C THE GLOBALIZATION OF THE WORLD ECONOMY

the globalization of the world economy - is the conversion of international space into one whole, where there are no set boundaries for informational technologies, merchandise and sales, and capital. People would travel with no limitations transporting their goods and ideas, stimulating the development of international organizations and mastering its efficiency and interactions. Globalization implies on the formation of universal international economy; in other words, this phenomenon falls in the framework of the politics, ideology and culture.

Without any doubt it will play a determining role in the world economy of the 21st century, giving a powerful force to the formation of the new system of international economy and political relations.First of all, globalization is caused by the objective factors of world development: by the advancing international division of labor, by the scientific and technical progress in the fields of transportation and means of connections, which reduces so-called economic distance between the countries. By making it possible to obtain all the necessary information from any point of Earth in the real time and making rapid decisions, current telecommunication systems make it easy to coordinate international capital investments, cooperate the production and marketing

With the informational integrations there is an increasing progress of technology share and adoption. There are many more other processes that promote globalization, which used to be only local within its state, like - obtaining a higher education on the distance from the institute facilities themselves.

The second source of globalization - is a liberalization of the trade markets and other forms of economic liberalization, which caused limitations to the policy of protectionism and removed restrains on international trade. As a result, tariffs were substantially lowered, and many other barriers in trades of goods and services were removed. Additional measures of liberalizations lead to strengthening of the capital movement and other factors of production.

The third source of internationalization process, and one of the main sources of globalization, is the phenomenon of trans- nationalism. Within its frame, a certain portion of production, consumption, export and import, and gross domestic income depends on the decisions of international organizations beyond the limits of the state. Multinational corporations (MNC) are the leading forces and the protagonists of the internalization, and are simultaneously the result of it.

Globalization affects the economy of all the countries. It influences the production of goods and delivery of services, the labor utilization, investments, technology and its propagation from one country to another. All of this is reflected in the efficiency of production, productivity of labor and competitive ability. Specifically, globalization caused the aggravation of international competition.