Young Economists on New Trends in Economic Globalization

Moscow
2023

Young Economists  
on New Trends  
in Economic Globalization

УДК 339.9
ББК 65.5, 65.9

Priority 2030
Strategic Academic
Leadership Programme

Национальный проект 
«Наука и университеты»

РЕЦЕНЗЕНТЫ

Доктор экономических наук, профессор  
Всероссийской академии внешней торговли,  
заведующий кафедрой мировой экономики МГИМО А.С. Булатов

Доктор экономических наук, ведущий научный сотрудник 
Центра европейских исследований Национального исследовательского 
Института мировой экономики и международных  
отношений имени Е.М. Примакова (ИМЭМО) РАН М.В. Клинова

 
 
 Young Economists on New Trends in Economic Globalization/ Edited by Elena 
Brendeleva and Maria Kozlova.  Moscow: Aspect Press Ltd., 2023. – 192 p.
 
 
ISBN 978-5-7567-1294-0

This book analyses new trends in economic globalization, which affect all aspects of the 
economic activity, including the new ways of supporting business, and consumer behavior. 
The authors investigate such issues as socially responsible investment, the increased 
adoption of digital economy methods, the transition to alternative energy sources, and the 
state’s role in the transition to sustainable development, etc. There is also a strong emphasis 
on the country aspect of analysis, where the authors analyze the reforms carried out during 
globalization.

 
УДК 339.9
 
ББК 65.5, 65.9

ISBN 978-5-7567-1294-0 
© MGIMO University, 2023

 
© Aspect Press Ltd., 2023

Руководитель издательских проектов программы развития МГИМО «Приоритет-2030»
Ольга Рождественская

Editors’ introduction  ..................................................................................................................................7

PART I  
THE IMPACT OF GLOBALIZATION ON VARIOUS SECTORS OF ECONOMY

Chapter 1 
Changing the tax policy of countries in the context of globalization  ..............................13
Introduction ....................................................................................................................................................13
1.1. Tax policy and the impact of globalization processes  ..........................................................13
1.2.  Tax policy in the system of global states’ competition instruments .................................16
1.3.  Taxation base erosion, profit shifting and offshores as a byproduct  
of globalization  .....................................................................................................................................20
1.4.  Global institutionalization as a factor in the formation of national fiscal policy .......23
Conclusion .......................................................................................................................................................27

Chapter 2 
International financial centers and financial globalization:  
definition, correlation and development factors  .......................................................................30
Introduction ....................................................................................................................................................30
2.1. Financial dimensions of globalization..........................................................................................31
2.2. Financial centers as a globalization platform ...........................................................................33
2.3. Economic parameters for assessing financial globalization ...............................................36
2.4. Current trends in the financial market .........................................................................................40
Conclusion .......................................................................................................................................................42

Chapter 3 
Advantages of socially responsible investment practices in MNCs   .................................44
Introduction ....................................................................................................................................................44
3.1. The dynamics of socially responsible investment  .................................................................45
3.2.  Factors motivating MNCs to adopt socially responsible  
investing practices and key trends .................................................................................................48
Conclusion .......................................................................................................................................................50

TABLE OF CONTENTS

Table of contents

4

Chapter 4 
Current trends in business support amid growing competition  
in the world economy ...............................................................................................................................52
Introduction ....................................................................................................................................................52
4.1. Sustainability at the center of a national investment program ..........................................53
4.2.  Development of small and medium enterprises as a special direction  
of economic policy ...............................................................................................................................54
4.3.  Reindustrialization and innovation support as a prerequisite  
for restoring the competitiveness ..................................................................................................55

PART II 
GLOBALIZATION IN THE COUNTRIES OF THE WORLD

Chapter 5 
Comparative analysis of approaches to poverty alleviation in Norway 
and Russia in the context of modern trends in globalization ...............................................59
Introduction ....................................................................................................................................................59
5.1. Economy fragmentation and strategic planning ......................................................................60
5.2 Inflationary pressure ............................................................................................................................62
5.3. Migration and availability of social benefits .............................................................................64
Conclusions .....................................................................................................................................................67

Chapter 6 
The profile of Mexican business in the context of prospective  
cooperation with Russia ..........................................................................................................................70
Introduction ....................................................................................................................................................70
6.1. Sector analysis .......................................................................................................................................70
6.2. Analysis of Mexico’s largest companies ......................................................................................75
Conclusion .......................................................................................................................................................80

Chapter 7 
The economy of China: trends in the new economic world order  ......................................83
Introduction ....................................................................................................................................................83
7.1. Economic growth and economic modernization......................................................................84
7.2. Chinese attitude to changes and innovations ............................................................................85
7.3. Chinese green program and energy transition  ........................................................................86
7.4. Russian-Chinese strategic partnership  .......................................................................................89
Conclusions .....................................................................................................................................................91

Table of contents

5

Chapter 8 
Increasing China’s competitiveness through the use of a digital yuan  
in international payments  ....................................................................................................................94
Introduction ....................................................................................................................................................94
8.1. Theoretical aspects of national competitiveness .....................................................................95
8.2. China in the World National Competitiveness Rankings ......................................................97
8.3. China in the World Digital Competitiveness Rankings ..........................................................99
8.4. Digital yuan and China’s digital competitiveness ................................................................. 100
Conclusion .................................................................................................................................................... 104

PART III 
GLOBALIZATION AND SUSTAINABLE DEVELOPMENT

Chapter 9 
Global trend of developing clean energy projects in the Arab countries ..................... 109
Introduction ................................................................................................................................................. 109
9.1. Methodological issues ..................................................................................................................... 110
9.2. The development of low-carbon strategies in the MENA region  ................................... 111
Conclusion .................................................................................................................................................... 116

Chapter 10 
Transformation of biotechnology regulation in the agricultural sector ..................... 119
Introduction ................................................................................................................................................. 119
10.1. Theoretical aspects of biotechnology...................................................................................... 120
10.2. Regulation of biotechnological products in import countries  ...................................... 122
Conclusions .................................................................................................................................................. 129

Chapter 11 
Development of renewable energy sources and hydrogen energy:  
Russia’s prospects and cooperation perspectives .................................................................... 133
Introduction ................................................................................................................................................. 133
11.1. Current trends in the global renewable energy sources sphere ................................... 134
11.2.  Hydrogen market: global trends and opportunities  
for the Russian Federation ........................................................................................................... 135
11.3. Russia’s cooperation opportunities in the hydrogen sphere ......................................... 139
Conclusion .................................................................................................................................................... 140

Table of contents

6

Chapter 12 
Financial challenges of the Norwegian energy transition  
in a globalized world economy  ........................................................................................................ 143
Introduction ................................................................................................................................................. 143
12.1. Theoretical justification of the concept of the “fourth energy transition” ................ 144
12.2. The role of hydrocarbons in the Norwegian economy .................................................... 147
12.3. Green finance in the context of economic globalization  ................................................. 148
Conclusion .................................................................................................................................................... 153

PART IV 
GLOBALIZATION AND INNOVATION

Chapter 13 
The impact of globalization on global innovation development  .................................... 159
Introduction ................................................................................................................................................. 159
13.1. Current trends in globalization .................................................................................................. 160
13.2. Countries benefiting from globalization ................................................................................ 163
Conclusion .................................................................................................................................................... 174

Chapter 14 
Globalization and open innovation   .............................................................................................. 176
Introduction ................................................................................................................................................. 176
14.1. Open and closed innovation concept ...................................................................................... 177
14.2. The correlation between open innovation and globalization ........................................ 181
Conclusion .................................................................................................................................................... 184

Chapter 15 
Psycholinguistic aspects of globalization  ................................................................................... 186
Introduction ................................................................................................................................................. 186
Conclusion .................................................................................................................................................... 188

About the authors ................................................................................................................................... 190

Editors’ introduction

This book prepared by the professors, graduate students and master stu-
dents of the Moscow State Institute of Foreign Relations (MGIMO-University), 
analyses new trends in economic globalization, which affect all aspects of the 
economic activity of society. With the growth of global competition, ways 
of supporting business are changing, new tax support for manufacturers is 
being applied, and consumer behavior is also changing. Globalization also sig-
nificantly impacts the innovative development of countries and the ongoing 
adoption of digital economy methods.
The transition to sustainable development as a new global trend is exciting. 
The authors investigate such issues as socially responsible investment, the 
transition to alternative energy sources, and the state’s role in the transition 
to sustainable development. There is also a strong emphasis on the country 
aspect of analysis, where authors consider the country-specific approaches 
adopted during globalization. The experience of Arab countries in energy tran-
sition, the approach of Norway and Russia in combating poverty, and the fea-
tures of Mexican companies entering the international market are studied. 
The possibilities of using digital currency in China are compared, and the expe-
rience of other countries is examined. 
The book consists of 15 chapters and includes several main sections:
—  features of economic globalization at the current stage;
—  the relationship between economic globalization and innovative devel-
opment;
— new trends in different countries;
— the transition to sustainable development as a new trend. 
The chapters of Part I provide an analysis of the impact of globalization on 
various sectors of the economy.
Ruslan Grin investigates the effect of globalization on the countries’ tax 
policy. He concludes that there is a general tendency to decrease the tax level. 
However, the taxes can also attract foreign capital to the economy using off-
shore zones to grant preferences to companies with good export potential. He 

Editors’ introduction

8

also explores the problems related to digitalization and the harmonization of 
taxes between countries.
Alena Dolgova makes an overview of the international financial centers and 
financial globalization. According to her analysis, the changing nature of finan-
cial globalization leads to rapidly increasing competition among countries for 
capital, technology and talent. Being central nodes in international financial 
networks and command centers of the global economy, international financial 
centers (IFC) play a considerable role in financial globalization. The article 
focuses on the complex correlation assessment between IFC and financial 
centers. 
Aleksandra Kareva focuses on the current trends in business support amid 
growing competition in the world economy. The author stresses that the issue 
of business support is getting increasingly important for economic develop-
ment amid current economic trends. The experience of the leading developed 
countries shows that the main trends of such business support are attention to 
sustainability, small business development and reindustrialization for higher 
competitiveness. 
Andrey Liventsev examines the advantages of socially responsible invest-
ment practices in MNS. The author also analyses the legislative framework 
related to ESG practices worldwide and in developed countries and compares 
ESG bond issuance by type. The author also stresses that the transition to zero 
emissions should be led by the private sector but supported by the public sector.
Part II gives examples of the new globalization trends in different countries. 
Andrey Masolygin makes an overview of the approaches to poverty alle-
viation in Norway and Russia in the context of modern trends in globali-
zation. The article covers such globalization trends that impact poverty as 
global economy fragmentation, inflationary pressure of the world market and 
global migration. The author conducts comparative analysis of poverty allevia-
tion methods in Norway and Russia and singles out the peculiarities of their 
approaches.
Ivan Bondarev and Danila Samandrakov examine the profile of Mexican 
businesses in the context of prospective cooperation with Russia. The paper 
considers the concentration of Mexican large and medium-sized businesses in 
the sectoral profile and the structure of Mexican imports of goods from the 
Russian Federation. The leading companies in the Mexican market are analyzed, 
and promising trade and economic partners are identified.

Editors’ introduction

9

Victoria Voronova reviews the main trends for the economy of China in 
the new economic world order. According to the author, the rapid develop-
ment of the Chinese economy is an example of the quick adaptation of the 
country’s economy to the current globalization processes. The author also 
analyses the rapid adoption of innovations in China, its transition to sustain-
able growth and Green energy, and the role of the Chinese currency in inter-
national payments. Finally, the relations between China and Russia are also 
examined. 
Andrey Kapustin and Nikolai Kapustin examine the problem of strengthen-
ing the national competitiveness of the People’s Republic of China by develop-
ing a digital version of yuan — e-CNY. The authors point out that it will allow 
Beijing to play a more prominent role in the global economy. Reducing the use 
of the dollar will also insulate Beijing from dependence on Washington’s mone-
tary policy and threats of US sanctions against the backdrop of the continued 
deterioration in relations between the two states.
Part III examines the transition to sustainable development as a new trend.
Elmira Imamkulieva provides a quantitative and qualitative analysis of the 
experience of the Arab countries in developing clean energy projects. Since the 
Arab countries are highly heterogeneous, it was suggested to divide them into 
four groups with similar trends and highlight the specific features of each 
group.
Konstantin Kuguchin’s research analyzes the transformation of biotechnol-
ogy regulation in the agricultural sector. The author attempts to identify factors 
for implementing a particular policy by individual states concerning biotech-
nologies to find standard features and differences in their strategies. In addition, 
the emphasis is placed on analyzing the authoritative industry sources to iden-
tify the most modern trends, followed by comparison and synthetic generaliza-
tion of the data obtained.
Anna Sakhratova investigates the global trends in alternative energy pro-
duction in recent years, examines the role of Russia in these trends, and identi-
fies the country’s prospects in the hydrogen market based on the SWOT analy-
sis. The author also suggests expanding economic cooperation in producing 
hydrogen energy with partner countries, using the Republic of Korea as an 
example.
Vitaly Rodionov analyses the Norwegian energy transition in the conditions 
of world economy globalization. The main purpose of the article is to identify 

Editors’ introduction

10

the financial issues of the energy transition and the state’s role, particularly a 
sovereign fund. The author also looks into the used green financial tools, 
including direct investments, stocks, bonds, eco-taxes, and ETS EU and gives 
examples of Norway’s participation in green projects abroad.
The chapters of Part IV discuss the relationship between economic globali-
zation and innovation development.
Sofia Tkachenko analyses the relations between innovations and globaliza-
tion and investigates the effects of globalization on global innovation develop-
ment. According to the study, the growing economic openness indirectly affects 
innovation performance, while R&D expenditure is crucial. The author also 
mentions the risks for developed and developing countries related to their par-
ticipation in globalization.
Alexey Philippov describes the difference between closed and open innova-
tion concepts and analyses how globalization gives an additional impulse to 
open innovation. According to the study, open innovation has already become 
a sustainable trend. The author also examines the advantages and disadvan-
tages of open innovations and their potential risks to the participating counter-
parts. 
Mikhail Matveev and Denis Ershov analyze the effects of globalization on 
global language and consciousness development. According to the study, high 
economic openness indirectly affects language and psychological aspects of life 
worldwide. Modern scholars study both the economic, political, and environ-
mental aspects of globalization as well as global changes in language, con-
sciousness and the structure of society, as a result of which such areas as global 
psychology and ethnopsycholinguistics arise. The authors conclude that glo-
balization in all its forms can, if handled wisely, make the world a much better, 
much more peaceful, and still very interesting place.

Elena Brendeleva and Maria Kozlova

PART I

THE IMPACT  
OF GLOBALIZATION  
ON VARIOUS SECTORS  
OF ECONOMY

CHAPTER 1

Changing the tax policy of countries  
in the context of globalization

Introduction

The validity level in the sphere of tax regulation and social and economic 
development affect the investment activity of financial entities, the shadow 
economy’s overall dynamics, the economic growth rate, etc. The weighty insti-
tutional transformations of tax policy in modern conditions are aimed mainly 
at improving the entrepreneurial climate in the state and attracting investments, 
in particular foreign ones. The issues of states’ tax policies in the conditions 
of globalization were the focus of interest of foreign researchers, particularly: 
R. Barro, J. Buchanan, G. Zee, R. Musgrave, J. Sachs, V. Tanzi. However, speci fic 
questions of theoretical and methodological character, specifically concer ning 
the peculiarities of tax policy implementation in the challenges of globalization 
transformations, still need to be solved. And that determines the relevance 
of the chosen scientific issues. The article aims to reveal the theoretical and 
practical development of methodical provisions on the formation and realiza-
tion of tax policy in globalization worldwide. Inter na tional tax competition is an 
essential consequence of globalization processes.

1.1. Tax policy and the impact of globalization processes 

Tax policy in various combinations (separately fiscal and tax policy or 
fiscal and tax policy in a combined form) is traditionally considered an element 
of the state’s financial policy, transmitting its goals and tools, respectively, to 
the budget and tax spheres. Monetary policy can be defined as a means of 
economic regulation aimed at ensuring proportional development of the 

PART I. THE IMPACT  OF GLOBALIZATION  ON VARIOUS SECTORS  OF ECONOMY

14

national economy, achieving a balance in regional development and, at the 
same time, creating conditions for accelerated development of productive 
forces. The described financial policy direction is elucidated or further elabo-
rated upon in the private or non-public aspects of financial policy. These pri-
vate manifestations could refer to specific strategies, measures, or actions 
undertaken within the realm of fiscal policy, which is a subset of financial 
policy. In other words, there are specific elements or facets within fiscal policy 
that contribute to and provide a detailed understanding of the aforementioned 
financial policy direction. At the same time, fiscal policy itself is part of a more 
extensive policy — economic policy. Accordingly, fiscal policy is an element of 
financial and monetary policies, implementing their goals and objectives by 
focusing on the specific objects of management — budget and tax systems of 
the state. At the same time, there are many approaches (in some sources, there 
are more than 20 definitions) to the definition of fiscal policy, which leads to 
contradictory views of researchers on its essence, blurring the boundaries of 
fiscal policy. 
Substantively, fiscal policy is a managerial activity of the state (vested with 
power structures belonging to various branches of government) in the sphere 
of taxation and public spending, as well as the basic principles of state tax reg-
ulation and budget (recorded in the relevant laws and regulations). The objec-
tives of fiscal policy are the outcomes derived from the state’s progress within 
the financial domain, and they are realized by exerting influence on the macro 
and meso levels of economic equilibrium.
The acceleration of globalization processes in the world economy, primar-
ily business globalization, information globalization, constant changes in the 
nature and forms of international economic relations, and global institution-
alization, create new business conditions that affect the financial policy of 
states, including fiscal policy. Less than a century ago, most individuals’ and 
legal entities’ income was generated from domestic sources of one single 
country (the nationality of which was inherent in these economic entities). 
Foreign financial transactions between different countries needed to be more 
stable and sustainable. As a result, tax policy was considered an exclusively 
domestic economic matter, and the degree of mobility of business entities and 
production factors needed to be higher. In such economic development cir-
cumstances, there was virtually no need for international coordination in the 
tax area.