X Международная студенческая научная конференция Студенческий научный форум - 2018

Globalization has impacted nearly every aspect of modern life and continues to be a growing force in the global economy. Globalization continues to be the most widely accepted solution to ensuring consistent economic growth around the world.

Globalization is connected with transfer of new economic and technological processes across national borders.

Modern globalization is a process of forming a uniform business space and involves economic internationalization of goods, capital, labor force, information, exchange of cultures, management skills, etc. Globalization should and can provide steady conditions for ecological, social, cultural development for all countries and continents.

Globalization radically changes countries’ factors of social and economic development as it envisages the creation of a more liberal system of values, which fosters a new cultural and legal environment that promotes sustainable economic development. National sovereignty loses its ‘absolute value’ as globalization creates a new world order, where international obligations and norms assume precedence over national interests.

Most economists agree that globalization provides a net benefit to individual economies around the world, by making markets more efficient, increasing competition, limiting military conflicts, and spreading wealth more equally around the world. However, the costs associated with globalization outweigh the benefits.

But, in aggregate, there is a consensus among economists that globalization provides a net benefit to nations around the world and therefore should be embraced on the whole by governments and individuals.

The benefits of globalization include:

Foreign direct investment helping boost technology transfer, industrial restructuring, and the growth of global companies.

Technological Innovation. Increased competition from globalization helps stimulate new technology development

Economies of Scale. Globalization enables large companies to realize economies of scale that reduce costs and prices, which in turn supports further economic growth

The risks of globalization include:

Interdependence. Globalization leads to interdependence between nations, which could cause instabilities.

National Sovereignty. The rise of nation states, multinational or global firms and other international organizations as a threat to sovereignty

Equity Distribution. The benefits of globalization can be unfairly skewed towards rich nations or individuals, creating greater inequalities and leading to potential conflicts both nationally and internationally as a result [1].

In conditions of complete globalization contrary should be able to realistically assess its long-term needs, problems, prospects and search for development opportunities within the existing external circumstances.

“Russia’s choice has never been whether ‘to be a part of’ or ‘stay outside’ of globalization. The choice was, and still essentially remains, how it can to do so consciously, with the full understanding of its interests and purposes, as well as its strengths and weaknesses in the globalization process.”[2]

Russia faces a series of extremely difficult dilemmas.

Russia is dependent on its natural resources and raw-commodity exports, lacks competitiveness in its domestic production, and has low living

In terms of economic potential, Russia is at the bottom part of the so-called ‘Second World,’ despite its possession of a number of unique technologies and still being the best in terms of education in this group.

Russia, by historical traditions and geography, but mainly because of its powerful nuclear potential, belongs to the class of superpower nations.

Russia needs to significantly boost its presence on the global arena that will enable it to play a much more crucial role in the definition of its prestige and influence.

Globalization of international trade, especially if a country’s goods and services are very competitive, is, certainly, a positive trend. On the contrary, if such country does not produce competitive goods, then globalization of foreign trade activities becomes a threat not only to its economy, but also to its sovereignty as a whole.

Russia’s participation in globalization could be reduced basically to the exportation of its abundant raw materials.

Only about just 6% of Russia’s gross industrial output in the manufacturing segments of its economy can fully compete on an equal footing on the world markets [2].

Russia’s goal is not to oppose the United States and other leading Western countries.

Russia should focus the thrust of its foreign policy into seeking a niche in the globalization processes that can help foster its long-term, stable development as a nation.

Required‘reanimate’ a number of Russia’s industrial productions that have unique technologies and world-level inventions as well the required level of experts and other highly skilled workers.

It is necessary to create economic mechanisms that can stimulate innovation, people’s creative energies to promote science, education, strengthening of health as well as opening accesses to information and culture. All this will help catalyze sustainable economic growth and significant improvement in people’s living standards.

The main strategic goal for Russia’s foreign policies is to seek for ways for increasing the share of manufactured industrial goods in its export portfolios by using high technologies and innovative solutions.

«The main thrust of Russia’s foreign policy in the process of globalization should be to seek such a niche that will enable it to achieve long-term, stable development as a nation in this global process» [2].

Literature 1. Justin Kuepper Globalization and Its Impact On Economic Growth https://www.thebalance. com/globalization-and-its-impact-on-economic-growth-1978843

2. Fakhraddin AkhmedovGlobalization and its economic prospects for Russia http://www.trcw.ru/en/articles/detail.php?ID=2283

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