underdeveloped post-Soviet economies deficient in their market institutions and lagging behind global standards in technology. • Transparency International’s Corruption Perceptions Index demonstrates an essential disparity between the EU and EAEU on the issue of corruption. The most corrupt state in the EU according to this ranking is Bulgaria (75th of 175), while the least corrupt in the EAEU is Belarus (79th). For comparison, Georgia ranks 44th. • For a country to join the EU, it must meet certain standards set by Brussels in areas such as democratic institutions, human rights, freedom of speech and expression, and market economy. Furthermore, only after an applicant country has met European standards in the above areas is the issue of formal membership placed on the agenda. In order to encourage rapprochement with the EU, Brussels has adopted special formats of cooperation – for instance, the European Neighborhood Policy (ENP) instrument and the Eastern Partnership (EaP). Georgia is a participant in both formats. It is through the application of the EaP framework that Georgia has managed to successfully traverse the rather difficult path towards the entry into force of the Deep and Comprehensive Free Trade Area (DCFTA) and the Association Agreement. Unlike the EU, the EAEU has virtually no complex preconditions for membership. On the contrary, Moscow’s aim is to expand the union in order to increase its political influence on member-states via economic leverage, with no concern for economic and political standards such as those emphasized by the EU. • When the essential differences between the EU and the EAEU are summed up, it can be concluded that Georgia can more easily attain membership in the latter than in the former. However, this evokes a separate question: why would Georgia, a country with a more or less EU-level standard of corruption, enter into the much more corrupt EAEU, which lags behind the EU in institutional and technological terms, and serves Moscow’s political objective of strengthening Russian control over the member states? The answer, of course, is that it would not be in Georgia’s interest to pursue EAEU membership. Moreover, it is important to emphasize that the so-called “commensurability barrier” for the EAEU is much more significant than for the EU. Ruslan Greenberg, a Russian economist, outlines this issue through the comparison of the Commonwealth of Independent States (CIS) and the EU Greenberg shows that an alliance of countries is streamlined and possesses a higher chance of success when the commensurables (sizes) of the member countries are more or less comparable. When an alliance of countries is formed, the states concerned should make a decision on the areas where they are ready to relinquish part of their sovereignty in favor of the supranational governing bodies of the association. When the commensurability of the countries is more or less analogous, reaching consensus on this matter is easier than when one country and its economy are several times larger in size than those of all the other constituents of the union put together. In this case, the largest country finds it difficult to imagine how it can be expected to yield a share of its sovereignty equivalent to that of much smaller states. As a result, this large country attempts to relinquish far less of its state sovereignty than it obligates the other smaller member states to surrender, thereby maintaining a dominant position in the association. One of the reasons of the EU’s success is also the fact that it consolidates relatively large and simultaneously commensurably more or less homogeneous countries, such as Germany, Great Britain (before the implementation of Brexit), Italy and France, and relatively small but commensurably comparable countries, such as Belgium, Ireland, the Netherlands, and others. According to Greenberg, the “commensurability barrier” for the CIS was rather high, since the Russian economy accounted for 67-70 percent of the entire economy of the CIS. This barrier is even larger in the EAEU, as Russia’s constitutes over 82% of the entire economy of the union. The issue of, the “commensurability barrier” is a further indication that the EAEU does not have a high chance of success and an additional

37-42

Authors: Mikheil Tokmazishvili

This paper focuses on the currency rate changes and the impact of the currency fluctuations on trade flows. Through the empirical estimation of trade relations and exchange rate fluctuations, it is concluded, that the frequency of the foreign exchange fluctuations and the currency cycles were not reflected on Georgia-Turkey trade relations sufficiently. Trade flows were relatively dynamical. This case does not fully correspond to the widespread opinion according to which the exchange rate instability has a negative impact on trade relations, creates uncertainty and gives rise to the adverse effects of the expectations of business activity. Impact of the exchange rate fluctuations on the countries' trade relations changes in the short and long term has different characteristics. Explanation of the export-import changes in short and medium term through the national currency exchange rate cycles does not show the correlation between them; and in the long-term - the national currency devaluation effect on dynamics of the trade relations was very slow. Foreign trade was sustainable, and the country's national currency fluctuations did not have a significant role in the trade changes. Moreover, impact of the exchange rate on the ratio of export and import and national currency appreciation has not led to the deterioration of export conditions.

52-59

Authors: Mikheil Jibuti

Georgian officials haven, t set free from Soviet herritage to manipulate and twist statistical data for political purposes.Such political arithmetics is used to embellish reality in order to show off success. This situation is damaging effective ruling of the country as the right orientation is lost. Sometinmes these conseguences go further. We can assume that a new ruling modal SOLOKRATIA (Constitutional majority of Parliament relies on one individual who is out of government) has been created after 8, October, 2016 Parliamentary election. Conseguentry, analizing statistical data having been created at different places with different reasons is the result of falsified elections.

68-73

Authors: Akaki Bakuradze

Along with the disappearance of the idea of communism completely new ideological project sprung with the name of ‘globalization’. To be candour, the main aim of globalization is unification of the people of the world into a single, whole one (?!) that covers political, cultural, religious and other unified aspects of life and etc. According to the dictionary definition, ‘integracio’ is the unification of different parts into a single unit. T. Levit was the first to use this term with its economic connotation. The disadvantages of the globalization are as follows: fast spread of crisis situation in certain countries; hindering the movement of short-term capital, increasing the number of international financial swindlers; drawbacks due to improper condition of a national economy, administrative government, legal system for the developing countries and the states with transitive economy; intensifying international organized crime; ignoring national peculiarities; intensifying illegal migration and trafficking and etc. If Georgia is intensely drawn into the processes of world integration it will be a loser in a general sense because Georgia is absolutely unprepared in terms of aforementioned resources. In this process a lot remains to be invisible but its results are obvious and realistic. Everything depends on the decision made by others being thousand miles away. The way-out is building ‘The South Caucasian Region’. In order to reach the aim it is necessary to scientifically evaluate and analyze the attempts of ‘unifications’ of historical neighbours and their results among which Russia’s annexation period is included; optimal ways of moving to a new culture of political and economic existence should be chosen and the main item_ the role of Georgia and ‘its function as a middleman’ should be defined in planning and implementing a new idea of building an unified Caucasian House.

81-88

Authors: Givi Lemonjava

The transmission mechanism’s work is a very complex process which varies from time to time to meet objective of monetary policy. Official interest rate variations via transmission mechanism of monetary policy effects economic outputs and inflation, with some lags and the results deviate from policy objectives. The extent of variations depend on many factors but key factors are: level of financial system development, expectations and confidence, central bank’s independence, and country’s fiscal position. Because of weaknesses of these factors in developing countries like Georgia, Central bank on top of the transmission mechanism should employee strict control over monetary aggregates’ expansion process.

96-99

Authors: Vasil Khutsishvili

The article analyzed the experience of developed countries, macroeconomic policy, economic regulation, the overall economic development of the main aspects of the laws. Discussed the urgent and essential problems and tasks, such as in the production of its downturn and overcome the economic crisis, the perfection functioning of the securities market, cautious and prudent fiscal and monetary measures, and the scope of legislative acts to regulate.

106-109

Authors: Ioseb Kartvelishvili, Tea Todua

In this article the basic concepts about components and technology of wireless sensor networks are provided; all types of wireless networks are considered (personal, local, regional, global, sensor); features of their structures and methods of application are described.

12-18

Authors: Marina Baranovskaya, Inna Ukhanova

Thus, analysis of the creation and development of leading US techno park structures suggests a fairly strong government support for technology parks of the country, resulting in direct subsidies, tax, depre- ciation and other incentives to companies parks, creating regional venture capital funds, guarantees on loans making laws that promote activity parks, formation of state orders for innovations. In Ukraine, the main purpose of government support should become an effective mechanism to en- sure maximum effectiveness of technology parks and promote the development of innovation sector of the national economy. Based on the goal, the formation mechanism of state support technology parks must be focused on the integration of science, education and production; concentration of resources on priority areas of scientific and technological development; legal protection of intellectual property tech- nology parks; promotion of creative activity staff, development of international scientific cooperation. Creating an effective mechanism for state support technology parks suggests the author’s opinion, implementation of the following measures: - law specifying the role of technology parks in the scientific and educational and innovative complex of Ukraine; - specification of financial and economic support (dir- ect budget financing free parks, expansion of assets that provide competitive grant funding, exemption from customs duties on imported equipment, providing inventors and small innovative firms interest-free bank loans, the creation of reserve funds and innovative insurance risk, tax incentives); - support person- nel;- information Security (creating a registration system performance technology parks); - monitoring of the parks. In order to ensure effective public support for the establishment and operation techno park struc- tures deemed necessary not only to create a state of science and technology, but also the manner of draw- ing budgetary funding innovative programs and projects.

26-34

Authors: Givi Bedianashvili, Shalva Gogiashvili, Solomon Pavliashvili

The article deals with the theoretical and practical issues of competition in Georgia. The article analyzes the problems existing within this area in Georgia as well as the dynamics of gradual improvement of the competit- ive mechanism and competition policy. The main factors, which ensure the sustainability of the community institutional structure of both the com- petition institutional environment and the country’s overall socio-economic development, can be identified and monitored by the Economic Freedom Index. According to 2015 data, Georgia belongs mainly to the group of commonly free countries rated 23nd in the world, and in Europe it has 12th position among 43 European countries according to the Economic Freedom Index. However, there are some setbacks including the level of market openness (investment freedom and financial freedom) and development of Law and Order institutes (protection of property rights and freedom from corruption). In this respect, the impelementation of a complex of certain activities has been considered within the Georgia-EU Association Agenda, as well as in the socio-economic development strategy of Georgia (Georgia 2020).

40-46

Authors: Merab Gvelesiani, Shota Veshapidze

The report deals with the use of which nations are taking each other to enrich the national values as a result. Analyzes the European and Georgian values proximity, on which still a great Ilia Chavchavadze claimed. Speakers will talk at national values impact factors on the level of corruption; Giving a comparative analysis of local government reforms in Europe (where they began 1980) and Georgia (which began in 1997), It notes that in the beginning of self-governing Georgia took more formal, while the tradition of the Georgian people may create self-exemplary model.

53-59

Authors: Gocha Tutberidze, Ketevan Pipia, Givi Rakviashvili, Paata Kunchulia

In the paper Anca Gheorghiu’s and Ion Spanulescu’s model is represented as integral of time t (i.e. it is ta- ken into account the possible change in the parameters of the model over time) and in this integralisinserted а factor, which guarantees the termination of the flow of migrants after the increase some economic indicators in the country’s with the poor economic; therefore, in our opinion, the new model is closer to reality.

65-70

Authors: Iasha Meskhia, Rusudan Maisuradze

The work analyzes the theory and practice discussion issues of Government intervention in economy and business. Reasoned that at all times and in every country the various levels of state interference in the economy is different. In developed market economy the state intervenes indirectly, while in developing and crisis economy with direct and indirect methods. it analyses Georgian market economy in transition of state interference in business forms and methods. The conclusion is made that the the country’s undu- lations development of economy makes necessary to actively support the business, but it should not have a systematic character.

76-81

Authors: Lia Pitiurishvili, Ambrosi Grishikashvili

Shadow economy is a part of national economy which is not controlled by the state, and consequently it is not taxed. Shadow economy is also named by the term “informal economy” or “economy in shadow”. These terms originate from English language shadow economy. Shadow economy influences all participants of country’s economy:  The state does not get income from it;  Economy units have difficulties in business in non-liberal competitive environment;  Customers have not guarantee of suitable quality on the products produced by this share. Reasons which helped shadow economy being founded are low tax ethics of economy units,attempts to hide incomes,etc. Heavy and multi-sided tax system causes production to be turned into shadow production. Besides it should be mentioned other expenses which are connected with legal producing: such as expenses for cash register, expenses for social safety of employees,fixed minimal wages standards, etc. The wold experience shows that in order to decrease or root out shadow economy it will be better systemic changes than repressions. The most dangerous quality of shadow economy is its negative influence on competitiveness and accordingly on national economy. Firms existing in shadow economy become more competitive than those which are legal ones. Although shadow economy has so many negative sides,it should be mentioned that it has positive sides too which help it to survive. That”s why we come across such term in economy “shadow economy is ointment for economy”. It means that shadow economy gives possibility to be active in those shares and structures where legal firms are disable. In any way shadow economy itself is fully negative and it is necessary to fight with it. It should be separated some methods for fighting against it:  To simplify and improve tax system;  To make light fiscal load;  To decrease and abolish non-economic expenses connected with business activities;  To decrease and minimize regulations such as concessions and permissions;  Maximal reduction of firms” audit and control: Development of non-cash system.

85-90

Authors: Teimuraz Shengelia

In modern globalized world, study of the problem of corruption in different cultures becomes more urgent and actual. The present problem has an active influence on socio-economic stability of world countries. Corruption in broad understanding is non-targeted use of the state power is illegitimate and, as a rule, is used for secret, personal well-being. Practice of illegal financing, which is legitimate in one country, can be illegitimate in another. That’s why apprehension of corruption is different according to the countries. To draw a line of distinction between the justice and corruption is quite difficult, because in separate countries the policy of support to the groups of interests and the practice of lobbying is acceptable, but in other countries it is considered to be corruption. The present work discusses the problem of corruption apprehension in Georgia and its influence on business.

98-102

Authors: Natalia Zemzyulina

The article refers to the features of the international cooperative movement in the late 19th century. Set- ting it up as a working economic and social structure, relationships with other international organizations and specific proposals that came out of their cooperation. The basic principles stemming from the nature of cooper- ation, national characteristics, motivational factors that determine it and goals that it persuaded are stated in the article.

110-114

Authors: Joseb Archvadze, Joseb Archvadze

Considering Georgian reality excise tax is one of the most important and a growing component of the fiscal burden for the formation of budget revenue. In fact Georgian authorities plan to increase excise tax on tobacco twice each year. Excise share on tobacco, in the total volume of excise will increase not less than 0.6 percentage points each year. Such a step is taken not only for fiscal policy, but also to some extent it is a concrete socio-political step against the consumption of tobacco products. It is aimed to protect younger generation against the consumption of tobacco products at an early age. The combined total loss caused by the use of tobacco products is not less, but on the contrary, it is consid- erably more than the total quantity of any kind of budget receipts in connection with tobacco industry. The dynamic of tobacco consumption in Georgia is in higher correlation with revenue growth, than with the rise in prices of tobacco products.

121-124

Authors: Maia Gelashvili, Khatuna Berichvili

To improve the investment climate in Georgia it is important to study the tendencies and directions of international business development, to determine their influence on the potentials existing in Georgia for at- traction of investments. All this enables us to conclude that for attraction of foreign investments of great importance is: a. intensive activity of an investor existing in national economy; b. such economic environment, in which an owner possesses guarantees for protection and growth of the capital; c. until we get well aware that the problem is not in scarcity of capital, but in that with knowledge of forming the new technologies we are well behind the countries with far higher level of life than in our country, we’ll never manage to overcome the crisis. As for regulation of foreign investments, after their attraction it is necessary to elaborate such moderate approaches, which will be equally acceptable both for a foreign investor and for the interests of the country. This, in our opinion, should be one of the priority directions of the government of Georgia.

129-133

Authors: Merab Vanishvili, Lekso Lemonjava

After the transition to market economy, drastically sheivala finance management systems in Georgia. Min- istry of Finance, together with the financial management of the organizational structures of the State Audit Office, an independent audit of the financial control services, etc. Centralized budget system was replaced by the new budgetary system, starting with the budgets of various levels are the basis for real independence and equality. If your taxes are meant to regulate the formation of the revenue and expenditure of freedom. At the same time, including new relationships and responsibilities established. State budget of the Autonomous Republic and local budgets to hand transfers.

139-142

Authors: Vasil Khutsishvili

The article refers to the Georgian economy up and organized securities market in Georgia, the current picture of the testimony, in this regard, securities liquidity factors in determining the securities to define the role of market structures and state-owned enterprises in financing, problematic issues, securities market review, analysis of international securities and cash - the credit market in Georgia, further actions to determine the country’s market economy in transition period.

148-152

Authors: Tatiana Borzdova

This work is devoted to the analysis of assessment activities in the Republic of Belarus. It examines the state regulation of the activity: legislative framework, the system of standards of valuation of objects of civil rights, the organization of certification of appraisers in the country.

159-165

Authors: Naira Galakhvaridze, Eldar Gugava

Twenty one century inherited a difficult global problems, which actually represents a “human ecology” a whole one global problem. United Nations environmental issues in order to solve the problems of the meetings laid the foundation for joint actions, as each country, as well as the problems of coordination, because environmental problems are international in nature. A scientist C. Levin “human ecology” is considering a block model, which includes chemical ecology, social ecology, using ecological, agricultural ecology, medical ecology, urban ecology. Environmental quality control methods can be divided into three groups, which are historical, political and cultural, and other factors identified in the ratio used in different countries. These include administrative, economic and market methods. Each method has its effective use in the field of environmental quality regulation can effectively solve some problems, but in some cases it is not reasonable to use, so it is necessary to regulate the quality of the surrounding natural environment, the rational combination of methods and tools.

171-174

Authors: Luara Gvajaia

The author considers a rich international experience in transformation of economy to the innovative mode. The problem of technologic parks of developed countries are considered, as an example of distribution of new and efficient form of merging of science and entrepreneurship. Significant part of the article is related to experience of Jewish state in stimulation of innovative activities of small and middle-scale businesses, as well as state’s role and support for establishment of so-called “business incubators”. The process of establishment of “business incubators” and their particular activities are described.

180-184

Authors: Mzia Kiknadze, Zurab Gasitashvili, Lili Petriashvili

Regional economics considerably determines the regional development. Regional development is characterized with factors of such development. Therefore, degree of impact of factors (indicators) of regional development on the criterions of regional development should be studied to determine the problems of management of regional development. Criterions of regional development are many, so we have inconceivably large range of scenarios in simulated experiment. The work tries to develop the sub-range of factors with high magnitude (high degree of impact) from the range of factors of regional development. This sub-range will be basis for studying economics of regional development and it’s very actual problem. Simulation of social-political situations is effectively used for studying these problems. The work considers the tasks of modeling and studying economical sustainability on the basis of control impact and different types of experiments.

190-195

Authors: Lamara Qoqiauri

The work highlights key points of state innovative politics; state structure of social – economical and scientific - technical development, the main principles of the formation and completion, the resources and mechanisms of funding of innovations. In the article you are able to find out the instrumentarium of innovative politics, its priority directions. Nowadays we consider elaboration of optimal strategy in science and innovative development important that is; To create conditions for rivalry sector of scientific research and process and for its broadening reproduction; To create effective national innovative system; To hasten modernization of economics on the basis of technological innovation. To double the number of those enterprises that carry out technological innovations. Thus, for innovative development of our country a sector of ‘’Knowledge generation’’ is necessary to exist. It includes fundamental and practical research effective functionality of national innovative system that trans- forms new Knowledge into product of technologies and services. Besides, it includes involves unity of economic subjects, innovative institutional business, infrastructure and resources; wide usage of informative – communicative technologies that enables to grow up Labor productivity and optimization of industrial processes.

202-205

Authors: Givi Bakradze

The peculiarities of the higher educational institutions’ accounting are considered. At the same time, specific goals and objectives of managerial accounting is also analyzed. It should be noted that the managerial accounting objectives and goals are individual and depends on the characteristics of the institution’s activities. It is noted, that regulation of the issues of financial managerial accounting is possible on the basis of financial accounting settlement in compliance with the International Financial Reporting Standards.

210-214

Authors: Nana Nadirashvili

System of new technologies, particularly innovative processes of products and services, having distinguished synergetic approach in our opinion, should become key model of economical growth. Innovative approach shall be discussed as depth process of making novelties and creative work, as well as maximal realization of innovative alternative, permanent process of innovative demands and entrepreneurial facilities and efforts. 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 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.

219-222

Authors: Ioseb Kartvelishvili, Tea Todua

In this article there are considered questions of use of game theory for the analysis of conflict situations, those factors of uncertainty which existence are the main characteristic feature for this situation. Methods of determination of minimax strategy are discussed also. The specific conflict situation on the example of agricultural firm is given. Searching of optimal solution for this situation happens in the field of the mixed strategy.

229-232

Authors: Shota Shaburishvili

For enterprises nature protection activity is capable to bring set of various economic and strategic benefits. Among them the following are allocated: economy owing to decrease in volumes of the used natural resources and energy, and also reduction of ecological payments and penalties; growth of proceeds due to realization under higher prices of non-polluting production and sale of additional production; reliable output on the foreign markets; simplification of procedures of reception of credits in banks, etc. Those enterprises which before others reveal and take into account new opportunities of use of the ecological factor in the economic strategy, receive conclusive competitive advantages.

237-240

Authors: Tina Jolbordi

The work deals with actual tasks of Decision Theory and Practice in the process of modern business glob- alization. Decision making methodology and methods have been used in the theory and practice of the de- veloped countries for a long time. There is a science direction which studies financial concepts and relationships between governing de- cisions and financial results. According to the daily decision-making aspect business is discussed as a dynamic system dealing with movement of financial resources and its success is connected to decisions made by man- agers uninterruptedly, sequentially and successfully. It means that enterprise management process is connec- ted to economic decision series which causes movement of resources and makes business successful. We consider that a new studying course _”Decision Theory and Practice” should be entered to university curriculum and a complex of studying disciplines should be defined which will give students adequate education to achieve success in modern business. The methodology and techniques of business and other economic disciplines should serve to making optimal financial decisions and successful business. Technological methodology as well as practical aspects should be defined for each studying discipline. The discussion of Decision Theory and Practice tasks is actual and it will serve business theory and practice positively. It will help labor market to prepare adequate staff and employ them, and it will serve to improve university learning environment and scientific studies.