The title and content
ABSTRACTS AND INFORMATION ABOUT AUTHORS
SECTION: MANAGEMENT AND MARKETING
Baratashvili E., Makharashvili I., Lagvilava T., For Foreign Regional Management Issues(p.,10-14)
The article is dedicated to the peculiarities of foreign regional management. It is noteworthy that foreign managers feel the sense of belonging to their own elite and superior governance.
In addition, the authors discuss the profile and career of managers of East and West European countries, pointing out that the leading countries in the world are developing a regional (spatial) policy-driven implementation, with a strong expression: "Powerful Center - Powerful Regions and Strong Regions - Powerful Center."
At the end of the article, considering the foreign practice of regional economic policy, the authors have concluded that its uniform, typical methodology is not developed and each country pursues its economic strategy and resources from the region's resources.
Keywords: Regional Management, Spatial Policy, Employment Structure, Experience of European Countries
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Gamsakhurdia T., Pestvenidze T., Effective Innovative Management - To Improve The Country's International Image (p.,15-22)
The paper deals with the international image of the country and the Georgian nation on the critical edge. The reasons are considered to be the unresolved problems in the country such as the low level of economic development, human constitutional rights and infrastructure.
It is worth mentioning that the weakening of the nation and the village is the destruction of the country's history and traditions. It is necessary to improve the demographic situation. One of the main directions of the demographic policy is to create stimulating and facilitating effective conditions. Special attention should be paid to the reduction of child mortality and the improvement of healthcare in general. Establishment of harmonious relationship between people and state institutions will promote the welfare of the country and its population.
All these should be based on the consideration of the traditional values of the nation, overall care of the people and the country's well-being. The main resource of the country must be a healthy, well-educated, morally formidable and patriotic spirit.
The priority of the country should be the introduction of innovations in all areas. There are many competitions among young people, innovative clubs are created, finances are spent and the result is that distinctive young people are taken abroad to study.
Unfortunately, the best of them do not come back anymore, who returns they are without prospects, because there is no environment here where they can use their knowledge.
Because of the errors in education we do not have a qualified staff, we lose the interest of education and labor, there is the sharpest decline in living standards, the deepening of alienation, the demographic situation worsens, the feeling of unconsciousness increases, the emigration increases, the national values are evaluated, damaged, and ruined. The national treasures are on the critical edge. The country's ecology is dramatically worsening, as a result of the unexplained exploitation and misuse of spoilages made a negative effect on the ground that is already blown out. Even in the Colchis Valley, the initial processes of desertification are observed.
Create a legal base in order to monitor strictly the terms of the contract with investors. There are all conditions in the country to use our natural resources reasonably and use the country’s regions effectively.
The decisive measures in the country should be taken to create such a legislative basis for the rational use of natural resources, in the management of investments which will damage less the interests of the country and will benefit more from its economic development.
One of the most important steps for the growth of economic is the creation of new types of products, diversification of new markets and mobilizing new resources. More activity is needed to implement innovations in the economy and activate still unused resources.
These and other negative developments in the country have had a negative effect on the living conditions of the country's population. The attention of the agro-sector that is the vital importance for the country has relaxed. That left most of the population behind the poverty line.
One of the main goals of the government is to increase the global competitiveness of the country. There is still a shortage of innovations and scientific researches, which is caused by ineffective reforms of the education system, deliberate attacks on scientific institutions and the intellectual drive out of the country. Because of this the index of country's global competitiveness is quite low.
Keywords: innovation, management, resources, Finance, diversification.
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SECTION: MANAGEMENT AND MARKETING
Talakvadze T., Globalization, Competition And Perspective Of Modern Business (p.,23-26)
In my work is generalized Georgian and international economical experiences actual issues, in researches.Nowadays, when the Georgian economy is noticeably damaged by the international monopolies, the researches are analyzed to reveal the unconscientiously monopolies and we set in motion the working innovations. The dangerous monopolies often try to betray the consumers and beat the opponents in order to win the monopolies.
In my opinion, under the governmental economical structures such as: ministry of economy, the ministry of finance, antimonopoly service, the agency of state purchase. It’s important to activate and subfields especially to use the local advantages with as peculiarities and they’ll define the norms to defend the local markets.
Keywords: globalization, competition, effective growth.
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Datashvili L. G., Dzowenidze D., The Transnational Corporations Development Stages And Effects(p.,27-30)
At the end of the twentieth century and the beginning of the twenty-first century, globalization and transnationalization became the main process of world economy. These processes determine the level of living and social-economic situation in the country, most of which are involved in transnational companies, since they are the main participants of regional integration and development of social economies. The development of today's economy and technology is through them.
Keywords: Transnational, Corporations, Economics, Production, Technologies.
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SECTION: MANAGEMENT AND MARKETING
Bughulashvili M.,Communication As Important Tool For Managing A Company (p.,31-43)
Communication is the transfer and understanding the meaning. This means that if no information or ideas have been conveyed , communication hasn’t taken place. The speaker who isn’t heard or the writer who isn’t read has not communicated. More importantly, however, communication involves the understanding of meaning. For communication to be successful, the meaning must be conveyed and understood. Another point to keep in mind is that good communication is often erroneously defined by the communicator as agreement with the message instead of clearly understanding the message.
Why is communication important to managers and organizations? It serves four major functions: control, motivation, emotional expression and information.
Communication acts to control employee behavior in several ways. For instance when employees are required to communicate any job-related grievance first to their immediate manager, to follow their job description, or to comply with company policies, communication is being used to control. But informal communication also controls behavior. When work group members tease a member who is working too hard or producing too much (making the rest of group look bad), they are informally controlling the member’s behavior.
Communication encourages motivation by clarifying to employees what is to be done, how well they are doing, and what can be done to improve performance if it is not up to par. As employees set specific goals, work towards those goals, and receive feedback on progress towards goals, communication is required. Communication is a primary source of social interaction for many employees by which they share frustrations and feelings of satisfaction. Communication, therefore, provides a release for emotional expression of feelings and for fulfillment of social needs. Finally, individuals and groups need information to get things done in organizations. Communication provides that information.
No one of these functions is more important than the others. For groups to work effectively, they need to maintain some form of control over members, motivate members to perform, provide a means for emotional expression, and make decisions.
Key Words: Communication, Management, Information, Process, Function, Empoyee, Behavior
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SECTION: MANAGEMENT AND MARKETING
Tchilaia N., Logistics Evolution And Georgia’s Experience Toward It - (p.,44-48)
As global industries become increasingly connected, the need for a healthy and sustainable logistics system has become increasingly relevant. Today, logistics is a backbone of supply chain and its goal consists in timely and reliable exchange of goods/services and information with minimum costs.
In a globalized economy countries’ economic performance is highly depended on logistics system development level, as on the one hand the globalization makes it essential to apply modern logistics concepts in day-to-day business operations, in order to ensure continual and regular supply of goods and services worldwide and on the other hand, efficient logistics system is an significant factor for stable economic growth of the state. Importance of optimization of logistics system becomes mandatory for Georgia too, as its strategic geographical location creates a precondition of integrating our country in a global economy and becoming a logistics hub.
This article discuss logistics evolution tendencies and based on it analyzes Georgia’s logistics system development level.
Keyword: logistics, logistics system, evolution of logistics, Georgia, Georgia’s logistics system, globalization, fragmentation, integration
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SECTION: MANAGEMENT AND MARKETING
Sumbadze K., Decision Making Theories And Models In Modern Management – (p., 49-53)
The environmental is Regularly changing, accordingly manager requests to take decisions in extreme timetables, need it fast react and correct decision.
The issue is relevant, accordingly many scientist is interested study of the decision making process. There are studies at different times and places with relevant results, as well as different methods of decision-making, theories and models.
In the article we will consider different decision makings methods, theories, and models by various scientists. The managers can use models of decision-making in their activity to be more effective.
Keywords: Manager, Decision making process, Decision.
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SECTION: FINANCE AND BANKING POLICY
Kuzmenko H., Research Of Economic Essence Of The Notion “Taxable Capacity Of Business Entity” As The Basis Of Its Identification And Assessment - (p.,54-62)
The article presents the research of the essence of economic notion "taxable capacity". The principles of applying the economic notion in the context of the concepts of "taxable capacity of the country", "taxable capacity of the region" and "taxable capacity of business entity" were considered. It was proved that we should prioritize the research aimed at determining the nature, essence and assessment of taxable capacity of business entities (companies, institutions, organizations) and individuals who receive income that under the current tax law is the subject to tax. It should be taken into account that it is the constituent of the taxable capacity of the state and a region. The concept of determining the economic essence of the notion of “taxable capacity of a business entity” and its elements is proposed, within which the classification criteria (optimal and actual taxable capacity), the structure (resource and structural approach), functions (resource-saving, regulatory, informational and analytical), the place and role in the system of tax administration. Using of this concept ensure the correct identification of the entity from the standpoint of its capacities to provide tax obligations to the state were outlined.
Keywords: capacity, taxes, tax relation, taxable capacity, taxable capacity of a business entity
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SECTION: FINANCE AND BANKING POLICY
Shalimova N., The Public Function Of A Statutory Audit – (p., 63-72)
The functions and predestination of statutory audit is considered. It is proved that the necessity to perform a statutory audit arises if the state wants to protect information rights and legitimate interests of the group in obtaining reliable information about the activities of individual entities; in other words the state carries out the function of regulating the production and distribution of informational products which are essential for the development of a society. It is substantiated that the relations arising in the course of a statutory audit have to a large extent public and legal character and act as a tool to reduce or prevent a conflict of interests. Although the choice of the auditing organization and payment of the services are carried out on a commercial basis within the framework of a civil law contract, by its objectives, purpose and functions a statutory audit is performed in the interests of a certain group of people that can not be determined in advance and the state. It is proved that the statutory audit should be considered as a public service based on public (social) interest that is a socially significant activity regulated by the law, which in turn needs additional requirements for the activities of such subjects of auditing activity and the content of statutory audits.
Keywords: audit, auditing activity, subject of auditing activity, statutory audit, public (social) services, subject of public (social) interests
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SECTION: FINANCE AND BANKING POLICY
G. Kalashyan., The Issues Of Improvement Of Consolidated Financial Statements: Georgian Evidence – (p., 73-82)
Business Combinations represent one of the biggest units of Georgian economy. And the consolidated financial statements prepared and presented by them are the main basis for investors when they make their decisions on investing in the company. Therefore, it is rather important that the financial accounting principles applied by the company and prepared and presented consolidated financial statements based on that principles are reliable and reflect a company’s financial position, its performance, cash flows and changes in capital fairly. In that case, the economic decisions made by the investors will be correct and this will increase their trust towards the company.
The analysis of information presented in the consolidated financial statements of some Georgian holding companies regarding the acquisitions made by them is provided in the Paper. The assessment criteria are the requirements of IFRS 3 Business Combinations regarding business combinations accounting and the requirements of IFRS 10 Consolidated Financial Statements concerning the consolidated financial statements prepared and presented by holding companies.
The conducted analysis has revealed some problems which are common to all considered Georgian companies and their solution will improve the accounting of business combinations by Georgian holding companies and preparation and presentation of consolidated financial statements as well. To achieve this goal the preparers of financial statements should:
• describe main motives of business combination in more detail in the consolidated financial statements, as this will provide more transparency for investors and other interested parties;
• include intangible assets that cannot be recognized separately from goodwill in the qualitative factors causing goodwill along with synergy effect expected from combination;
• develop the identification procedures of intangible assets acquired in business combinations and recognize them (separately from goodwill) according to IFRS 3 and IAS 38;
• describe the calculation techniques of recoverable amount of cash generating units used in goodwill impairment test, as well as assumptions and assessments applied in these procedures;
• describe the fair value evaluation method of assets acquired and liabilities assumed in business combination.
The gained results strengthen the assertions of practitioners and scientists regarding the difficulties of identification and evaluation of intangible assets acquired in business combinations and the importance of this issue.
The results confirm our assumptions that consolidated financial statements prepared and presented by Georgian business combinations reliably reflect their financial state, performance, cash flow and changes in capital and corresponds to International Financial Reporting Standards. However, the results have also shown that there are some issues (recognizing and evaluations of intangible assets acquired; the transparency of goodwill impairment test) which business combinations have to consider in their financial accounting and include in consolidated financial statements.
Keywords: enterprises union; Consolidated financial statements; IFRS 3; Price 10; Purchase
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SECTION: FINANCE AND BANKING POLICY
Kharabadze E., Kamadadze M., Peculiarities Of Accounting For Corporate Income Tax – (p., 83-92).
Important changes have been made to the Georgian tax legislation during the recent period. In particular, these changes have affected the Corporate Income Tax. Every concept related to the Corporate Income Tax have either been changed or modified: Taxpayer, Taxable Income, Tax Rate and Accounting Period. For tax purposes, it has become necessary to separate allocated and retained income and, also, certain types of expenses such as expenses related to non-economic activities and providing goods or rendering services without compensation have become taxable. Taxation rules for representative expenses have been changed, tax exemption parameters have been modified and Corporate Income Taxes paid during the 2008-2016 period have become creditable against the state budget. Therefore, accrual and allocation dates of income might become confusing due to conflicting definitions provided in various statutory acts, which need further clarification.
In order to correctly calculate and account for Corporate Income Tax, we believe the following changes have to be made to firms’ chart of accounts, defined by their accounting policy:
Account 1480 “Advances paid to suppliers” should have two sub-accounts:
Advances paid to firms registered in exempt countries;
Advances paid to firms registered in non-exempt countries.
Separate account for loans given will be necessary with two sub-accounts. For instance, it will be under account 1900 “Other current assets” group: 1. Loans given to physical persons and non-resident entities; 2. Loans given to other entities.
Account 2430 “Investments in other entities” should be divided into two sub-accounts: 1. Investments in resident firms; 2. Investments in other firms.
Account 3310 “Corporate income tax” should be divided into the following sub-accounts: 1. Claimable corporate income tax; 2. Non-claimable corporate income tax.
Account 5100 “Shareholders equity” should be divided into the following sub-accounts: 1. Acquired through shareholders’ contribution and 2. Acquired through dividends, or Account 5110 “Common shares” should be divided into the above-mentioned accounts.
Account 5310 “Retained earnings” should be divided into several sub-accounts; for instance, Account 5331 – Retained earnings from 01.01.2008 to 01.01.2017; Account 5313 – Retained earnings from 01.01.2017; Account 5314 – Retained earnings from nonresident (non-exempt) subsidiary’s dividends or Retained earnings from bank interest.
General and administrative expenses (Account group 7400) should have the following accounts: 1. Representative expenses within the norms and 2. Representative expenses above the norm.
Account 7490 should be divided into the following accounts: 1. Documentary confirmed expenses; 2. Goods (services) acquired from micro-business (fixed) taxpayer entity; 3. Supply of goods or services without compensation to non-state entities; 4. Supply of goods or services without compensation to state entities; 5. Other non-economic expenses.
It has become necessary that separate account titled “Accrued fines and other penalties” (for instance, under the account group 8200 “non-operating expenses”) to be divided into the following accounts: 1. Fines and penalties accrued by firms registered in exempt countries; 2. Fines and penalties accrued by firms registered in non-exempt countries.
Account 8210 “Interest expense” should be represented by the two sub-accounts: 1. Interest expense within the norm; 2. Interest expense above the norm.
Keywords: Corporate Income Tax, Accounting, Accounting Policy, Chart of Accounts, Retained Earnings, International Taxation, Estonian Model
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SECTION: FINANCE AND BANKING POLICY
Bochorishvili L., Gviniashvili N., Analysis Of Financial Stability Of Energy Enterprises – (p.,93-101).
The correctness of decision made is determined by economic status of enterprise and its financial relevance and independence. Based on indicators of financial analysis is possible to identify current state of enterprise, to forecast trends of company development and activity, and also to get rid of different negative developments and threats. That is why the role of financial analysis in the assessment of results of enterprise activity is undisputed.
Based on the fact that power engineering plays special role in formation and development of Georgian economy, exactly the energy branch is selected for aims of financial analysis.
The whole system of relative and absolute indices was use in the proposed work. Analysis of financial status consisted of consecutive study of the following types of indicators: assessment of financial opportunity (liquidity), financial results, profitability, analysis of financial stability of enterprise etc.
Analysis of financial accountability of energy enterprise was conducted over the period of last 5 years (2011-2016). Paying capacity (liquidity) is the basic indicator pointing at financial stability of organization, which consists in the opportunity of effective dispose of available money resources. The control of financial liquidity is focused on limiting the actual values of indicators within acceptable limits of normative standards. But judging by actual value of current liquidity index over the period of 2011-2016 we can conclude that ISC has no sufficient funds (means) to completely cover current obligations.
Obtained results of the value of index of facility’s financial stability give us an opportunity to conclude that JSC has normal financial stability. It is the basic indicator of stability and paying capacity of organization, which consists in the opportunity of effective dispose of available money resources. Mentioned index characterizes enterprise’s ability to settle own current obligations and judging by its actual value over the period of 2011-2016, JSC has no sufficient funds (means) to cover current obligation that probably leads it to credit institutions in order to get additional funds.
Keywords: Financial analysis, Financial condition, Financial sustainability, Creditworthiness, Solvent, Liquidity, Energy Enterprise.
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SECTION: FINANCE AND BANKING POLICY
Qoqiauri L., Investment Theory During The Process Of Economical View Evolution – (p., 102-123).
The aim of the work ,,The Theory of the Growth of Economics in the Existance of Process of Evolution’’ is review of investment theories, concepts and models in economical area; Special attention is paid to macroeconomical and microeconomical aspects of investments, enterprise model, and macroeconomical influence on enterprise investment. While woking on the article, I had to study contribution of various scientists in formation and development of investment analyses.
keywords: investments, genezis of investment merkantilists about investments, physiocrates points, classic political economy, marginalists, institucionalism, neoclassical direction, Kains’s new investment theory, monetarists.
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SECTION: FINANCE AND BANKING POLICY
Vanishvili M., Gechbaia B., Peculiarities Of The Financial Behavior Of The Population In Georgia – (p., 124-137).
The latest literary sources and the rich factual materials, consistently studied the behavior of financial features in Georgia. The methodological basis for the research is the 2015 manual of Financial Education and Financial Engagement Measurement developed by the Organization for Economic Cooperation and Development (OECD / INFE).
It is important to note that the OECD / INFE's manual allows information to be collected and quantified by the determining level of financial behavior. The data collected in Georgia is included in the OECD / INFE's International Comparison Report 2016, which identifies the similarities and common challenges between countries and indicates a number of effective decisions.
The article deals with the financial behavior of important issues, such as basic financial concepts, knowledge and real-life application of skills, personal and household financial management, financial goals and achieve them to take concrete steps, saving and budgeting, financial unexpected circumstances and the age of retirement readiness, borrow and Ali's management, financial products and other awareness and usage.
Keywords: budgeting, active savings, pension self-confidence, financial goals, current account, loan liabilities, financial assets, debt burden, online loan.
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SECTION: FINANCE AND BANKING POLICY
Kvatashidze N., Sabauri L., Peculiarities Of Accounting For Value Added Tax – (p., 138-142).
Value added tax (VAT) – important indirect tax to the state is a form of tax collection that is assessed incrementally on each stage of production, sale of goods and provision of services. VAT taxpayer is either a physical person or a legal entity and the registration as a VAT taxpayer is either mandatory or voluntary.
VAT is an indirect multi-stage tax, payable on each stage of production, sale of goods and provision of services, represents one of the most prominent components in the formation of Georgia’s state budget.
VAT taxable base is determined based on compensation received or compensation to be received by VAT taxpayer. Tax period for VAT purposes is deemed to be the time of supply of goods or provision of services, but no later than receiving full or partial compensation for the supply of goods or provision of services, in case the payment is made before the goods are supplied or services are rendered.
If full or partial payment is made before the supply of goods, the compensation that has been received is subject to VAT at the time of receiving such compensation. The amount of such comensation paid is the taxable base of VAT, as long as all the other Georgian Tax Code requirements are met at the time of receiving such compensation.
During the recent period, important amendments have been made to the Georgian Tax Code in terms of VAT, several paramenters related to VAT have either been changed or clarified, which require pertinent representations for accounting and declaration purposes of input and output VAT.
Keywords: Value Added Tax; Georgian Tax Legislation, Accounitng, Tax Reporting, Public Finance, Estonian Model
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SECTION: FINANCE AND BANKING POLICY
Iashagashvilsi M., Bond Market And Its Importance - (p., 143-149).
At present, the largest part of the financial sector is held by the commercial banks. The role of the capital markets is modest. For the development of the capital market it is essential to make legislative amendments, to improve many regulatory or legislative acts and to comply with the international practices. In this regard, the most important is to review and improve the tax code, since a lot of vague and ambiguous records in the tax code need to be specified, to become more simple and understandable to the reader. The current approach to the taxation regime shall be changed and the burden shall lay on the net investment income instead of transactions. This does not meant to provide tax privileges, but to provide a fair and economic growth-oriented approach.
Keywords: Capital Market; Securities Market; Bond; Foreign Direct Investment ; Employment.
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SECTION: FINANCE AND BANKING POLICY
Grdzelishvili N., The Importance Of Budget Federalism In Economic Development Of Regions - (p., 149-156).
Work provides analysis of the issues of budget federalism. The author’s opinion is that formation of the part of costs of the budgets of local self-government units based on the social standards and financial norms should provide basis for the methodology of budget regulation.it emphasizes that the legislative basis for regional development in Georgia requires improvement and development in accordance with the requirements of European Charter on Local Self-government. Foreign Experience of Regional Economic Policies provides comparative analysis of the experience of regional economic policies of Georgia and foreign countries.
Full realization of the economic potential of the region greatly depends upon regulation and control of local financial relations, as well as development of the relevant legislative basis etc., discusses also the problems of budget federalism.
Keywords: Budget federalism; Regional economy; Local self-governance; Transfer
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SECTION: FINANCE AND BANKING POLICY
Kavtaradze N., Advantages Of Program Budgeting And Its Formation In Georgia – (p.,157-159).
Nowadays, it is considered that the preparation of budget by the program budgeting style is the most important achievement for Georgia. It should be admitted, that the researches show, that by the transparency of its budget Georgia is on the one of the leading positions among the numerous countries.
The great value of program budget is, that it relies on the main priorities of the country, which main goal is to achieve them and get desired results, for these proposes are determined future relevant measures, valuing indicators and sources of financing. Each program has its title, executive- spending institution and its description from its purposes.
It should be emphasized, that despite some achievements and significant progress in the the method of program budget, there are still some problems, focusing on solving them and making changes will lead to the real and effective results of program budgeting.
Keywords: program budget, budget transparency, indicator of results measurement, wellbeing and living level of population, priorities of the country, budgetary code of Georgia.
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SECTION: FINANCE AND BANKING POLICY
Vardiashvili M., Maisuradze M., Characteristics Of Accounting Of Investment Property In The Public Sector – (p., 160-165).
Basic assets registered on the balance of organizations funded by the state budget are integral parts of the state property. Their accounting and reflection in financial statements, according to the international standards, assist to management and analysis of state resources. In the article there are examined characteristics of accounting of investment property in the public sector, according to IAS 16.
Keywords: investment property, prime-cost model, real cost model, capital increase.
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SECTION: SOCIAL ECONOMY
Pugachenko O., The Procedure For Performing Economic Evaluations In Ukraine - (p.,166-174)
Economic evaluation as one of the evidentiary arguments has been used since the time of Aristotle, Demosthenes and Xenophon. The evaluation is aimed at studying the financial and economic activities and includes examination of accounting and tax accounting documents, researching financial, economic and credit activities of economic entities.
The evaluation on economic issues is appointed on general grounds in compliance with the requirements of the Law of Ukraine "On Forensic Examination" and the procedural legislation. The performance of the evaluation is in the subordination of the Ministry of Justice of Ukraine. The framework of the judicial economic examination includes the following: examination of documents of accounting, tax accounting and reporting; examination of documents on the economic activities of enterprises and organizations; examination of documents of financial and credit operations.
The Tax Code of Ukraine contemplates the examination in the case when special knowledge in the field of science, art, technology, economy and other industries is needed to solve tax control issues.
The specifics of performing economic evaluations in the Criminal Procedural Code of Ukraine, the Civil Procedural Code of Ukraine, the Economic Procedural Code of Ukraine and the Code of Administrative Proceedings of Ukraine make it possible to assert that, in general, the procedure for the appointment and performing forensic economic examination, as well as the rights, duties and responsibilities of forensic experts in Procedural legislation are similar.
According to the procedural legislation of Ukraine the experts perform primary, additional, repeated, commission and complex examinations. The duration of the examination is determined depending on the complexity of the study, taking into account the workload of the experts.
During evaluations (expert studies), in order to fulfill a certain expert task, the experts apply the appropriate research methods, methods of performing forensic examinations, normative and legal acts and regulatory documents, as well as the existing standards of the former Ukrainian SSR and state classifiers, industry standards and technical conditions of the former USSR, scientific and technical, reference literature, software products and so on.
The selection of the way of performing the examination (the choice of certain methods, (methods of investigation)) is carried out within the competence of an expert. The basis for the examination in accordance with the current legislation is a procedural document (decision, specification) on the appointment of examination drawn up by an authorized person (body), or a written appeal of the victim or a party to the defense of criminal proceedings, which necessarily specifies the requisites, a list of issues raised to the expert, as well as the objects to be investigated.
The results of expert studies are presented in a written form as the expert's conclusion or a report on the impossibility of giving the opinion. The expert’s report is made out on the form of the expert institution and signed by the expert conducting the research. The signatures in the final part are certified by the seal of the expert institution on each page of the text of the final conclusions.
Keywords: economic evaluation, forensic examination on economic issues, procedural legislation, procedure of performing evaluations, expert’s report
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SECTION: SOCIAL ECONOMY
Kaleniuk I., Development Of The Education Market: Global And Regional Trends - (p.,175-184)
In the article modern trends of higher education have been analyzed. These trends are: in the leading countries expected duration of education at all levels approaching 20 years, rapidly increasing number of the student population and the population with higher education. For 14 years from 2000 to 2014, the student population worldwide has more than doubled - by 208.5% and reached almost 208 million. The growth in the number of students is observed in all countries, but most in the countries of Asia (284%), South America (222.5%) and Africa (213.7%). The lowest dynamics is observed in the countries of developed educational industries - in Europe by 120.5% and North America by 151.5%. Accordingly, the share of different regions in the global market of educational services varies. If in 2000 European countries occupied more than a quarter of it (25.6%) and North American 17.7%, then in 2014 these two regions together represent 27.7% of the contingent of students in the world.
Challenges of the modern development of education are: the need to increase the scale of education, promote life long learning principles, change qualitative characteristics of human resources and increase the value of intellectual function in the labor process. The increase in demand for higher education is reflected not only by the increase of the number students, but also by the increase of the level of education of the population in general. In average in OECD countries, less than one-third of the population (29%) have only primary and lower secondary education, 40% - secondary, and 31% - higher education. The growth of demand for higher education is reflected by such indicators as the increase in student population and the proportion of the population with higher education.
The rapid growth in the number of students in the world is accompanied by another important trend - an increase in its international segment. The process of internationalization of education is manifested in the growth of the number of foreign students in the world in absolute and relative terms. the first characteristic feature of the process of internationalization of education is the increasing the number of foreign students in the world in absolute and relative terms. The global education market is developing very dynamically it can be seen that for 10 years from 2000 to 2012 the number of foreign students has increased more than two times (217%). It shows an understanding of the world of the international prospects of this market activity. The structure and development trends of the global education market have been disclosed (the increase of international students by countries and in general, the market share of countries). This trend means that at the same time rapidly growing part of other countries in the global market there are new actors, who insisted on the claim itself, choosing an active strategy of export of educational services. Among these countries - South Africa, China, India, Mexico, Malaysia, RF, and other. At the same time, in different regions the growth in the number of foreign students has different meanings: the greatest growth is demonstrated by the countries of Latin America, Asia, Oceania and Europe. The smallest growth is in North America and Africa.
Keywords: internationalization and globalization of education, number of students, length of study period, international mobility.
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SECTION: SOCIAL ECONOMY
Mamukelashvili I., Education As A Catalyst For Improvement Of Owner’s Equity Structure Of Georgian Joint Stock Companies - (p.,185-190)
Education is a catalyst through which major societal changes take place. This paper is based on the premise that Georgian state-owned joint stock companies need financial statements in order to improve its capital structure. The above-mentioned premise is also based on the assumption that implementation of high quality accounting standards is crucial to the provision of financial statements that are necessary for joint stock comapanies to improve its owner’s equity financing opportunities. Therefore, the role of education must be examined in the context of implementation of International Financial Reporting Standards.
The research process was organized as follows: the Global Comepetetiveness Index of 2014-2015 by Klaus Schwab published by the World Economic Forum was obtained as a source of data to examine educational systems and the implementation of IFRS in various countries of the world. It was evident that Georgia’s educational system and the level of IFRS implementation both need improvement.
The goal of this research was to study if there is any cause and effect relationship between the quality of educational system and IFRS implementation in 144 countries of the world, including Georgia. Empirical evidence suggests that the quality of countries’ educational and research institutions are a 57% precondition to the successful implementation of IFRS. Furthermore, collaboration between educational institutions and private sector entities is a 62% precondition to the full implementation of IFRS.
Keywords: Education, International Financial Reporting Standards, Joint Stock Companies, Financial Statements, Owner’s Equity, Initial Public Offering
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SECTION: SOCIAL ECONOMY
Vanishvili M., Vanishvili N., Assessment Of The Population's Financial Education And Engagement In Georgia - (p.,191-201)
Based on the latest literary sources and rich factual material in the article, the financial education and involvement of the population is gradually assessed in Georgia. The methodological basis for the research is the 2015 manual of Financial Education and Financial Engagement Measurement developed by the Organization for Economic Cooperation and Development (OECD / INFE).
The article discusses important issues of financial education such as the knowledge of basic financial concepts and the ability to use real life, managing personal and household finance, setting financial goals and making them specific steps for achieving, saving and budgeting, financial uncertainties and pension age, willingness to borrow and debt management, awareness of financial products And use and more. Within the scope of research, OECD / INFE question was added to the question of the use of financial products and household debt, to determine the approximate level of financial engagement of the population.
Respondents have made it possible to evaluate the level of financial education in the country and withdrawal of the conditional scores for this purpose. Financial education is a combination of financial knowledge, financial behaviors and financial attitudes. These components were studied separately and each individual score was awarded. The level of financial knowledge was evaluated by a 7-point scale based on the answers of 7 key questions to be tested, where each correct answer is given 1 point. The financial performance level was evaluated by 9 questions and 9 questions related to the behavior and the answers to the provision. Financial attitudes were evaluated by 5-point scales according to the average indicator of the answers given in the three regulations. In this case, the respondents assessed their dependence (ie, how much they agree with a certain provision) from 1 (fully agree) to 5 (fully disagree) scores.
Summary of the overall level of financial education The sum of three individual points will be accepted [knowledge (7), behavior (9) and attitudes (5)]. Consequently, the overall score of financial education may be between 1 and 21 of any value. There may be a score of up to 100, and multiplied by 100/21. According to the survey results, the general rate of financial education of the Georgian population is 12.3 points on the 21-point scale and 58.8 points on the 100-point scale.
The results obtained in the survey have emphasized the following: the level of financial education of different segments of the population is uneven; It is important to deepen the financial knowledge of the population; With financial education, attention should also be paid to financial behaviors; One of the priorities is the positive change of financial attitudes in the country; Particular attention is paid to the financial purpose of spreading financial education; In terms of spreading financial education it is recommended to develop cognitive TV programs and websites, as well as educational reminders, text messages and newspaper articles; Finally, the improvement of the framework and approaches of the financial education is a complex challenge, in the nearest future, the close and coordinated cooperation between private and public stakeholders is critical to the use of diverse approaches and formal and non-formal educational spaces.
Keywords: financial education, financial involvement, financial behavior, financial dependence, financial goals, channels loans, debt burden.
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SECTION: SOCIAL ECONOMY
Akhalaia N., Vasadze M., The Particularities Of The Labor Market In The Hotel Business- (p.,202-206)
Unemployment is one of the major problems of Georgian society, which is more or less equal to all social groups. One of the main priorities is to address the problem of unemployment in the country. In recent years, the hotel market has a healthy and rapid growth in tourist destinations. Tourist sites and the whole tourist market are developing attracting foreign investments. Hotel business is the most dynamically developing subdivision of the tourism industry that brings millions of profits to the economy in many countries. Hotel business development is a crucial factor in tourism development. Growth of tourist flows and efficient functioning of hotel facilities create jobs and provide filling up regional and national budgets. The leading role in Georgian economy belongs to trade and service sectors where the most people are employed
keywords: Labor market, unemployment, hotel business, hotel market, statistics.
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SECTION: SOCIAL ECONOMY
Pukhashvili N., The Effect Of Stress On The Effectiveness Of The Work - (p.,207-210)
In any organization in implementing its goals and objectives, along with other factors, key role play people, their qualifications, skills and experience.
The modern environment poses a significant challenge to people. With new technologies and new information, the pace of changes is so fast that it often becomes a victim of stress. Stress is an integral part of modern business and operates on any level of employee of the company. Because of the above mentioned reasons, the role of organizational management increases in the development and implementation of their management strategies, which are the factors that influence the topic.
Human resources management occupies a special place in many businesses and this is a permanent instrument for successful business.
One of the most important parts of the Human Resource Management is stress management.
The paper deals with the essence of the stress, their species and methods of solution.
Keywords: stress, stress management, stressful situation, conflict.
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SECTION: SOCIAL ECONOMY
Oniani M., Cognitive Constraints In George Kelly’s Theory Of Personality- (p.,211-216)
Knowledge of the theory of personality gives a manager an opportunity to create a certain opinion about the person’s psychological characteristics and his/her nature as well as helps him to develop his management techniques.George Kelly’s Personal Construct Theory views a person as a unique creature. The theory studies and touches upon: the actual difference in perception of the world subjectively and considering these similarities and differences in the process of management.
The person’s desires to enquire about the future and make proper interpretations.
the issue of successful communication being dependent on mutual knowledge, opinions and actions.
the issue of impossibility of changing the already happened events and creating the experience of successful management through proper interpretations of the facts.
the issue of working out the effective management strategies through managing objective reality in the perceptions of people.
Keywords: Cognitive constrains. Effective management. Successful communication. Subjective perception of reality. Alternative construct.
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SECTION: SOCIAL ECONOMY
Plynokos D., Kovalenko M., The Impact Of Expanding The Non-Formal Education Sector On The Socio-Economic Development Of The National Economy - (p.,217-224)
The article explores the impact of expanding the non-formal education sector on the socio-economic development of the national economy. Data are given, which indicate that on average the unemployment rate among persons without higher education is 12.4%, while for specialists with higher education it is 4.9%, i.е. in 2,5 times low. In Ukraine, there are similar trends: the employment rate in Ukraine among people with higher education is quite high (71.9%), and the unemployment rate is the lowest (7.8%). It can be traced in analyzing the influence of the percentage of employees with higher education among employees in the national economy on macroeconomic indicators, in particular GDP and GDP per capita.
It was noted that the countries with the highest level of activity in adult education were also the most innovative. That is, the education of adults, especially the informal, turned out to be more closely related to innovation, then the higher education. This suggests that higher formal education should interact with informal forms of education, for example, such as on-the-job training, in order to positively influence the socio-economic development of the national economy.
Keywords: non-formal education, formal education, employment, innovative development, economic development
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SECTION: SECTORAL AND REGIONAL ECONOMY
Gabedava G., Georgian Maritime Infrastructure In Global Competitiveness Rating (Gc) And Analysis (p.,225-229)
Transport is the most important field, which defines the socio-economic development of the state. Georgia’s strategic location gives the opportunity to become logistic hub of the Caucasus, but to achieve it the number of activities must be carried out towards the transport infrastructure.
Georgia has a real chance to deliver and send additional cargoes, which leads to increase in income and improves conditions of production and trade development. Main issue for cargo owners is to offer profitable conditions and its practical implementation, for that the necessary conditions are: safe transportation of cargoes, their rapid delivery and reduction of shipping costs. Through the implementation of seaports infrastructure and new technologies, Georgia has a real chance to become main logistic hub for the Caucasus and Central Asia. Which will increase the role of Georgia as a transit corridor, but rather a contributing factor to the development of the country's economy.
KeyWords: Seaports, Logistic, Shipping, Competitiveness Index, Cargo Turnover, Economic, Maritime Infrastructure
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SECTION: SECTORAL AND REGIONAL ECONOMY
Baratashvili E., Kurtanidze KH., Regional Features Of Tourism Development In Georgia (p.,230-233)
Due to the extremely high competitive environment on the global market in the tourism industry, it is essential to gain a place in the area for particular region by creating a final result-oriented, well evolved, planned and developed strategy, in order to establish the level of the regional tourist product, which would provoke both local and foreign tourists to travel and spend holidays there over and over again.
The resources and potential for tourism development has not been studied yet at regional level. There have not been conducted detailed search for natural and other resources available (Eco-tourism, cultural tourism, recreation, etc.) in the region for the development of separate sectors of tourism. Accordingly, long-term strategies for tourism complex development of the particular region are not designed, which should be based on unified information base of the regional tourism potential and resources. Regions need to strengthen the tourism sector support and the management of tourism industry must be conducted properly. Depending on other areas of tourism, it is necessary to take into consideration the development opportunities of tourism in the region, when planning the development of the special sectors in the tourism industry, considering every pros and cons of the field.
One of the priority of the state economic policy in the XXI century is environmental protection, which is directly related to tourism development. Moreover, solving the problem of environmental protection is essential for human survival. This is also due to the consequences of global warming and lack of certain resources, which can also cause unbelievable damage to the regional tourism as well as the economy.
For a long time scientists have argued that solving the problem of environmental protection is essential in regional tourism development. Therefore, it is necessary to provide regions with governmental structures’ recommendation and give them "status of green regions". In addition, resort places, where special natural-recreational resources are located, should be granted with the status of the Nature Reserve, Protected Area and National Park, which will significantly contribute to the safe development of tourism.
KeyWords: region, tourism, economics, culture, innovation
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SECTION: SECTORAL AND REGIONAL ECONOMY
T. Medzmariashvili., The Main Aspects Of The Development Of Government Procurement Sphere In Georgia (p.,234-237)
The state procurement is one of the most important spheres of the country, where 12% of the gross domestic product comes from it. Therefore, the significance of importance is given to the government financial resources rational spending, fair and non-discriminatory environment formation, development of healthy competition in the state procurement process and the information transparency. For state and private sectors the functioning of the state procurement is important.
Until 2010, state procurement in Georgia was carried out through means of a paper. Since December 1, 2010, the new procurement system was launched. Due to lack of proper transparency, there was discriminatory approach and corruption, availability of information was limited, high fees in tender participation and territorial inequality restricted competition.
All tender procedures were carried out through means of a paper. Currently operating state procurement electronic system is characterized with a maximum transparency. The system can be used by the purchaser, supplier and any person interested in it.
KeyWords: state procurement, e-procurement, procurement sphere, tenders, procurement policy.
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SECTION: SECTORAL AND REGIONAL ECONOMY
L. Sulakadze., Georgian Electricity Market Model (p.,238-244)
The energy sector is the most prioritized one in the economic field. The associated agreement’s (between Georgia and European Union) obligations contain important changes in different areas, especially in the energy sector and needs to be harmonized with European legal bases. Therefore, nowadays electricity sector has many challenges.
To create competitive electricity market in Georgia, we must prevent any company having dominant influence on market. To modify the electricity market model into competitive market model it is necessary to create: Deadlines and conditions of energy sector’s restructuration in the law; The regulations for easier access on the market and the alternative electricity suppliers; Developing an independent market operator and implementing competition on the retail market.
KeyWords: energy sector, energy market, market model, market participants.
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SECTION: SECTORAL AND REGIONAL ECONOMY
N. Zurashvili., D. Narmania., Urbane Politics And Construction Development Regulation In Georgia (p.,245-251)
In the modern world within the development processes of urbanization, it becomes actual urbane politics, which is implemented by the governments of the cities. In tight urbanization conditions, it is especially increased demand from the customer to the flats and homes in the cities. Accordingly, to the demand from the customers in the capital of Georgia Tbilisi and other important cities of Georgia (for example Batumi) begin massive construction processes. Chaotic buildings create ecological problems, which makes environments in bad conditions to live. Therefore, it is very actual how is regulating construction in Georgia. In the precede article it is discussed urbane politic, which is implemented in the capital of Georgia from the founded to the present time. In the article analyzed legal acts which are regulating construction development in Georgia.
KeyWords: urbanization, development, construction, Tbilisi
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SECTION: SECTORAL AND REGIONAL ECONOMY
E. Baratashvili., N. Razhamashvili. Experience Of Foreign Clusters In Agro Business And Their Adaptation In Georgia (p.,252-256)
The main idea of the article is to find out pros and cons of foreign countries agro clusters. to identify similarity between Georgia and foreigner countries economic situation, their resources and potential. From our point of view, Georgia is really similar to Latin America and the right policy will help our country to find proper position in the world. To summarize potential of those countries will find out that Georgia has much more potential and more resources than Latin America. Our country needs right policy to use our resources properly. Like forming agro clusters. As a result we will get strong economic environment (which ones main part is agriculture), growth of satisfaction population, unemployment level will be decreased and etc.
KeyWords: Business, Agriculture, Agro clusters, Agro industry, Strong economic
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SECTION: SECTORAL AND REGIONAL ECONOMY
N. Rusadze. On The Issue Of Assessing The Effective Exercising Of Municipalities Own Powers (On Example Of Imereti Region). (p.,252-256)
During the last decades, the efforts of Governments across the world have been directed towards creating an effective civil service. Modern requirements pose new challenges for the organs of state administration, and they have to re-examine traditional administration methods and be constantly mindful of increasing the effectiveness of their activities.
It is obvious that local authorities also face similar challenges. One of the main objectives of municipalities is to exercise their own powers completely and to offer appropriate services to the population. For the purpose of assessing the effective exercising the own powers of municipalities provided for in Local Self-Government Code of Georgia, in April 2017, we conducted a survey of 520 respondents in municipalities of Imereti (12 municipalities in all).
For each parameter, we derived the arithmetical average, which formed tha basis of the calculation of the overall index of analysis parameter.
Analysis revealed that the relatively better situation is observed with establishing the municipal preschool (kindergartens) and out-of-school education institutions and with ensuring their functioning. It is noteworthy that the index appropriate to this kind of services is higher than the highest index existing between municipalities (3,40>3,14).The index of water supply, water carriage and melioration is also high (3,1).
We believe that within their framework of powers, municipalities have to attach more attention to the regulation of street-trading, exhibitions, markets and fairs, disabled people, as well as to sheltering and registration of the homeless.
It is desirable to conduct the similar surveys in all regions of Georgia every year that will contribute to identifying the weak points and resource mobilization to address the encountered challenges.
KeyWords: effectiveness; survey; ranking; satisfaction level; powers; self-governance.
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SECTION: SECTORAL AND REGIONAL ECONOMY
E. Baratashvili., T. Matcharashvili., Analyze Of Business Development Tendencies In South Caucasus Acording To Economic Freedom And Global Competitive Indexes (p.,263-270)
The main topic of the article is to define business development trend of South Caucasus countries- Georgia, Armenia and Azerbaijan according to Index of Economic Freedom and Global Competitive Index.
According to the index of Economic Freedom Georgia is Mostly Free country, while Armenia and Azerbaijan are Moderately Free countries. According to Global Competitive index Georgia is only one which has positive trend in all analyzed factors (e.g. basic requirements, efficiency enhancers and sophistication and innovations). Also we have to remark that doing business problems in Georgia is not connected with corruption and inadequate tax regulations.
In case of Armenia and Azerbaijan, they have a positive trend about efficiency enhancers and innovation and sophistication sub indexes, but basic requirements have negative one. The reason of this is institutional, infrastructural and macroeconomic problems. Also corruption problem which still exists in these countries.
These 3 South Caucasus Countries still have to work hard to achieve high economic standard. Such indexes are good indicators to see where is problem and in which direction country should work to overcome it.
KeyWords: Business, Economic Indexes, South Caucasus Region
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SECTION: WORLD ECONOMY
E. Baratashvili., T. Matcharashvili., Analyze Of Business Development Tendencies In South Caucasus Acording To Economic Freedom And Global Competitive Indexes (p.,263-270)
The main topic of the article is to define business development trend of South Caucasus countries- Georgia, Armenia and Azerbaijan according to Index of Economic Freedom and Global Competitive Index.
According to the index of Economic Freedom Georgia is Mostly Free country, while Armenia and Azerbaijan are Moderately Free countries. According to Global Competitive index Georgia is only one which has positive trend in all analyzed factors (e.g. basic requirements, efficiency enhancers and sophistication and innovations). Also we have to remark that doing business problems in Georgia is not connected with corruption and inadequate tax regulations.
In case of Armenia and Azerbaijan, they have a positive trend about efficiency enhancers and innovation and sophistication sub indexes, but basic requirements have negative one. The reason of this is institutional, infrastructural and macroeconomic problems. Also corruption problem which still exists in these countries.
These 3 South Caucasus Countries still have to work hard to achieve high economic standard. Such indexes are good indicators to see where is problem and in which direction country should work to overcome it.
KeyWords: Business, Economic Indexes, South Caucasus Region
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SECTION: WORLD ECONOMY
Y. Panchenko., N. Rudukha., Regulation of banking activities in the context of the social and economic development of the European Union (p.,271-280)
The features of the world market of banking services, of which the European Union is a part have been analyzed in the article. Features, scale and dynamics of this market, its role in the socio-economic development of the EU member states have been shown. The characteristics of cross-cultural differences in the functioning of banking systems in different EU member states have been given.
The socio-economic nature and modern mechanisms for regulating banking activities have been disclosed in the interests of stabilizing the macroeconomic indicators of the national economy and improving business performance. The advantages and weaknesses of the liberal and administrative concepts of banking regulation have been shown. Differences in the functioning of national banks in the EU member states have been disclosed. The role and mechanism of the European Central Bank's influence on the social and economic development of the European Union have been analyzed. The problems of the functioning of the banking system of the EU after the withdrawal of the Great Britain from the European Union have been revealed.
The article describes the ways of integration of the banking system of Ukraine into the financial structure of the European Union in the context of the implementation of the Agreement between Ukraine and the EU on a free trade area. Attention have been drawn to the need to take into account the significant differences in the levels of development of the banking business of Ukraine and the EU, in particular the ratio of net loan portfolio and gross domestic product, which in Ukraine is respectively 0.45, and in Poland 0.7 with double the GDP. The directions of the convergence of the European and Ukrainian banking systems have been shown on the basis of the increase in the European international trade turnover.
KeyWorlds: banks, international banking, regulation, European Union, financial market, globalization.
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SECTION: WORLD ECONOMY
I. Makharashvili., M. Beruashvili., T. Lagvilava., The Role Of The State In The Formation Of European Clusters (p.,281-284)
The article discusses some issues of clusters and it is also noted that the main issue for the state today is to define the level and quality of their own interference. The authors believe that the phenomenon around this issue can be brought down to two main problems: restriction and possibilities.
According to the authors, national clusters are usually financed from several sources. They emphasize that according to statistics, the main source of funding comes from the national budget and only one program out of five is fianced by the EU funds.
In addition, the authors of the article formulate a view that the different form of cluster politics is often create innovations in the private sector of the European countries. The second most important target group of funding programs is the scientific-research fie.
KeyWords: cluster applications, innovative sectors of the European countries, cluster model.
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SECTION: WORLD ECONOMY
P. Aroshidze., “One Belt - One Road” And Prospects Of Georgia's Transport Corridor (p.,285-292)
By the end of 2014, the central government of China declared the readiness to develop “alter of the Great Silk Road" – “One Belt - One Road". According to this project, China will economically be connected to Europe, the central and South-West Asia, Africa and Australia. The goal of this project is to export technology and "know-how" from China, high-speed railways, infrastructure development and service delivery to the whole world. Instead China will be able to import agricultural, health care and energy products, also other important commodities that are essential for China. The modern version of the “Great Silk Road” has the serious basis to fully change the global economic landscape. China from "World Factory" will become the main exporter of technologies and techniques, "World Trade Center" and the main hub of central electronic trade. "One Belt - One Road" will not only increase cargo turnover between China and the rest of the world, but also will make it possible to exchange experience between Europe and Asia. The project includes the following directions: 1. China-Central Asia-Russia-Europe (with the Baltic Sea); 2. China-Central Asia-West Asia-Persian Gulf-Mediterranean Sea; 3. China-North-East Asia-South Asia-India Ocean. The international economic corridors are planned to be created in these directions of: "China-Mongolia-Russia", "China-Central Asia-West Asia", "China-Indochina", "China-Pakistan", "Bangladesh-India-China" and "China-Mediterranean Sea".
Implementation of this project is important for Georgia, because the economic corridor of China-Mediterranean Sea borders the territory of Georgia and the country's favorable geopolitical location can be used in this context. It should particularly be noted that in May 2017, the Free Trade Agreement was signed between Georgia and China, and China expressed readiness to establish an international bank in Georgia with a capital of 1 billion US dollars. Especially important is the prospect of the use of marine ports of Georgia. On the official map, which includes the project “One Belt - One Road” the Deep Sea Port of Anaklia is marked.
It can be said that the new project of China will give a new possibilities to the transit function of Georgia, which will facilitate the country's geopolitical strategy and should be the basis for political security and economic growth of the country.
KeyWords: One Belt - One Road, China, Georgia, Transport Corridor, Trade Agreement
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SECTION: WORLD ECONOMY
S. Sakvarelidze., Small And Medium Sized Enterprises In Georgia, European Union And United States (p.,293-296)
Small and Medium Sized enterprises play an important role and develop world economy. Strong and well-developed Small and Medium Sized businesses offer opportunities like innovations, creation of modern business culture, export growth and access to international markets and future use of it. The Organization for Economic Co-operation and Development (OECD) estimates that small and medium enterprises represent 90% of companies in the world, create jobs in the states and employ 63% of the world's population. Furthermore, small and medium entrepreneurial contribution is important in the development of science and new products.
The national policy of United States and EU member states aims to offer better and more effective conditions for Small and Medium Sized businesses. In addition, to enhance competitiveness and production through commercial and industrial chambers, private financial organizations and private research structures.
Over the past few years, Georgia has made significant reforms, such as economic reforms. The main purpose of the reform was to fight corruption, to start a business easily and to create a favorable environment for direct foreign investment.
KeyWords: Small and Medium Sized enterprise, OECD, European Union, United States, economic reforms.
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SECTION: MODERN MARINE TECHNOLOGIES
M. Diasamidze., I. Takidze., New Technologies In Navigation (The Use Of Wind Force). (p.,297-302)
The course of the vessel in relation with the wind is an angle between the direction of the wind and the midship line of the vessel. One of the most widespread use of the wing is its application in the wind-driven ship. But these ships are not so fast. But there also is an alternative way to use wind for ship movement despite wind speed and stream force – the application of Magnus Effect, which is the result of mutual impact of the physic phenomenon, such as Bernoulli effect and creation of border layer around streamlined object. Using this effect, the first rotor vessel was created. In 1980s more complicated form of turbo sail was developed by French engineers under supervision of oenologist Jacques Yves Cousteau. In comparison with the best of the usual sails, the turbo sail provided 3,5-4 larger propulsive coefficient. It was supposed to install turbo sails to the tankers, bulkers and the large ships to decrease fuel consumption rate. Nowadays there are attempts to put rotor sails into mass usage. The rotor sails give possibility to save 30-40% of fuel at 16 knots speed. The experience of German shipbuilders will show if it is useful to develop the sails, working in application of Magnus effect. We hope, that in future the world navigation will apply the principle, described by the talented German scientist more than 150 years ago.
KeyWords. Magnus Effect, Bernoulli effect, rotor vessel.
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SECTION: MODERN MARINE TECHNOLOGIES
S. Gudenko., Spatio-Temporal Prognosis Of Changeability Of Index Of Refraction Of Troposphere On Way Of Ship (p., 303-307)
In the article possibility of prognosis of changeability is reasonable and distribution of index of refraction of troposphere on certain temporal and spatial intervals on the way of motion of ship.
KeyWords: index of refraction, troposphere, prognosis, statistical method, quadratic equalization, coefficient of correlation, nomogram, meteorological parameters, water content and density of the aerosol.
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SECTION: MODERN MARINE TECHNOLOGIES
N. Tchkonia., Maritime English Teaching Instruction In Global Maritime Context (p., 308-311)
The seafarers, who transport the world’s international trade back and forth across the oceans, are of all nationalities and speak hundreds of different languages. This combined with brutal weather, hazardous cargoes and attacks by pirates all makes for very dangerous working conditions. To make things safer, the International Maritime Organization (IMO) acts by setting international standards and procedures for ships and seafarers. One such action was taken in 1995 when, aware that many marine accidents were caused by seafarers simply not being able to understand each other, the IMO established English as the international language of the sea.
With more and more multi-lingual and multicultural crews joining the transnational seafarers’ maritime community, their competence in maritime English becomes a public concern. There is a need for maritime English lecturers to use some effective pedagogies. During the process of maritime English teaching, teachers found some teaching and learning problems relating to four macro skills in the English language communications. Regarding proper teaching techniques, suggestions are made to teach maritime English.
In the global maritime industry, the shortage of seafarers in the world makes it necessary to muster different nationalities on board. The cross-cultural labor mobility makes many maritime English instructors aware that getting proper teaching pedagogy will ensure the quality of the cadets in the global seafarers’ community. Maritime English, the language of the sea, is needed in today’s shipping industry. The demands for competent seafarers require their proficiency in understanding and using maritime English.
communication skills in the current globalizing world shipping market. Most of maritime institutes are aware that mastering communication skills is one of the important components which ensures the safety at sea. In order to cultivate the high-quality seafarers, maritime English instructors should focus on teaching the particular terminology and communication skills that include listening, speaking, reading, writing as required by IMO conventions in the international shipping industry. MET institutions should perfect the syllabus of teaching maritime English; and maritime English instructors should find effective ways to teach the language. All these will benefit maritime English education in the globalization of maritime industry. Through analysis of the situation of maritime English teaching in Georgia, the paper is aimed at enriching the teaching approaches in MET institutions. It reveals difficulties in maritime English teaching, with focus on how to improve four communicative skills in maritime English teaching. Maritime English lecturers play an essential part in realizing the goal of maritime English teaching. The quality of ME teaching decides whether the cadets will become competent seafarers to meet requirements of IMO Conventions, and whether they will be communicating freely in the global maritime community.
KeyWords: English teaching existent problems, recommendations, education mode, effective communication.
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