Mutual Investments Research Articles

DYNAMIC CAPABILITIES AS A SUCCESS-FACTOR OF THE LONG-TERM BUSINESS ALLIANCE: THE CASE OF SIEMENS AND ATOS

Strategic alliances offer numerous benefits, including access to new markets, shared resources, and enhanced capabilities, which collectively contribute to a firm’s competitive edge. However, maintaining these partnerships over time remains a challenge due to the dynamic nature of collaborative relationships. The article is devoted to the analysis of dynamic capabilities of partnership and its role in the long-term development of the business alliance between Siemens and Atos. The specificity of dynamic capabilities is identified, namely the characteristics of "sensing," "seizing," and "reconfiguring" capabilities at the stages of partnership development between Siemens and Atos. Three stages of development of dynamic capabilities of the business alliance between Siemens and Atos are defined: the founding stage (2011-2014), the expansion stage (2015-2020), and the current stage (2021-2025). The founding stage involved mutual investments and the adoption of performance programs to enhance operational efficiency. The expansion stage saw the alliance focusing on Industry 4.0, cybersecurity, and digital strategy, with increased funding and expanded scope. The current stage emphasizes sustainability and advanced technologies like quantum computing and blockchain, along with joint initiatives and participation in research programs. It is found that over the decade of collaboration, the alliance has demonstrated the ability to adapt and evolve according to market and technological changes, based on the abilities of both partners to identify new opportunities, analyze market trends, and accordingly transform the alliance's business model. Thus continuous adaptation, investment in dynamic capabilities, and cooperative efforts with external partners are vital for maintaining mutually beneficial partnerships. The Siemens-Atos alliance serves as a case study illustrating how these capabilities can be effectively leveraged to achieve sustained success in a dynamic business environment.

An Effective Solution for Investing Funds Through the Robo Advisor Bibit Application

Investment regulates finance such that its value can grow and generate future profits. In Indonesia, investment is increasing yearly. The increase is supported by millennials who have adapted to technology that makes it easier to make digital mutual investments. Although the increase in mutual investment in Indonesia is quite rapid, it does not preclude the possibility that there are still many people who have not invested. The reason people have not invested is that they are afraid to take risks, and their income is low. These reasons can be minimized with the use of technology. Innovation in investing has given rise to modern technological advances such as fintech or financial technology like Robo Advisor. The method used in this study was the Partial Least Squares Structural Equation Modelling analysis technique, which was operated using SmartPLSver. 3 software. Data were collected through questionnaires. The study used quantitative methods and a sample of 200 respondents who had or would have invested through the Bibit application with the use of the Robo Advisor feature. The results of this study found that Robo Advisor can affect millennials’ investing through risk profiling, financial planning, and rebalancing. Keywords: decision making, financial planning, investment, risk profiling, rebalancing, Robo Advisor

REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP: REGULATION OF FOREIGN TRADE

The world's largest free trade area in terms of GDP and population – the Comprehensive Regional Economic Partnership (CEP) – has been operating since January 2022. It includes 15 countries of the Asia-Pacific region: China, Japan, the Republic of Korea, all ASEAN countries, Australia and New Zealand. The main agreements within the framework of the VREP relate to the liberalization of foreign trade in goods with the prospect of liberalizing the services market, mutual investments and labor market regulation. The VREP maintains import tariffs in trade between member countries for 20 years. The exception is Singapore, where there are no import duties. The agreement details the procedures for determining the origin of the goods. It provides for an acceleration in the rate of tariff reduction and a departure to previously reached agreements in the case if the existing level threatens the interests of the national economy. The article considers the specifics of regulating tariff policy in the trade of fuel, ferrous metals and clothing, as well as import tariffs on basic foodstuff (cereals and meat) for the most densely populated countries of the European Economic Area. It is noted that import tariffs are absent or reduced for raw materials (coal, oil), but remain the same for manufacturing products (petroleum products, rolled products and ferroalloys). In terms of clothing, both developing and developed countries defend certain positions. There are positions on food (rice, chicken meat) protected by most member countries. The author notes that the interests of food security are more important than the requirements of trade liberalization.

ПЕРСПЕКТИВЫ ПРОДВИЖЕНИЯ РОССИЙСКОГО ЭКСПОРТА ПРОДУКЦИИ АПК В СТРАНЫ БЛИЖНЕГО ВОСТОКА

Making efforts to reduce the increasing dependence on imported food supplies from abroad, countries in the Middle East region are currently investing and actively developing the food sector, intensifying agricultural production. Despite the unfavorable external environment, turbulence in global markets, increasing sanctions from the “collective” West, trade and economic cooperation between Russia and the Middle East is developing dynamically. In the current situation, the Middle East region represents for Russia the main financial intermediary, through which many countries are ready to cooperate with our country. The change in the operating conditions of international trade and economic mechanisms laid the foundation for a new platform for Russian-Middle Eastern cooperation. Relations between Russia and the Middle East are based on the principles of respect for each other’s sovereignty and interests. For Russia, the Middle East region is a priority due to historical experience and traditions, accumulated economic and cultural ties. Today Russia is one of the ten largest food suppliers to the countries of the Middle East and is ready to actively increase its presence in this market, given the rapid growth of the population and economy of the Middle Eastern countries. The expansion of Russia’s trade relations with the countries of the Middle East leads to an increase in the flow of mutual investments, which has a positive effect on the development and strengthening of bilateral ties, leading to interdependence and complementarity. A scenario in which further development of mutually beneficial and long-term cooperation is possible is important for Russian-Middle Eastern relations. The article examines the main measures of Russian state support for the agro-industrial complex (AIC), tools for strengthening the position of the Russian agro-industrial complex in the markets of the Middle East, and prospects for expanding the Russian AIC in the Middle East region.

Impact of EU sanctions on trade in engineering products between Russia and Central-Eastern European countries: An applied econometric approach

Aim. To assess the impact of Western European sanctions on trade cooperation between Russia and Central-Eastern European (CEE) countries in the machine-building sector.Objectives. Statistical analysis of the dynamics of Russia’s trade relations with CEE countries in the field of mechanical engineering under current sanctions conditions; construction of an econometric model for regression analysis of the impact of Western European sanctions on trade in mechanical engineering products; identification of key trends and problems in trade and economic cooperation between Russia and the CEE region in the mechanical engineering sector in 2021–2023.Methods. The authors used such research methods as statistical and econometric analysis, syntax, description, graphical modeling.Results. The results obtained in the course of econometric analysis indicate that the impact of Western European sanctions on the main indicators of trade in engineering industry products between the Russian Federation (RF) and CEE countries was ambiguous. European Union (EU, EU) sanctions had a greater impact on CEE countries’ export flows than on RF exports to the region.Conclusions. The current sanctions conditions have determined an unfavorable medium-term trend in trade relations in the mechanical engineering sector between Russia and the CEE region. The trade and economic indicators analyzed in this article are the main determinants of econometric analysis that affect the interaction between Russia and CEE countries in the machine-building sector. During the studied period of 2021-2022 the volume of mutual investments showed a negative effect, industrial production had a positive impact on trade in engineering products.

Two-Country HANK and trade friction.

Compared to the Two-Country Representative Agents and the Small Open Economy Heterogeneous Agents models, this paper develops a Two-Country Heterogeneous Agents New Keynesian model, building a heterogeneous and endogenous channel of mutual investments on foreign illiquid assets and exploring two countries' wealth distribution and inequality. This model explores the impacts of trade barriers on the two countries' economic structures and behaviors. In the symmetric economy, the first launcher of tariffs suffers higher losses from the trade war, the other that does not launch tariffs suffers fewer losses. The two countries both suffer higher losses if the two sides simultaneously launch the trade war. However, in the asymmetrical economy, the country with a larger economic scale and higher productivities suffers lower losses from the trade war. Thus the high-tech country has the motivation to launch the trade war at a lower cost than the low-tech country. This paper implies that the trade war only occurs in asymmetric economies. The low-tech country can change its dilemma by improving technology because higher technology can enhance the quality level of products, stimulate economic consumption and investments, and finally offset the loss from tariff friction. Meanwhile, the trade detour is also an effective means to reduce the loss resulted from trade friction.

Russia-India Economic Cooperation: Current Trends and Promising Directions

The prevailing geopolitical conditions, characterized by Russia's reorientation away from the West and India's steadfast pursuit of an independent foreign and economic policy, present a distinctive prospect for Russia and India to enhance their trade and investment collaboration to a heightened level. Despite the existence of a Special and Privileged Strategic Partnership between the two nations, the volume of bilateral trade and mutual investments has long remained insufficient in comparison to their political ties. Nevertheless, the trade volume between Russia and India is now experiencing rapid growth due to the significant increase in exports of energy, fertilizers, iron and steel, wood products, vegetable and animal oils from Russia to India. This article not only examines this phenomenon but also assesses the necessary conditions to address India's escalating trade deficit with Russia. These prerequisites encompass the expansion of the manufacturing sector in India, the rise in purchasing power of the Indian middle class, and the accelerated development of digitization in both India and Russia. The Indian economy has been notably stimulated by key governmental initiatives led by Narendra Modi, such as "Atmanirbhar Bharat" (or "Self-Reliant India"), "Make in India," "Skill India," and "Startup India," all of which prioritize digital transformation. Russian entrepreneurs demonstrate a keen interest in India's market trends and swiftly adapt to India's evolving demands and capabilities. Similarly, Indian business circles exhibit a growing inclination to acquire knowledge about contemporary Russia. This realignment presents an opportunity to expand trade beyond conventional goods and establish new investment connections between the two countries.

Economic Cooperation between Russia and China in the Investment Sphere

The cooperation between Russia and China has been developing successfully in recent years. Both countries have agreed on several strategically important investment projects. The realization of investment projects determines the future expectation for developing Russian and Chinese economies. The article aims to investigate the trends and perspectives of economic cooperation between China and Russia in the field of mutual investments. The research methodology includes structuring, comparison, generalization, induction, deduction, and synthesis. Based on the research, the author concludes that the main segments of Russian-Chinese economic cooperation between state-owned enterprises are the energy sector, nuclear power engineering, agriculture, science, technology, and infrastructure. Also, there are good prospects for the investment segment of economic cooperation between Russia and China in banking, payment systems, and electricity sectors.

ТОРГОВО-ЭКОНОМИЧЕСКИЕ ОТНОШЕНИЯ РЕСПУБЛИКИ ИНДОНЕЗИЯ И КОРОЛЕВСТВА ТАИЛАНД

The article id devoted to the problems of bilateral trade and economic cooperation of two ASEAN country-members, Indonesia and Thailand. The main attention is paid to the bilateral trade, the problems of mutual investments and cooperation in the field of tourism are also regarded as well as a cooperation in the field of banking for organizing cross border payments using digital technologies, a cooperation for stabilizing rubber prices and for prevention of illegal fishing.

ТОРГОВО-ЭКОНОМИЧЕСКИЕ ОТНОШЕНИЯ РЕСПУБЛИКИ ИНДОНЕЗИЯ И СОЦИАЛИСТИЧЕСКОЙ РЕСПУБЛИКИ ВЬЕТНАМ

The article id devoted to the problems of bilateral trade and economic cooperation of two ASEAN country-members, Indonesia and Vietnam. The main attention is paid to the bilateral trade, the problems of mutual investments and cooperation in the field of tourism are also regarded as well as a cooperation for prevention of illegal fishing.

Performance Evaluation and Growth of Selected Islamic Mutual Funds Schemes: an Analytical Study

The most popular way to invest is through mutual funds in today's world. Profitability is particularly high in the Saudi financial market for mutual fund companies. Investors prefer Islamic mutual funds over non-Islamic mutual funds because they believe they are more secure and risk-free. This research aims to vary the customer preferences toward Islamic mutual funds, which offer higher returns within the Saudi economic market. All these will be identified as victimization sure key facts. With the assistance of those critical facts, a capitalist will analyze dissimilar mutual funds and put his cash in an exceeding fund that fits his exposure perception. This study evaluated the Mutual fund returns using, Maximum returns, Minimum returns, and Average returns compounded by the annual growth rate. The standard deviation and risk per average return (standard deviation/average return) have been used to evaluate the risk and return of the funds. Furthermore, fund managers assess the fund’s performance in terms of –Performance for the existing year (YTD) of the fund. As a result of the research, it was discovered that the overall performance of mutual investments in Saudi Arabia's economic market was better than expected for all the selected funds.

Ukraine as a Country of Focus for the Government of Canada in the Context of Russia’s Aggression

The central thesis of this paper is that Canadian-Ukrainian relations have fostered certain peculiarities due to the fact that in Canada (the Land of Maple Leaf), a hefty percentage of citizens are of the Ukrainian origin. Social mobility of the Canadian Ukrainians is traditionally forcing top-level authorities to have their focus resolve around the Ukrainians’ needs and expectations. Noteworthy, since the World War II, Canada has been a pivotal role in constant efforts to strengthen Ukraine’s democracy. While ardently supporting Ukraine’s will for gaining its independence, after dissolution of the Soviet Union, Canada’s government acted in compliance with the international law. Particularly, the Soviet Union’s collapse put Ukraine on the map of the international political landscape and made it known to become independent from the Russian Federation. It should be articulated, Poland was first country to recognize the independence of Ukraine on December 2, 1991. Canada was the second world state to have acknowledged Ukraine to be a sovereign state. In the 30-year-long-run Ukraine gained worldwide recognition. Undoubtedly, Ukraine- Canada relationship has laid its crucial fundamentals for the global acknowledgment. The author of the article estimates that both countries have signed more than 50 documents, which are handling their relationship. According to the author, sovereign Ukraine is an especially important factor for European security, which is facilitated by the present-day Canada-Ukraine relations. The author of the article emphasizes on Canada-Ukraine relations to be recognized as a unique and genuine partnership. To be more precise, the scholar discloses the significant value of the Joint Declaration on Special Partnership signed in 1994, which was extended twice - in 2001 and 2008. Remarkably, the paper analyzes Canadian-Ukrainian relations from the beginning till 2018. It highlights two stages f the relations establishment - before 2014 and after the Russia’s aggression against Ukraine. Furthermore, the author stresses on his personal contribution in the scientific research on Canada’s policy in terms of Russia’s aggression against Ukraine over the years. Provisions of the article are proved by the relevant Canadian-Ukrainian documents. In addition to the mentioned Declaration, there is an Agreement on Friendship and Cooperation between Ukraine and Canada, dated 1994. Document reaffirmed both sides’ commitment to the democratic values and the principles of market economy. It also defined development in the political, security, economic, social and cultural areas of Ukraine-Canada relations. Since the article is devoted to bilateral relations between the two countries in extremely difficult time for Ukraine, related to Russian aggression, article says a lot about the aggression itself, about the support for Ukraine to overcome it, about the reaction of the world society. To confirm it, author involved a bilateral document Defence Cooperation Arrangement, dated April 3, 2017. The body of the article goes on to emphasize Canada’s bolstering democratic and market reforms in Ukraine. However, the author draws attention that the current trade and mutual investments capacity leaves much to be desired. Nevertheless, the Canada government and the pro-Ukrainian Canadians provided significant support to Ukraine during the Orange Revolution and the Revolution of Dignity. Authorities in Ottawa denounced Russia’s aggression against Ukraine by joining the sanctions imposing policy of the Western countries. Ottawa has clearly spoken out against Russia’s annexation of Crimea and destabilization in Donbas and supported sale of the lethal weapons to Ukraine. First of all, Canada supports Ukraine through diplomatic policy, as well as in Ukraine’s efforts in implementing economic reforms and strengthening the state security system.

Methodological Aspects of the Accounting System in the Russian Federation and China

In the modern world, numerous accounting systems operate in different countries. Accounting performs one of the most important functions — the management of the organization and is the basis of information support in general, as well as a means of communication at the international level. At the same time, there are many differences in the accounting systems of different countries, in the principles of their functioning and in regulatory control. The accounting systems of Russia and China are determined by the historical features of their development, are based on national traditions, and depend on the state of the economy. There is one feature in common between the Russian Federation and China, namely state regulation. China began to introduce market mechanisms into the economy earlier than Russia, and, accordingly, to develop accounting for the new accounting objects that appeared. Accounting in China is also determined by the ratio of public and private ownership organizations. The main share is comprised of private enterprises, including those with a large share of foreign capital, which leads to the tendency to apply IFRS. An important feature of accounting in the PRC is the ability to develop rules for accounting for individual transactions at the regional level and inform the Ministry of Finance of the PRC about this. Accounts in the Russian Federation are kept according to the same rules. Chinese private enterprises are free to choose the currency and the language of accounting, unlike Russian ones. Accounting is influenced by the specifics of taxation. The Trans-Baikal Territory borders with China, which leads to mutual investments. Knowledge of the specifics of regulatory control, similarities and differences in the principles of building accounting systems will contribute to the development of joint projects.

ДВАДЦАТЬ ПЯТЬ ЛЕТ СООБЩЕСТВУ РОССИИ И БЕЛАРУСИ: ИТОГИ И ПЕРСПЕКТИВЫ

April 2,2021 marks the 25th anniversary of the signing of the Treaty on the Union between Belarus and Russia, which laid the foundation for integration of the two countries. The article analyses results of the twenty- five-year development of the Russia-Belarus relations and assesses their pros- pects with account taken of the events developing in Belarus in 2020–2021. Considering the activities of the Union State of Russia and Belarus, the author summarises two key historical periods in the association functioning and gives their analytical characteristics. The paper focuses on the main integration achievements of cooperation in spheres of the economy (interstate trade, mutual investments, joint ventures, industrial and high tech cooperation, cus- toms policy), defence (organising a common defence space, mutual armament supplies, manoeuvres), science and culture. The author also studies numerous issues that arise from time to time in the relations between the Russian Feder- ation and the Republic of Belarus (energy disputes, the Dairy and Meat Wars, etc.). Finally, the paper contains a detailed analysis of the development scena- rios for the Russia-Belarus relations on the immediate and mid-term horizons.

ФАКТОРЫ КРИЗИСА И РЕСТРУКТУРИЗАЦИИ МИРОВОЙ ФИНАНСОВОЙ СИСТЕМЫ

The article analyzes long-term economic patterns, examines the reasons for international integration and the creation of a new world economic order. Some reasons for the destabilization of the financial system of the planet are revealed, including the depreciation of the US dollar and the redistribution of property rights through the financial market. The analysis of the dollar financial system in the modern conditions of hybrid war is given, possible types of a new world economic structure, solutions for Russia and the world as a whole to create an economic security zone are considered. The conclusion is made about the need for de-dollarization of mutual trade and joint investments.

SCO 20 years: key achievements and the role of China

The article analyzes the process of development of the Shanghai Cooperation Organization (SCO) in the historical aspect and its current state. SCO was created as a regional association to maintain stability and security. Today, China is stepping up its efforts to boost regional economic cooperation. Based on the analysis of UNCTAD statistics for 2001-2019, the authors justified the conclusion that the economic potential of the SCO has significantly increased. However, this growth is not related to the economic interaction in SCO, but with the expansion, and with the growth of the individual countries’ economies, primarily the PRC. The analysis confirms, that the share of bilateral trade and the volume of mutual (especially Chinese) investments in the SCO are growing. International cooperation in certain areas has little real support at the level of the Organization as a whole. At the same time, the existing successes of the SCO countries in the economic sphere, the attraction of significant foreign investment and modern technologies, the gradual diversification of national economies, as well as new initiatives of the People's Republic of China, determine the deepening of economic cooperation, the mechanisms of which are of scientific interest. The relevance of the study is determined by the need to study the peculiarities of the SCO evolution and the positions of individual countries in SCO. The study makes a significant contribution to the understanding of the nature and features of the processes of economic cooperation and development in the region and the positions of individual countries.

ՖՐԱՆՍ-ԹՈՒՐՔԱԿԱՆ ՀԱՐԱԲԵՐՈՒԹՅՈՒՆՆԵՐԸ 21-ՐԴ ԴԱՐԻ ՍԿԶԲԻՆ

The article aims to reveal the foreign policy motives of the two countries in relation to each other and to determine the vision of the future solution of problems. The objectives of the article are to reveal the reasons for the aggravation and improvement of the French-Turkish relations, to present the positions and steps of the countries, showing the course of events. The research was carried out on the basis of descriptive and literary analysis methodology. This historical course of French-Turkish relations has been studied in order to re-identify the reasons for the revision of the deep motives of the relationship. As a result of the study, it can be concluded that the political dimension has a negative impact on relations, while the economic and cultural dimension - positive. The economic and cultural aspects of bilateral relations and mutual investments play an important role in the development of economic relations between the two countries. The two countries have always had common interests, which allowed them to restore relations gradually

Russia and Turkey: new trends and prospects at the present stage

The research of the scientific article is devoted to the current state of bilateral relations between Russia and Turkey, the main directions of cooperation and prospects of interaction. At the moment, in addition to comprehensive and deep relations between the two countries, Russia and Turkey are linked by trade, energy, investment and military cooperation. A survey conducted in Turkey showed that more than 70% of citizens have a positive view of the political and economic union with Russia. Turkey has become Russias fifth largest trading partner over the past two years, helped by the signing of a joint declaration on the lifting of trade restrictions and the normalization of economic relations. The article analyzes the volume of trade turnover with Turkey, considers promising investment projects, the role of mutual investments, and introduces formulas for calculating the indicators of complementarity and payback periods of the Akkuyu investment nuclear project.

Key Trends and Results of Kazakhstan’s foreign economic cooperation with the EAEU Countries

Five full years of the functioning of the Eurasian Economic Union (EAEU) provide an opportunity to highlight the main trends of cooperation under this association and to summarize some of their results. The article discusses the trends and results of Kazakhstan’s foreign economic cooperation with the EAEU countries in the main areas, including mutual trade, mutual investments, as well as some others. The analysis revealed that in most areas of cooperation between Kazakhstan and the EAEU countries during the period of the union’s existence, leading dynamics were observed, which indicates the positive results for the national economy of the first five years of operation as part of the integration association.

ФАКТОРЫ, ВЛИЯЮЩИЕ НА ВЗАИМНЫЕ ПРЯМЫЕ ИНВЕСТИЦИИ МЕЖДУ РОССИЕЙ И КИТАЕМ

The article is devoted to the study of the factors influencing mutual direct investments between Russia and China. The subject of the analysis is direct investment as a type of international investment made by a direct investor in order to implement its long-term strategy, which implies ownership of at least 10% of the voting shares of the enterprise-recipient of direct investment. The role of foreign direct investment in the economy accepting the capital is considered. The work establishes the factors influencing mutual direct investments, taking into account foreign experience. The research is based on general scientific methods of cognition (analysis, synthesis, and comparison), presentation of tabular and graphical interpretation of statistical information, time series, econometric modeling using the EViews software product. Basing on the study, the author concluded that the sanctions crisis in Russia in 2014 caused a positive surge in foreign direct investment in relations between Russia and China. However, the shares of mutual direct investments in the total volume are insignificant and average 0.11% for Russia and 0.15% for China. A significant positive correlation was found between Russia-China and China-Russia FDI with a lag of 1 quarter. Investment decisions are not routinely made at the beginning (end) of a quarter or year, but are determined by market conditions, as evidenced by autocorrelation functions for Russia-China and China-Russia FDI, which do not show a significant seasonal component in FDI statistics for both countries. The novelty of the article lies in the determination, using quantitative methods, of the factors influencing mutual direct investments between Russia and China.