Foreign Direct Investment in Russia

Paper Summary:

The paper examines Russia as a target market for foreign direct investment (FDI). The paper discusses the market within the framework of a PEST (political, economic, social, technological) analysis. The paper further analyzes the overall business climate, and the opportunity for FDI is examined in comparison to the risks associated with the market and rampant corruption. The writer concludes that the technology sector within the efficiency gains area is the most opportune area for FDI.

From the Paper:

"Russia is a large country with a long history extending back to the 12th century AD when it first freed itself from Mongol domination (Russia). Russia's most relevant historical past is its emergence from Communist rule and the breakup of the Soviet Union under Mikhail Gorbachev in 1991 due to his policies of glasnost and perestroika, or opening and restructuring. Since that period Russia has been defined by a kind of political turmoil that has seen every sort of leader from a, it is said, Vodka imbibing progressive in Boris Yeltsin to a former intelligence officer in the KGB with a black belt in Judo, in Vladimir Putin (Russia). While the political turmoil has unfolded publicly, the business and professional climate has deteriorated from the heady days of the Soviet breakup when foreign enterprises believed the region was ripe for investment and, to some degree, exploitation."

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