INTERNATIONAL PRODUCTION NETWORKS AS THE FIRST STEP OF SOLVING THE PROBLEMS OF ECONOMIC SECURITY IN THE AGE OF GLOBALIZATION

Abstract

The research is devoted to solving the actual problem of substantiation the operation principles of production networks performance in the system of international economic relations with the aim of ensuring economic security of the countries. The author’s hypothesis that international production networks as part of global value added chains (GVAC) is a factor of national economic security is the methodological basis of the research. The opportunities and risks of the main participants of GVAC have been defined and a new form of international trade organization and international labor division has been substantiated/ The analysis of production organization within GVAC has allowed stating the increased requirements to agents of international economic relations in terms of economic security, complexity of operations management and the need for continuous technological improvement of products in order to remain competitive. The corresponding principles of international production networks organization have been formulated and recommendations to national governments who participate in GVAC have been put out. It has been proved that countries which create GVAC require the creation of conditions for the sustainable development of the national innovation system while countries taking GVAC are expected to build specific competencies which would allow participating effectively in the global division of labor taking into account the objectives of ensuring economic security.