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 students 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 significantly 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 transition, the approach of Norway and Russia in combating poverty, and the features of Mexican companies entering the international market are studied. 
The possibilities of using digital currency in China are compared, and the experience 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 development;
— 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 offshore 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 financial 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 development 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 investment 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 alleviation in Norway and Russia in the context of modern trends in globalization. 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 alleviation 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 development 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 sustainable growth and Green energy, and the role of the Chinese currency in international payments. Finally, the relations between China and Russia are also 
examined. 
Andrey Kapustin and Nikolai Kapustin examine the problem of strengthening the national competitiveness of the People’s Republic of China by developing 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 monetary 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 biotechnology regulation in the agricultural sector. The author attempts to identify factors 
for implementing a particular policy by individual states concerning biotechnologies to find standard features and differences in their strategies. In addition, 
the emphasis is placed on analyzing the authoritative industry sources to identify the most modern trends, followed by comparison and synthetic generalization of the data obtained.
Anna Sakhratova investigates the global trends in alternative energy production in recent years, examines the role of Russia in these trends, and identifies the country’s prospects in the hydrogen market based on the SWOT analysis. 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 globalization and innovation development.
Sofia Tkachenko analyses the relations between innovations and globalization and investigates the effects of globalization on global innovation development. 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 participation in globalization.
Alexey Philippov describes the difference between closed and open innovation 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 disadvantages of open innovations and their potential risks to the participating counterparts. 
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 environmental aspects of globalization as well as global changes in language, consciousness and the structure of society, as a result of which such areas as global 
psychology and ethnopsycholinguistics arise. The authors conclude that globalization 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