Real Conditions in the Global Economy and Trends in Trade and Investment

Globalization1 has been going on since the beginning of the human history. The movements of people to new frontiers and the expansion of trade into remote areas can be said to be part of the process of globalization. Over time the scope has expanded, the content has deepened, and the speed has accelerated. A decisive turning point in the history of globalization in recent years was the end of the cold war from the collapse of the Berlin Wall in 1989 to the dissolution of the Soviet Union in 1991. This led to the removal of constraints on the economic activities within both blocs East and West and the greater integration of the world economy. This was accelerated by technology innovation and the information and communication revolution resulting from the peaceful utilization of military technology. What leads to globalization? As well as the spread of information and technology, the movements of people, goods and capital cause globalization and as a result, international trade, foreign direct investment and international labor migration increase. This promotes globalization on a world-scale. The rapid progress of transport, information and communication technology has played a significant role as the intermediate means. Globalization in recent years has been characterized, not only by quantitative changes, but also by qualitative ones. Every social force has two aspects, and globalization is no exception. We witness world integration and universalization on the one hand, and localization and regionalism on the other hand. The rapid progress of regional integration, regional trade agreements and bilateral trad