1. a mixed system currently exists. the country is moving away from a centrally determined economy, but there is along way to go, as can be seen from the information in the case, the transition is causing a great deal of economic upheaval. this may even result in a regression toward some of the previously employed, centrally determined decision making. however, the country is not going to go back to the old way of doing things because it has too much committed to its current course of action. in particular any further imf loans or assistance from the united states, japan, or the EU will depend on how well the country is holding the line and trying to make its market-driven economy work. so a mixed economic system will remain in place in fact, this is really the only path the russians can take in rescuing their economy.

2. russia certainly would benefit by gaining admission to an economic union such as the eu . it could then take advantage of a wide variety of benefits , including free movement of goods and services across borders, trade creation, the possible development of internal economic brought about by the huge market that would then be available for russian goods, and a strengthening of the nation's currency. of course , admission to the eu or one of the other major economic unions is unlikely to occur, at least within the next few years as the country is not stable. however, it would offer a very big boost to the nation's economy.

3. argument can be made on each side. Untapped natural resource and potential consumer demand could provide billions of dollars of sales for investing companies. On the other hand, the economy is in terrible shape, and it is likely to take years before Russia begins to provide an acceptable return on investment for many current projects. One of the major reasons for getting in now, is to try to gain a strong foothold in