Сборник статей I межвузовской студенческой научно-практической конференции "Unbalanced Global Economy And Rising Risks"

МОСКОВСКИЙ ГОСУДАРСТВЕННЫЙ УНИВЕРСИТЕТ 
имени М.В. ЛОМОНОСОВА 

ЭКОНОМИЧЕСКИЙ ФАКУЛЬТЕТ 
К а ф е д р а и н о с т р а н н ы х 
я з ы к о в 

СБОРНИК СТАТЕЙ 

I МЕЖВУЗОВСКОЙ 
СТУДЕНЧЕСКОЙ 
НАУЧНО-ПРАКТИЧЕСКОЙ 
КОНФЕРЕНЦИИ 
«UNBALANCED GLOBAL ECONOMY 
AND RISING RISKS» 

T E И С. 
Москва 
2013 

Б Б К 
65 

Печатается по постановлению Ученого совета 
экономического факультета МГУ имени М.В. Ломоносова 

при активном участии кафедры иностранных языков 
экономического факультета МГУ имени М.В. Ломоносова 

О т в е т с т в е н н ы е 
р е д а к т о р ы 
с б о р н и к а : 
зав, кафедрой иностранных языков ЭФ МГУ имени М.В. Ломоносова, 
кандидат филологических наук, доцент Л.В. Кулик, 
зам, зав. кафедрой иностранных языков по научной работекандидат филологических наук, доцент ЕМ. 
Клейменове 

Р е д а к т о р 
с б о р н и к а ; 
кандидат культурологии, доцент Л.А. Туринова 

Т е х н и ч е с к и й 
р е д а к т о р 
с б о р н и к а : 
старший преподаватель И.В. Гимофеев 

Сборник печатается по материалам, 
предоставленным авторами в электронном виде 

Сборник статей I межвузовской студенческой научно-практической конференции ^Unbalanced Global Economy And Rising Risks*. 

М.:ТЕИС, 2013.- 224 c, 

ISBN 978-5-7218-1330-6 

В сборнике представлены доклады, представленные на межвузовской студенческой научно-практической конференции МГУ "Unbalanced Global Economy 
and Rising Risks». 

ISBN 978-5-7218-1330-6 
© Экономический факультет 

МГУ имени М.В. Ломоносова, 2013 

МЕЖВУЗОВСКАЯ СТУДЕНЧЕСКАЯ 
Н А У Ч Н О - П Р А К Т И Ч Е С К А Я 
К О Н Ф Е Р Е Н Ц И Я МГУ 
И М Е Н И М.В. Л О М О Н О С О В А 
«НЕУСТОЙЧИВАЯ МИРОВАЯ Э К О Н О М И К А 
И РАСТУЩИЕ Р И С К И » 
( U N B A L A N C E D G L O B A L E C O N O M Y 
A N D R I S I N G R I S K S ) 

28 марта 2012 г. на экономическом факультете МГУ под эгидой кафедры иностранных языков была проведена 1 Межвузовская студенческая 
научно-практическая конференция «Unbalanced global economy and rising 
risks». Более 80 участников (бакалавров, магистров и аспирантов различных вузов экономического профиля - экономический факультет МГУ, 
Миланский университет Бикокка — Российская международная академия 
туризма» Государственный университет Министерства финансов РФ, Московский государственный технический университет, ГУ — Высшая школа 
экономики, Московский городской педагогический университет, Институт иностранных языков, РЭУ им, Г.В. Плеханова, Российская академия 
народного хозяйства и государственной службы при Президенте РФ, Московский государственный лингвистический университет) имели возможность представить и обсудить темы своей спеииальности с российскими и 
зарубежными коллегами-студентами на языке международного общения — 
английском. 

Обширная тематика конференции была представлена на пленарном 
заседании и в пяти секциях: 

1. 
Растущая взаимозависимость стран и увеличивающиеся риски. 
Growng interdependence and rising risks. 

2. 
Социальная ответственность бизнеса в инновационной 
экономике. 
Social responsibility of business in innovation economy. 

3. 
Роль глобальных брендов в современном мире. 
Brands and branding in the global world. 

4. 
Инновационно-экономическое 
развитие: 
научно-практическое 
применение. 
In novation-driven 
economic 
development: 
causes, 
essence 
and 
implications. 

5. 
Финансовые риски в современных условиях. 
Managing Risks in Financing & Banking. 

Доклады, сделанные 
на 
высоком 
уровне, 
рассматривали 
различные аспекты анализа: макроэкомического, регионального, секторально
3 

го, диахронического, аксиологического, кросс-культурного и т.д. Актуальные проблемы современности (от освоения космоса в форме частногосударственного партнерства, путей применения программ социальной 
ответственности бизнеса в различных секторах экономики до изучения 
устойчивости экономического роста в ресурсозависимых странах; от проблем в финансовом секторе до особенностей развития маркетинга и туризма) вызвали активную полемику и обсуждение. 

Результаты конференции нашли отражение в сборнике статей на английском языке, что, во-первых, дает студентам возможность практики написания научной работы в рамках международных стандартов. Во-вторых, 
опубликование статьи в сборнике является начальной ступенью их научной деятельности. 

Организаторы конференции благодарят всех участников и надеются, 
что большой интерес, который вызвала конференция, сохранится и вдальнейшем. 

Кулик Л.В., 
к.ф.н., доцент, 
заведующая кафедрой иностранных языков ЭФ 
МГУ имени М.В. Ломоносова 

C O N T E N T S 

Л. В. Кулик, 
завкафедрой иностранных языков ЭФ МГУ, доц., к.ф.н. 
Межвузовская студенческая 
научно-практическая конференция МГУ 
«Неустойчивая мировая экономика и растущие риски» 
(Unbalanced Global Economy and Rising Risks) 
3 

Agafonova Liudmila (Агафонова Людмила) 
Eradicating poverty through profit: 
Is there a market for multinational companies at the bottom 
of the pyramid? 
8 

Alekseev Sergey (Алексеев Сергей) 
Social responsibility of Islamic banks 
13 

Ataeva Maya (Атаева Мая) 
Tour operating: what is behind the brand? 
18 

Badalyan Marina (Бадалян 
Марина) 

Modern approaches to Corporate Social Responsibility (CSR) 
and the perspectivesof its development 
22 

Bahtigaraeva Asiya (Бахтигараева Асия), Triger Vicforia 
(Тригер Виктория), Sadygova Nafavan (Садыгова 
Иатаван) 

Islamic economy in the modern world 
28 

Bakaienko Andrey (Бакаленко 
Андрей) 

Corporate Social Responsibility in Sweden: learning from the best 
34 

Balycheva Yulia (Башчева 
Юлия) 

The dynamics of the innovation process: Russia and Europe 
40 

Bochkova Alexandra (Бочкова 
Александра) 

Growing interdependence in Central and Latin Americas 
46 

Bondaietov Vsevolod, VIasova Ksenia 
(Бопдалетов Всеволод, Власова Ксения) 
Stable currency in the age of the unstable economy 
51 

Dunaeva SvetIana (Дунаева 
Светшна) 

The role of government in innovation-driven economy 
56 

5 

Dyadina Marina (Лядина Марина) 
Great expectations: law, employment contracts, 
and labor market performance 
61 

Edelkina Anaslasia (Едеяькина 
Анастасия) 

The global challenge: a new international reserve currency 
65 

Egorova Yana (Егорова Яна) 
The Future of Banking Industry: 
Mobile channels implementation shakes the foundations 
71 

Ekazheva Tanzila (Экажева 
Танзшш) 

Risk management in small business 
76 

Ousarov Igor (Гусаров Игорь) 
Innovation in Russia in comparison to other BRICS countries 
82 

Kapustina Aleksandra (Капустина 
Александра) 

Luxury issues: 
a comparative study of Russian and global consumption 
86 

Khazanov Alexey (Хазанов Алексеи) 
Business and education — social partnership: 
Russian and global experience. Comparative analysis 
91 

Kostikova Svetlana (Костикова 
Светшна) 

Branding in banking 
97 

Legostaeva Kseniya (Легостаева 
Ксения) 

Russia and the European Union: mutual interest in cooperation 
in unbalanced global economy 
101 

Matviets Liudmila (Матвиец 
Людмшш) 

Designing a new crisis resistant super model 
105 

Morosova Anna (Морозова Анна) 
Regulation of foreign exchange rate in the Russian economy 
I l l 

Oita Alina Melania (Ouma Atuna Меяания) 
Innovative strategies for the cultural tourism development 
in the small historical towns of Russia and Italy 
117 

Pakhaiov Alexander (Нахалов 
Александр) 

Regional investment climate assessment based on business perception 
124 

Petreneva Ekaierina (Петренева 
Екатерина) 

Russian market of mergers and acquisitions 
129 

Petrova Yana (Петрова Яна) 
Future of the Eurozone; will the euro continue its existence 
as a unified currency? 
137 

Ryazhskikh Taiiana (Рижских 
Татьяна) 

Risk management in banking 
143 

Shautin Sergey (Шаутин Сергей) 
Barriers for Corporate Social Responsibility Programmes 
in innovative companies 
147 

6 

Shinkarenko Tatyana (Шинкаренко 
Татьяна) 

Modern Russia in the process of economic globalization 
153 

Shved Evgeniya (Швед Евгении) 
«Green» jobs as a new trend in decent work: 
problems of implementation 
158 

Skvortsova Karoiina (Скворщта Каролина) 
Peculiarities of family business in Germany 
163 

SoIovova LiudmiIa (Скворцова 
Людмила) 

CSR-driven innovation 
167 

Sosnova Ekaterina (Соснова 
Екатерина) 

The impact of Russia's WTO accession on financial sector 
171 

Suchkova OIga (Сучкова Ольга) 
The ElTs fiscal consolidation's role after recession 
177 

Sushko Sofia (Сушка Софья) 
Game theory: modelling of economic decision-making process 
181 

Taranovskaya Poiina (Тарановская 
Полина) 

Adoption of FATF recommendations as an effective instrument 
for foreign capital attraction in Russia 
186 

Tsushko Vadym (Цушко Вадим) 
Business associations: a source of "Social Capital" 
or
 ttRedistributive Coalitions"? 
189 

Turinova Ofga (Туринова Ольга) 
Social Responsibility of Business: shift in the set of values. 
Diachronic and cross-cultural analyses 
196 

VeseIiiskaya Natalia (Веселшпская 
Наталия) 

CoIIaborRtion between universitiesand industry for the development 
of intellectual resources in Russia 
203 

Viasenko Ekaterina (Власенко 
Екатерина) 

The pillars of luxury brand marketing 
207 

Vorobyeva Julia (Воробьева Юлия) 
lnconsisient
 1 E R A - G L O N A S S

4 
211 

Yashuang Ding (Яшуан Дин) 
Chinese economic model 
215 

Zinina DanieIa (Зинина Даниэла) 
The analysis of international rating system and its usage 
in logistics efficiency measurement in Russia 
220 

LiudmWa Agafonova^ 

State University of the Ministry- of Finance of the Russian Federation 

Eradicating poverty through profit: 
is there a market for multinational companies 
at the bottom of the pyramid? 

Abstract 
Nowadays companies realize that increase profits is not the only one responsibility of 
business, they try to eliminate poverty. Prahalad states that improving lives of people 
is not only a noble endeavor, but also a lucrative one. ft is proved in this work that 
by selling more goods to the poor MNCs can neither make big fortune no eradicate 
poverty. But there is a strategy that really works, — innovations in price-quality 
trade-off and focus on the poor as producers, 

Key words: Social Responsibility, Bottom of the Pyramid, Eradicate Poverty, 
MNCs 

Improving the lives of the billions of people at the 
bottom of the economic pyramid is a noble endeavor. 
It can also be a lucrative one. 

C. K. Prahalad and A. Hammond 

Atraditional economic view on corporate social responsibility, expressed by 
Milton Friedman (USA) 1 says that there is only one responsibility of business to increase its profits, and it is the government who must deal with social and 
environmental issues [2]. But nowadays, due to globalization, companies cannot 
rely on standard economic theory, especially in developing countries. In many 
of them the economic and legal frameworks are not sufficient or even missedTherefore companies have to decide themselves these sensitive issues, - like human 
rights, ecological problems and poverty. CSR (Corporate Social Responsibility) 
often becomes a business case for the companies, because it really helps to build 
good reputation in product, labour and financial markets and can be a measure 
of risk management. CSR improves the company image significantly and brings 
a positive contribution to society. But can social responsibility be a new source 
of profit to a company? Can a business, based primarily on helping others, be 
profitable? 

C- K. Prahalad (India), a Hindu economist, says yes, it definitely can be. 
He made a breakthrough and caused a lot of discussions in economic sphere at 
the beginning of 21-st century

1 by publishing his revolutionary research about the 
fortune at the bottom of the economic pyramid. 

The term
 tBottom of the Pyramid

1 was developed by C K. Prahalad himself 
and first used in his book The Fortune at the Bottom of the Pyramid: Eradicating 
Poverty through Profits. Bottom of the Pyramid is an economic term referring 
to the largest but the poorest socio-economic group constituting more than 
2.5 billion people that live on less than $2.50 a day. 

e 

In favor of his theory Prahalad states that there are more than 4 billion people 
with per capita income below $2 per day at PPP (Purchasing Power Parity) rates. 
It is a huge non-oversaturated market [8, 4]. 

'Markets at the bottom of the economic pyramid are fundamentally new 
sources of growth for multinationals. And because these markets are in the earliest 
stages, growth can be extremely rapid

4 — said PrahaIad (9, 6]. 

He insists that serving the poorest people is very profitable, and this is a real 
opportunity for corporations. The BOP is a new source of revenue growth, because 
of economies of scale. This trading can give an access to innovations, otherwise it 
is difficult to adapt to the BOP market. And it is also good from ethical and social 
side. MNCs can eliminate poverty and improve living conditions of the poorest 
people in rhe world. So it seems to be a win-win situation for both players — for a 
business and for a society. 

But some economists do not believe in efficiency of this theory, especially that 
the BOP can be a crucial source of profit for MNCs. They have good arguments 
to prove their point of view. 

First of all, Prahalad over-estimates the number of the poorest people. The 
World Bank states their number was 2.7 billion people in 2001 that is 1.5 times 
less than in Prahalad

1S book [The World Bank1 2005]. The BOP market is huge 
in terms of numbers of consumers, but small monetarily. The market size is S 1.2 
trillion at PPP in 2002. PrahaIad claims that it is $13 trillion! 

The BOP market is unlikely to be very profitable, especially for MNCs. Large 
companies usually make a profit by using economies of scale. But in the BOP 
market it will not work, because distribution and marketing costs will be too high 
(the poor are geographically dispersed). And one more problem arises here - small 
size of each transaction. 

There are some successful examples in Prahalad's book of how companies 
help the poorest people just by marketing for them. But the BOP is not designed 
for every company, because it has to adopt a new strategy which differs much 
from their core business environment. 

Prahalad states that the poor often buy Tuxury

4 items [9. 5], but it is just 
impossible as they are spending about 80% of their income on food, clothing and 
fuel |3|. There is no more money left for luxuries. 

Companies which follow the BOP theory usually fail, because they 
overestimate the purchasing power of the poor and set prices too high. All 
examples of business in Prahalad

1S book which make a profit are small-sized or 
local ones, but not MNCs. MNCs have already realized that there is no fortune 
at the BOP or they have no competitive advantages there, so they are even not 
trying to penetrate this market. This theory may be a good option for companies 
which want to provide non-economic benefits for society. Small-sized companies 
can make a profit, but not MNCs. Let's look at the opportunity of profiting for 
the poor. Will providing them with more goods really help, as Prahalad says? 

The poor are not very rational in their purchasing. A. Banerjee and E. Dufio 
(India) state that the poor 'could easily save more without getting less nutrition by 
spending less on alcohol, tobacco, and food items such as sugar, spice and tea"[ 11, 
The poor usually make bad choice. For example, there is a story of Hasanh a 
rickshaw puller (7, 19]. He spends $0.20 per day on tobacco. But he cannot afford 
to buy eggs for his 3 children because he has no money for them. If he didn't 

1J 

buy tobacco, each of his children could eat an egg a day (nutrition food) and be 
healthier. The poor are not really 'value conscious consumers' and this is a big 
problem. 

Let's consider another example. A. Hammond and C. K. Prahalad (India) 
tell a story of a poor woman who is proud because she can use a fashion product, 
a skin cream marketed by Unilever. Prahalad states that the poor woman 'has 
a choice and feels empowered because of an affordable consumer product 
formulated for her needs'. But to really empower the woman we should make her 
not so poor, more educated, and financially independent and it is not enough just 
to sell her a fashion cream. According to the CSR principles a company needs 
social and cultural changes that eliminate the prejudices which are the reason why 
she is buying this lightening cream. Otherwise, it seems that Unilever helps to 
sustain these prejudices to make a big profit on it. It looks morallv problematic 

Getting to consume more will not solve the problem of poverty. Because the 
real challenge is that the poor just cannot afford to consume more. So helpfulness 
of providing more goods to the poor, stated by Prahalad, seems to be unrealistic. 

Does it mean that MNCs cannot eradicate poverty at the BOP, without 
losing a big part of profit? No, there is a sophisticated way to help the poor — to 
raise their income by 

lower prices of the goods that the poor buy; 
higher income that they earn. 
There are 3 ways ю decrease prices [7, 22—23] 
1) 
decline profits; 

2) cut costs without reducing quality; 
3) 
cut costs by reducing quality. 

Of course, companies will not decline profits, so the only way is to cut costs. 
The BOP theory claims that we should cut costs without reducing quality. But in 
reality the cost-quality reducing works well. For example, Nirma in India. This is 
a cheap washing powder and not of high quality. But the price is one third lower 
than competitors' price. So, the poor like inexpensive goods, this is because they 
cannot afford high quality products. Company Nirma is very successful. This is a 
win-win situation. Selling inexpensive, low-quality goods does not hurt the poor. 

Costs can be reduced without lowering quality only by technological 
improvement. But it will not work well for the products, which arc really needed 
by the poor (food, clothing, fuel). 

Prahalad says that pay-per-use strategy also reduces costs. It means that 
companies should sell small packages of their product, because the poor are 
insecure in their future revenues and are not going to buy long-lasting big packages. 
But in some cases like jam or milk powder, larger packages are better selling than 
small ones. Also it can decrease overall consumption and a company should keep 
costs lower compared to big packages. Therefore it makes no economic sense. 

So how can socially responsible companies help the poor without exploiting 
them? 

First, a company should not evaluate the poor as rational consumers and 
should help them with selective consumption. It's important to assure that the 
products sold to the poor are safe and of decent quality, and they offer decent 
value. 

in 

Second, a company should evaluate the poor as producers. It means to raise 
the income of the poor by buying from them, rather than selling to them, it should 
be mentioned that the BOP theory is focused on the poor only as on consumers. 
One of the examples of efficient markets is AmuK a large dairy cooperative in 
India [4, 20-21]. Amul collects milk from 2 million farmers and sells more value 
added products, like butter, milk powder, cheese, ice cream to middle and high 
income group. It is good example, because Amul is owned by the poor, buys from 
the poor and sells to the top of the pyramid. 

Third, economic growth is the best way to eradicate poverty. 
Fourth, it is necessary to create opportunities for employment with reasonable 
wages. Rather than lending $200 to 500 women to buy a sewing machine and 
to start a microenterprise, it is better to lend $100,000 to an entrepreneur with 
business acumen and help her to set a business employing 500 people [4, 24]. 

Fifth, try to increase productivity to increase wages. 
And finally one of the most important options, which should accompany any 
of previous ones, is the governmental support. MNCs can solve the problems of 
poverty and increase income, if the government helps with public safety, baste 
education, public health, and infrastructure. 

So, companies are trying to be socially responsible nowadays, especially when 
they are dealing with developing countries. Prahalad attracts our attention to the 
huge market at the bottom of the economic pyramid. His theory has some good 
points, but he made a big mistake trying to persuade MNCs to trade at the BOP. 
As we know large companies are using economies of scale, so for them it is not 
recommended to go to the poor. 

Small private companies should try to market to the poor, using Prahalad's 
theory, but their profit still will be modest- The best opportunity exists for those 
creative companies which can reduce the price by changing price-quality trade off in the way the poor will accept it. 

The private sector can help by focusing on the poor as producers, investing 
in upgrading their skills and productivity and creating more jobs. Agood decision 
will be investing in education — human capital. From the consumers point of 
view education can help to make better choices and spend their limited resources 
properly. 

And it is very important to have the support of government, because without 
it companies cannot change a situation dramatically. The government should 
follow a policy to eradicate poverty. 

Then we can start to talk about not just the fortune at the bottom but also the 
fortune for the bottom of the pyramid. 

References 

1. 
Baneijee, A., Uuflo Ь the Economic Lives of :he Poor // Journal of Economic 
Perspectives. 2006. 

2. 
Friedman, M. The Social Responsibility of Business is to Increase its Profits / / The 
NewYork Times Magazine. September 13, 1970. 

3. 
Gangopadhyay, S., Wadhwa, W. Changing Pattern of Household Consumption 
Expenditure. — Society for Economic Research & Financial Analysis, New Delhi, 
2004. 

11 

4. 
Jaiswalf А. К. Fortune at the Bottom of the Pyramid: An Alternative Perspective- Indian Institute of Management. India. 2008. 

5. 
Karamchandani A., Kubzansky M-, Lalwani N-, Is the Bottom Of the Pyramid Really 
for You? И Harvard Business Review. 2011. 

6. 
Karnani4 A. DoingWelI By Doing Good. Case Study: "Fair& Lovely

41. 2007. 

7. 
Karnani4 A. Fortune at the Bottom of the Pyramid: A Mirage. — University of 
Michigan. 2007. 

8. 
Prahalad, С. K. Fortune at the Bottom of the Pyramid: Eradicating Poverty through 
Profits. — Wharton School Publishing. 2004. Prahalad, C. K., Hammond, A. Serving 
the World's Poor Profitably / / Harvard Business Review, 2002. 

9. 
(URLl) Business Dictionary http;//www.businessdictionary.com/definition/bottomof-the-pyramid.html. 

Sergey Alekseevl 

Lomonosov Moscow Siaie University 

Social responsibility of Islamic banks 

Abstract 

The article describes the differences between lslatnic banks and their Conventional 
counterparts: different approaches to dealing with depositors, borrowers and 
investments. The paper proves that "Islamic" schemes of banking are more socially 
responsible than "conventional" schemes. The main aim of the research is to highlight 
the controversy and ambivalence of CRS in the Islamic banks. The article Is for 
students of economics and for everybody who is interested in unusual ways of doing 
business. 

Key words: Islamic banking. Conventional banks, interest-free banking, return on 
current accounts, profit and loss sharing (PLS) 

1. Introduction 

The problem of social responsibility in business has always been very 
important, especially in the banking sector. Nowadays, after the global crisis of 
2008, banks are being blamed for many sins: they collect money of the rich clients 
and pay them a fixed interest "for doing nothing" [5]. On the other hand, banks 
provide consumers, entrepreneurs and corporations with credits and demand 
their money plus fixed interest payments back regardless the success of a venture. 
During the last economic Recession, the banking sector was accused of blowing 
financial bubbles and thus undermining the real sector of the economy, rising 
unemployment rate and bringing down the welfare of the society [5b Sometimes 
banks are involved in money-laundering activities [6| and thus encourage criminal 
and illegal businesses. 

In the middle of the XXth century, the concept of Islamic banking appeared. 

[7] Islamic banking is not only the marketing strategy, the way to attract people 
who practice Islam to the bank or the way to split the target audience into 
several consumer groups. The main difference between an Islamic bank and a 

uConventionar' bank lies in social responsibility: the clients of Islamic bank do 
not face unfair principles mentioned above. 

As to cultural and ethical foundations, Islamic banking idea is based on 
Islam's holy books, Quran and Sunnah. According to Islam, a person is not 
the owner of any kind of wealth. All wealth belongs to its creator, the God, and 
people are temporary users of it. Therefore, every rich person should use his/her 
wealth in a proper way: not to waste, not to use as a means of destruction; money 
has to work and help other people, 

2. Islamic banking concept 

2.1. Dealing with the depositors 

Focusing on economic foundations of Islamic banking, which means the 
prohibition of interest, the creditor has to share risks with his debtor in order to 

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