The global financial crisis and the euro crisis had a severe negative impact on the European economy and highlighted a key problem - loss of external devaluation - for currency unions and fixed exchange rate regimes. In the absence of an exchange rate policy, the adjustment and the restoration of competitiveness can exclusively happen through the process of internal devaluation. Internal devaluation is a painful adjustment; the reduction of wages and prices has substantial harmful effects on the economy, such as sluggish economic growth or recession, high unemployment rate and permanent budgetary deficit. In this article, we examine five countries - Iberian and Baltic - and show how internal devaluation was accomplished through their economies. In the case of Iberian countries, a prolonged crisis evolved and the process of internal devaluation exacerbated the economic situation, while in the Baltic countries a rapid downturn was followed by a sharp recovery. A simple empirical assessment shows that internal devaluation worked in the southern periphery and a moderate improvement started.

This research focuses on changes in South Korea’s patterns of outward Foreign Direct Investment (FDI) to top 10 FDI partners with a particular attention to free trade agreements (FTA). In order to test the hypothesis whether an economic and trade liberalization alter FDI patterns of South Korea, the author analyses a correlation between the FDI to a particular country and variety of variables that could be arranged into 3 groups: production factors, trade factors and general socio-economic factors. Using the combinations of the factors, 4 regression models with random effects were introduced. Each model represents certain approach to the pattern analysis with prevailing one of the group of variables described above and the forth model is a synthesis of all factor groups. Results of the analysis reveal that the model based on production factors has the best estimates on the data of all 10 countries overall. While after a segmentation of countries into groups, the most preferable model could vary considerably. Thus, the group of developing countries still fits the production model best, at the same time the group of developed counties is better characterized by trade variables and FTA has produced a significant impact on FDI volume to the countries. All these findings corroborate the inference that trade liberalization and preferential agreements have altered the investment particular groups of countries yet did not affect South Korea FDI patterns as a whole.

The Kingdom of Bahrain being the small scale country of the Gulf succeeded in strengthening the economy, increasing the share of non-oil sector in GDP, promote the activities of the free economic zones. The country is focusing not only on the development of aluminium and oil and gas industry but financial sector besides other services. This article shows the development of the international economic relations in XXI century and analyzes the international trade, its dynamics and share in the world indicators. The athour brings out the factors of the trade development in Bahrain, studies dynamics and the role of Bahrain participation in the international capital flows, which are of importance for the sustainable and long term development of the country.

Globalization and integration are the main trends of modern development of the world economy. And the formation of economic unions is an important part of this global process, which is covering all regions of the world. New centers of geopolitical and geo-economic global architecture have appeared. Vladimir Putin noted: «From such particular integration«building blocks» a more sustainable global economy can be developed». Activities in the framework of the integration mega-projects show that the development of cooperation and deepening of regional integration connections also contribute to important structural changes and crucial effects in the global economy, which set the pace and features of its transformation in the current environment. Integration processes in the Eurasian space are especially clear example of it. For centuries, the Eurasian idea was implemented in a variety of associations. The creation of the Eurasian economic Union brought the Eurasian integration project on a new level and opened broad prospects for economic development, has created additional competitive advantages in the global arena. This will allow our states to effectively fit into the modern global economy, reduce economic risks and take advantage of the international trading system.

The article is devoted to the analysis of the latest trends of regional integration and their impact on the development of Global Value Chains (GVCs). The author emphasizes that at the same time GVCs influence main development features of regional integration. In addition to economic effects of trade liberalization the author analyzes different aspects of regional trade agreements (RTAs) and regional initiatives in part of increasing the global value added created by each member-country. An important part of the article is case study of integration between developing countries on African continent, which is one of the most unsuccessful examples of GVC participation. The results and main conclusions of the article can be used to elaborate measures that will maximize benefits of developing countries’ participation in GVCs.

In the article the author analyzes the trade between countries of the Commonwealth of Independent States, increasing relevance of which is associated with the expansion of integration in the Eurasian region. Identified the factors influencing the intensity of the integration processes in connection with geopolitical and economic interests of the CIS countries in modern world. Determined prerequisites of the integration of post-Soviet countries aimed at expanding mutual economic ties. Defined trends in mutual trade of the CIS countries with the overall objectives of the member countries. Shown the role of regional integration processes in the modern international economic relations.

The paper reviews the problem of persistent and growing role of non-tariff measures to be used in order to protect domestic producers in international trade. It notes the complexity this problem’s settlement at the international level, and the possibility of liberalization non-tariff barriers through the regional free trade agreements. Taking to account Russian’s foreign policy direction of international relations, the paper analyzes the level of non-tariff protection of the domestic market in Egypt as one of the possible future partners of the Eurasian Economic Union in a free trade agreement. Also the paper includes regression model calculation the impact of non-tariff measures on the export of goods from Russia to Egypt which based on the statistical data of the WTO and UNCTAD.

This article identifies the main trends of development of integration processes in Africa. The problems in the field of trade turnover between the countries of the continent, including those related to the lack of monitoring and evaluation mechanism. The detailed analysis of the index of regional integration on the basis of which is possible to determine the individual countries to make progress in deepening regional integration and effective policy in this direction. The factors affecting the backlog of some African countries in the economic and social development and to propose measures to enable them to become more actively involved in the integration process, in particular, to take part in intra-regional trade.

The author analyzes the trajectory, the current state, problems and prospects of development of the trade and economic relations between the Russian Federation and the Argentine Republic. The article shows that Russia and Argentina are traditional business partners whose interaction has over a century. During these years the Russian-Argentine bilateral ties have gone through a number of different stages and in the mid of 2010-s achieved a status of the comprehensive strategic partnership. At present, however, for a variety of internal and external reasons, cooperation between the two countries is going through a difficult period.

The article describes the national and foreign experience in the development of regional markets in the Russian Federation. It is spoken in details the influence of globalization on the development of regional markets, as well as the role of the public and municipal authorities in the diversification of regional economies. It is reported that improves the features of the formation of regional markets through the development of innovative industries, taking into account the territorial specificities. It proposed the formation of a unified scheme for the effective promotion and advancement of regional enterprises to foreign markets based on the experience of the export center of the Kaluga region. It is considered the innovative way of development of regional markets in the context of international economic activity. It is analyzed the normative legal base of promotion local innovative markets.

The problems of Russia's participation in the international division of labor and international trade from the standpoint of its place and role in the modern world are analyzed. The country can ensure its economic growth through the development of international trade and take its rightful place in the modern political world without regard to its military power. Political alliances are usually based on a mutually beneficial international trade. Russian inclusion in the international division of labor means that its economy may already be self-sufficient. Therefore, further economic progress will be largely determined by not only national efforts but also by the global economic situation. Modern political confrontation between Russia and the United States has a negative impact on international trade and is an internal reason for the lack of significant economic growth in the world economy and the developed countries as a whole. The international trade brings people divided into nations, languages, religions together. This function of the international trade is growing with the development of the Internet, and it is the basis of future solutions to existing political conflicts between countries.