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International Business

Russia puzzle

Hayley Halterman

on 7 February 2013

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Transcript of International Business

The Russia Puzzle Property Rights Reforms. Opinion The Verdict Solution The market Property Rights Implementation Corruption Russia's attractiveness for FDI. Wal-Mart expansion in Russia
Democracy Rankings The instantiation of democracy generated a series of oligarchs Suspected to support the “fixed” 2012 presidential re-election of Putin Detrimental to foreign relations. The implementation of democracy can be conducive
to economic growth if fostered accordingly limitations
uneven distribution of wealth Enter market as top one or two players Shut down its operations in 2010 We suggest that the board does not attempt to enter the market again. create competition become substantially worse no standing legal framework to safe guard property rights obstacles for construction permits and electricity lengthy expectations narrows economic growth Rank: 133 Score: 28 2012 Corruption Perception Index The debate Centered around the political economic dimensions Is Putin the autocrat or the reformer?
What is an acceptable price for economic growth?
What is with their "phony" democracy? Russia refutes the claim that democracy is conducive to economic growth. Hayley • Elizabeth • Abigail • Doug 48 128 55 24 Not conducive for economic growth The legal aspects Democracy Income Tax Corruption No Property Rights Permits Suggestion Need to have stronger private property rights. lean its economic growth on potential investment file change inconsistent enforcement to a protected system remove oligarchs’ domination of the Russian economy implement forms to be recognized all over the country Without evidence of ownership, will have a difficult time
finding funding Without legal property rights, there is no motivation for people to create profits Should the government
redistribute wealth or
protect property rights? The dilemma Location and long-term investments. Opinion due to corruption and financial crisis. Too risky to acquire existing companies
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