Patterns Of Global Economic Development In The Context Of Modern Challenges

Abstract

The transformation of the world economy in the XX century has led to a significant expansion of markets, the mass production of various goods that became possible to deliver anywhere in the world. The global financial system with free movement of capital has formed. The opportunities to attract foreign direct investment that stimulates economic growth have increased. The global development of the world economy in 21 st century is marked by financialization, protectionism, and regionalization. In most countries, the benefits of an open financial system and free movement of capital did not offset the costs. The use of financial resources as political leverage and the financial crisis of 2008 have led to a revision of the global financial system principles. The desire to reduce the negative impact of financialization on national economies has led to an increase in the number of regional agreements and protectionism. At the same time, the Fourth Industrial Revolution began in the G-7 countries. Its main trends are automation and robotization of production along with cloud storage, data computing, intelligent sensors, and the Internet of Things. On top of it, there appeared new types of organizational structures based on the network interaction of technologies and devices in the value chain. It also creates an opportunity to move away from mass production without increasing the cost of products by reducing production costs because of increasing the production efficiency.