Master of pedagogical sciences Zh. B. Khajayeva , 1 year students of economics faculty A.B. Blyalova, A.E.Tabriz

Academician  E.A. Buketov Karaganda State University, Kazakhstan.

Globalization: the development of  trade and competitiveness in Kazakhstan

 

The essence of globalization is to enhance the relationship of people, states, expressed in the formation of the global information space, the world market, the internationalization of environmental problems, ethnic and religious conflicts, in the interpenetration of cultures and civilizations, to strengthen the standardization of lifestyles and behavior. Globalization expresses the increasing role of transnational structures and participants in international relations - regional and non-governmental organizations, the priority of human rights and freedoms, the universalization of the rule of law, social standards, and etc.

International trade was first which caught the fancy of scientists and it has enormous conceptual base.  Fundamental postulate of rationale of international trade development between countries is increasing of resource productivity. It’s necessary to join correctly selected competitive strategy of firm with competitive advantage of country in order to succeed in world trade. Point of globalization is interrelation expansion of people, countries, which expressed in formation process of world information space, world trade, internationalization of ecological problems, interethnic and interfaith conflict, in interpenetration of cultures, civilizations, in standardization strengthening of lifestyle and people behavior. Basic reference point of economy of Kazakhstan is development of it’s export raw potential. One of the most major consequence of globalization process is active development of information technologies branch in many countries, which described by high level of innovational activity. The negative external effect of globalization is inefficiency of macroeconomic reforms within the framework of national economies and nowadays this is the central problem for politics of many underdeveloped countries. The specific peculiarity of competition as market institute is absence of properties of self-organization and stability.

International trade as being ancient form of an economic relation and still playing ever-increasing economic development of countries was first which caught the fancy of scientists and it has enormous conceptual base.  In modern conditions outer trade becomes the most important factor of including national economics into global reproduction process and system of international economics relations.

Fundamental postulate of rationale of international trade development between countries is increasing of resource productivity, and consequently volume increasing of producing goods and services and maximization of satisfaction of differential needs on account of mutually beneficial exchange, which is on the one hand  main factor of economic growth, on the other hand it strengthens interrelationship and interdependence between countries[1, p.143].

Competitive strategy, which allow firm to succeed in world market, from the one hand depends on correctly selected competitive strategy, from the other hand on ratio of these advantages factors.

Choice of competitive strategy by firm depends on two major factors: branch structure (amount of rival firms) in which given firm acts and position which firm takes in its branch (competitive advantage).

It’s necessary to join correctly selected competitive strategy of firm with competitive advantage of country in order to succeed in world trade[1, p.159].

Competitiveness development of social-economic system in modern conditions takes place within the frame of globalization of worldwide system of economic management. Every country tries to realize national advantages in world arena.

Point of globalization is interrelation expansion of people, countries, which expressed in formation process of world information space, world trade, internationalization of ecological problems, interethnic and interfaith conflict, in interpenetration of cultures, civilizations, in standardization strengthening of lifestyle and people behavior.

Basic reference point of economy of Kazakhstan is development of it’s export raw potential. Huge extracting and processing producing structures were logically intervolved to unequal relations of worldwide transnational system.

One of the most major consequence of globalization process is active development of information technologies branch in many countries, which described by high level of innovational activity. By spreading new knowledge, information technologies in global system of economic management gains not only developed countries, but also developing countries, thus positive effect works.

First primary objective of country becomes detection and formation of institutional conditions, which would provide maximal favorable environment for functioning and developing of competitiveness by contributing it’s becoming effective coordinator and factor of integrity of economic management system. Such conditions are:

Ø Unlimited amount of participants, absolutely free access to market and exit from it. It supposes freedom of entrepreneurial performance, various forms availability of ownership, all forms exception of consumer discrimination. Each owner of monetary income who wants to bring own need to demand can buy necessary goods and services.  

Ø Mobility of material, labor, financial and other resources. Spare movement of capital brings to widening of production and growth of sale volume, consequently additional resources are involved,  caned capacities are used and advanced technologies are  learnt.

Ø The full awareness of every participant of competition about suggestion and demand, prices, norms of profit. Incomplete information can serve as the source of discrimination.

Ø Impossibility of participants of market to exert influence on decisions decided by other participants.Decisions about individual price don’t affect on market price when there are a lot of subjects of market. The real price levels slightly depend on  desires of separate subjects of economy and are established by market mechanism [2, p.66].

Formation and development of competitive sphere in Kazakhstan are realized by stages:

First- creation of presupposition for development of competition

Second- formation of legal fundamentals for development of competition and legislative base of it’s control

Third- realization of demonopolisation of economy

fourth- formation of efficient mechanism of control of natural monopolies, public monopolies and dominant subjects in industries of economy.

fifth- realization of system measures on development of enterprise in the term of occurring processes of globalization and regional integration

According to conception of free market ineffective forms must be liquidated in competitive struggle. The presence of state power serves as the result of organization of competitive procedure in a market.

The negative external effect of globalization is inefficiency of macroeconomic reforms within the framework of national economies and nowadays this is the central problem for politics of many underdeveloped countries. Principal functions of every effective politics are stimulation of economic growth, creation of conditions for development of social attitudes, increase of employment, development of technologies, increase of standard of living.

Globalization destroys the conditions of economic and employment growth. It's base institutions and  principles of economic politics do not provide the decision of social problems of national economies. Within the framework of  investigation of globalization, influence of country competitiveness globalization, there are some conclusions:

·    At different rate of wages in all countries  globalization of trade brings to increase of unemployment, rate of growth decrease, increase of inequality.

·    Total liberalization of trade is desired in the context of  regional complexes which unite countries with the same level of socio-economic development

·    Review of European Union contracts is needed

·    Review of principles realized by globalization politics, especially politics of WTO is needed [3, p.30].

Conclusion

Competition, executing the system agency, defines the basic parameters of market economy. Competition, refusing ineffective economic links, predetermines the development of production and contributes to stimulation of permanent perfection, regulating branch proportions. The specific peculiarity of competition as market institute is absence of properties of self- organization and stability. Because of it, competition can’t  be as the result of coordinated actions nor as consequence of managing subject behavior, this shows necessity of competition control as the conditions of it’s maintenance.

 

References:

1.  Arkhipov A.Y. 2009. International economical relations. International business. Puzakova Y.P.  – Rostov n/D: Phenix. P.143-159. (rus)

2.  Baimuratov U.K. Problems of competitiveness of national economy in context of world trend/  Competitiveness: theory, methodology, practice. – Almaty, 2008.P.66. (rus)

3.  Zhaleleva R.Z. Priorities of structure perfection of Kazakhstan regions household. – Almaty, 2006. P.30. (rus)