INTERNATIONAL TRADE AS A FACTOR OF SUSTAINABLE DEVELOPMENT OF THE COUNTRY

Abstract

Expansion of international trade in recent decades, while bringing economic and social benefits around the world, has sometimes led to failures to overcome adverse social, environmental and even economic consequences. The purpose of study is to analyze the current problems of evaluation and prospects of international trade as a tool to enhance progress in achieving the SDG. International trade can bring prosperity, but also potentially create negative social and environmental consequences through direct effects (scale effects) and indirect effects (increased competition, which creates pressure reduce production costs). The economic and social benefits of trade have been described in detail by many economists and are significant. These include economic growth through exports, diversification and restructuring of the economy (vertical integration), industrialization, efficient allocation of resources, positive income effects, technological innovation and poverty reduction. Regarding drivers of social and environmental renewal, the author identified 5 factors based on the analysis, namely consumer demand, business-to-business demand for reputation management, civil society pressure (unions and environmental groups), government regulation and cooperation of many stakeholders to address sustainability issues. Social and environmental modernization can take place through the integration of social and environmental considerations into the production process or through vertical integration, ie the transition from, for example, small-scale contract farming to integrated farming, which implements sustainable development practices. GVC play an important role in international trade and are the mechanism by which the VSS disseminates standards. Each has different governance mechanisms and power relations that affect the extent to which sustainability issues, ie economic, environmental and social issues, can be addressed in the value chain. Depending on GVC management, social and environmental standards can be raised or lowered throughout the value chain.