International economic relations of Georgia at the modern stage of globalization

Shota Veshapidze  Ramaz Putkaradze

Journal number 1 ∘ Shota Veshapidze ∘ Ramaz Putkaradze ∘
International economic relations of Georgia at the modern stage of globalization

10.36172/EKONOMISTI.2023.XIX.01.SHOTA.VESHAPIDZE.RAMAZ.PUTKARADZE

Expanded Summary

In the presented article, the field of interest of scientific research is the identification and determination of the results and perspectives of Georgia's participation in international economic relations. The interest in the research topic is due to the fact that the level of economic development of Georgia is significantly dependent on the quality of relations with the rest of the world and international economic unions.

International economic relations are an important factor of the country's sustainable development, which contributes to the acceleration of scientific and technological progress, the rational use of natural resources, the globalization of the world economy, the sharing of international production experience, the accelerated development of international trade in goods and services, the free movement of capital and people. The purpose of the research is an in-depth examination of the results and perspectives of Georgia's participation in international economic relations. Its essence is expressed in the participation of Georgia in the trade of goods, services and technologies, it is also important to cover the aspects of the international movement of labor and capital, integration with the countries of the world, digitalization of the economy.

The subject of the research is the evaluation of the results of international economic relations of Georgia. In particular, the analysis of what results the proximity to the international community and the involvement in the world economy have brought to the country, as well as what opportunities can be seen in the future.

The object of the research project is the international economic relations of Georgia formed at the modern stage of globalization, the mechanisms of regulation of foreign trade of Georgia, the priority directions of transport and logistics services of Georgia in the world market, the participation of Georgia in the international migration of capital and labor and international economic integration.

The research has the character of both quantitative and mostly qualitative research, which is based on both Georgian and foreign scientific publications, reports of international economic organizations and other sources about the development of international economic relations of Georgia. In particular, the research is based on: United Nations and international organizations documents, reports, researches; Georgian policy documents, development strategies; relevant laws and regulations; sociological research materials and others. The research will be carried out on the basis of deduction, induction, analysis and synthesis, based on an in-depth analysis of the results and perspectives of international economic relations of Georgia. Among the theoretical and empirical research methods used in the process of working on the research project, the desk research and field research methods are worth mentioning. Desk research includes the analysis of relevant statistics, articles, letters, policy documents, institutions, legislation etc. Field research includes both quantitative and qualitative sociological surveys.

In today's conditions, the global economy has entered a new era of national security. The COVID-19 pandemic has made clear the vulnerability caused by the extreme dependence on global supply chains and the lack of coordination to combat global health risks. But what has most informed this new era is Russia's unprovoked invasion of Ukraine, sabotage of the world economy, food wars, and energy wars. In addition to the human and economic losses, the war in Ukraine has sharply intensified the rift between the Western and Eastern geopolitical blocs, gathered around the United States and China, respectively.

In the modern world, the economic development of any country depends on both domestic and foreign factors. Therefore, in the conditions of modern socio-economic development, international economic relations are one of the most important factors of sustainable development of Georgia. It contributes to the acceleration of scientific and technological progress, the rational use of natural resources, the globalization of the world economy, the exchange of industrial experience, the accelerated development of international economic relations and world trade in goods and services.

The main goal of the development of the world economy is the maximum use of the advantages of the joint economic potential of the world community. At the same time, it is necessary to realize that countries play different roles in this process, and the international importance of any country or its individual region is based on existing natural resources, the dynamics of economic development, its place in the world system of production of goods and services, and the existence of financial resources, its availability.

Georgia is successfully involved in the world economic community, increases its export potential, expands economic cooperation with the countries of the world, establishes mutually beneficial relations with the USA, the European Union, the Republics of Azerbaijan and Armenia, the Middle East, Kazakhstan and other Central Asian republics, the Russian Federation, China, European countries, with Japan, with the entire world community, which is a set of interacting entities for the purpose of regulating international relations.

Systematic understanding of international economic relations is necessary for Georgia's integration into the world economic community. Therefore, it is important to find out the accompanying trends of the global processes of the modern world economic space and their impact on our country.

It is important to assess where the future development of the sovereign state of Georgia is headed, in what ways the safety and well-being of our citizens can be ensured, what are its priorities, what are the external orientations of the country's development. In this context, the European integration of Georgia is an important issue. In this short time, the priority of the country is to get the candidate status and get even closer to the EU membership.

The news of the article is next. Overcoming the world global economic crisis of 2007-2008 at low rates, which is manifested by the slowing down of the growth rate of world trade, by reducing the flows of direct foreign investments, first of all, in developing market countries, means that new tendencies in the development of international economic relations have emerged. It concerns the international movement of factors of production, new tendencies in the international movement of capital and labor, as well as changes in the international market of intellectual property.

The globalization of the economy is significantly influenced by the development of the digital economy, which depicts the impact of digitalization on each form of international economic relations. Based on the analysis of the official documents of the international organizations, the tendency of expanding the digital economy and overcoming the digital inequality in the 21st century is intersected.

Key words: globalization of the economy, rational use of resources, international trade, free movement of capital and people, logistic hub, regional economic integration.

EKONOMISTI The international scientific and analytical, reviewed, printing and electronic journal of Paata Gugushvili Institute of Economics of Ivane Javakhishvili Tbilisi State University

DOI: 10.36172/EKONOMISTI E ISSN 2346-8432 Print ISSN 1987-6890	Journal number 1 ∘ Shota Veshapidze ∘ Ramaz Putkaradze ∘ International economic relations of Georgia at the modern stage of globalization 10.36172/EKONOMISTI.2023.XIX.01.SHOTA.VESHAPIDZE.RAMAZ.PUTKARADZE Expanded Summary In the presented article, the field of interest of scientific research is the identification and determination of the results and perspectives of Georgia's participation in international economic relations. The interest in the research topic is due to the fact that the level of economic development of Georgia is significantly dependent on the quality of relations with the rest of the world and international economic unions. International economic relations are an important factor of the country's sustainable development, which contributes to the acceleration of scientific and technological progress, the rational use of natural resources, the globalization of the world economy, the sharing of international production experience, the accelerated development of international trade in goods and services, the free movement of capital and people. The purpose of the research is an in-depth examination of the results and perspectives of Georgia's participation in international economic relations. Its essence is expressed in the participation of Georgia in the trade of goods, services and technologies, it is also important to cover the aspects of the international movement of labor and capital, integration with the countries of the world, digitalization of the economy. The subject of the research is the evaluation of the results of international economic relations of Georgia. In particular, the analysis of what results the proximity to the international community and the involvement in the world economy have brought to the country, as well as what opportunities can be seen in the future. The object of the research project is the international economic relations of Georgia formed at the modern stage of globalization, the mechanisms of regulation of foreign trade of Georgia, the priority directions of transport and logistics services of Georgia in the world market, the participation of Georgia in the international migration of capital and labor and international economic integration. The research has the character of both quantitative and mostly qualitative research, which is based on both Georgian and foreign scientific publications, reports of international economic organizations and other sources about the development of international economic relations of Georgia. In particular, the research is based on: United Nations and international organizations documents, reports, researches; Georgian policy documents, development strategies; relevant laws and regulations; sociological research materials and others. The research will be carried out on the basis of deduction, induction, analysis and synthesis, based on an in-depth analysis of the results and perspectives of international economic relations of Georgia. Among the theoretical and empirical research methods used in the process of working on the research project, the desk research and field research methods are worth mentioning. Desk research includes the analysis of relevant statistics, articles, letters, policy documents, institutions, legislation etc. Field research includes both quantitative and qualitative sociological surveys. In today's conditions, the global economy has entered a new era of national security. The COVID-19 pandemic has made clear the vulnerability caused by the extreme dependence on global supply chains and the lack of coordination to combat global health risks. But what has most informed this new era is Russia's unprovoked invasion of Ukraine, sabotage of the world economy, food wars, and energy wars. In addition to the human and economic losses, the war in Ukraine has sharply intensified the rift between the Western and Eastern geopolitical blocs, gathered around the United States and China, respectively. In the modern world, the economic development of any country depends on both domestic and foreign factors. Therefore, in the conditions of modern socio-economic development, international economic relations are one of the most important factors of sustainable development of Georgia. It contributes to the acceleration of scientific and technological progress, the rational use of natural resources, the globalization of the world economy, the exchange of industrial experience, the accelerated development of international economic relations and world trade in goods and services. The main goal of the development of the world economy is the maximum use of the advantages of the joint economic potential of the world community. At the same time, it is necessary to realize that countries play different roles in this process, and the international importance of any country or its individual region is based on existing natural resources, the dynamics of economic development, its place in the world system of production of goods and services, and the existence of financial resources, its availability. Georgia is successfully involved in the world economic community, increases its export potential, expands economic cooperation with the countries of the world, establishes mutually beneficial relations with the USA, the European Union, the Republics of Azerbaijan and Armenia, the Middle East, Kazakhstan and other Central Asian republics, the Russian Federation, China, European countries, with Japan, with the entire world community, which is a set of interacting entities for the purpose of regulating international relations. Systematic understanding of international economic relations is necessary for Georgia's integration into the world economic community. Therefore, it is important to find out the accompanying trends of the global processes of the modern world economic space and their impact on our country. It is important to assess where the future development of the sovereign state of Georgia is headed, in what ways the safety and well-being of our citizens can be ensured, what are its priorities, what are the external orientations of the country's development. In this context, the European integration of Georgia is an important issue. In this short time, the priority of the country is to get the candidate status and get even closer to the EU membership. The news of the article is next. Overcoming the world global economic crisis of 2007-2008 at low rates, which is manifested by the slowing down of the growth rate of world trade, by reducing the flows of direct foreign investments, first of all, in developing market countries, means that new tendencies in the development of international economic relations have emerged. It concerns the international movement of factors of production, new tendencies in the international movement of capital and labor, as well as changes in the international market of intellectual property. The globalization of the economy is significantly influenced by the development of the digital economy, which depicts the impact of digitalization on each form of international economic relations. Based on the analysis of the official documents of the international organizations, the tendency of expanding the digital economy and overcoming the digital inequality in the 21st century is intersected. *Key words*: globalization of the economy, rational use of resources, international trade, free movement of capital and people, logistic hub, regional economic integration.