...The Russian Ruble Crisis of 1998 is termed as among the worst financial crisis to hit the Russian economy. The Crisis is believed to have been triggered by a number of factors. The Asian financial crisis of 1997 is a major cause of the crisis as it led to declines in the world commodity prices (Owyang, & Chiodo 2002, p. 7). Just to be appreciated is the fact that Russian economy was heavily dependent on oil. There are other reasons such as the downfall of the Soviet Union in 1991 and the economic difficulties it brought to the Russian nation. Another common cited reason is poor financial policy practices by the Russian government as well as political crisis that were witnessed in the nation earlier that year (Owyang, & Chiodo 2002, p. 7). The Russian financial crisis had various political and economic consequences. First, the crisis compromised the confidence of the citizens of Russian to the government of president Yeltsin. Indeed, facing much opposition in the parliament, Yeltsin was forced to fire Kiriyenko as the prime minister and nominated Foreign Minister Yevgeny Primakov to the position (Tarassova, Kraakman, & Black 2000, p. 12). On the economic front, the Russian crisis led to the collapsing of the Russian stock, bond, and currency market on august 13, 1998. This was a direct result of investors fear that the government could devalue the ruble as well as claims of failure by the government to repay its domestic debts. This paper gives a critical analysis...
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...This discussion in turn boils down to the question “what is globalization?” According to me globalization is a word which has its origin from the process of transformation from self-sufficient civilizations to modern countries having specializations and doing trade. Globalizations finding its way back from 3000BC to the most recent times; it can be defined in various ways depending upon time. Gunder Frank’s theory of dependency explains it all. Globalization was always need driven, more was the need more was globalization in terms of trade, people, colonies, power, labor, etc. so it can be said that in a world of self-sufficiency globalization dies, only when the markets are volatile, globalization has its pace and when a particular segment becomes saturated in every economy there would be no exchange of this good or service or technology from one another and the scope for globalization ceases. When each country has a holiday destination like Miami nobody would be ready to come all the way spending more money. This is very much a reason for more south to south trade and south to north trade rather than north to south. With this transition or reform in the economic flow we can say the world is being pulled apart. The question “the world is still not flat?” is a comparative term and drawing back the lines to the 3000BC, I would say the world is flat. Russia is a young economy with great scope of development. After its economic reform in 1999 it faced a huge inflation because...
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...Introduction: The purpose of this report is to consider The Russian Crisis of 1998. What events led to this crisis, how it affected ordinary citizens and the effect it had on the world capital markets. We will also discuss the role IMF and other countries played in helping with the crisis. What the Russian government did in order to stabiles the situation and what role politics played in the process. We will use a number of sources in order to complete this report. Question One: What event is recognised as the beginning of the crisis? The Russian crisis begun on August 17th 1998 when the central bank of Russia announced that it would widen the intervention bands from ruble. It meant that the ruble was allowed to fluctuate against dollar. As a result, the exchange rate of the ruble fell steadily which led to a collapse in Russia economy. However, the crisis was not caused by a single event. It was a consequence of a continuing downward trend in Russia economy since its economic reform in 1991. The crisis’s seeds were sown from that day. The main causes of this crisis could be divided into 3 timelines: * Period 1991 – 1996: In 1991, Russia changed from a very strictly centralized economy to a market economy. Up until then, the Soviet played the most important role in subside all the state sectors. It consumed one-third of GDP and supported at least every third man, woman, and child (Roman, G & Robin, M – 1999). When the real prices were introduced, these state sectors...
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...Federal State Budget Institution of higher education «FINANCE UNIVERSITY UNDER THE GOVERNMENT OF THE RUSSIAN FEDERATION» Chair of «Macroeconomic regulation» Essay Moscow 2014 Introduction 3 Main part 4 The impact of sanctions on the financial sector 4 The impact of sanctions on the industry of the Russian Federation 6 The impact of sanctions Russia in the nearest future 7 Conclusion 9 Introduction The first sanctions against Russia were introduced on 6 March 2014, but they had a more symbolic and looked more like a friendly gesture from the West than on a real blow to the economy. The following steps restrictions for the Russian Federation have become much more significant and can cause serious damage to the Russian economy in the medium term. The effect of the sanctions were government officials, major banks, energy companies and the defense, in addition from European, American, Japanese, Canadian and Australian companies made a decision to limit the supply of technologies, weapons, minerals and other goods to the Russian market. According to analysts, in the current conditions on the results 2014 because of the sanctions, Russia will lose about 23 billion euros, or 1.5% of GDP, in 2015, almost 75%, which will further affect the economy and will account for almost 5% of GDP. It is important to note that in such conditions greatly slow down the inflow of foreign investment in Russia, 75% of them falling on the country's membership of...
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...Global Investor Publishing (GIP)’s financial problems are industry related. Two primary industry events lead to the 1998 Russian financial crisis: (1.) the onset of the Asian financial crisis in 1997 precipitated a speculative attack on the Russian ruble resulting in a loss of approximately $6 billion in foreign exchange reserves by the Central Bank of Russia for defending the ruble, and (2.) a decrease in demand for Russia’s largest exports, crude oil and nonferrous metals, triggered price drops that severely impacted foreign exchange reserves. On August 13, 1998, the Russia stock market, bond, and currency markets collapsed from investor fear of a government debt default and/or devaluation of the ruble. As a result, the Russian government was forced to default on its domestic sovereign debt, devalue the ruble, and suspend payments by commercial banks to foreign creditors for 90-days. Based on the timing of the Russian financial crisis, GIP’s 1998 net loss of -104.3% from the prior year (- $6,177 in 1998 vs. $144,710 in 1997), and the firm’s desperation to protect its market share from further decline, merging with Emerging Markets Fund Research (EMFR) makes sense. The merger would provide the combined firms with economies of scale, growth opportunities, diversification, increase revenues, expansion into new markets, defensive measures for protecting its market share, and management efficiencies. For a merger to successfully deliver an improvement in economies of scale...
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...Penn Foster Economics 1 Project 050477 The Volatile Russian Ruble The Russian ruble’s exchange rate from 2005 to 2010 was filled with its share of extremes when compared against the more stable United States dollar (USD). The United States was more developed, with a more experienced market economy that accommodated a managed floating exchange rate for their currency. Russia’s emerging market economy lacked the structure needed to provide stability to the ruble’s exchange rate due to inadequate monetary policies put in place by an inferior government and an overdependence on crude oil export prices for sustained economic growth. These collective differences are what set the dollar apart as a stronger currency than the ruble during this time period. In 2005, resource rich Russia was experiencing rapid economic growth attributed to a booming demand for crude oil. During this expansionary period, overall unemployment decreased, real wages began rising, and the poverty rate and gap began decreasing. Their economy was on a positive, uphill trend as oil prices kept raising. The ruble, which had been soft pegged to the U.S. dollar since 1995, was becoming stronger as it appreciated against other nations’ currencies. The United States, on the other hand, was contracting their economy in the face of those rising oil prices, war related debts, and devastating natural disasters. With the dollar threatening to depreciate in the open market, Russia’s monetary policy had to revolve...
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...Rus Wane Equipment Case Study Joint Venture In Russia Michael G Rutkowski Upper Iowa University Abstract Wane Machines Inc. engages in the manufacturing, installation, and maintenance of large scale heating and cooling equipment for office and apartment buildings. In February 1990 a joint venture was formed called Rus Wane Equipment with NLZ, a medium sized factory outside Moscow, that manufactured similar equipment, but of much lower quality. This case shows the difficulties that can arise if a company does not follow the organizational structure, management systems, and the human resources policies of the company. And how changing government legislation in a rapidly changing business environment like Russia, can have serious financial impacts and decline the advantages of a joint venture. This case shows the situations and difficult problems that can arise from a joint venture between Wane Machines, Inc and NLZ the Soviet partner company. Wayne Machines started in New York City and specializes in manufacturing, installing, and maintaining large scale heating and cooling equipment. The corporation is divided into four divisions that unite 50 companies in 160 countries. After exploring markets in Eastern Europe and the Soviet Union a Soviet-Belgian joint venture was formed in February 1990, called Rus Wane Equipment. Rus Wane established another joint venture with a St. Petersburg partner, to install and service its products in Russia. The market potential in the...
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...POL 101 Politics: Comparative Introduction State Role in Development Hypothesis—Development covaries with state capability in complex, population-dense world. Definitions of Key Terms state— territory, population, government, international capacity state capability—delivery of essential functions; providing physical security, efficient institutions to assure rule of law, competent administration development—diversified commons with overlapping, cross-cutting allegiances, interactive networks of communication, invention, production, distribution, innovation, regeneration, sanctioned by performance-linked status quality of life—pervasive literacy, discretionary leisure, opportunities for self-improvement and life-long education, various sets of friends and associates, choice of urban or country life, privacy, with adequate prosperity and technological sophistication to make it all work Comments ● Republic of Kazakhstan: Kazakhstan’s development of immense mineral reserves and massive economic prospective (major foreign investments in oil sector) co-varies with its state capability of efficient administration, primarily from competent leaders, like President Nursultan Nazarbayev. ■ Republic of Latvia: Under the rule of successful and competent administration, Latvia has been able to restore economic growth in times of global hardship, co-varying with its efforts in establishing a status as a world educator in transferring that knowledge to member states...
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...The Russian “Trepak” vs. The Ukrainian “Hopak” The popular FOX TV show “So You Think You Can Dance” began introducing various styles of dance to bring awareness of traditions of other cultures into the mainstream television in the US. In last season’s finale, the two top male dancers, Joshua and Twitch, danced a ‘Russian “trepak”’ while wearing Ukrainian folk costumes and dancing traditional hopak moves. The hopak is the traditional dance of Ukraine. This caused some controversy, and offended those from Ukraine as well as Russia. The dance was choreographed to music from “The Nutcracker”, which raised questions as well. The fact that the composer, Tchaikovsky, who was of Ukrainian origin, used Ukrainian folk melodies in his works does not make them automatically Russian. Just to give a little history, trepak, or hopak was developed and then danced by the Ukrainian Cossacks even before Ukraine was taken over by Russia. The costumes, choreography and music had nothing to do with Russian culture, but instead were tied to Ukrainian traditions. Russians have never danced “trepak” as part of their traditional cultural dance. The fact that the dance was presented as a Russian number was not only an uncharacteristic sign of ignorance, but also insulted many Ukrainians watching everywhere! The “trepak” and hopak are distinct Ukrainian national dances that even the Soviet government never suggested were Russian in origin! Also, it was said that it was “Russian street dancing”...
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...Country Analysis: Russia MBA Fall 2015 International Management in Sport and Entertainment Table of Contents Country Analysis: Russia 1 Introduction 1 Economic Environment 1 Political and Legal Environment 2 Culture 2 Conclusion 6 Country Analysis: Russia Introduction Russia is the world’s largest nation, covering 6,5 million square miles, with a population of 143 million people recorded in 2014. Russia borders European and Asian countries as well as the Pacific and Arctic oceans. In order to make a decision, concerning the market expansion of an organization into Russia, the economic environment as well as the political and legal environment will be analyzed with a focus on the cultural aspects. Economic Environment Russia is one of the BRICS countries (Brazil, Russia, India, China and South Africa), which are projected to be the fastest growing emerging economies, with a combined GDP of $16 trillion. With a GDP of $2.6 trillion, Russia is a leading exporter of natural gas and oil and is the fifth largest economy in the world. Services are the largest sector of the economy and accounts for 58 percent of the GDP. The most important segments in services include wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods. This represents 17 percent of total GDP; public administration, health and education (12 percent); real estate (9 percent) and transport storage and communications (7 percent). Industry contributes...
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...Russian Culture When talking about the culture of Russia, using the ASCOPE method is an accurate approach to get an overview of what the culture consists of and the breakdown of the important factors. ASCOPE an abbreviation for: Area, which is the geographic location or territory of the country. Structures, is a physical location and function that can hinder a military operation: schools, government buildings, mosques and cemeteries. Capabilities, which refer to limitations of key personnel and civilian organization: Health, education and social status. These can also be measured by what they produce. Organization, are categorized by the positive or negative impact of the U.S mission. People, understanding the people are the most important in Counter Insurgency Operations. Learning the people and relating to the people will benefit the country by limiting the mistakes from misunderstandings and will guarantee more accomplished missions. Lastly is Events, which are the cultures religious traditions and holidays or any specific event that is cherished amongst the people (Miles). “Know thy self, know thy enemy. A thousand battles, a thousand victories” (Sun Tzu, The Art of War). So, when looking at Russia it is important to take into consideration the aspects of ASCOPE, especially the people. Russia is located in northern Eurasia, and is considered to be the world’s largest country on the basis of territory. It spans over 17,075,200 kilometers and covers roughly one eighth of...
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...were joined with four Russian cosmonauts. The three researches were from Japan, Canada, and Austria. None of the participants spoke English as their first language, however they each communicated in English at varying levels of proficiency during their stay. The replica was no larger than the size of a train car. As part of the study, the researchers were asked to join the Russian cosmonauts for 110 days, after the four Russians had already completed almost half of their 240 days in isolation. Only one female, Judith Lapierre, was invited to participate in the experiment. She had a PhD in public health and social medicine, and had previously conducted isolation research in Antarctica. It should also be mentioned that this would be her fourth trip to Russia enabling her to learn the language. Lapierre claims that the Japanese and Austrian participants viewed her as something favorable. Lapierre created a comfortable environment by rearranging furniture, hanging posters and putting down a tablecloth on the kitchen table. Lapierre explained that the Russians only viewed their environment as something to be endured. It was during a New Year’s Eve party, when an event ensued that created tension between the participants in the study. After drinking vodka, two of the Russian cosmonauts engaged in a fistfight and had to be restrained by the other men. The two involved generally did not cope well with each other even before the incident. Soon after, the Russian commander grabbed Lapierre...
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...regional operations. Nearly all the work force will be recruited in Russia as they understand the culture and will be more capable of opening the market and helping to increase consumer confidence in the product. Another point to consider is that, while recruiting and staffing are a fairly straightforward processes for most American companies, some Russian companies have had to actively search for and recruit employees. In one case, a client seemed surprised that he should spend time and money looking for qualified employees. He assumed that prospective employees would come to him . This is not necessarily the case in Russia and is a good reason why a local person should be on ground handling most of the recruiting and staffing stages. Training and Development - Training and development plan should be outsourced to bring the best based on the business , cultural and political environment of Russia . Performance Management – Forty-four percent of Russian managers spend more than one-tenth of their time managing employees' poor performance, which is much less than in the rest of the world, unlike in Western countries, Russian manager have not established the...
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...DBQ Having lived in multi-national empires in Eastern and Southern Europe during the eighteenth century, the Slavic people began to think about having their own state. Beginning in the early nineteenth century, a movement called Pan-Slavism emerged, which was a movement pushing for just that. In 1848, the movement began to become mainstream and soon became a dominant movement. Many were opposed to Pan-Slavism, however, thus a debate arose which raised political and cultural issues. Those involved in this debate can be placed into four distinct groups: supporters of Pan-Slavic ideals, (Docs 3, 8) those against Pan-Slavism for Nationalist reasons, (Docs 4, 7, 9, 11) Supporters of Pan-Slavism for Imperial reasons, (Docs 1, 2, 5, 6, 10, 13) and those against Pan-Slavism for Empirical reasons. (Docs 11, 14) A discernable change over time is that as time progressed people became more sympathetic to the Slavic people and support for Pan-Slavism increased. Those who identified themselves as Slavs in addition to those who felt that the Slavic people were being oppressed were supporters of Pan-Slavic ideals. (Docs 3, 8) Bronislaw Trentowski, a Polish philosopher, says in a lecture that if he were czar, he would create a Slavic empire and destroy the Ottoman and Austrian empires. (Doc 8) Jan Kollar, a Slovak poet and early advocate of Pan-Slavism, preaches that all Slavs should unite as one nation because that is their true identity. (Doc 3) This opinion is due to a personal bias as...
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...An introduction to Russian: History, culture, and psychotherapy. Elms College Maxim M. Arbuzov Spring 2012 Abstract: On March 15, 2012, I landed in Vladivostok, Russia. I was amazed by the diversity and fast growth of the city since my last visit in 2006. Everything has changed the population has quickly grown, and people from around the world are visiting this place that is economically expanding. I seen family, friends, and professionals, which all knew my academic intentions. I talked a lot about social work and counseling, and more specifically: what would they do in times of crisis? Would they seek help? Where? I interviewed a few people of different age brackets, and they all had the same thing to say, for some odd reason; grab a bottle, head over to your best friends house, that is our therapy session. From this I became very interested in one underdeveloped and not heavily researched topic: psychotherapy and counseling in Russia. Introduction It is rather difficult to understand the status of psychotherapy in Russia nowadays, without background information on its history and culture. Russia among other nations has a long history of war and revolutions, which impacted every sphere of life for their populations. Different nations fell under the umbrella of the former “Soviet Union”, which is why Russia is such an interesting country to study because of the vast diversity. Along with diversity the most interesting part researching Russian Psychotherapy is that...
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