International Internet Market and Georgia
Rati Abuladze

Developed communications are the coun-
try’s motive force, telecommunication in
frastructure developed at modern level is necessary for Georgia’s construction.
Internet has become a new ruling power that “subjugated” the world. The development of computer information systems and telecommunication technologies stipulated for formation of electronic business. The number of Internet users has adequately increased, and now it makes up 1/6 of the world’s population. At the same time, Asia, America and Europe are distinguished by the highest indicator of Internet consumption among the continents.
The electronic business itself includes Internet marketing. Electronic business in the Internet represents a marketing institution that gives any market participant an opportunity of solving his problems “without moving from the spot”.
Georgian telecommunication sector is developing in parallel with the processes taking place in the world. Both the number of Internet users and the market’s dynamics are increasing in Georgia.
The Internet industry has attracted attention of the public. In the developing countries the aspects of the Internet market and information technologies have turned into the main strategy.

The Role of Grain Growing in Solving of the Food Problem
V. Altunashvili

Grain production is a most important element in the
system of the national economy. Development of
other branches of agriculture is in many respects related to the development of grain growing. Not only the economy’s development but also a serious raising of the living standard is impossible without solving of the grain problem. Its role is especially important from the viewpoint of food security. Grain-crops are one of fundamental factors of food security’s provision.
The main producers of grain-crops are China (406 million tons), the US (300.5 million tons), India (219.9) million tons, etc. As to the post soviet republics, here Russia holds the leading position (86.6 million tons), Ukraine (38.8 million tons), in Georgia they used to produce 0.7 million tons.
In Georgia due attention was not paid to grain-crops production, the emphasis was placed on the development of subtropical cultures, and grain crops were imported from other republics, which eventually had a negative effect on Georgian agricultural economy.
Increasing of crop capacity, along with expansion of crop areas, is a most important condition for the development of grain growing. In Georgia there are all conditions for a successful development of this branch. According to scientists’ calculations, grain-crops areas can be expanded to 450 thousand hectares with productivity of 30-40 centners, this will give an opportunity to produce 1500 thousand tons of grain, which is quite enough for food needs.
There are big reserves for solving of the food problem and the development of grain growing in Georgia, revelation and enabling of which will positively solve this issue.

Regulation of Investment Activities on the State Level
Giorgi Berkatsashvili

Private business is not interested in investing capital
in the brunches and projects that do not bring it a
rather high profit. This fact stipulates for the necessity of the state regulation of the economy and, first of all, investment activities as the basis of its growth. Economic methods of state regulation of investment activities are most adequate for the market economy.
Economic levers of this kind of regulation may be:
1. Creation of favorable conditions for the development of investment activities and
2. Direct participation of the state in these activities.
As practice shows, an effective investment activities management is secured in the regions where a program-purposeful approach to solving of social-economic problems is put into practice. It is expedient to mark out two stages of the program in the mechanism of its realization. The tasks providing for the program’s success on the whole should be fulfilled at the first stage. This expediency is explained by the fact that the incomes received in conditions of financial restrictions as a result of realization of the selected highly effective projects may become a source for financing of the remaining investment projects.
Program arrangements can be grouped in the following way:
a) arrangements related to the country’s geostrategic interests;
b) arrangements of state importance;
c) arrangements of inter-regional importance;
d) arrangements of regional importance.
First, the result of the program’s realization should be economic stabilization of the region, and then – improvement of its social-economic development, overcoming of falling behind from the country’s medium level and the anticipatory development of the economy’s priority directions.

“Strategic Marketing in a Railway Company”
Teimuraz Gorshkov, Giorgi Bagaturia

The role of a railway company’s strategic marketing is
formulated in the work as one of conditions of suc-
cessful business activities and, based on it, the main directions of the marketing strategy. The strategic objective of the activities of “Georgian Railway” joint stock company is determined not as increasing of the volume of freight transportation and passenger traffic, as it is usually implied, but as raising of the company’s profits, and increasing of the volume of transportation should be subordinated to this objective. At the same time, increasing of financial profits will not be achieved if the company’s mission is not correctly formulated. From the viewpoint of management, one of the main mistakes of the past years was that the mission of “Georgian Railway” joint stock company was determined as railway service, which almost naturally results from this variety of business. This kind of approach in many respects stipulates for the risk of the enterprise’s bankruptcy. In the authors’ opinion, the mission of “Georgian Railway” joint stock company, as a business enterprise, should become transport service, which in its turn will stipulate for the existence of such objectives and tasks that will provide for its profitable activities.
Corresponding objectives and tasks of the railway company and the ways of achieving them are determined in the work.

Purposes and Kinds of Investment on Corporative Securities Market
K. Sakhvadze

In the article there considered the purposes of investment
in the sphere of corporative securities, which implies a
long-term investment of the chosen enterprise or participation in the company’s capital with the purpose of regular receiving of profits and increasing of a possibility of control over the property; short-term operations by shares and arbitration transactions; purchasing of shares as an investment portfolio with the purpose of implementation of a long-term investment.
Main types of investments implemented in the sphere of corporative securities are also considered, among them: purchasing of shares for the control over the company, participation in the capital or achieving of similar goals that are related to the shared nature of the mentioned securities; profitable investments in securities with the purpose of receiving of both regular (dividends and interests) and special incomes by means of their subsequent selling; short-term speculative and arbitration transactions; investments in promissory notes and other shared obligations expressed in main forms of crediting.
In the article there considered the methods of securities’ rating indicators in different brunches of the economy and criteria of appraisal of investment operations carried out by means of corporative securities.

Decisions and Stages of Elaboration of Investment Projects
Natia Zedginidze

In accordance with the contemporary conception, an in-
vestment project is a complex of interrelated arrange
ments spearheaded at achieving of the planned investment objectives in conditions of limited financial, time and other resources.
Various types of investment projects (social, economic, organizational, technical and mixed) are used in investment activities’ practice that in principle differ according to their structure, content, scale, duration, financial sources and purpose. Each project has its life cycle, that is the period of the project’s creation and liquidation, during which various works are done. Three tasks should be accomplished so that an investor could take an optimal investment decision with the purpose of achieving of the planned objective: 1. The prospective inflow of funds should be correctly determined; 2. The cost of capital or the necessary profit rate should be assessed; 3. Both positive and negative aspects of the investment project for the enterprise should be appraised.
Elaboration of an investment project is a rather labor-intensive process that includes consecutive stages, in particular: 1) Elaboration of the investment concept that takes into account the project’s objective and determines the ways of its achieving; 2) Technical-economic justification of the project; 3) Final formation of the project and its financial appraisal; 4) Consideration at the final stage of the complex of factors that are closely related to the project’s financial aspects. The following factors belong here: economic, ecological, political, and other ones. These principles related to the stages of an investment project’s elaboration and realization can be used taking into account the peculiarities of the national economy, which will give us an opportunity of creation of a reliable methodical base for optimum appraisal of project decisions having investment character.