Financial and economic impact of globalization

Abstract

The article examines the essence of globalization and its impact on the financial and economic situation against the background of the events of the last sixteen years. The author establishes that globalization as a process of integration of the world economy and society has both positive consequences (improvement of living standards, increased access to goods and services, introduction of innovations) and negative effects (economic crises, increased inequality, loss of economic sovereignty, environmental problems, and growing influence of transnational corporations) for the development of national economies. The author identifies key trends in the development of the global economy as the main form of globalization, including the rapid development of artificial intelligence, regionalization and “glocalization”, diversification of global supply chains, and the transition to a knowledge economy in the face of growing uncertainty due to global crises. The analysis of the impact of the global crises – the 2008-2009 financial crisis, the COVID-19 pandemic, and the war in Ukraine – confirmed their negative impact on both the global and national levels. The correlation analysis showed a low level of Ukraine’s integration into the global market, which is caused by dependence on external borrowing, raw material orientation of exports, high emigration, unfavorable investment climate, and insufficient integration into international scientific and technical cooperation. To increase the level of global integration of Ukraine after the war, it is recommended to implement strategies of economic diversification, stimulating innovation and attracting foreign direct investment, taking into account the existing potential for development and experience gained.