Globalization challenges and Georgian trade relations

Abstract

At current stage, deepening of the trade & economic relations with the developed countries is of greater significance than with the countries at the same development level. Thisis mostly caused by the increasing technological dependence on the developed countries. For the developing and transition economies it is of critical significance to attract foreign investments providing the basis for economic development, exports growth and integration into the world trade and economics. To evaluate the directions of the foreign trade relations of Georgia, the work offers discussion of the foreign trade turnover, export & import, the largest trade partner countries, the largest groups of import and export goods and other indicators. Georgian government supports the idea of exportoriented policies. Reduction of import tariffs and liberal local policies of recent years is best suitable for such approach. Export-oriented policies imply entry to the foreign markets and improvement of situation, with respect of production and costs in domestic export sector. Both of these aspects are subject of trade agreements, determining the conditions for opening markets for one another by the trade partners. And such negotiations deal not only with the tariff and non-tariff barriers but legislation regulating and forming the markets in general, as well. Trade policies of a country comprise significant part of the economic politics, as exports promotion is associated with economic growth, especially, where the trade partner, e.g., such as EU, implements the policies oriented towards foreign markets.