Current Problems of the World Economy and International Trade: Volume 42

The paper aims to study the main trends in the development of international trade in the era of neo-globalization and make forecasting scenarios that reflect the prospects and strategies for building international economic (foreign trade) relations. The author uses trend analysis, regression analysis, and the Monte Carlo method. The author proves that the digital economy determines the prospects for international trade in the era of neo-globalization. The author indicates several trends of international trade in the era of neo-globalization, such as the increase in the freedom of international trade (by 2.16%), the increasing level of globalization of the economy (by 4.11%), and the intensive increase in high-tech exports (by 74.94%). The most possible (28%) scenario for developing international trade is related to the digital partnership. In this scenario, a 25.11% increase in digital competitiveness provides an 8.29% increase in the globalization index and a 21.78% increase in high-tech exports. These indicators are achieved despite the growth of customs barriers by 58.86%. That is, a feature of the era of neo-globalization is the predominance of technological barriers over custom ones to the development of international trade.

China is one of the fastest-growing countries; it holds important positions in many product markets, including the global automotive market. The objectives of this study are as follows: to assess the position of China in the global automotive production, global automotive exports and imports; and also compare the position of China on these indicators with the main competing countries. In this regard, the method of comparative analysis has become the main research method. Based on the analysis and calculations performed, the authors came to some conclusions. China came out on top in the production and export of automotive products, overtaking key competitors, including the United States, Japan, Germany and India. This was achieved through an effective combination of trade, investment and industrial policy instruments. The decline in production and export of cars during the COVID-19 coronavirus pandemic was minimal in China compared to competitors, which is explained by an efficiently formed supply chain, as well as the presence of transport hubs (7 of the 10 largest sea container ports are located in China). The authors believe that future trends in the development of the Chinese automotive industry will be associated with the renewal of production to reduce environmental pollution and restructuring of supply chains to further localize the production of intermediate components for the automotive industry.

The chapter deals with China-Pakistan economic relations under China-Pakistan economic corridor (CPEC), which is considered to be a flagship corridor under the Chinese ‘The Belt and Road Initiative’ (BRI), also known as ‘One Belt One Road’ or ‘New Silk Road’. COVID-19 pandemic has dramatically changed the composition of the world economy. Now BRI has become even more important for China's economic strategy to sustain its long-term growth. The authors investigate CPEC to be Beijing's most ambitious project so far and mark, that despite possible concerns and challenges, CPEC will succeed. The authors identify the advantages and benefits that both Pakistan and China will gain. Further promoting of ‘westward’ strategy, which facilitates the economic and social development of Western China, boost in the export of capital, technology, production capacity is considered to give a new impulse of Chinese economic development. Rise in industrial potential, stimulating socio-economic development, improvement of population well-being, as well as maintenance of internal stability are among Pakistan's benefits from CPEC.

The chapter identifies the short- and long-term effects of the COVID-19 on implementing CPEC, as well.

Cooperation in agriculture and agricultural products trade is a new driving force for Sino-Russian cooperation in economy and trade in recent years. Driven by the interests and needs of both countries, a Free Trade Zone (FTZ) on the Chinese territory facing Russia, the Heilongjiang FTZ, has been established, and agricultural cooperation has attracted much attention within the FTZ framework. This chapter aims to analyze and explain the prospects of Sino-Russian agricultural cooperation under the framework of the Heilongjiang FTZ based on the current situations of cooperation. The author concludes that the Heihe and Suifenhe Areas in Heilongjiang FTZ are developed with a focus on Sino-Russian agricultural cooperation. This chapter is innovative because it combined the traditional research perspective on Sino-Russian agricultural cooperation with that under the FTZ framework. The author thinks that to facilitate the cooperation between the two countries in agriculture under the FTZ, the two governments must cooperate more extensively. Besides, they need to discuss the establishment of infrastructures like a joint agricultural product R&D centre and a digital development centre for agriculture. Meanwhile, the schemes of dispute settlement and risk-sharing should be addressed as well.

The chapter is devoted to considering the aspects of the COVID-19 pandemic influence on the global and Russian electronics industry. The work aims to examine the impact of the COVID-19 pandemic on the electronic industry in the world and Russia from various angles. As a result of the study, the main features of the global electronic industry are highlighted, including leadership of Western European countries, Japan and the United States in the segment of high price electronics; the leadership of the new industrial countries in a lower price segment; active development of microelectronics as an electronics industry segment and its colossal role in the economy of modern countries; the trend towards acquisitions of small companies by large corporations and other industry. Key problems of the Russian electronics are identified, including a small fraction of the global electronics dependence of Russian industry on imported electronic components, a huge backlog of electronic industry of Russia in comparison of world leaders and the newly industrialized countries, technological backwardness of many enterprises of electronic industry, the low level of qualification as a whole industry. The novelty of the research is highlighting the impact of the COVID-19 pandemic on the electronics industry. The study highlights both negative consequences (decline in production of many electronic enterprises, disruption of supply chains, insufficient financing of the industry) and positive aspects (active growth of the segment of household appliances and electronics), as well as an impetus to the development of new directions of world electronics (radio-photonics, optoelectronic and quantum technologies, artificial intelligence, laser technology).

The globalization of the world, in addition to obvious advantages, also brings potential problems. According to the authors, the problem is that the crisis phenomena occur simultaneously and in a very similar way in different countries. The emphasis on comparing the economic crises of the early twentieth and twenty-first centuries was caused by common features such as political instability, declining living standards, severe pandemics that swept the world and their consequences (twentieth-century coronavirus and Spanish flu of the twenty-first century). Comparative analysis allows assessing the causes of crises and their consequences. The importance of studying the 2020s crisis is that this crisis has become the most painful since the Global Great Depression in the 1930s.

The novelty is determined in the analysis of the situation of the economic crisis of the 2020s. The materials of the article are of the theoretical value for researchers studying crisis phenomena and anti-crisis measures, government bodies and business representatives.

Globalization has been an important factor in many parts of the world economically in the last century. To see this effect numerically, the globalization index is used and it contains many variables in itself. One of these variables consists of R&D concepts. At the same time, while intellectual property, which is an important element of the world economy, plays a major role in the rapidly globalizing world, the patent structure, which is the most concrete usage area of intellectual property, also shows its effect on globalization day by day.

The purpose of this study is to evaluate the debate about whether R&D expenditures handled by the public are more efficient within the framework of comparative data analysis. The revised version of the patent and R&D analysis can be regarded as a composite index that measures economic, intellectual property and social dimensions as well as globalization for every country in the world. For this, Turkey and Germany in 2008–2018 the share of annual government expenditure, we use the total expenditure and GDP figures for R&D. Research and development expenditures made by the public sector are accepted to include the patent institutions and expenditures made by the public. At the same time, this index in Germany and made by the state exactly how much of their R&D spending gap between Turkey is to show that globalization is connected.

The article studies the problem of the impact of non-tariff barriers on mutual trade in goods between the EAEU member states. This problem is considered using the example of assessing the impact of non-tariff regulation measures of Russia, Kazakhstan and Kyrgyzstan on imports of goods from other EAEU member states. The conducted research is based on domestic and foreign scientific works that use barrier components to build a gravitational model of foreign trade. To study the impact of non-tariff regulatory measures of Russia, Kazakhstan and Kyrgyzstan on import commodity flow from other EAEU member states, two time periods are considered – the period of 2010–2014 and the period 2017–2019. In the context of the periods under consideration, a gravitational model of foreign trade is constructed. As a result of building a model within the framework of the study, it was revealed that during the period of the EAEU existence (2017–2019), non-tariff measures of foreign trade regulation had a more significant and negative impact on imports of the studied countries than before the formation of the EAEU (2010–2014). The latter indicates the relevance and necessity of further research of this problem.

The purpose of this chapter is to analyze the economic problems associated with illegal mining of minerals, primarily gold, in Peru, such as the development of shadow business, illegal activities, income hiding, labor exploitation, disastrous environmental consequences and the results of efforts to develop a coherent policy against illegal mining in Peru.

In the article, authors use an empirical approach and a system analysis, during which the object of research (companies engaged in illegal gold mining) is considered as a system that responds to external influences (requirements, challenges, etc.) and interacts with the internal environment (legal, institutional, etc.)

Since 2016, the consolidation and deepening of the state policy to eradicate the illegal mining of metal resources, including gold, is observed in Peru. The government is developing a coherent, dynamic program to tackle this complex problem.

In the article, as a result of the analysis of the state policy to combat illegal mining, it is concluded that to achieve success in the implementation of a comprehensive program for the sustainable development of the country's mining complex, active participation of the state in this process is necessary. Government assistance with the mining complex development should range from adequate provision of affordable, timely and adequate basic services to the guarantees of legal rights protection to all parties involved in mining activities.

The relevance of the research topic is due to the high importance of the Belt and Road Initiative (BRI) for increasing the presence of China in the markets of the countries of the New Silk Road. The topic becomes more relevant due to the ambiguous results of the BRI, although it was launched in 2013. On the one hand, the effect for China is growing. On the other hand, the effect for the participating countries has not yet reached the level initially declared.

The chapter aims to identify the main challenges and advantages of the BRI based on the involvement of countries and their markets in the trade and economic system formed by China.

The research novelty lies in studying the economic goals and objectives of the People's Republic of China (PRC) under the BRI and the possibilities of using the trade and economic system created by the PRC for developing the PRC and the BRI member countries.

The authors found that the initiative is designed to better integrate the economy of China at the regional and global level, promote the socio-economic progress of the less developed western territories of the country and stabilize foreign trade and domestic socio-economic processes in conditions of global instability. The authors justify that this initiative, uniting more than 80 countries in Asia, Africa and Oceania, will strengthen China's role in the world economy and trade, form a specific international trade and economic platform under the leadership of China and provide the country a leading position in at least three parts of the world.

The authors use traditional economic research methods, such as scientific abstraction, deduction, analysis and synthesis. Additionally, the authors use the method of visualization based on the application of the statistical method.

The study aims to study the socio-economic features of the impact of the COVID-19 pandemic on the economic systems of the OECD countries, as well as to analyze the measures taken by states for their subsequent adaptation in the economies affected by the crisis. The authors identified the OECD countries with the highest number of cases of coronavirus, which demonstrated positive dynamics of socio-economic indicators after a significant recession due to the pandemic (USA, France, Germany, Italy, Great Britain, Spain). The article analyzes the dynamics of key socio-economic indicators that characterize the development of the OECD countries under study in 2020 compared to the same period in 2019 (unemployment rate, inflation rate, gross national savings, exports and imports of goods and services). The measures implemented by states to stabilize economic activity and maintain social well-being during the pandemic are studied. The authors concluded that the economic and social measures taken by the OECD countries under study are common and that the results of their implementation differ significantly. It is proved that Germany is the country that has most successfully implemented a package of anti-crisis measures based on an effective monetary policy and direct state support for the real sector, which allowed it to maintain the volume of export–import operations and gross savings at the pre-crisis level, prevent an inflationary jump in the country and not exacerbate the problems with increasing unemployment. Germany's experience in creating a basis for overcoming the global economic crisis can be adapted to the conditions of the countries most affected by the pandemic.

The purpose of the chapter is to find out the current issues and tendencies of the global economy in the context of the term ‘new normal’. The author tries to determine some approaches to the meaning of the ‘new normal’ term under the condition of COVID-19. At the same time, it had been underlined and paid great attention to the countries with the demographic burden such as India.

The article investigates economic globalization under COVID-19 and global economic policies to curb the epidemic. The authors analyze the economic policies of most countries and the mechanism to respond to the changing circumstances in light of the epidemic. COVID-19 as an epidemic that appeared in October 2019 in the Chinese city of Wuhan (and it's a new version that appeared in the United Kingdom and India in 2021) harmed the world economy, as borders between countries and even within countries were closed, which affected the economic activities of countries and among the most important indicators that affected the national product of countries, foreign trade, foreign direct investment and that unemployment rates have increased significantly both in developing and developed countries. It is also noted that the poverty rate has increased dramatically for developing countries.

The article found that there are trivial linked responses from one country to another, due to several factors, the most important of which are the capabilities of countries and the health infrastructure on the one hand, and the economic factor on the other.

Recommendations were developed in the research in overcoming the economic crisis through a situation that can help countries mitigate the negative economic effects of the global pandemic COVID-19.

The main purpose of this chapter is to show the correlation of the current consolidated electricity capacity of the Eurasian Economic Union (EAEU) with the forecast indicators of electricity consumption to optimize the future energy system. It highlights the main directions of the international cooperation development in the field of hydropower and analyzes the total consumption of hydropower in the EAEU. The study is based on official data provided by international hydropower and renewable energy regulators as well as national professional regulators and statistical offices. Authors predicted total hydropower consumption of the EAEU countries for the coming years using machine learning algorithms and interpreted obtained results by an econometric toolkit. It is shown that the current hydropower capacity level will not cover future consumption, in particular, due to the increasingly growing demand for cheap electricity because of massive digitalization as one of the global pandemic impacts. As a result, the necessity was identified to gradually increasing the available hydropower capacity to balance the situation. In conclusion, it's been proposed potentially possible solutions to optimize the future energy system of the single energy market of the EAEU to achieve the required level of electricity generation from power plants operating on renewable energy sources and, in particular, water resources, taking into account the consequences of Covid-19 in the energy industry.

The chapter aims to determine the need to form a new industrial core of the Russian industry, its content, problems, prospects and the objective prerequisites of its formation in modern conditions.

The development of prerequisites for the formation of a new industrial core of the Russian industry relies on the possibilities of the system paradigm, the theory of socio-economic transformation, the theory of technological modes, the theory of reproduction, the theory of modernization, the method of dialectics, empirical method and the method of analysis and synthesis.

The authors determine that the formation of a qualitatively new industrial core of the Russian industry corresponding to the new technological mode will ensure the integration of the Russian economy in the accelerating technological and socio-economic transformations.

The authors substantiate the demand for the formation of a new industrial core of the Russian industry. The problems associated with the destruction of the former industrial base during the economic transformation are established. Additionally, the authors determine the prospects for the formation of a new industrial core of the Russian industry on a qualitatively new technological basis.

The chapter examines the current state and prospects of cooperation between the Eurasian Economic Union and the BRICS members. Firstly, the chapter describes comparative analysis between the economic strategies, which represents the two associations facing similar challenges; set themselves similar goals and objectives to achieve sustainable economic growth. Also, the authors provide an empirical analysis of trade and economic cooperation between the EAEU and the BRICS countries, which shows different levels and dynamics of relations with each member of the BRICS. Furthermore, it is proposed to use new ‘soft’ formats, which, in the authors' opinion, will provide synergistic use of the fundamental platforms for dialogue created in the EAEU and BRICS to intensify cooperation and deepen practical interaction. Finally, the chapter concludes that the potential interaction between the two associations of developing countries would create positive prospects and new opportunities, subsequently accelerating their economic growth. Such consolidation of capabilities of these institutions would transfer such cooperation into a practical direction by implementing the goals defined in the strategic planning of the EAEU and BRICS countries.

This chapter examines the key features of online education development, its trends in the world market and, in particular, in the Chinese market, as a successful case of digitalization of education (the annual growth rate of the e-learning market in China on average is 20%). Based on the example of China, the authors identify several drivers of online education growth, including institutional (national education policy), technological (technological potential to introduce digital technologies into education) and financial (inflows of investment, including venture capital, in this industry).

The purpose of the chapter is to focus on the global industrial robotics market and trends of its development. In the framework of this chapter, the authors made the forecast of industrial robots' market future values in this chapter with the linear regression method and an econometric model. This analysis has provided a conclusive answer to the question about the prospects of the industrial robotics market and the leading countries. The completed forecast showed that the global robotics market will continue to grow, thanks to the wider adoption of industrial robots, which will be used in new industries, the development of contactless user interfaces, which, among other things, will be implemented in the automotive applications, the focus on predictive maintenance and remote monitoring of equipment, as well as the transition of a large number of enterprises to digital management and full automation of existing equipment to improve the quality and productivity of processes. The authors show that in 2020 the global robotics market volume decreased due to the COVID-19 pandemic and major shift in production value chains, but in 2021 the indicator will grow again, but not so rapidly, at a more moderate pace. By 2025, the global industrial robotics market may exceed $61.4 billion, with a growth rate of 8.5%.

The global processes taking place in the economy have led to the transformation of various spheres of the economy, primarily financial, and, as a result, to changes in economic policy and its main elements-fiscal, monetary and investment policies. It is no coincidence that the recurrent crises of the last decades either originated in the financial sector or had a significant impact on changing its parameters. This situation in the context of ongoing economic and institutional changes has necessitated a flexible and regular review of the methods and instruments of monetary regulation used. Moreover, it is more difficult for the countries of integration groupings, including the Eurasian Economic Union (EAEU), to do this, given the need to coordinate the decisions and measures taken. The situation has become more complicated due to the coronavirus pandemic, which has had a significant impact on the economies of both developed and developing countries. The analysis of the correspondence of the money market parameters to the macro-financial indicators of economic security and the dynamics of the banking sector parameters, the significant economic downturn, the decrease in demand and the persistence of uncertainty about the duration of the pandemic make it necessary to adjust monetary policy.

The article discusses the current state and problems of increasing the export potential of small and medium-sized enterprises in the Republic of Kazakhstan in the context of the country's regions.

The article aims to identify promising sectors of the economy for small and medium-sized enterprises with export potential to ensure the post-crisis recovery of the national economy and its growth.

The purpose of this article is to identify problems and opportunities for improving the formation of financial statements (FS) in accordance with International Standards, which is the most important instrument for international economic integration.

In carrying out the research, we used the FS of the modern organizations, prepared in accordance with International Standards (IASs and IFRSs), posted on the official websites of these organizations. At the same time, we researched the FS of both Russian and foreign organizations in order to draw conclusions about the problems of preparing FS in accordance with International Standards, which are typical for most modern organizations in different countries. When conducting research, we used methods such as comparison, analysis and synthesis.

We identified the main problems that arise in practice when preparing FS in accordance with International Standards, which are typical for both Russian and foreign organizations. We also analysed the project of the IASB (the organization that develops these standards) to improve the requirements for the preparation of FS in accordance with International Standards. Based on the analysis carried out, we identified the main problems arising from the planned requirements of this project. As a result of the research carried out, we made proposals for solving the identified problems of the formation of FS in accordance with International Standards.

Our proposals can be used to improve the regulations of International Standards for the formation of FS, and can also be applied in the practical work of modern organizations.

The purpose of this research is to comparatively analyze forms and methods of influencing transnational (global) companies on competition, including cross-border markets for goods and services at the sites of states with a dynamically developing socio-political structure and economy (for example, the BRICS countries).

The methodological apparatus of the research includes methods of economic statistics (econometrics): the method of variation analysis, the method of correlation analysis, the method of regression analysis, analysis of variance.

The article proves that the studied countries use three forms of obtaining competitive advantages: unique assets, high marketing activity, and high innovative activity. The direct results of obtaining these competitive advantages are an increase in sales, net profit and market capitalization.

Modern transnational (global) companies show high flexibility, successfully adapting to the specifics of target national and industrial markets. The influence of transnational (global) companies on competition, including cross-border markets for goods and services, is significant and contradictory. Optimization of this influence is possible, necessary and connected with implementing law enforcement practices of identifying anticompetitive actions of transnational (global) companies.