Intercultural Communication in Conditions of Internationalization of

the Modern Economy

Fatima Dakhaeva

Chechen State University Named After A.A. Kadyrova, Grozny, Russian Federation

Keywords: Interrelated Processes, Changing Labor Market, Globalization and Internationalization, Economic Globalization.

Abstract: Two interrelated processes that have engulfed countries around the world (globalization and

internationalization) and the changing political and socio-economic reality lead to profound transformations

of universities, and also cause the emergence of new concepts in didactics and methodology, namely the

concepts of intercultural communication, intercultural didactics and intercultural learning. Economic

globalization affects education systems both directly (increasing additional investment and funding for

education and science) and indirectly (the need to match the competencies, knowledge and skills acquired by

students with the needs of a changing labor market). The result of globalization in the field of education is its

internationalization.

1 INTRODUCTION

The term “internationalization” is multifaceted. In the

scientific works of foreign and domestic researchers

of the second half of the XX - early XXI centuries.

This concept is considered from different points of

view. First of all, the question of the relationship

between the concepts of “internationalization" and

“economic globalization” remains debatable: some

scientists consider globalization as the final stage of

internationalization, the highest stage of

internationalization of economic activity

(Bekmurzaeva, 2009) (therefore, it is understandable

why they give the same definition to these concepts),

and some - as a fundamentally new stage in the

development of the world economy. However, if we

look at the problem of measurement, then the

assessment of globalization includes political,

economic, cultural, environmental and other

components, while internationalization includes only

economic ones. Globalization is comprehensive and

affects all aspects of life, not just the economic. We

share the view of scholars that internationalization is

the economic dimension of globalization. There are a

great many definitions, and a wide variety of them.

For example, the Nobel Prize winner, a classic of the

theory of the world economy, J. Stiglitz in 2002

https://orcid.org/0000-0002-7089-7154

defined the phenomenon of globalization as “a closer

integration of the countries and peoples of the world,

which was caused by an unprecedented reduction in

transport and communication costs and the

elimination of artificial barriers to movement of

goods, services, capital, knowledge and (to a lesser

extent) people across borders” [16]. Some time later,

in 2010, i.e., after 8 years, the authors of the MGI

Globalization Index (Martens, Zivets, Raza) clarify

the concept of globalization as “the intensification of

cross-national interactions that ensure the creation of

TNCs and the global integration of cultural,

economic, political, technological and social

processes at the global, supranational, national,

regional and local levels”. Since we have touched

upon the aspect of the relationship between the

concepts of “internationalization” and

“globalization”, we note that, for example, A. Dreher

considers this definition to refer to the term not

“globalization”, but to internationalization [14]. A

similar situation (the presence of many definitions) is

typical for the concept of “internationalization”. This

set is caused not only by the fact that each author

reveals a separate side of the essence of the concept,

but also by the fact that they reflect the features of the

process in the current period of time (point in time).

Therefore, it is advisable to talk about approaches.

For example, the essence of the spatial approach is the

Dakhaeva, F.

Intercultural Communication in Conditions of Internationalization of the Modern Economy.

DOI: 10.5220/0011602200003577

In Proceedings of the 1st International Conference on Actual Issues of Linguistics, Linguodidactics and Intercultural Communication (TLLIC 2022), pages 54-58

ISBN: 978-989-758-655-2

 2023 by SCITEPRESS – Science and Technology Publications, Lda. Under CC license (CC BY-NC-ND 4.0)

search for the most favorable territories for placing a

division of an enterprise, improving the territorial

structures of enterprises. Marketing is aimed at

forming a strategy for the development of foreign

economic relations in the context of globalization, the

choice of alternative options for a development

strategy. With the development of the company in the

foreign market, management receives some

independence. The global development of the

corporation is in the area of responsibility of the

headquarters, and the local manager concentrates on

the development of the company within a certain

region. The goal of the management approach to

internationalization is to improve the management of

a company in a foreign market. The concept of

“internationalization” must be considered “in the

broad sense of the word” and “in the narrow sense of

the word”. The internationalization of the economy is

the process of economic convergence of the countries

of the modern world, based on the deepening of ties

in production, on the rapid growth of international

trade and the increasing role of the external market,

as well as the growth of international migration of

capital and its internationalization, the expansion of

international relations in the banking and insurance

sectors, the internationalization of financial and stock

markets, the development of international labor

migration, etc. National economies are drawn into

world economic processes, thus increasing the

interdependence of the economies of countries,

primarily developed ones (Murtazova, 2021). In the

narrow sense of the word, the following main areas

for studying this phenomenon can be distinguished,

namely: the internationalization of economic life and

the economy as a whole, the internationalization of

capital and labor, the internationalization of property,

education and business activity, the

internationalization of scientific and technical

research, the internationalization of production, the

internationalization of activities companies, etc. A

special place in the literature is given to the

internationalization of scientific activity. Modern

scientific research requires huge financial and human

investments; for this, companies from different

countries unite to conduct scientific and design

research. In addition, there is an objective process of

specialization of individual countries in certain types

of scientific research. One of the forms of exchange

of scientific and technical knowledge and

information, the results of research conducted in

different countries is the international trade in patents

and licenses, which is developing extremely rapidly

at the present time.

2 RESEARCH METHODS

The concept of transaction costs was first used to

explain the existence of hierarchical structures

opposed to the market, such as a firm or an

entrepreneurial type organization. Such “islands of

consciousness” had advantages (in comparison with

individual entrepreneurship) in terms of saving on

transaction costs, internal administrative control over

the “price mechanism” (Murtazova, 2021).

According to the most general definition,

transaction costs are the equivalent of friction in

mechanical systems. Getting rid of the analogy with

physics, any costs associated with the coordination

and interaction of economic entities should be

classified as transactional. In other words, these are

all costs associated with the exchange and protection

of entitlements. Savings in transaction costs are both

external and internal factors affecting profits. Its

content is determined by a variety of personal

relationships that regulate entrepreneurial activity.

Some authors, emphasizing the importance of the

considered source of profit formation, are talking

about “calculation of personality” and “transactional

exchanges” (Murtazova, 2021). In psychological

science, a transaction is defined as the interaction of

the ego states of two individuals entering into

communication (Gakaev, 2018). And in this regard,

we can talk about the "market of personalities" in the

economy. D. Hartwick writes the following about

this: “The predominant behavior in the psychology of

an individual who is aware of his connection with

other individuals and dependence on them,

apparently, should be considered behavior that is

fundamentally different from the “purchase and sale”

of the basis of market relations.” This is explained,

according to the author, by the fact that people

intuitively prefer cooperation to rivalry

(Bekmurzaeva, 2009). But cooperation, according to

other authors, does not negate the relationship of

"purchase and sale" (Braverman, 2019). The thing is

that the equivalence occurring in this case of

exchange is determined not only on the basis of cost

calculation, but also on human dignity. And the

substance that is obtained as a result of the synthesis

of these two values is still unknown to modern

science, which does not prevent people from actively

working in the “market of personalities”. In a market

economy, the company's costs are divided into 1)

transformational; 2) transactional; 3) organizational

(coordination) - the costs of ensuring control and

distribution of resources within an enterprise type

organization, as well as the costs of minimizing

opportunistic behavior within the firm. All these

Intercultural Communication in Conditions of Internationalization of the Modern Economy

organizational costs and transaction costs are

interrelated concepts (an increase in some leads to a

decrease in others and vice versa).

Transaction costs have a large number of

characteristics, which determines the need for their

scientifically based classification. The systematized

distribution of transaction costs into certain types by

means of classification should be considered as a

necessary basic tool for building any system for

managing them. Since there has not been a generally

accepted classification of transaction costs, each of

the researchers pays attention to the most relevant,

from his point of view, elements. The analysis of

various approaches to the classification of transaction

costs made it possible, first of all, to divide them into

internal and external (in relation to the economic

entity) , subjective and objective, explicit and

implicit, etc. They can be measurable and non-

measurable (one of the reasons for the latter lies in the

inability of accounting and management control

systems to display purchase and sale transactions of

the type of service in question in the market of "soft"

factors of entrepreneurial activity). Transaction costs

should be distinguished from transformation costs.

The former, unlike the latter, are not taken into

account in economic calculations (their presence is

the entrepreneur's problem). F. Hayek writes the

following about this: to organize production,

successfully interact with the market and obtain the

maximum economic effect, it is not enough just to

have resources and combine them in a certain way. At

the same time, the entrepreneur also bears costs that

are not always amenable to strict accounting and

valuation. This is the transaction costs. They are

associated, as a rule, with the collection of

information on prices, obtaining information about

consumer preferences, analyzing information about

competitors, negotiating and processing transactions

(Gakaev, 2020). Transaction costs have another side

social.

In this case, we are talking about the benefits and

losses that arise in the external (in relation to the

enterprise) environment as a result of its production

activities. The benefits include an increase in the

comfort of life as a result of the release of new goods

and services, losses - environmental pollution,

depletion of natural resources.

For a long time, transaction costs were simply

“not noticed”. This term was first used in the

construction of economic models by R. Coase

(Bekmurzaeva, 2009). In addition, O. Williamson

(Egorova, 2020), D. North (Braverman, 2019) wrote

about the importance of transaction costs in the life of

society. Their papers dealt, respectively, with the

“costs of operating an economic system”, “the

equivalent of friction in mechanical systems”, “the

costs of evaluating the useful properties of the object

of exchange, and the costs of enforcing and enforcing

rights”. Modern authors are talking about the

classification of transaction costs (Gakaev, 2018;

Vladimirov, 2019). They are divided into:

1) real and effective transaction costs. The former

are determined by the network of transactions

actually taking place, and the latter by the most

efficient one. The magnitude of the deviation of

these types of costs shows how effectively the

community uses the established institutions.

The more this deviation, the worse. Individuals

(entrepreneurs) use the opportunities they have

to optimize their activities. The existence of

such a deviation is due, on the one hand, to the

refusal to comply with the norms and rules

established by society, and on the other hand,

to the diverse availability of information

necessary for doing business;

2) explicit and implicit transaction costs. In other

words, the former are also called “explicit”,

taking the form of cash payments to suppliers

of transactional resources. Explicit transaction

costs are deliberately hidden (for example, the

cost of maintaining a criminal “roof”). Implicit

costs, by analogy, are called “implicit”. But

they are associated with risk and nerve costs for

the entrepreneur;

3) total and average transaction costs. They are

related to each other in a certain way: the

average transaction costs are determined by

dividing the total by the number of

transactions. But the growth of their number is

not always a positive thing (although it reduces

the average cost). This is explained by the

lengthening of the technological chain for the

production of the same product;

4) the costs of compliance with formalized rules

and non-formalized norms. First of all, they

include the costs of concluding and

implementing market agreements, as well as

rules, compliance with which is enforced (it

does not matter that the entrepreneur himself

does not agree with them). The second type

includes the costs of internal psychological

experiences from the violation by the

entrepreneur of any ethical norms (although

punishment for this is not provided for by the

current law).

The theory of transaction costs draws attention to

the absence of an information market and the

distortion of price signals due to the high degree of

TLLIC 2022 - I INTERNATIONAL CONFERENCE "ACTUAL ISSUES OF LINGUISTICS, LINGUODIDACTICS AND

INTERCULTURAL COMMUNICATION"

market monopolization and structural imbalances.

According to some authors, all transaction costs can

be derived from information costs.

3 RESULTS AND DISCUSSIONS

In the modern world, internationalization is an actual

trend in world economic development, by the middle

of the 90s of the twentieth century. reached an

unprecedented level. As an illustration of this

phenomenon, the educational literature presents a

huge number of diagrams demonstrating how the

parts of one of the most ordinary cars are assembled

in several dozen countries (Molchanova, 2019). In the

middle of the 20th century, in the context of rapidly

growing trade between countries and the creation of

transnational corporations, it became necessary to

create new concepts that would explain the

prerequisites for the transition from the simplest form

of internationalization, i.e. exports to more complex

and mature forms, such as licensing, opening

production units in foreign markets, creating joint

ventures, etc. The American economist R. Vernon

was one of the founders of the theory of

internationalization and modern theories of

international production. But before the publication

of his works, there were already attempts to explain

the principles of the development of international

production and trade. Such theories include the

classical theories of international trade (for example,

the mercantilism of T. Man and V. Petty, the theory

of absolute advantages of A. Smith, the theory of

comparative advantages of D. Ricardo), as well as the

neoclassical theory of international capital movement

developed by Swedish scientists E. Heckscher and B.

Olin, developed by the followers of the theory and

formed in line with the neoclassical theory of

international trade. The Japanese school was close to

the main conclusions of R. Vernon's theory (Egorova,

2020). Among the founders, we single out K. Kojima

and T. Ozawa, who outlined the advantages of

companies in the conditions of international capital

mobility (the theory of “flying geese of

development”). Scientists have proven that

companies can contribute to the economic

development of the host country, while pursuing their

corporate goals. When choosing a location for

locating production facilities, company management

relies on two factors: location of production near end

users (i.e. outside customs barriers) and access to

resources to reduce production costs. J. Dunning in a

series of his works (1980, 1981, 1988, 1992)

published an eclectic theory of OLI-advantages,

called the “eclectic paradigm of international

production”, or Dunning's eclectic paradigm (Eclectic

paradigm, or OLI paradigm). Dunning's theory is

based on a set of OLI-advantages, that is, an investor

makes a decision on foreign direct investment based

on an assessment of three components (advantages):

- Ownership / property (O advantages, or specific

advantages of ownership). The volume of foreign FDI

is explained by the nature and set of competitive

advantages of foreign investors in comparison with

domestic investors (possession of a unique

technology or patent, a wide range of goods and

services, a good reputation, a recognizable brand); -

Location / location (L advantages, or specific location

advantages). The advantage is determined by the

peculiarities of the markets offered to foreign

investors by individual countries in comparison with

other countries (significant market capacity, low

transport and labor costs, cheap raw materials); -

Internationalization / Internationalization (I

advantages, or advantages of internationalization).

Benefits from the implementation of intra-company

transactions (between branches of TNCs, companies

of the same holding, etc.) in comparison with the

execution of such transactions between independent

entities in the market (Meckling, 2020). Advantages

are also determined by the degree to which a company

can internationalize, i.e. control its own competitive

advantages, and not transfer or offer them to foreign

companies, for example, through export or licensing

(i.e., benefits from own use of assets, and not from

transferring third party). The term

“internationalization” is multifaceted. In the scientific

works of foreign and domestic researchers of the

second half of the XX - early XXI centuries. This

concept is considered from different points of view.

First of all, the question of the relationship between

the concepts of “internationalization” and “economic

globalization” remains debatable: some scientists

consider globalization as the final stage of

internationalization, the highest stage of

internationalization of economic activity (Hibbard,

2019) (therefore, it is understandable why they give

the same definition to these concepts), and some - as

a fundamentally new stage in the development of the

world economy. However, if we look at the problem

of measurement, then the assessment of globalization

includes political, economic, cultural, environmental

and other components, while internationalization

includes only economic ones. Globalization is

comprehensive and affects all aspects of life, not just

the economic. We share the view of scholars that

internationalization is the economic dimension of

globalization.

Intercultural Communication in Conditions of Internationalization of the Modern Economy

4 CONCLUSIONS

In modern conditions, the non-participation of the

state in socio-economic processes is unthinkable:

stimulating economic growth, regulating

employment, financing education and scientific

research, social security, environmental protection.

At the same time, specific directions, forms, and

scales of state regulation of the economy are

determined by the nature and severity of economic

and social problems in a particular period of time. As

a result, realizing the complexity of this phenomenon

and taking into account the variety of approaches to

understanding the essence of state economic policy,

in relation to economics and politics, there is a need

to improve the teaching and research process, the

optimal combination and choice of teaching methods.

Under these conditions, an extensive discussion is

unfolding on methodological issues, namely: which

direction of economic thought is capable of giving the

most adequate and complete answer to the question

posed (Egorova, 2020). Therefore, within the

framework of organizing the educational process in

economic disciplines, it is advisable to use a

systematic approach, that is, the study of the

economic phenomenon as an integral complex of

interrelated elements, views and concepts. There is a

need to use an adequate critical synthesis of

alternative approaches in order to make the most

reasonable and constructive decisions. Great help in

mastering the basics of economic policy in the study

of economic sciences is provided by interactive

teaching methods, which allow solving educational

problems on the basis of intellectual difficulty and

active interaction. Thus, the full realization of the

scientific and educational potential of economic

science, the assimilation of a system of views on state

regulation of the economy and state economic policy

is impossible without the development of various

methodological areas and their adequate refraction to

economic reality through the education system.

Economic policy takes into account economic

interests, explores their interaction, considers

possible consequences, and also has a direct impact

on all areas of our lives. Therefore, the organization

of the educational and scientific process should be

aimed at a deep assimilation of the patterns and

relationships of any economic phenomenon or

process, including economic policy. Only such an

approach lays a reliable foundation for a

comprehensive understanding of the phenomenon

under consideration and taking into account the

existing contradictions.

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INTERCULTURAL COMMUNICATION"