...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 40 percent to total output. Mining (11 percent of GDP), manufacturing (13 percent) and construction (4 percent) are the most important industry segments. Agriculture accounts for the remaining 2 percent (Trading Economics, 2015). Imports As reported by the central bank of Russia, imports in Russia increased to $16,972 Million in July of 2015. The main imports are food, which...
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...The Russian economy is the 10th largest economy in the world by GDP (1), and the 5th largest European country by GDP. The Russian economy has grown by 4.3% for the past two years (2) which is greater than both the global and European average GDP growth rate. Despite being the fifth largest economy by GDP in Europe, it is the second largest automotive market in Europe behind Germany and the seventh largest in the world (3). In 2011, there were 2.65 million light vehicles sold in Russia worth a collective $65 billion. The most popular car brand in Russia is Lada which controlled 22% of the market in 2011. This is down from the previous year where they accounted for 27% of sales(3). In June of 2001 General Motors entered into a partnership with Russian manufacturer AVTOVAZTogether GM and AVTOVAZ began producing the Chevrolet Niva which was based on the Lada Niva concept which was ultimately not produced due to AVTOVAZ’s lack of cash flow(4). The Chevrolet Niva has been a great success for both companies with demand outgrowing supply leading to a multiple month waitlist simply in order to purchase a Niva (5). This partnership has helped GM enter into the Russian market without much of an initial investment while being able to use AVTOVAZ’s expertise in the Russian market. The plan has been so successful that GM is recently approved an expansion of the production facility in Russia. (5) The Russian automotive market has a large amount of potential upside for GM. The Russian economy...
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...Situation in Russia * Russian politics gained considerable stability after Vladimir Putin became president in 1999. * Country managed to maintain 5.2% growth in 2008, the Russian economy contracted by 7.9% in 2009. The Russian economy recovered in 2010, however, registering a growth rate of 3.9%. * Key Factors * But despite its established and seemingly stable political structure, Russia is considered to be one of the most corrupt nations in the world. * Russia scored 2.1 out of 10 in the 2010 Corruption * Country’s current account surplus reached $72.6bn in 2010, which is an increase of around 47% compared to the previous year. * The new liberal immigration laws brought in many foreign workers, especially from the EU region; indeed, it was reported that the total number of foreign-born individuals who had entered Russia had risen to 14.5 million as of the end of 2008. Immigration laws play a vital role in attracting foreign direct investment (FDI) and, in Russia's case, they are presently adding to its strengths. * GDP Contribution by sector: Agriculture | 4.2% | Industry | 33.8% | Services | 62.0% | Russia has maintained a surplus position since 2000. Improved competitiveness and higher oil prices facilitated a dramatic turnaround in terms of current account, from a deficit of around 0.5% of GDP in 1998 to a surplus of 12% of GDP in 1999. This surplus increased further during 2000 to 18% of GDP. This marked improvement in...
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...Economic analysis Russia has the 9th largest economy in the world by nominal GDP (2097 billion USD) and the 6th largest by purchasing power parity. Since the end of Soviet Union in the early 90’s, Russia had developed a high-income economy with abundant natural resources, particularly oil and natural gas. The state has strengthen his dominance in the aerospace industry, mining, and oil and gas industries, but the budget remains heavily dependent on exports of natural resources, especially hydrocarbons which represents more than 16% of the national. Russia is also the 6th biggest producer of oil with Gazprom and finally the 2nd largest oil export of the world. As we can see on this map, actually oil and gas is brought from many part of the territory by pipeline and is routed in many countries of Europe and near East. According to the Us Energy Information Administration, in 2011 France imported more than 200 thousands barrels per day, and Germany about 700 hundreds of barrels per day, which represent one third of the German consumption in oil and gas. The independence of much European country into Russian gas and oil is one of the main strength of this new economy, it lead to an positive exchange balance and better and strong relationships as we know, with country like Germany, Netherlands and finally China. It is essential in order to analyze Russian economy, to understand that the labor force is not only based on industry force because this last sector represents 37...
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...The Russian financial crisis occurred on August 17, 1998, exacerbated by the global recession caused by the Asian financial crisis in 1997. Russia was highly dependent on exports of raw materials, with petroleum, natural gas, metals and timber accounting for more than 80% of its exports. With the drop in global demand, prices of those commodities began to decline. This resulted in an impact on its foreign exchange reserves since Russia had a fixed exchange rate regime during this period of time, where the ruble was only allowed to move within a narrow band. With the speculative attacks caused by the Asian financial crisis along with the decline in global demand, the Central Bank of Russia stepped in to defend the ruble in the markets. Russia was also experiencing fiscal deficits and declining productivity in its economy. Foreign capital was initially attracted to the Russian market due to the high interest rates, which was then used to provide internal loans in the country. The Gosudarstvennoe Kratkosrochnoe Obyazatelstvo (GKO) bond interest rates soared to 150% in an effort to prop up the currency and to stop capital flight. Internally, debt on wages continued to grow and financing for major big budget items were impacted as debt grew. The Chechnya War from several years earlier further compounded these problems. Russia also suffered from a political crisis where the entire government was fired in 1998, causing for investor confidence to be further eroded. ...
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...Approach to Calculating GDP Nominal GDP- the market value of all final goods and services from the nation in a given period of time. Table 1. Gross Domestic Product or nominal GDP (in Billions of dollars) | | 2012 | 2013 | | | III quarter | IV quarter | I quarter | II quarter | 1 | Gross domestic product | 16,356.0 | 16,420.3 | 16,535.3 | 16,661.0 | 2 | Personal consumption expenditures | 11,193.6 | 11,285.5 | 11,379.2 | 11,427.1 | 3 | Gross private domestic investment | 2,493.3 | 2,499.9 | 2,555.1 | 2,621.0 | 4 | Net exports of goods and services | -524.4 | -515.8 | -523.1 | -509.0 | 5 | Government consumption expenditures and gross investment | 3,193.5 | 3,150.7 | 3,124.1 | 3,121.9 | Table 2. Real Gross Domestic Product (in Billions of chained dollars) Real Gross Domestic Product (real GDP) is a macroeconomic measure of the value of economic output adjusted for price changes. | | 2012 | 2013 | | | III quarter | IV quarter | I quarter | II quarter | 1 | Gross domestic product | 15,534.0 | 15,539.6 | 15,583.9 | 15,679.7 | 2 | Personal consumption expenditures | 10,541.0 | 10,584.8 | 10,644.0 | 10,691.9 | 3 | Gross private domestic investment | 2,456.5 | 2,441.8 | 2,470.1 | 2,524.9 | 4 | Net exports of goods and services | -436.5 | -412.1 | -422.3 | -424.4 | 5 | Government consumption expenditures and gross investment | 2,988.8 | 2,938.8 | 2,907.4 | 2,904.5 | During the inflation the nominal GDP is higher than real GDP, because real values...
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...of the world's land area and more than 40% of the world's population. • Projections on the future power of the BRIC economies vary widely. Some sources suggest that they might overtake the G7 economies by 2027. • According to a paper published in 2005, Mexico and South Korea were the only other countries comparable to the BRICs, but their economies were excluded initially because they were considered already more developed, as they were already members of the OECD. Current leader Brazil - Dilma Rousseff, President China - Xi Jinping, President India - Manmohan Singh, Prime Minister `Russia - Vladimir Putin, President BRAZIL Brazil has the sixth largest economy by nominal GDP in the world, and seventh largest by purchasing power parity. The Brazilian economy is characterized by moderately free markets and an inward-oriented economy. Brazil’s economy is the largest of the Latin American nations and the second...
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...Introduction In the course of this work to be the best possible detail to explore the theme " Problems of the Russian financial markets ." Financial relations are a crucial element binding system of economic relations into a coherent whole , especially in the formation and development of market relations. The financial market is to establish direct contacts between buyers and sellers of financial of resource. He is one of the most important elements of any economy , because it allows to mobilize available cash flow and efficiently distribute them among those who need them , thus contributing to the activity of economic agents and the economy as a whole. Therefore, this topic is relevant since the inception of commodity-money relations and the emergence of the state with its functions and objectives. The Russian economic science problems of financial market models and methods of its regulation serious attention . Object of research - Russian financial market . Subject of research - development of the financial market in the Russian Federation. The purpose of this coursework is to familiarize with the history of the Russian financial market , revealing its contemporary problems and prospects of development .. To do this, perform the following tasks : • master the basic aspects regarding the financial markets; • familiar with the basic concepts ; • examine the current situation on the world market; An analysis...
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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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... |Tanzania |Uganda | |GNI |$60.27 Billion |$52.05 Billion |$36.08 Billion | |GNI per capita in PPP dollars |$1,550 |$1,260 |$1,140 | |GDP |$1,600 |$1,400 |$1,200 | |GDP Growth Rate |2.6% |6% |5.3% | |HDI |0.470 |0.398 |0.422 | |Inflation Rate |9.3% |21.4% |13.1% | |Public Debt |66.7% of GDP |21.4% of GDP |19.7% of GDP...
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...point of the whole research is to put oneself in the shoes of en exporter or investor. What does the investor want? He wants to gain as much return on investment as possible. What does this factor depend on? Actually, it depends on lots of nuances, but the most important is economic growth of a country. What if several countries show the same performance on average? The investor should choose between the ‘competitors’. Any favorable environment attracts new businesses and investments that increase its competitiveness. There are lots of factors to be taken into consideration when estimating the competitiveness of a county. Most of them have an impact on country’s GDP, so a brief look on it will give us a general picture of the state of a country’s economy and therefore its competitiveness. Russia has been showing stable GDP growth over the past years, which is certainly good. However, I strongly believe that the growth was rather artificial. Mainly because Russia’s economy is highly dependant on raw materials and most important - on its export prices. In this paper some theoretical concepts of...
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...(Iup201121) I choose Russian Market as my analysis objective. Because I wonder why they hold so strong economic and can be leading positions in many areas. So I will collect data to find some answers in this paper. 1) Culture Russia is a multinational state. In the Russian Federation than the Russians who make up more than 80 percent of the population live about 180 other Nations. Historically dominated by Russian culture, based on the Russian language, however some role in the development of Russian culture, play and culture relatively large regional peoples of Russia, such as the Tatars, Bashkirs, Kalmyks and others. 2) Demographic The population of Russia is 146 100 000 people. According to the 2002 year, ethnic Russians make up 80% of the total population, while six other ethnicities have a population exceeding 1 million - Tatars (3.8%), Ukrainians (2%), Bashkir (1.1%), Chuvash (1.1%), Chechens (0.9%) and Armenians (0.8%). In total, 160 different ethnic groups and indigenous peoples live within the Russian federation's borders. 3) Social Social factors are also very important to international business. For a international cooperation, they should do some adjustments in the local markets. There are many factors in the social categories, such as social value, attitudes toward success and ethic issues and so on. 4) Economic Russia belongs to the category of agro-industrial countries. . The Russian economy is the sixth among countries in terms of GDP. in 2012, the share...
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...(Iup201121) I choose Russian Market as my analysis objective. Because I wonder why they hold so strong economic and can be leading positions in many areas. So I will collect data to find some answers in this paper. 1) Culture Russia is a multinational state. In the Russian Federation than the Russians who make up more than 80 percent of the population live about 180 other Nations. Historically dominated by Russian culture, based on the Russian language, however some role in the development of Russian culture, play and culture relatively large regional peoples of Russia, such as the Tatars, Bashkirs, Kalmyks and others. 2) Demographic The population of Russia is 146 100 000 people. According to the 2002 year, ethnic Russians make up 80% of the total population, while six other ethnicities have a population exceeding 1 million - Tatars (3.8%), Ukrainians (2%), Bashkir (1.1%), Chuvash (1.1%), Chechens (0.9%) and Armenians (0.8%). In total, 160 different ethnic groups and indigenous peoples live within the Russian federation's borders. 3) Social Social factors are also very important to international business. For a international cooperation, they should do some adjustments in the local markets. There are many factors in the social categories, such as social value, attitudes toward success and ethic issues and so on. 4) Economic Russia belongs to the category of agro-industrial countries. . The Russian economy is the sixth among countries in terms of GDP. in 2012, the share...
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...intermediate leadership between Western style democracy and Communist leadership. Putin found a way to combine ideals of both in a way that was most beneficial for the majority of Russia. Putin’s ideals for Russia offer an extreme change in economy, moving away from the outdated state controlled government and current oligarch system, and towards economic self-sufficiency. When Putin inherited the country from Yelstin, the economy was incredibly unstable. The 1998 financial crisis, the lowest economic point in Russia history, was only one year prior to Putin taking office. In 1999 the gross domestic product (GDP) of Russia was at a record low of $125 million. (“Russian Economy”) In perspective, The United States GDP in 1999 was over nine billion. Under the Putin administration, the GDP more than doubled, putting Russia as the seventeenth highest GDP in 2006 (“Russian Economy”). Putin has taken government owned property and sold it in a more profitable way. Firms were sold evenly and more fairly, which reduced the power of oligarchs. Once companies were sold, there was a much more equal balance of rich and poor: more wealthy and less poor. This spread of wealth helped increase the economic equality...
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...Background. After years, even decades of growing disenchantment of the Russian people with their government leadership and inability to provide a stable economy, Russia of the 1990’s was about to experience even more turbulence in an attempt to provide stability, economic growth and become a superpower on the world stage once again. As the end of the Cold War drew to a close, Russians demanded more freedom and independence from the old Soviet-style ways of operating their country and thus led to a break from the Soviet Union in 1991. While Gorbachev attempted to maintain his power and keep the Soviet Union united, the fate of Russia had already been decided and a new leader emerged by the name of Boris Yeltsin. However, unbeknownst to the Russian citizenry, their country was about to experience greater instability and deterioration in their economy by way of ill-advised reforms, more specifically poorly planned tax policies, inexperienced leadership, lack of and disrespect for rule of law, continuous changing of laws and their Constitution, inefficient and upside-down government infrastructure, absent institutionalization, increased foreign government debt (see Exhibit 12), hyper-inflation (see Exhibit 7D), devaluation of their currency and finally a contraction of their national GDP. These serious issues, or flawed attempts to make Russians lives better, resulted instead in corruption, violence, poor national health, distrust of government leadership, and a bankrupt...
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