Conditions Of Economic Instability Research Articles

OPTIMIZATION OF CORPORATE STRATEGY: ELIMINATION OF INEFFECTIVE ECONOMIC COMPONENTS

This article addresses the crucial issue of optimizing corporate strategies in the context of modern economic instability. The authors explore information processing methodologies necessary for identifying and eliminating ineffective economic components in the strategic planning of a company. The article examines the results of analyzing the experiences of both domestic and international companies in the field of corporate strategy optimization. The main emphasis is placed on the utilization of contemporary methods and tools for information processing, such as semantic analysis, comparative analysis, juxtaposition, and others, to obtain objective data and numerical assessments. The authors highlight key factors that should be considered when optimizing a corporate strategy, including efficiency, profitability, risks, competitiveness, and others. They also discuss approaches to selecting sources of information and data processing methods. The article provides practical recommendations for company executives to improve the strategic decision-making processes, enhance the overall socio-economic state, and increase the competitiveness of the enterprise in the conditions of economic instability.

The Role of Non-Rooted Social Institutions in the Evaluation of the Effectiveness of Regional Innovation System

A plethora of recent studies have highlighted the importance of non-rooted social institutions in influencing the effectiveness of regional innovation systems (RIS), and therefore the development of formal and informal organizational and institutional innovations that contribute to socio-economic development. Non-rooted social institutions refer to various organizations, networks, and collaborations that are not directly involved in research or production activities, but still exert a significant influence on regional innovation processes. These institutions can include government agencies responsible for policy-making and funding allocations for innovation programs at the regional level, professional associations promoting knowledge sharing and collaboration among industry professionals across regions, venture capital firms providing financial resources to startups and entrepreneurs, incubators and accelerators offering support services to early-stage ventures, as well as non-profit organizations focusing on community engagement and entrepreneurship education. Our paper focuses on the main rooted and non-rooted social institutions of the RIS systems using a case study of the Russian Federation. Moreover, it determines the degree of their influence on the assessment of their effectiveness. Furthermore, the paper explains that under conditions of economic stability in a region with different levels of innovative potential, the influence of different social institutions on RIS is determined differently. In conditions of economic instability, unrooted social institutions begin to play a key and decisive role. Based on the results of our study, we draw some conclusions regarding the need to take into account external socio-economic factors in the development of tools for assessing the effectiveness of regional innovation systems.

Problems of mortgage housing lending in conditions of economic instability and prospects for its development

This article analyzes the problems of mortgage housing lending in the Russian Federation. Such an indicator as the dynamics of housing commissioning is considered, the dynamics of the commissioning of apartment buildings (MCD) and individual housing construction (IHS) are compared, and trend methods for forecasting the prospects for the development of the housing mortgage lending market based on a time series are proposed.

Corporate social responsibility as a tool of interaction with the external environment during the economic crisis

The purpose of the article is to determine the impact nature of the corporate social responsibility (hereinafter – CSR) policy on the company’s position during the crisis. The subject of the study is CSR as a tool of interaction with the external environment. Based on the theoretical analysis of the scientific literature, the paper identifies the interrelation of social responsibility and the business interaction strategy with the macro- and microenvironment, using the analogy method, the features of such interrelation in the conditions of economic instability, in which the business was due to the spread of Covid-19 are considered. The authors have developed recommendations for the successful implementation of this policy, taking into account all the limitations of the company’s crisis situation, which makes it possible to use this research in business practice and subsequent scientific activity. The prospects for this study may be the description of modified tools of CSR implementation, taking into account the modern development of technologies and the deepening of its impact on economic relations. As a result of the work done, a conclusion was obtained about the predominance of positive effects from the implementation of this strategy in a situation of increased resource constraints.

КОНКУРЕНТОСПРОМОЖНІСТЬ ПІДПРИЄМНИЦЬКИХ СТРУКТУР ЯК ОБ’ЄКТ УПРАВЛІННЯ: ЕВОЛЮЦІЯ МЕТОДОЛОГІЧНИХ ПІДХОДІВ

The article provides arguments in favor of the fact that a clear understanding by the management of the essence of the competitiveness of the enterprise as an object of management is important for making a well-founded choice of the strategy of the business entity's behavior on the market. Therefore, the aim of the work is a comparative analysis of methodological approaches to the interpretation of the term "enterprise competitiveness" from the point of view of the correspondence of their essential content to the modern realities of entrepreneurial activity. It is assumed that this will enable the managers of domestic business structures to identify priority areas of management efforts to preserve (restore) their viability in the conditions of economic instability caused by the war and the uncertainty of post-war recovery processes. In the course of the analysis, complex and relative approaches, resource-oriented, competence-targeted and value-oriented are highlighted. The features of each of the approaches and the conditions for their effective application are characterized. It is argued that in the conditions of turbulence and economic instability caused by the war and the uncertainty of future political processes, it is advisable to rely on a value-oriented approach in the management of competitiveness. In the context of this approach, the leading role of information support in the process of creating new value propositions was noted and a logical scheme of this process was developed. Considering the fact that the creation of new consumer values functionally belongs to the subsystems of marketing and innovation management, their specific role in this process is highlighted.

Impact of Crisis Trends in the Socio-Economic Sphere on the Quality of Life of Modern Youth

The pandemic has shown the world that the lives of young people have changed. They faced severe problems: the deterioration of the quality of education, the manifestation of social inequality among young people, a complete loss of independence, numerous stresses and a decrease in the productive potential of an entire generation. The purpose of the research is to assess the socioeconomic living conditions of young people, including the status of young people in society and the level of migration processes among young people. Youth support programs in conditions of economic instability are one of the tools to combat youth unemployment in the country, improve the quality of education and vocational training of young people, and stimulate youth entrepreneurship. As research methods, the article uses sociological methods (questionnaires, interviews, observation), the method of factor analysis, comparison and synthesis, statistical and graphical methods of data processing. The originality of the research is that the author tried to reveal the main factors influencing the quality of life of young people; increasing the level of employment and stimulating entrepreneurial initiative of young people in terms of respecting their rights and interests; recommendations for improving the state of youth policy in the region.

РЕГУЛЯТОРНИЙ ПОТЕНЦІАЛ ФІСКАЛЬНОЇ СИСТЕМИ УКРАЇНИ: ЗМІСТ ТА ОСОБЛИВОСТІ РЕАЛІЗАЦІЇ В УМОВАХ ЕКОНОМІЧНОЇ НЕСТАБІЛЬНОСТІ

The urgency of the topic is due to the need to study the mechanism of the regulatory function of taxes through which the state actively influences the macroeconomic processes in conditions of economic instability. In conditions of economic ups and downs, the fiscal system, as a basic element of the economy, on the one hand, provides the financial foundation of the state, and on the other hand - is one of the main tools for tax policy and government intervention in the economic system. Taxes are an integral part of the fiscal system; they are an objectively existing institution of society, and one of the factors influencing social and economic development, which requires a study of its mission and content. The peculiarities of the regulatory function of taxes in the conditions of endogenous and exogenous factors of instability are revealed. It is shown that integration into the external uncertain financial space causes a number of non-standard problems for the national system of state regulation of the economy, in particular, the problem of choosing between the policy of nominal devaluation and the policy of fiscal devaluation. The article analyzes the quantitative criteria of tax policy and their impact on the effectiveness of the regulatory function of data in Ukraine during 2014-2022. Based on the analysis the conclusion is made about the predominantly fiscal focus of regulatory measures of modern state tax policy. To assess the limitations of the regulatory and instrumental role of taxes in performing the exclusive functions of the state in the economy and society, we described the institutional limitations of the regulatory function of taxes due to their connection with the institutional structure of the economy through the channels of economic sovereignty and legitimacy, trust and state debt. The content of institutional traps related to the deficit of tax revenues to the state budget is revealed, and it is shown that the tendency to avoid these traps is an institutional feature that limits the effect of tax instruments of state regulation of economic processes. Some ways of tax reform in Ukraine are given.

ВНЕШНЕЭКОНОМИЧЕСКАЯ ДЕЯТЕЛЬНОСТЬ РОССИЙСКИХ ИМПОРТООРИЕНТИРОВАННЫХ ПРЕДПРИЯТИЙ В УСЛОВИЯХ САНКЦИОННЫХ ОГРАНИЧЕНИЙ

The economic sanctions imposed on the Russian Federation in February 2022 had a significant impact on the activities of import-oriented enterprises. The foreign economic activity of Russian entrepreneurship has suddenly become more complicated for all its participants. There were difficulties with payments in foreign currency, supply failures, problems in logistics, and as a result, an increase in costs. The concept of unfriendly countries has appeared, and as a result, the need to find new counterparties from among countries friendly to Russia. In the conditions of economic instability, the state has taken a number of measures aimed at supporting Russian entrepreneurs, which has contributed to the support of Russian business and provided it with new prospects for development. The article analyzes the foreign trade activity of Russia with the leading countries in terms of trade volumes. Topical issues of partial legalization of parallel imports in terms of its legal content and the results of its impact on small and medium-sized businesses are considered. The article also highlights the results of research conducted by the cloud service “MoySklad” and the company H&F. The author’s conclusions based on the results of the study are made. The state, represented by President Vladimir Putin and the Government of the Russian Federation, has developed a number of effective measures to support business, including not only the legalization of parallel imports and the growth of trade and economic relations with friendly countries.

ОЦІНКА ТА ШЛЯХИ МІНІМІЗАЦІЇ ФІНАНСОВИХ РИЗИКІВ БАНКІВСЬКОГО СЕКТОРУ В УМОВАХ ЕКОНОМІЧНОЇ НЕСТАБІЛЬНОСТІ

The article is devoted to the assessment of financial risks of the banking sector, their impact on the activity of banks and their minimization in conditions of economic instability. The banking sector is a key link that ensures the development of the financial system, but banking activity is risky. Therefore, it is important to study banking risks and ways to minimize them in order to increase the efficiency and stability of the banking system. The article provides a classification of banking risks in accordance with domestic literature. Factors due to which banking institutions are exposed to risks are reflected. Financial risks of the banking sector affect the net profit, capital of the bank. Therefore, the impact of risks on the financial stability and efficiency of Ukrainian banks was analyzed. The bank's regulatory capital is one of the most important indicators of its activity, the main purpose of which is to cover the negative consequences of various risks. During the entire studied period, there is a tendency to increase this indicator, which is positive. Due to external risks, namely the difficult military and economic situation, the profit of Ukrainian banks decreased. The credit risk, which is one of the most significant in banking activity, is characterized. The causes of credit risk in banking are given. The dynamics of the assets of Ukrainian banks, the volumes of loans granted, were studied. It was concluded that in modern conditions of banking activity, there is a slight slowdown in lending to the population and an increase in the volume of loans granted to business entities. To reduce credit risks, commercial banks use various methods to protect against credit risk: diversification, limiting, insurance, risk distribution. The banking sector cannot exist without risk, so it is necessary to look for ways to minimize them. Minimizing the level of financial risks in the banking sector involves the implementation of risk management measures and methods. Measures to minimize banking risks include preventive and protective measures. Banking risk management methods include: methods of avoiding and accepting banking risks. The article reflects the peculiarities of these measures and methods.

Features and economics of electronic crowdfunding in the face of global challenges

With the development of IT technologies in the investment environment, there are rapid changes in the field of new opportunities both for accumulating the necessary investment resources and for investors regarding investments in promising business areas. This is due to the rapid development of such a phenomenon as crowdfunding, which is especially attractive for startups, the development of small and medium-sized businesses, as well as for the implementation of various social projects, in particular, those that also concern local communities. The emergence of crowdfunding platforms helps to solve their problems with the formation of investment resources for financing good commercial (business ideas) and non-commercial ideas, which is especially relevant today for global developers of ideas/projects. The purpose of the research is to analyze the specific features of the formation and development of crowdfunding in the period of global changes. The main methods used in the work were: comparative, method of abstraction, deductive method, concretization. The results states that crowdfunding in today's conditions of economic instability can act as one of the powerful sources of attraction of investment resources, which determines the research of crowdfunding, the generalization of its typology and classification features The conclusion is oriented on the fact, that active development of the Internet space provokes an increase in investment income in the areas of the latest technologies and important social projects that are directly related to existence social networks and the virtual space of the network itself.

Protection of consumer rights in the advertising of the future in the context of economic instability

The purpose of the study is to analyze the factors that affect the economic systems of the world in the aspect of consumer rights protection. The result of the study was the substantiation of the proposition that in order to maintain the competitiveness of the market under adverse economic conditions, the following conditions must be ensured for it: the presence of many producers and well-informed buyers. The Internet search tool offered 51 scientific publications, among which 21 scientific articles should be singled out, 18 of them cover the field of scientific interest of social sciences, related to research on the protection of consumer rights in the field of electronic commerce. A scientific article was analyzed, the subject of which was the study of ethical aspects of electronic commerce, the development of a certain generalized model of the behavior of its consumers based on the conducted research. The analysis of scientific works related to the study of the protection of intellectual property rights, patent rights of third parties, their responsibility in the event of offenses in the implementation of electronic commerce and advertising activities on the Internet became important for the research. In the analyzed scientific publications on the problems of the functioning of advertising activity under conditions of economic instability, the importance of adaptation of manufacturers of goods, works, and services, their marketing strategies to new conditions is emphasized. For example, it was noted that the hotel sector of the economy, which is one of the most affected by the negative consequences of the coronavirus disease pandemic during 2020-2021, in the developed countries of Europe, thanks to the effective “green” advertising of its own business, which promoted ecological hotel tourism, was able not only to level the material losses caused by it but also to increase one's own profit.

Socio-economic factors of changes in consumer behavior and strategies of trading companies in Japan

The article analyzes the structure and features of the retail trade sector in Japan, the current trends in the consumer behavior of the Japanese, which became noticeable at the end of the 20th century and especially after the global financial and economic crisis of 2008–2010 and during the COVID-19 pandemic. Based on empirical material, the author identifies the main directions of transformation of strategies of Japanese trade corporations under the conditions of economic instability and the formation of a new consumption model.Trade as a sphere of entrepreneurial activity is represented in Japan by various types of trading enterprises and companies and corporate groups of very different sizes and organizational and legal status. The market leaders are universal trading companies (sogo shosha) and large network companies (Seven & I Holdings, Aeon, Fast Retailing, etc.), which finance and organize not only the circulation, but also the production of products (from the development and purchase of raw materials to production and processing, logistics, sales, and services). The groups include numerous affiliated companies-retail operators.The characteristic features of the Japanese consumer have traditionally been the willingness to pay for quality, convenience, and service, a relatively low level of interest in cheaper goods, preference for the format of «physical» purchases, as well as the desire to buy expensive, exclusive things of luxury brands, which for many has become a sign of financial success and social status.Among the most important modern factors affecting the scale and structure of consumer demand in Japan are the desire to reduce one’s expenses in the face of slowing economic growth and stagnating incomes, increase in the level of environmental awareness, changing lifestyle and leisure patterns. The most important factor determining the image of the modern Japanese consumer was the entry into the labor and consumption market of generations Y and Z, who increasingly rely not on owning, but on using things, which acts as a factor in reducing the scale of the consumer market.In these conditions, trading companies modernize their strategies, including by entering into partnerships with national and foreign corporations in order to adapt to changing conditions and maintain competitiveness through modernization, diversification, and digitalization of business, reducing transaction costs based on the synergetic effect.

A Respected Individual: Self-Identification Dynamics and Specifics, 1994–2020

This is an article on the dynamics and specifics of people’s self-evaluation of the respect they receive from others, based on data from the “Russian Longitudinal Monitoring Survey (RLMS–HSE)” (1994–2020). It shows that in recent years the dynamics of respect self-assessments have become somewhat shaky as opposed to them having been positive for quite a long period of time. In the minds of Russian people respect is rather vaguely linked to evaluation of financial status and possession of power. However there is a marked connection between where people place themselves on the scale of respect on one hand and such closely tied and unilateral components as tolerance and trust on the other. The influence of specific, personified interpersonal trust on the self-evaluations that were subject to analysis is more pronounced than that of general trust, which is still pretty low in Russian society. Association with the type of people who are generally respected by society depends more on one’s professional, civic and national identity than on political affiliation. Scores on the respect scale improve when a person partakes in work activity and has a positive outlook on their own professional qualities and achievements. People’s evaluation of how respected they are is boosted by professional growth and diminished by elevated anxiety on account of possibly becoming unemployed or facing difficulties trying to find a job, and in conditions of economic instability and uncertainty.

The role of small and medium-sized businesses in the national economy in conditions of economic instability

Purpose of the research is to determine the role of small and medium-sized businesses in the national economy during the crisis, as well as suggest ways of its development. Methodology. In the course of the study, an economic analysis of the activities of small and medium-sized businesses was carried out on the basis of offi cial data using the economic and statistical method. Originality / value. The study examines the role of small and medium-sized businesses in the national economy in conditions of economic instability caused by internal and external factors. The objective need for the development of small and medium-sized businesses, especially in the context of a geopolitical confl ict, is revealed. The classifi cation of business entities is systematized and a comparative assessment of foreign experience is considered. In addition, the main indicators determining the role of small and medium-sized businesses in the national economy are calculated and analyzed, conclusions and suggestions are made based on the analysis. Findings. Based on the results of the study and analysis, the main conclusions were drawn that determine the essence and role of small and medium-sized businesses in the system of the national economy. As a result of vertical and horizontal analysis of small and medium-sized businesses, their potential, features and development prospects were identifi ed. Conclusions and recommendations for the development of small and medium-sized businesses have been developed.

Tools for managing financial risks of the retail industry corporations under conditions of economic instability

Aim. The work aimed to systematize and assess the impact of economic instability on private financial risks of retail industry corporations, to identify tools for managing financial risks of retail industry corporations under conditions of economic instability.Tasks. The work was performed to determine the impact of external economic instability, including through external sanctions pressure, on uncertainty and private financial risks; to systematize financial risk management tools of the retail industry under conditions of economic instability.Methods. The methodological basis of the research is the general scientific methods of research, namely analysis, synthesis, comparison, and modeling. The theoretical foundations of the study are the scientific works of scientists of Russia and other countries.Results. The financial risks of retail industry corporations are systematized, as well as their additional financial risks arising under conditions of increased volatility of market conditions, economic instability, and external sanctions pressure are identified. The tools for managing financial risks of corporations in the retail industry are analyzed and systematized, directions for the use of derivatives to reduce the risks of loss of financial stability under conditions of economic instability are determined, and the risks of their practical application for these purposes are formalized.Conclusions. Under conditions of external economic instability, in particular with external sanctions pressure, retail industry corporations are facing an increase in private financial risks. The tools proposed in this article enable to manage the process of reducing the impact of corporate financial risks on the financial stability and risks of corporate bankruptcy.

ПОВЫШЕНИЕ ЭФФЕКТИВНОСТИ УПРАВЛЕНИЯ ЗАПАСАМИ В КРИЗИСНЫХ УСЛОВИЯХ

The relevance of the research topic is due to the fact that the inventory management system is one of the most vulnerable places in the operation of an enterprise in crisis conditions. The article discusses various approaches to the management of inventories, taking into account the factors of uncertainty. The purpose of the article is to analyze the elements (blocks) that affect the inventory management system and determine the main directions for optimizing the inventory of an enterprise. The author conducted a retrospective study of the latest economic crises in Russia. The scientific novelty of the article lies in the development of recommendations for the management of inventories in conditions of economic instability with a breakdown of crisis situations into blocks, which makes it possible to systematize the tasks solved by the management and employees of the enterprise

Retracted: Internal procedures of the risk‐oriented lending process in the bank

AbstractInformation about the financial condition of financial institutions is the basis for assessing the risk of their lending. In the conditions of economic instability, the validity and effectiveness of management decisions significantly depend on the quality of financial and analytical calculations. To take into account, the specifics of the activities of various types of financial institutions when assessing the risk of their lending, the author put forward a hypothesis about the advisability of clarifying the composition of indicators used to assess the creditworthiness of borrowers. The analysis of the creditworthiness of financial companies and credit unions has been carried out. It was found that, during 2020–2021, no financial institution had the highest creditworthiness; at the same time, financial companies were more capable of meeting loan obligations than credit unions. A system of quantitative and qualitative indicators has been formed using correlation and factor analysis to assess the risk of lending to the activities of financial companies and credit unions. Certain indicators are suitable for integral assessment, and, therefore, create the basis for improving the methodological approach to assessing the risk of lending to financial institutions.

Theoretical foundations of diversification of enterprise activities in conditions of economic instability

The article substantiates theoretical approaches to the concept of «diversification». It provides a meaningful definition, identifying signs and critical characteristics in the context of its development in conditions of economic instability. Based on a broad analysis of the definitions of diversification, the author's theory is formulated, the essence of which is that «diversification» is a strategy aimed at improving the efficiency of the enterprise's functioning in conditions of instability by changing the range of products, sales markets, distribution of risks, achieving economic benefits, preventing bankruptcy, and using available opportunities. The signs of diversification are defined, including target orientation, distribution of financial resources, penetration into new spheres and industries, expansion of geographical boundaries of activity, expansion of the range, development of new types of production and technologies, entry of enterprise into new sectors of the market, change of organizational structures. It is determined that the concepts of diversification of enterprise activity show its importance as a development strategy. The main characteristics of this strategy include structure, multidimensionality, dynamism, purposefulness, emergence, and feedback. It has been found that enterprises resort to diversification for various reasons, such as market stagnation, the desire to expand the range of activities, identifying new opportunities, and others. It is determined that the primary motive for using diversification is the desire to increase the efficiency of the enterprise not only at the current moment and shortly but also for the long term. A classification of motives for diversifying enterprise activities with their division into technical-technological, economic, financial, social, and strategic has been carried out. It is substantiated that the choice of a specific way of diversification depends on the financial condition of the enterprise, the capabilities of different industries, and the duration of such a strategy. Keywords: management, diversification, market, strategy, motives.

FINANCIAL AND ECONOMIC SUPPORT OF THE FUNCTIONING OF ENTERPRISES OF THE MATERIAL SPHERE OF PRODUCTION : A PRACTICAL DIMENSION

There are enterprises of different types of economic activity at the market, which should be classified into tangible and intangible enterprises. The first group includes enterprises in industry, agriculture, forestry and fisheries and construction. The second group consists of companies engaged in trade and providing various services to market participants. In general, 128.9 thousand enterprises operated at the market at the beginning of 2021. With a share of 35.5% of the total number of enterprises, they produced products worth UAH 3.9 trillion, which is almost a third of the market. We consider the financial support of the material sphere enterprise through the prism of planning the needs of production in financial resources directed to its resource provision. If the company lacks its own financial resources, it is forced to look for external sources to cover costs. An important role is played by the imbalance in revenue and expenditure growth, which amounted to -6.4%, the growth of receivables (in industry and construction). The reduction of enterprises' own cash by this amount is caused by a constant increase in energy tariffs, a decrease in the purchasing power of the population, an increase in tax pressure, and other factors. The management of enterprises compensates the shortage of financial resources by attracting bank loans and borrowings (long-term and short-term), issues of shares and bonds. Thus, long-term liabilities and collateral increased (+ 23.2%), especially due to an increase in bond issues (4.8 times). At the same time, the amount of funds raised from the placement of shares decreased significantly (almost 6 times)against the background of uncertainty and instability of the stock market. Even in the conditions of economic instability in 2020, enterprises make capital investments in tangible and intangible assets, although to a much lesser extent than in 2016 (almost a quarter less). The financial results of enterprises are the lowest in 2016-2020, especially in industry and construction, where there is a loss of 43.1%. The situation that arises requires a detailed in-depth study and the formation of appropriate recommendations for enterprises, depending on the type of economic activity.

Review: Contesting Modernity: Informalism in Venezuela, 1955–1975, edited by Mari Carmen Ramírez and Tahía Rivero, and El Techo de la Ballena: Retro-Modernity in Venezuela, by María C. Gaztambide

Review: <i>Contesting Modernity: Informalism in Venezuela, 1955–1975</i>, edited by Mari Carmen Ramírez and Tahía Rivero, and <i>El Techo de la Ballena: Retro-Modernity in Venezuela</i>, by María C. Gaztambide