THE IMPACT OF GLOBAL RISKS ON THE WORLD TRADE AND ECONOMIC ENVIRONMENT

Abstract

It is noted that the unprecedented dynamic globalization of trade and economic relations and the fourth industrial revolution cardinally transform the global distribution system of the world economy, accompanied by the growing impact of global challenges and risks, the failure to take into account the effects of which permanently reduces the efficiency of economic functioning and international trade. For developing countries affected by geopolitical challenges, the development of partnerships with countries that are recognized as global leaders in the world economy is essential in terms of national interests and the promotion of state sovereignty. The purpose of this paper is to characterize the impact of global risks on the formation and implementation of trade and economic policies of countries based on the methodological approaches of leading international economic institutions and organizations. Major global risks have identified rising / falling prices for assets, oil or gas, changes in the structure of trade and economic cooperation, terrorism, separatism, climate change, unemployment, income inequality, proliferation of weapons of mass destruction, cyberattacks, etc. The following methods of scientific research were used to achieve the goal and to solve the tasks of the article: systematic structural analysis of economic processes and phenomena, method of quantitative and qualitative comparisons, tabular method of calculating the degree of influence. The scientific novelty of the results is to study the processes of formation and implementation of trade and economic policies of countries under the influence of exogenous factors on them. The influence of exogenous factors is characterized not only according to the sectoral classification (economic, geopolitical, technological, social and natural), but also taking into account the degree of influence of the factor (global challenges and global risks) on the environment. It is substantiated that in the conditions of globalization of the world economy, the threats receive a corresponding more serious nature. Therefore, government agencies need to develop new effective tools for their minimization in order to prevent negative effects and to implement more productive trade and economic cooperation with partner countries.

Keywords

• trade and economic cooperation
• international trade
• global challenges
• global risks
• protectionist trade policy.