World Economy and International Business: Theories, Trends, and Challenges

Preface
Contents
Contributors
Abbreviations
World and Global Economy
World and Global Economy, Global Business Environment, and International Business: Nature, Formation, and Structure
1 Introduction
2 Notions of the World Economy and Global Economy, International Business, and Global Business Environment
2.1 The Notion of the World Economy and Global Economy
2.2 Major Actors of the World Economy
2.3 The Notion of a Global Business Environment
2.4 The Notion of International Business
2.5 Non-economic Aspects of the Global Economy and International Business
3 Formation and Evolution of the Global Economy and International Business
3.1 Formation of the Global Economy
3.2 Stages of Globalization
3.3 Non-economic Aspects of Globalization
4 Typology of the World Economy and International Business
4.1 Stages and Levels of Economic Development
4.2 Post-industrial Stage
4.3 Level of Economic Development
4.4 Economic Typology of the World
4.5 Scale and Structure of International Business Forms
5 Analytics and Statistics of the World Economy and Global Business Environment
5.1 Analytical Publications and Databases of International Economic Organizations
5.2 Regional and National Publications and Resources
6 Conclusions
References
Concepts and Theories of Global Economy
1 Introduction
2 Concepts of International Labor Division and International Factor Movements, National Competitive Advantage Theory
2.1 The Concept of the International Labor Division
2.2 The Concept of the International Movements of Economic Resources
2.3 National Competitive Advantage Theory
3 Global Competitiveness of a Country, Theory of Economic Globalization, Political Economy Approach to Globalization
3.1 Global Competitiveness of a Country According to the World Economic Forum
3.2 Theory of Economic Globalization
3.3 Political Economy Approach to Globalization
3.4 Dependency Theory, Multidisciplinary Theories of Global Economy
4 Conclusions
World Economy: Growth, Proportions, Efficiency, and Forecasting
1 Introduction
2 Macroeconomic Growth: Theories and Trends
2.1 The Concept of Economic Growth and Its Calculation Methods
2.2 Factors and Models of Economic Growth
2.3 Instability of Economic Growth
2.4 The Growth Rates of the World Economy in Retrospect
3 Proportions and Efficiency
3.1 Macroeconomic Proportions
3.2 Macroeconomic Efficiency
4 Macroeconomic Forecasting
4.1 Macroeconomic Forecasting and Its Main Methods
4.2 Short-Term Forecasts
4.3 Medium- and Long-Term Forecasts
5 Conclusions
References
World Economy Major Trends: New Normal, The Fourth Industrial Revolution, Globalization, Sustainable Development
1 Introduction
2 The New Normal
2.1 The Impact of the New Normal on the Behaviour of Major Actors of the World Economy
3 The Fourth Industrial Revolution
3.1 The Main Features of the New Industrial Revolution
3.2 Its Impact on the Global Economy and International Business
4 Globalization
4.1 Indicators of Globalization
4.2 The Main Trends of the Modern Stage of Globalization
5 Sustainable Development
6 Conclusions
References
World Economy Major Trends: Evolution of National Economic Systems
1 Introduction
2 Fundamentals of National Economic Systems
2.1 The Notion of the National Economic System
2.2 Business Structure as an Element of the National Economic Model
2.3 Independence of Economic Agents as an Element of the Country’s Economic System
3 The Impact of Political, Social, and Cultural Systems on the Economic System of a Country
4 Evolution of National Economic Systems
4.1 Shifts in Global Economic Power
5 Conclusions
References
World Economy Major Trends: International Economic Integration
1 Introduction
2 Theories, Trends and Challenges of International Economic Integration
2.1 Theories of Economic Integration
2.2 Classification of the Forms of Economic Integration
2.3 Regional and Cross-Regional Integration
2.4 Current Trends in International Economic Integration
2.5 Challenges of International Economic Integration
3 European Integration
3.1 History
3.2 Main Achievements
4 North American Integration
5 Integration in Latin America
6 Integration in Indo-Pacific Region
6.1 Leading Integration Associations
6.2 Trends and Challenges
6.3 Integration Challenges
7 Integration in the Middle and Near East
8 Integration in Sub-Saharan Africa
9 Integration Process in the Post-Soviet Area
10 Conclusions
References
Resources of World Economy: Human Capital
1 Introduction
2 Human Capital as a Sum of Economic Resources
2.1 Definition
2.2 Measurement of Human Capital
2.3 Economically Active Population: The Example of Russia
2.4 Entrepreneurship as a Resource
3 Knowledge as a Resource
3.1 The Concept of the Knowledge Economy
3.2 The Scale of the Knowledge Economy in Countries/Regions of the World
3.3 Measuring the Knowledge Economy
3.4 Innovations
3.5 National Innovation Systems as the Core of the Knowledge Economy
3.6 Scientific Resources
3.7 Educational Resources
3.8 Information Resources
4 Social Policy
4.1 Social Policy Models: An Example of Developed Countries
4.2 Income Policy
4.3 Social Protection
4.4 Provision of Public Social Benefits
5 Conclusions
References
Resources of World Economy: Real Capital
1 Introduction
2 Structure of Real Capital in the World
2.1 Sectoral Shifts in the Structure of the World Economy
3 Agribusiness
4 Fuel and Energy Complex
5 Metals, Chemicals, and Timber
6 Mechanical Engineering
7 Light Industry
8 Construction Industry and Utilities
9 Connectivity: Transport, Logistics, and Communication
10 Science, Education, and Health
10.1 Education
10.2 Healthcare
11 Domestic Trade and Food Service Market
11.1 Domestic Trade
11.2 Foodservice Market
12 Tourism, Sports, and Business Events
12.1 Tourism
12.2 Sports
12.3 Business Events
13 Conclusions
References
Resources of World Economy: Financial Capital
1 Introduction
2 Concepts of Financial Capital
3 Composition and Distribution of Financial Capital in the World
3.1 Financial Depth
4 National Financial Systems
5 International Monetary and Financial System
6 Conclusions
References
Resources of World Economy: Natural Resources
1 Introduction
2 Mineral Resources
2.1 Fuel Mineral Resources
2.2 Ore and Other Mineral Resources
3 Land, Water, Forest and Recreation Resources
3.1 Land Resources
3.2 Water Resources
3.3 Forest Resources
3.4 Recreational Resources
4 Conclusions
References
Global Challenges: Environment
1 Introduction
1.1 Theoretical Aspects of Environment, Sustainable Development, and Rational Nature Management
1.2 Major Environmental Challenges
1.3 Depletion of Resources
1.4 Destruction of Components
1.5 Pollution of the Environment
1.6 “Ecomigration” and Conflicts
1.7 Responses of the World Community to Environmental Challenges
1.8 Impact on World Economy and International Business
1.9 Business and ESG
2 Conclusions
References
Global Challenges: Backwardness and Modernization
1 Introduction
2 Backwardness as a Problem
2.1 The Essence of Economic Backwardness
2.2 Causes of Economic Backwardness
2.3 Consequences of Economic Backwardness
3 Modernization: Models of Less-Developed and Developed Economies
3.1 Modernization Models of a Backward Economy
4 Conclusions
References
Global Challenges: Social Problems
1 Introduction
2 Mass Poverty Problem
3 Problem of Social Differentiation
4 Demographic Problem
5 Problem of Non-Observed Economy
6 Conclusions
References
Global Business Environment: Countries and Regions
Developed Economies as a Group
1 Introduction
2 Three Centres of Developed Economies
3 Major Trends, Problems, and Challenges in Developed Economies
3.1 The Real Sector
3.2 Financial Sector
3.3 External Sector
3.4 Social Sector
4 Conclusions
References
USA
1 Introduction
2 The US Economic System
2.1 The Role of the State in the Economy and Priorities of Economic Policy
3 Dynamics, Proportions, and Efficiency of Economic Development
3.1 Dynamics of Economic Development
3.2 Macroeconomic Proportions
3.3 The Efficiency of Economic Development
4 Business Structure
4.1 The Main Forms of Business
4.2 Business Classification Based on Ownership
5 Human Capital and Innovative Development
5.1 Human Capital
5.2 Innovative Potential
6 Real Sector
7 Financial Sector
7.1 Monetary System
7.2 Fiscal System
7.3 Public and National Debt
8 External Sector
8.1 The International Investment Position of the USA
8.2 The Dollar as a Reserve Currency
8.3 Foreign Trade
9 Social Sector
9.1 Income Differentiation
9.2 Social Insurance and Welfare
10 Conclusions
References
European Union
1 Introduction
2 European Economic Systems
2.1 German Model
2.2 French Model
2.3 Italian Model
2.4 Spanish Model
2.5 Scandinavian Model
2.6 Models of Central and Eastern European Countries
3 Economic Strategy and Efficiency of Economic Development
4 Business Structure
5 Human Capital and Innovations
5.1 Demographic Resources and Demographic Problems of the EU
5.2 Labour Resources and the Labour Market
5.3 Educational, Scientific and Information Resources
5.4 Innovative Potential
6 Real Sector
7 Financial Sector
7.1 Economic and Monetary Union
7.2 Monetary Policy
7.3 Fiscal Policy
8 External Sector
8.1 Foreign Trade
8.2 International Capital Movements
8.3 The Euro in the Global Economy
9 Social Sector
9.1 The Problem of Pension Provision
9.2 Unemployment
9.3 The Problem of Poverty
9.4 Migration Problem
9.5 Social Policy
10 Conclusions
References
Developed Economies of Asia
1 Introduction
2 Economic Systems of Developed Asian Countries and Their Economic Strategy
2.1 Japanese Model
2.2 South Korean Model
2.3 The Singapore Model
2.4 The Taiwanese Model
2.5 Hong Kong Model
3 Proportions, Dynamics and Efficiency of Economic Development
4 The Role of the State and Business Structure
5 Human Capital and Innovation
6 Real Sector
7 Financial Sector
8 External Sector
9 Social Sector
10 Conclusions
References
Less-Developed Economies as a Group
1 Introduction
1.1 Differentiation of Less-Developed Economies
1.2 Major Trends, Problems and Challenges of Economic Development in Less-Developed Economies
1.3 Human Capital and Innovative Development
1.4 Real Sector
1.5 Financial Sector
1.6 External Sector
1.7 Social Sector
2 Conclusions
References
China
1 Introduction
1.1 Chinese Economic Strategy and Modification of the Economic System
1.2 Dynamics, Proportions, and Efficiency of Economic Development
1.3 Business Structure
1.4 Human Capital and Innovative Development
1.5 Real Sector
1.6 Financial Sector
1.7 External Sector
1.8 Social Sector
2 Conclusions
References
India
1 Introduction
2 Indian Economic System and Strategy
3 Proportions and Efficiency of Economic Development, Economic Growth, and Investment
4 Business Forms
5 Human Capital and Innovative Development
6 Real Sector and Industrial Policy
7 Financial Sector
7.1 Fiscal System
7.2 Monetary System
8 External Sector
8.1 Foreign Trade
8.2 India in International Capital Movements
8.3 India as a Labour Exporter
8.4 Currency Policy and External Debt Problems
8.5 Priorities of India’s Foreign Economic Policy
9 Social Sector
10 Conclusions
References
Southeast Asia
1 Introduction
2 Economic Systems of Southeast Asian Countries
3 Dynamics, Proportions and Efficiency of Economic Development
4 Business Forms
5 Human Capital and Innovative Development
6 Real Sector
7 Financial Sector
8 External Sector
9 Social Sector
10 Conclusions
References
The Near and Middle East
1 Introduction
2 Economic Systems in the Region
2.1 The Egyptian Model
2.2 Models of the Persian Gulf Monarchies
2.3 The Iranian Model
2.4 Turkish Model
2.5 The Israeli Model
3 Economic Proportions, Growth, and Investment
4 Business Structure and Economic Policy
5 Human Capital and Innovative Development
6 Real Sector
7 Financial Sector
8 External Sector
8.1 Foreign Trade
8.2 Balance of Payments
8.3 Foreign Investment
9 Social Sector
10 Conclusions
References
Latin America
1 Introduction
2 Retrospective of Latin American Economic Development
3 Mutual Aspects of Latin American Economic Systems. Business Structure
4 Human Capital and Innovative Development
5 Structure of Economy
6 Real Sector
7 Financial Sector
8 External Sector
9 Social Sector
10 Conclusions
References
Sub-Saharan Africa
1 Introduction
2 Economic Systems in the Region
3 Proportions and Efficiency of Economic Development
4 Business Structure
5 Human Capital and Innovations
6 Real Sector
6.1 Agriculture
6.2 Mining
6.3 Manufacturing
6.4 Infrastructure
7 Financial Sector
8 External Sector
8.1 Foreign Trade
8.2 Capital Flows
8.3 Foreign Aid and External Debt
8.4 Remittance Inflows
8.5 Labour Migration
9 Social Sector
10 Conclusions
Referencess
Russia and Other Post-Soviet Economies
1 Introduction
2 Economic Systems in the Region
2.1 Russian Economic System
2.2 The Belarusian Economic System
2.3 Ukrainian Economic System
2.4 Kazakhstan’s Economic System
2.5 Economic Systems of Other Central Asian Countries
2.6 Economic Systems of the Transcaucasian Countries
3 Dynamics and Proportions
3.1 Economic Growth
3.2 Savings and Investment
3.3 Industrial Structure of GDP
4 Business Structure: The Case of Russia
5 Human Capital and Innovations
5.1 Demographic Situation
5.2 Knowledge and Innovation
5.3 Education
5.4 Information Resources
6 Real Sector
6.1 The Agro-Industrial Complex
6.2 The Fuel and Energy Complex
6.3 The Metal, Chemical and Timber Complex
6.4 Manufacturing
7 Financial Sector
8 External Sector
9 Social Sector
10 Conclusions
References
International Business: Macro and Micro Aspects
Balance of Payments
1 Introduction
2 Fundamentals of the Balance of Payments
2.1 Principles of the Balance of Payments
2.2 Balance of Payments Scheme
2.3 Balances from International Accounts
3 Analysis of Balance of Payments and International Investment Position
4 Balance of Payments Adjustment
4.1 Theories of the Balance of Payments and Its Adjustment
4.2 The Relationship of the Balance of Payments Balance with Other Macroeconomic Indicators
4.3 Balance of Payments Adjustment Practice
4.4 Global Imbalances
5 Conclusions
References
Global Economic Governance and International Economic Organizations
1 Introduction
2 Global Economic Governance: Theories, Trends, and Challenges
2.1 The Structure of the System of Global Economic Governance
2.2 Objective Necessity for Global Governance and Principal Challenges
2.3 On the Theories of Global Economic Governance
3 Global Trade Governance
3.1 Globalization and Trade
3.2 Regulative Response to Trade Challenges
3.3 New Regionalism, Compensating for the Gaps in Multilateral Trade Regulation
3.4 Current E-Commerce Regulation Agenda
4 Global Financial Governance
4.1 The Need to Transform the Global Financial Governance System
4.2 Setting up the System of Institutions for Global Financial Governance
4.3 Interaction of Global Financial Regulatory Institutions
4.4 Reforms
4.5 New Problems and Challenges to Financial Stability.
5 Global Energy Governance
5.1 Energy Geopolitics: Between Security and Sustainability
5.2 Global Energy Governance
5.3 Setting Up a Global System of Sustainable Energy Governance
6 Statistics and Analytics on International Business
7 UN Publications and Databases
7.1 International Economic Organizations
7.2 Analytical Publications and Online OECD Database
7.3 The System of Publications of the European Union.
7.4 Publications of International Industry Organizations and Agencies
8 Conclusions
References
Global Capital Flows
1 Introduction
2 Fundamentals of Global Capital Flows
2.1 Forms
2.2 Scale, Geography, and Statistics
2.3 Major Participants and Channels
3 Prerequisites, Motives, and Determinants
4 Theories of International Capital Movements
4.1 Classic, Neoclassical, and Neo-Keynesian Economics
4.2 MNE Theory
4.3 Theoretical Aspects of Portfolio Investment
5 Investment Climate and Its Ratings
6 Conclusions
References
Multinational Enterprises
1 Introduction
2 Indicators of Transnationalizaton
3 Types and Strategies of MNEs
3.1 Types of MNEs
3.2 MNEs Strategy and Structure
4 Conclusions
References
Global Value Chains
1 Introduction
2 Concept and Typology of Global Value Chains
3 The Role of MNEs in the Formation and Management of Global Value Chains
4 Global Value Chains: Industry and Governance Approach
5 Current and Future Transformation of Global Value Chains
6 Conclusions
References
Global Financial Market
1 Introduction
2 Structure, Instruments, and Participants in the Financial Market
3 Money Market
3.1 The Concept, Structure, and Participants in the Money Market
3.2 Money Market Regulation
3.3 Prospects for Development of the Money Market
4 Capital Market
4.1 The Concept, Structure, Instruments, and Participants in the Capital Market
4.2 Capital Market Theories
5 Securities Market
5.1 General Characteristics of the Global Stock Market
5.2 World Equity Market
5.3 World Debt Securities Market
6 Derivative Market
6.1 Key Types of Derivatives
6.2 Bulls and Bears in Derivative Markets
6.3 Derivative Market Evolution
7 Conclusions
References
International Trade in Goods and Services
1 Introduction
2 Theories of International Trade
3 Merchandise Trade
3.1 World Merchandise Trade Dynamics
3.2 Geographical Structure of the World Trade
3.3 Merchandise Structure of the World Trade
4 International Trade in Services
5 International E-Commerce
5.1 E-Commerce Concept
5.2 E-Commerce Characteristics, Benefits and Challenges
5.3 Trends, Scope and Structure of International E-Commerce
6 Conclusions
References
Multilateral Trading System and Global Trade Regulation
1 Introduction
2 Multilateral Trading System and Its Evolution
3 WTO as a Main Global Platform for Global Trade Regulation and Debates
4 Trade Policy and Global Trade Regulation on a Country and Regional Level: Principal Instruments
4.1 Trade Policy Instruments: Tariff Measures
4.2 Trade Policy Instruments: Trade in Services
5 Export Support Measures and Sanctions as Trade Policy Instruments
6 Conclusions
References
World Markets of Goods and Services
1 Introduction
2 Typology of World Markets of Goods and Services
3 World Markets Analysis: Theories, Factors, Indicators
4 Basics of World Market Analysis
5 Pricing in International Trade
5.1 The Correlation of the Concepts of Conjuncture-Forming and Price-Forming Factors
5.2 The World Price and the Multiplicity of Prices
5.3 General Trends in Price Dynamics in the Twenty-First Century
6 Conclusions
References
Marketing in Global Business
1 Introduction
2 A Close Look at Marketing in Global Business
3 Modern Trends in the Global Marketing Environment
4 Omnichannel Promotion Policy of Global Companies
5 Global Communications and Branding
6 Conclusions
References
International Trade Purchase and Sale Transactions
1 Introduction
2 Legal Regulation of the International Trade Transactions
2.1 Domestic Legislation
2.2 International Treaties
2.3 International and National Legal Usages and Business Practices
2.4 UN Convention on Contracts for the International Sale of Goods
3 The Technique of International Trade Operations
4 Terms of the Contract for the Export Sale of Goods
4.1 The Subject of the Contract
4.2 Quantity of Goods
4.3 Quality of the Product
4.4 Delivery Time
4.5 Basic Terms of Delivery
4.6 Product Price
4.7 Payment Terms
4.8 Terms of Delivery and Acceptance
4.9 Guarantees
4.10 Complaints and Sanctions
4.11 Insurance
4.12 Force Majeure and Arbitration Clause
5 Basic Terms of Delivery
5.1 The Concept of Basic Terms of Delivery
5.2 Application of Basic Terms
5.3 Use of Domestic and International Trade Terms (Incoterms)
5.4 FCA, 38 Cours Albert 1er, Paris, France. Incoterms 2020
6 Conclusions
References
International Settlements and Payments, Global Foreign Exchange Market
1 Introduction
2 International Settlements and Payments
3 Exchange Rate Factors
4 Exchange Rate Regimes and Currency Policy
4.1 Exchange Rate Regimes
4.2 Currency Policy
4.3 Currency Convertibility
4.4 The World Monetary System and Reserve Currencies
5 Global Foreign Exchange Market
6 Conclusions
References
International Knowledge Transfer
1 Introduction
2 International Trade in Technology
2.1 Technology Trade in Tangible and Intangible Form
3 International Scientific Exchange
4 International Educational Exchange
5 ERASMUS and Other Global Exchange Programmes
6 Conclusions
References
International Labour Migration
1 Introduction
2 Theoretical Foundations of International Labour Migration
3 Global Labour Market
4 Effects of International Labour Migration
5 Regulation of International Labour Migration
6 Conclusions
References
Foreign Aid
1 Introduction
2 Volume and Structure, Types, and Conditions of Foreign Aid
3 Major Donors and Recipients, ‘New Donors’
4 Impact of Foreign Aid on the Development of Emerging Market Economies
5 Conclusions
References
External Debt
1 Introduction
2 External Debt Measurement: Absolute and Relative Indicators
3 The External Debt Crisis of the 1980s
4 Volume and Structure of External Public and Private Debt
5 External Debt in the Twenty-First Century
6 Conclusions
References
Business Cultures in International Business
1 Introduction
2 Role of Business Culture in International Business
3 Business Culture Factors and Features
3.1 Religion as a Factor in the Formation of Business Culture
3.2 Language as a Factor of Business Culture
3.3 History as a Factor in the Formation of Business Culture
4 Key Parameters of Business Cultures
5 Transformation of Business Cultures by Globalisation
6 Conclusions
References