Any country’s economy benefits significantly from the sector of information technologies. As the data demonstrate, the global information technology market has not only remained stable, but is expected to expand in 2021 due to changes in social life, employment, and education caused by the global COVID-19 virus pandemic. While information technology is vital to any country’s advancement, its growth in developing countries is being hindered by lack of skilled labour force, underdeveloped market infrastructure, insufficient financial mechanisms to stimulate innovative projects, and weak legislative framework. IT companies are characterized by a high degree of risk and uncertainty, a reliance on external sources of financing in the early stages, and an unattractiveness to conservative investors. In this regard, the issue of capital formation for innovative companies in the IT sector to ensure their effective functioning becomes especially important. The purpose of this study is to analyze the formation of financial sources and capital structure of Georgian IT companies based on the analysis of 50 IT companies in Georgia. The analysis is based on the usage of the main financial ratios of companies’ performance, taking into account the specifics of the IT sector companies. The study revealed that the capital structure of Georgian information technology firms is more consistent with the Pecking order theory, with almost no long-term loans and a small share of short-term loans. Equity and retained earnings are the primary sources of funding for IT businesses. This was supported by the legal exemption of corporations from income tax payments in the case of net profit non-distribution.
{"title":"ANALYSIS OF THE CAPITAL STRUCTURE FORMATION: THE CASE OF GEORGIAN IT COMPANIES","authors":"Grigoriy Gurbanov","doi":"10.35945/gb.2021.11.023","DOIUrl":"https://doi.org/10.35945/gb.2021.11.023","url":null,"abstract":"Any country’s economy benefits significantly from the sector of information technologies. As the data demonstrate, the global information technology market has not only remained stable, but is expected to expand in 2021 due to changes in social life, employment, and education caused by the global COVID-19 virus pandemic. While information technology is vital to any country’s advancement, its growth in developing countries is being hindered by lack of skilled labour force, underdeveloped market infrastructure, insufficient financial mechanisms to stimulate innovative projects, and weak legislative framework. IT companies are characterized by a high degree of risk and uncertainty, a reliance on external sources of financing in the early stages, and an unattractiveness to conservative investors. In this regard, the issue of capital formation for innovative companies in the IT sector to ensure their effective functioning becomes especially important. The purpose of this study is to analyze the formation of financial sources and capital structure of Georgian IT companies based on the analysis of 50 IT companies in Georgia. The analysis is based on the usage of the main financial ratios of companies’ performance, taking into account the specifics of the IT sector companies. The study revealed that the capital structure of Georgian information technology firms is more consistent with the Pecking order theory, with almost no long-term loans and a small share of short-term loans. Equity and retained earnings are the primary sources of funding for IT businesses. This was supported by the legal exemption of corporations from income tax payments in the case of net profit non-distribution.","PeriodicalId":272914,"journal":{"name":"Globalization and Business","volume":"29 1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125963521","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The Coronavirus pandemic has posed new challenges to Georgia's economy and business. The use of online technologies in the field of business has gained special urgency. To reduce the negative consequences of the crisis, it became necessary to massively switch to online sales, the introduction of new and modern methods of business processes, which will allow customers to virtually, without leaving home, make sales, transfers, and payments. The companies, which find their niche in the virtual world on time, have more chances of success. Speed, convenience, flexibility, and accessibility are the main advantages of digital commerce and are especially important in pandemic conditions. The main goal of the research is to define the role of digital commerce in the conditions of COVID-19, to identify new opportunities to increase the efficiency of existing platforms, to introduce e-commerce models in the Georgian business space, to increase the efficiency of digital commerce platforms and to solve related problems.
{"title":"THE MAIN CHALLENGES OF DIGITAL COMMERCE IN THE CONDITIONS OF \"COVID-19\"","authors":"Tamar Makasarashvili, G. Giguashvili","doi":"10.35945/gb.2021.11.020","DOIUrl":"https://doi.org/10.35945/gb.2021.11.020","url":null,"abstract":"The Coronavirus pandemic has posed new challenges to Georgia's economy and business. The use of online technologies in the field of business has gained special urgency. To reduce the negative consequences of the crisis, it became necessary to massively switch to online sales, the introduction of new and modern methods of business processes, which will allow customers to virtually, without leaving home, make sales, transfers, and payments. The companies, which find their niche in the virtual world on time, have more chances of success. Speed, convenience, flexibility, and accessibility are the main advantages of digital commerce and are especially important in pandemic conditions. The main goal of the research is to define the role of digital commerce in the conditions of COVID-19, to identify new opportunities to increase the efficiency of existing platforms, to introduce e-commerce models in the Georgian business space, to increase the efficiency of digital commerce platforms and to solve related problems.","PeriodicalId":272914,"journal":{"name":"Globalization and Business","volume":"28 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122219461","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The country's leading factor in human development that is a human resource. It is the creator of everything and it is necessary to create a law and protect human resource. People need to implement, pursue the economic policy and ensure business efficiency. That functions, to prevent crime and to restore order. Man builds the country, but to build well, knowledge is needed and knowledge needs education. Humans capital is a body of knowledge and includes philosophical, social, economic and psychological aspects. This term dates from the eighty-seventh year of the twentieth century to its end. It is founder is Nobel Prize Laureate G. Becker. Human capital consists of: educational, professional-quality , information-cultural and social connections. Among them, the capital of the Social Union dominates in the conditions of Georgia. According to the GAERO, Georgia ranks 61st out of 189 countries in the Human Development Index. Human resources determine a person’s income. It is important to note that human capital is one of the main causes of income inequality. We differ from each other in terms of data and capabilities. It’s important that state should have a fair social-economic environment, which gives all possible conditions to citizens for the realization of opportunity
{"title":"HUMAN RESOURCE AND PECULIARITIES OF INCOME DISTRIBUTION","authors":"R. Otinashvili","doi":"10.35945/gb.2021.11.014","DOIUrl":"https://doi.org/10.35945/gb.2021.11.014","url":null,"abstract":"The country's leading factor in human development that is a human resource. It is the creator of everything and it is necessary to create a law and protect human resource. People need to implement, pursue the economic policy and ensure business efficiency. That functions, to prevent crime and to restore order. Man builds the country, but to build well, knowledge is needed and knowledge needs education. Humans capital is a body of knowledge and includes philosophical, social, economic and psychological aspects. This term dates from the eighty-seventh year of the twentieth century to its end. It is founder is Nobel Prize Laureate G. Becker. Human capital consists of: educational, professional-quality , information-cultural and social connections. Among them, the capital of the Social Union dominates in the conditions of Georgia. According to the GAERO, Georgia ranks 61st out of 189 countries in the Human Development Index. Human resources determine a person’s income. It is important to note that human capital is one of the main causes of income inequality. We differ from each other in terms of data and capabilities. It’s important that state should have a fair social-economic environment, which gives all possible conditions to citizens for the realization of opportunity","PeriodicalId":272914,"journal":{"name":"Globalization and Business","volume":"21 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132211819","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Before the global financial crisis, it was widely believed in academic circles, that there was a conflict (inflation / f inancial stability) between monetary policy and prudential policy, which justified the separation of monetary and prudential functions. Due to this approach, a significant trend of segregation of functions was observed in some countries. Weaknesses of this approach became apparent after the crisis, thus countries actively began to adopt macroprudential policy integrated with monetary policy, which ultimately increases the effectiveness of both policies in terms of achieving the stability of country's economic, banking and financial sectors
{"title":"MACROPRUDENTIAL AND MONETARY POLICY TRANSMISSION ISSUES","authors":"Nino Zhorzhikashvili","doi":"10.35945/gb.2021.11.009","DOIUrl":"https://doi.org/10.35945/gb.2021.11.009","url":null,"abstract":"Before the global financial crisis, it was widely believed in academic circles, that there was a conflict (inflation / f inancial stability) between monetary policy and prudential policy, which justified the separation of monetary and prudential functions. Due to this approach, a significant trend of segregation of functions was observed in some countries. Weaknesses of this approach became apparent after the crisis, thus countries actively began to adopt macroprudential policy integrated with monetary policy, which ultimately increases the effectiveness of both policies in terms of achieving the stability of country's economic, banking and financial sectors","PeriodicalId":272914,"journal":{"name":"Globalization and Business","volume":"80 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115237066","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The association agreement aims at developing political and economic relations between European Union and Georgia. By association agreement Georgia has received a huge opportunity to become a competitive member of the European Union market and with Deep and Comprehensive Free Trade Area (DCFTA) preferences, introduce Georgian products at the world market with zero customs charge. DCFTA includes a wide range of issues concerning trade and considers gradual approximation of Georgian legislation to EU legislation. DCFTA implies liberalization of both goods and service trade. It gives Georgia a chance to receive all four EU freedoms from EU internal market: goods, service, capital and free movement of persons on EU territory (based on the liberalization of visa regime). And yet, what is DCFTA for Georgia: A special trade regime which, if used correctly, can significantly improve investment potential of Georgia and steadily develop the economy of the country; The preference which can ensure the growth of competitiveness of Georgian products and the demand for products produced in Georgia; The agreement which gives the Georgian side a very good chance to increase the volume of export with EU countries and significantly improve negative balance of trade; The regime which gives Georgian products a chance to enter EU with zero Customs charge and establish themselves at one of the largest world markets, which unites 500 million consumers and 21 million small and medium enterprises.
{"title":"PROSPECTS FOR DEEPENING TRADE AND ECONOMIC RELATIONS BETWEEN GEORGIA AND THE EUROPEAN UNION","authors":"Ekaterine Udesiani","doi":"10.35945/gb.2021.11.006","DOIUrl":"https://doi.org/10.35945/gb.2021.11.006","url":null,"abstract":"The association agreement aims at developing political and economic relations between European Union and Georgia. By association agreement Georgia has received a huge opportunity to become a competitive member of the European Union market and with Deep and Comprehensive Free Trade Area (DCFTA) preferences, introduce Georgian products at the world market with zero customs charge. DCFTA includes a wide range of issues concerning trade and considers gradual approximation of Georgian legislation to EU legislation. DCFTA implies liberalization of both goods and service trade. It gives\u0000Georgia a chance to receive all four EU freedoms from EU internal market: goods, service, capital and free movement of persons on EU territory (based on the liberalization of visa regime).\u0000And yet, what is DCFTA for Georgia: A special trade regime which, if used correctly, can significantly improve investment potential of Georgia and steadily develop the economy of the country; The preference which can ensure the growth of competitiveness of Georgian products and the demand for products produced in Georgia; The agreement which gives the Georgian side a very good chance to increase the volume of export with EU countries and significantly improve negative balance of\u0000trade; The regime which gives Georgian products a chance to enter EU with zero Customs charge and establish themselves at one of the largest world markets, which unites 500 million consumers and 21 million small and medium enterprises.","PeriodicalId":272914,"journal":{"name":"Globalization and Business","volume":"41 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130868360","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The most distinctive shifts in the economic system began at the end of the last century, in the form of economic formation transformation, one of the most important political and economic processes. This process affected certain group of countries, which had to transform into the market economy. Thus, there was an inevitable necessity to adjust the macroeconomic policy and regulation. This paper aims is to describe and analyze the difficulties, problems and challenges that occurred during the last years. We will try to focus on issues of macroeconomic stability and the role of a government in the sustainable development of the country for example Poland and Georgia. The paper highlights the importance of stability of the economy for Poland and Georgia. The paper describes the current economic situation and its short-term perspectives by using the Economic Discomfort Index and uses the Rule of Law Index to identify the degree of realization of the state functions to develop the legislative base, improve the competitive environment, etc. The aspects of macroeconomic stability and transformation are considered on the example of the economics of Poland and Georgia, with the former one being and the latter making efforts to become the EU member.
{"title":"SOME ASPECTS OF MACROECONOMIC STABILITY AND TRANSFORMATION (EXAMPLE OF POLAND AND GEORGIA)","authors":"G. Karmowska, N. Mikiashvili","doi":"10.35945/gb.2021.11.004","DOIUrl":"https://doi.org/10.35945/gb.2021.11.004","url":null,"abstract":"The most distinctive shifts in the economic system began at the end of the last century, in the form of economic formation transformation, one of the most important political and economic processes. This process affected certain group of countries, which had to transform into the market economy. Thus, there was an inevitable necessity to adjust the macroeconomic policy and regulation. This paper aims is to describe and analyze the difficulties, problems and challenges that occurred during the last years. We will try to focus on issues of macroeconomic stability and the role of a government in\u0000the sustainable development of the country for example Poland and Georgia. The paper highlights the importance of stability of the economy for Poland and Georgia. The paper describes the current economic situation and its short-term perspectives\u0000by using the Economic Discomfort Index and uses the Rule of Law Index to identify the degree of realization of the state functions to develop the legislative base, improve the competitive environment, etc. The aspects of macroeconomic stability\u0000and transformation are considered on the example of the economics of Poland and Georgia, with the former one being and the latter making efforts to become the EU member.","PeriodicalId":272914,"journal":{"name":"Globalization and Business","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130352985","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Modern education is a very complex system that exists in an unstable society. Therefore, it would be useful to consider the problem of human education from the standpoint of a synergistic approach. Self-study and mutual learning of students take place as a part of small permanent student groups. The project is considered completed if each student is a member of the team in equal degree explains the solution to the problem and answers all questions of the teacher. Synergistic effect is expressed in a change in the attitude of students to study, an increase in motivation to acquire knowledge, the format ion of abilities for self-learning and mutual learning, the ability to find effective ways of solving problems
{"title":"THE METHODS OF TEACHING AND LEARNING IN THE ASPECT OF SYNERGISTIC THEORY","authors":"Neli Sesadze, V. Sesadze, Anzori Kevkhishvili","doi":"10.35945/gb.2021.11.015","DOIUrl":"https://doi.org/10.35945/gb.2021.11.015","url":null,"abstract":"Modern education is a very complex system that exists in an unstable society. Therefore, it would be useful to consider the problem of human education from the standpoint of a synergistic approach. Self-study and mutual learning of students take place as a part of small permanent student groups. The project is considered completed if each student is a member of the team in equal degree explains the solution to the problem and answers all questions of the teacher. Synergistic effect is expressed in a change in the attitude of students to study, an increase in motivation to acquire knowledge, the format ion of abilities for self-learning and mutual learning, the ability to find effective ways of solving problems","PeriodicalId":272914,"journal":{"name":"Globalization and Business","volume":"17 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134618641","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-07-05DOI: 10.35945//gb.2021.11.018
Giorgi Bregadze
The paper stresses the importance of the introduction of the Tourism Satellite Account (TSA) in Georgia, describes the development stages of the system of tourism statistics for this purpose and identifies the recent weaknesses of the system. Furthermore, based on the recently created experimental TSA tables 1-4, the paper identifies the most affected tourism sectors by COVID-19 and estimates one of the main indicators of TSA - tourism direct gross domestic product in 2019 to equal 5,431 MM Gel with a share in GDP of 12.6%.
本文强调了在格鲁吉亚引进旅游卫星帐户(TSA)的重要性，描述了为此目的的旅游统计系统的发展阶段，并指出了该系统最近的弱点。此外，根据最近创建的实验性TSA表1-4，本文确定了受COVID-19影响最严重的旅游部门，并估计TSA的主要指标之一- 2019年旅游直接国内生产总值等于5,431 MM Gel，占GDP的比例为12.6%。
{"title":"TOWARD THE INTRODUCTION OF TOURISM SATELLITE ACCOUNT–CASE STUDY GEORGIA","authors":"Giorgi Bregadze","doi":"10.35945//gb.2021.11.018","DOIUrl":"https://doi.org/10.35945//gb.2021.11.018","url":null,"abstract":"The paper stresses the importance of the introduction of the Tourism Satellite Account (TSA) in Georgia, describes the development stages of the system of tourism statistics for this purpose and identifies the recent weaknesses of the system. Furthermore, based on the recently created experimental TSA tables 1-4, the paper identifies the most affected tourism sectors by COVID-19 and estimates one of the main indicators of TSA - tourism direct gross domestic product in 2019 to equal 5,431 MM Gel with a share in GDP of 12.6%.","PeriodicalId":272914,"journal":{"name":"Globalization and Business","volume":"82 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124081242","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Factors acting on tariffs are characterized including the state of utilization of existing natural energy resources, the structure of electricity generation, energy efficiency, energy balance, the role of society in energy development and globalization. It has been concluded that in Georgia, as well as in the world, there is a tendency to increase tariffs. This is due to the need for increased and continuous investment in the extraction (production) of increasing amounts of energy resources, the t ightening of environmental requirements, and so on. According to the author, in order to improve the technical and economic indicators in the field and reduce tariffs, it is necessary to introduce scientific-technological and managerial progress at a higher rate compared to the existing challenges
{"title":"TARIFFS IN ENERGY: CURRENT FACTORS AND THE CONCEPT OF CHANGE","authors":"Demur Chomakhidze","doi":"10.35945/gb.2021.11.011","DOIUrl":"https://doi.org/10.35945/gb.2021.11.011","url":null,"abstract":"Factors acting on tariffs are characterized including the state of utilization of existing natural energy resources, the structure of electricity generation, energy efficiency, energy balance, the role of society in energy development and globalization. It has been concluded that in Georgia, as well as in the world, there is a tendency to increase tariffs. This is due to the need for increased and continuous investment in the extraction (production) of increasing amounts of energy resources, the t ightening of environmental requirements, and so on. According to the author, in order to improve the technical and economic indicators in the field and reduce tariffs, it is necessary to introduce scientific-technological and managerial progress at a higher rate compared to the existing challenges","PeriodicalId":272914,"journal":{"name":"Globalization and Business","volume":"50 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124508639","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The paper analyzes the possibilities of making full use of the agro-tourism potential in the Guria region on the basis of agricultural development, engaging tourists in agricultural activities and promoting various spectacular events, promoting the colorful or cultural individuality of the region. Recommendations for overcoming the problems in the development of agro-tourism in the region are proposed.
{"title":"DEVELOPMENT OF AGRO-TOURISM IN GURIA REGION AND POTENTIAL FOR ITS USE","authors":"Salome Sulaberidze, Murman Tsetskhladze","doi":"10.35945/gb.2021.11.019","DOIUrl":"https://doi.org/10.35945/gb.2021.11.019","url":null,"abstract":"The paper analyzes the possibilities of making full use of the agro-tourism potential in the Guria region on the basis of agricultural development, engaging tourists in agricultural activities and promoting various spectacular events, promoting the colorful or cultural individuality of the region. Recommendations for overcoming the problems in the development of agro-tourism in the region are proposed.","PeriodicalId":272914,"journal":{"name":"Globalization and Business","volume":"15 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123731019","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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