International Business Assignment Russia

Topics: Russia, Soviet Union, Russians Pages: 7 (2378 words) Published: May 23, 2013
International Business Assignment
Russian Federation

Would it be advisable to invest € 20.000.000,- in the country which you have studied? ‘Russia’…Russia is the largest country in the world and is the 7th largest economy in the world by GDP. Russia has undergone significant changes since the collapse of the Soviet Union and sustained a massive economic growth the past couple of years. It is a country of large differences and were almost everything has a price a lot of rich but still a lot of poor though Russia’s middle class is on the rise. It is a country with a lot of different ethnic minorities, cultures and demographics and is also known as one of the countries with 4 seasons . Both Russia’s positive and negative circumstances are in a extreme way and hard to distinguish from each other when measuring FDI. But at first sight Russia will definitely be one of my first choices in this case because when doing enough research you will be able to measure FDI in success full way without being limited and by avoiding the negative circumstances . What we also shouldn’t forget is that the Russian federation has a lot of autonomic republics within it Witch are sometimes seen as completely different countries.

This is also something that extends the possibilities when investing in Russia. Besides huge research costs and different/complicated diversions you are facing when investing in Russia, it would definitely be worth taking it in consideration in my opinion.

While Russian democracy may not be a total oxymoron, it is most certainly a work in progress with Vladimir Putin remaining a massive influence on the acquisition and exercise of power. Observers describe the current state of the Russian political system as "managed democracy" or "sovereign democracy" or simply as "Putinism". The dismissal of Russia's powerful prosecutor-general Yuri Skuratov in 1999, the indictment of Russia's richest oligarch Mikhail Khodorkovsky in 2003 and again in 2010, and the unexplained murder of investigative journalist Anna Plitkovskaya in 2006 are but the most dramatic examples of the iron grip on political power exercised by Putin and his allies. The dominant political clan in Russia is often referred to as the siloviki, veterans of the security and military establishment led by Prime Minister Putin himself. Some believe that there is a more liberal clan focused around President Medvedev. Perhaps to the surprise of external observers, Putin's leadership is widely popular among the public, partly because it is seen as restoring Russia's standing after the humiliating collapse of the Soviet Union, partly because it follows in a long historic tradition of strong central leadership stretching from the Tsars and through Stalin. More widely, the political battle lines in Russia are not for or against democracy or corruption; all parties are notionally for democracy but know that it does not exist, while all parties are theoretically against corruption but do nothing to tackle it. The real battle line is between centralization and regionalism, that is whether all meaningful power should reside in the Kremlin or whether power should be shared with the regions and major cities. Vladimir Ryzhkov, a Kremlin opponent and former Duma deputy who lost his seat in 2007 after he was banned from the elections, said of the 2008 extension of the terms for both the President and the Duma: "This is very negative. It's a clear signal that the regime will be authoritarian and autocratic, and control everything. It's all about keeping power. The tsar was constrained by the aristocracy. The party bureaucracy controlled the general secretary. Today the president controls parliament, the senate, regions, the bureaucracy and the security services, as well as oil and gas." In 2011. the last president of the former Soviet Union Mikhail Gorbachev said of the current Russian political system: "We have everything - a parliament, courts, a...
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