Russia Country Presentation

Econ 3145; Section 2Global Business Issues

Justin Brown/Blessing Uba

Brief History Founded in the 12th century, the Principality

of Muscovy, was able to emerge from over 200 years of Mongol domination (13th-15th centuries) and to gradually conquer and absorb surrounding principalities. In the early 17th century, a new Romanov Dynasty continued this policy of expansion across Siberia to the Pacific.

Under Peter I (ruled 1682-1725), hegemony was extended to the Baltic Sea and the country was renamed the Russian Empire. After World War I led to widespread rioting in the major cities of the Russian Empire and to the overthrow in 1917 of the imperial household. The Communists under Vladimir Lenin seized power soon after and formed the USSR.

History Cont.… The Communists under Vladimir Lenin seized

power soon after and formed the USSR. From (1928-53) there was a strengthened Communist rule and Russian dominance of the Soviet Union at a cost of tens of millions of lives.

The Soviet economy and society stagnated in the following decades until General Secretary Mikhail Gorbachev (1985-91) introduced glasnost (openness) and perestroika (restructuring) in an attempt to modernize Communism, but his initiatives inadvertently released forces that by December 1991 splintered the USSR into Russia and 14 other independent republics.

History Cont.… Since then, Russia has shifted its post-Soviet

democratic ambitions in favor of a centralized semi-authoritarian state in which the leadership seeks to legitimize its rule through managed national elections, populist appeals by former President PUTIN, and continued economic growth.

Russia has severely disabled a Chechen rebel movement, although violence still occurs throughout the North Caucasus.

Demographic Factors (Ethnic Groups) ---> Russian 79.8%, Tatar 3.8%, Ukrainian

2%, Bashkir 1.2%, Chuvash 1.1%, other or unspecified 12.1%

(Languages) ---> Russian (official), many minority languages

(Religions) ---> Russian Orthodox 15-20%, Muslim 10-15%, other Christian 2%

(Population) Ranked 9th Globally ---> 142,517,670

(Literacy Levels) --- > 99.6%; Male 99.7% ; Female 99.5%

Economic Factors Unemployment % In Youth (15-24) Total:

18.3%; Male: 17.7%; Female: 19.1%

Total Unemployment: 6.6% (2011) ; 7.5% (2010)

Labor Force: 75.33 million

Labor Force By Occupation: Agriculture: 9.8%; Industry:27.5%; Services: 62.7%

Structure Of The Russian Economy (Key Sectors)

Agriculture: Grain, Sugar beets, Sunflower seed, Vegetables, Fruits; Beef, Milk

Export Commodities: Petroleum products, Natural gas, Metals, Wood and wood products, Chemicals, and a wide variety of civilian and military manufactures.

Import Commodities: Machinery, Vehicles, Pharmaceutical products, Plastic, Semi-finished metal products, Meat, Fruits and nuts, Optical and medical instruments, Iron, Steel

Vital Sectors: Mining and extractive industries producing coal, rolling mills to high-performance aircraft and space vehicles; and advanced electronic components, shipbuilding; road and rail transportation equipment; communications equipment; agricultural machinery, tractors, and construction equipment; electric power generating and transmitting equipment; medical and scientific instruments;

Russia’s Role in Global Business

Exports: $520.3 billion (2011 est.); $400.1 billion (2010 est.) Imports: $322.3 billion (2011 est.); $248.7 billion (2010 est.)

Export Partners: Netherlands 12.2%, China 6.4%, Italy 5.6%, Germany 4.6%, Poland 4.2%

Import Partners: China 15.5%, Germany 10%, Ukraine 6.6%, Italy 4.3%

Foreign Direct Investment: (Domestically) $546.2 billion (2011);$493.4 billion

(2010) (Abroad) $436.4 billion (2011); $369.1 billion (2010)

Political & Risk Factors Government: (Russian Federation) President: Vladimir Putin Follows the Executive, Legislative, and Judicial

Systems

Risk Factors: Russia is a source, transit, and destination country for men, women, and children trafficked for various purposes. (Human Trafficking)

Continual Aid of Syria’s President Bashar al-Assad by the Russian Government/Military in the tense Syrian Revolution.

Opportunities for American Businesses

The main opportunities for American businesses in Russia would have to be the importation of Vodka, minerals, oil, medical and scientific instruments.

Some businesses which are already located in Russia are: Boeing Corporation, Emerson Electric, John

Deere, Halliburton Coca Cola, McDonalds, Pepsi, and Subway are

the leading American Companies as it comes to companies which are easily recognized by brand.

Conclusion Russia is a country with a extremely rich

history, and has also had a difficult past as well as it pertains to the former Soviet Union.

Overall, Russia is a prototypical country for American businesses to invest into. There is a abundance of resources which are crucial to sustain a continual stream of revenue for American corporations if they invest in the correct fields.

Questions ???