Modern World and Economic Interactions in The Light of The Science of Economics As Well As Finances and Accounting
Purpose: The purpose of this paper is to present the complexity of the modern world and the multitude of economic interactions that occur in it. The aim is to show to what extent managers make decisions in conditions of uncertainty using the achievements of economics and related economic sciences, i.e. finance and accounting. Methodology Approach: The paper uses a hypothetical-deductive method. It starts with a hypothesis, regardless of whether it concerns a single fact or an event, whether it expresses a general law or an even more general belief. Universal names (symbols, ideas) are used for the description. Each statement is a theory or hypothesis. There is a certain role of induction. The induction rules serve as the principles for validating scientific truths. Findings: The paper takes into account the latest achievements of the theory and the results of research conducted in recent years in the world in connection with changes taking place in the economy and society at the turn of the 20th and 21st centuries and still. Changes in the modern economy are given at several levels, mainly at the theoretical level by the science of economics and at the practical level by the applied sciences which include finance and accounting. At the turn of the 20th and 21st century, a new group of managers is being shaped on a global scale. Managers are hoped that they can agree on the interests of the company and other communities (local, national and regional), where these contradictions could lead to the crisis and all its negative consequences. The complexity of the modern world is expressed in the fact that capitalist economies are based on a foundation of debt. Borrowing is a condition for economic growth. Financial claims arising as a result of the interaction of consumers, producers, savers and investors in each economy are sustainable, provided that the expected future revenues are higher than the expected debt repayments. Practical Implications: Expectations regarding future financial flows are uncertain. Market conditions change unexpectedly. There are shocks in the economy and investors' expectations are changing. Originality: Even before 2020, the history of capitalism in the 20th and 21st centuries is marked by the sequence: debt, uncertainty, shocks. The deepening of financial connections brings inevitable problems, the solution of which requires collective and joint action by managers on a global scale.