The author advances a concept of the priority need for solving the problems of Europeanization as against the problems of European integration at the modern stage of Ukraine’s development.

The article considers the difference between the concepts of production chain and production network. The author analyzes the interconnection between transnationalization and its influence on the international fragmentation of production, in particular, on international production networks, and reviews the role of global cities in the development of international production networks.

Key words:
Global cities, globalization, international fragmentation of production, integration production chain, international production networks, transnationalization.

The authors discuss the issues of improving and increasing the effectiveness of state policy in the area of international science and technology cooperation of Ukraine taking into consideration the integration priorities of the state, including the interactions with the EU.

Key words:
European Research Area, innovation development, innovation process, international integration, international science and technology cooperation, international science and technology interaction.

Poverty eradication is declared in The Millennium Declaration as the global goal to be reached by all mankind, not separate countries facing that problem. Among the wide range of mechanisms aimed at raising population’s welfare and reducing the inequality gap, international economic assistance holds a weighty position, especially in those countries whose socio-economic situation does not make it possible to find sufficient internal resources to fight certain aspects of poverty. The authors believe that the development of the recipient country’s poverty eradication strategy and the donor country’s assistance strategy should be coordinated with consideration for the effectiveness criteria based on the theoretical approaches advanced by the leading experts in the poverty issues and the world practice.

Key words:
Aid effectiveness (quality) criteria, assistance strategy, bilateral, multilateral and collective development assistance, donor countries and recipient countries, financial aid and technical support, Millennium Goals.

The article disputes on future development of the international monetary system under conditions of modern globalization. The author asserts that globalization is an objective process, and thus, the international monetary system continues its logical development from the universal money commodity equivalent (gold) through multiple reserve (international) currencies back to the world money of higher order. The intermediate stage of this process can be the creation of target currency zones with leading currencies, one example of which is the single European currency – the Euro. In this context, the question about further development of monetary systems of separate countries (including Ukraine) takes on special importance.

Key words:
Demonetization of gold, globalization, The International Monetary Fund, monetary system, target zones.

The author analyzes theoretical approaches to the problem of home bias effect. The tendency to a weakening home bias effect on the macro- and microlevels is shown empirically. The author asserts that this tendency roads to higher allocation efficiency of global capital markets and the capacity of the macropolicy to level out consumption. However, it also bears certain risks from the global financial stability perspective.

Key words:
Allocation efficiency, financial globalization, global financial system, home bias effect, investing, transborder assets.

Trade in services differs from trade in physical goods. This article highlights some effects of liberalization of trade in services, especially the effects of off-shoring. Many Western European companies settle new branches in Eastern European countries, and this process is known as «off-shoring». This is a new phenomenon discussed in the Western European press, particularly its effects on the labour market. But off-shoring does not only create unemployment in the country where branches were closed. Off-shoring can lead to adjusted wages in the off-shored-sector: after a decline of wages, they can rise again.

Key words:
High-skilled and low-skilled workers, liberalization, off-shoring, trade barriers, trade in services, wages.

Leonid Hurwicz, Eric S. Maskin and Roger B. Myerson were awarded the Nobel Prize in Economic Sciences 2007 for having laid the foundations of mechanism design theory. The remarkable power of mechanism can be described as follows. Market systems in general and auctions in particular can be efficient economic institutions for the allocation of private goods. However, economic efficiency does not imply that an institution will be chosen by those participants who have the power to select it. Instead, one may expect the choice of economic institution to reflect the interests of the designer. Mechanism design theory can be used to analyse such situations and explain which mechanisms are preferred by the market participants, i.e. sellers and buyers. This is relevant not only for private goods, but in particular for public goods. Thus, L. Hurwicz, E. S. Maskin and R. B. Myerson developed a theory describing which market institutions will emerge.

Key words:
Asymmetric information, incentives, mechanism design theory, revelation.