THE IMPACT OF THE WAR IN UKRAINE ON GLOBAL TRADE AND SUPPLY CHAIN
Journal: International scientific journal "Internauka." Series: "Economic Sciences" (Vol.1, No. 72)Publication Date: 2023-04-30
Authors : Losheniuk Iryna; Poznanska Inna;
Page : 182-189
Keywords : war; world trade; international relations; export; supply chains;
Abstract
The article examines the state of world trade and the transformation of supply chains under the conditions of the negative impact of military and hostilities ongoing on the territory of Ukraine. It has been established that the trends of strengthening the cooperation of states in the world market are due to the need to confront global challenges, mutual coordination of actions to maximize the effectiveness of international cooperation in the conditions of aggravation of crisis phenomena. The impact of the war in Ukraine on world trade, on supply chains formed and tested over the years, and the importance of domestic goods for participants in trade relations is determined. It was established that the situation with world trade during 2022 was stable, albeit with certain fluctuations, it was found that a combination of factors (aggravation of the geopolitical situation, rising prices for energy and other resources, high inflation rates, a decrease in business expectations regarding economic growth, the dominance of the monetary policy of the central banks of influential states, etc.), which are developing against the background of the continuation of the war in Ukraine, will not allow maintaining the stability of world trade and the stability of economic growth in 2023. New approaches to ensuring global supply chains are considered, in particular reshore (relocation of business to its country of origin), dual sourcing (double search in which the same product is delivered by two suppliers), friend-shoring (the moral and ethical component of trade is taken into account). The main trends in global supply chains are considered, in particular, the deepening of US-Chinese strategic competition and the growing role of large neutral economies in the global geopolitical arena. The role of Ukraine in world trade and global supply chains is characterized. It is established that world trade will slow down in 2023, and an additional negative impact on this process, in the context of the war in Ukraine, will be the intensification of protectionist measures in the field of trade, the fragmentation of trade networks, as well as security problems related to supply chains.
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