COMPETITIVENESS AND TRADE POLICY UNDER THE CONDITIONS OF DIGITAL TRANSFORMATION

The transformation of production and trade is strongly connected to the emergence of new technologies, development of global value chains, reduction of trade barriers, and ultimately, to the development of new policies. National trade policy aimed at promoting exports must enable domestic companies to compete in the global market. Designing trade promoting policy is based on the analysis of available factors, institutional environment, infrastructure and market opportunities, and on strategies that take into account the country's level of development and its broader social and economic objectives. Digital transformation has resulted in new business models, new modes of communication, new products and services and new forms of exchange. Digital trade is becoming an increasingly widespread form of trade. This requires countries to adapt their policies, strategies, and regulation to ensure the benefits of current trends. The aim of this paper is to analyze the impact of trade policy on competitiveness taking into account the growing trend of digital transformation and the emergence of digital trade. The paper provides a critical overview of contemporary global trends that shape the global market, based on which the key conditions, factors and trends affecting competitiveness are summarized. The role of digital transformation as the basis for strengthening competitiveness and facilitation of international trade are emphasized. The conclusion of the analysis indicates the transformative impact of global value chains and digitalization of trade which change trade patterns and affect the productivity and competitiveness of enterprises and the country as a whole.