Pest Russia

Topics: Russia, Soviet Union, Olympic Games Pages: 1 (354 words) Published: January 7, 2012
Political – The political risks are the same in any emerging market and all have to be considered by the possible new organisation.  Russia has a reputation for organised crime and corruption which has long been an issue for any investors.  There are very strict laws in Russia to do with mode of entry and so the country usually prefers to trade with its former Soviet allies.  Potential tourists could be eliminated from entering Russia due to the strict rules on visas for all tourists entering the country.  There are a number of policies, laws, marketing and advertising, and health and safety requirements which all international organisations must adhere to – if they do not they will be punished and may not be able to expand within Russia. Economical – Economic growth, population size and income are some of the factors which affect the choice location of firms.  This transitional economy is known for high rate of inflation, foreign trade deficits, high rates of unemployment and high costs of capital.  Although the low labour costs are often what attracts organisations to this emerging market there are a number of hurdles which they must get over before they even get to that stage.  The global economic crisis has caused the price of oil and gas to ‘dwindle’ which has caused huge fluctuations in the Rouble.  ‘The EIUU forecasts 2.5% GDP growth for 2010 and 4.1% for 2011, which represents a stronger and quicker rebound than in Western Europe’ (Geieregger, Chawala and Veller 2009)  ‘Russia has undergone significant changes since the collapse of the Soviet Union, moving from a globally-isolates, centrally-planned economy to a more market-based and globally-integrated economy’ (Central Intelligence Agency 2010). Social

 Russia has the largest land mass in the world spanning over 17,000,000 square kilometres.  Russia has a low populations growth at -0.465%
 Certain parts of Russia are improving on their infrastructure. For example Sochi are...
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