International Business Management

One can easily admit that the Party had failed to properly economically plan the needs of each state. The Soviet Union economy was complex and massive, it became an impossible task for the state planners to manage, as they did not want to grant and create more managerial levels that would proceed to the local level resulting in failed timely attempts to the constant changes the economy was going through. Since the Soviet economy was based on state planning, it failed in encouraging innovation and motivating productivity. Managers would also alter numbers in order to produce the quotas that they were required to meet. The growth of the Soviet economy had been in a constant decline since the 1950’s and this progressed to the 1980’s. This was a clear sign that the Soviet economy was in need of a complete economic overhaul. Gorbachev succeeded power in March, 1985 and became General Secretary of the Central Committee of the Communist party of the Soviet Union. His main goal was to revive the Soviet economy, and he strongly believed that success was tied to loosening the governments control and creating a system that included less government intervention and more freedom to allow private initiatives. This new market economy would allow for private enterprise, which what Gorbachev believed would create more innovation. For the first time since 1920’s, individuals were able to own and create businesses.

The democratization, economic liberalization, and eventual collapse of the Soviet Union is commonly attributed to Mikhail Gorbachev's Perestroika and Glasnost reforms during the period of 1985-1991. This purpose of these reforms is still a trenchant question as the countries of the old Soviet Union, particular Russia, are being pressured to further liberalize their economies.

The Soviet Union, which was once a world superpower in the 19th century saw itself in chaos going into the 20th century. These chaoses were marked by the new ideas brought in by the new leaders who had emerged eventually into power. Almost every aspect of the Soviet Union was crumbling at this period both politically and socially, as well as the economy. There were underlying reasons for the collapse of communism in the Soviet Union and eventually Eastern Europe. The economy is the most significant aspect of every government. The soviet economy was highly centralized with a “command economy” (p.1. fsmitha.com), which had been broken down due to its complexity and centrally controlled with corruption involved in it. A strong government

There were also many problems in Russia after they had an Industrial Revolution. Russia had many government problems. The Russian government was a type of government that did not listen to the people. The government did as it pleased without consent from the people. The people had no say in the governing process as in the United States. Due to this there were poor working and living conditions, overpopulation, poor sanitation, not many jobs and many people were starving. The majority of the people in Russia (about ninety percent) were poor and only about ten percent were rich and they controlled the nation. This meant the majority of the nation was not being listened to.

Russia’s economy is very complex and also very terrible at the same time. Many other economy’s are also like this but Russia’s is a very interesting thing to learn about. Russia’s economy has many things wrong with it that in the long run could probably affected it in a negative way. But it also has many positive things about it.The negatives and the positives are, in my opinion, are equal in Russia economy.

China put economics before politics, while Russia was the other way around. Many different countries have tried to make an effort to put more towards the people and the individual rights they have. Zakaria later goes into detail about Russia and its government. Zakaria describes Russia as “a rich country struggling to modernize” (122). Russia was primarily funded by its natural resources.

The many long-term internal causes of the collapse of the Soviet Union centralized around weaknesses in their economy. They had an inflexible central planning system, the inability to modernize, and the inefficiency in their agriculture production. Sometime around the 1970's the computer and automation revolution had emerged. This revolution took over the West, but practically missed the Soviet Union, except in the military sector (Baylis & Smith, 2001.) Gorbachev's goal in economic restructuring was to create a separation between the economic and the political. The major changes began with the legalization of private farming and business co-operatives, and the allowing of foreign company ownership over Soviet enterprises (Baylis &Smith, 2001) All of Gorbachev's ideas on economic restructuring backfired on him since the price levels were inconsistent, and a sense of social confusion about the future of their state was created.

The Russian state has been characterized by its strong heritage of powerful, autocratic leadership. This domination by small ruling elite has been seen throughout Russia's history and has transferred into its economic history. Throughout the Russian czarist period, to the legacy of seventy years of communism; Russia has been a country marked by strong central state planning, a strict command economy and an overall weak market infrastructure (Goldman, 2003). Self-interest, manipulation and corruption have all been present in the Russian economy, and have greatly helped the few as opposed to the many. To this day, Russia still struggles with creating a competitive and fair market.

In 1995, Ben and Jerry’s co-founder Jerry Greenfield was sufficiently intrigued by the Japan market to visit the country and consider such diverse distribution channels as Amway Japan, a major American pizza company, and department stores.

The Russian Mafia: Protectionism in the New Capitalist Russia The Russian Mafia has always exercised an important role in the Russian economy. The contemporary mafiosi are descendents of the seventeenth Century highwaymen and Cossack robbers. These men occasionally murdered families prior to raids preventing them from being captured. The Russia mafiosi made a point to remain aloof from the state. Mob men were actually spurned when returning home from fighting in the Great Patriotic War. The gangs begin to dominate markets such as car sales, spare parts, cigarettes, food distribution, and other markets that the Communist Party failed to provide under the Bolsheviks (Remnick196). Since the collapse of Communism and the

Many companies today want to expand their business to the international business, which can bring cost down and profits up. Taking a business internationally means knowing the rules and regulations of the countries you are entering. There can be many issues with going global which include cultural barriers, diversity issues, multicultural issues, political issues, and economical issues. It is very important to know how important expansion is to the company and what implications will come from going global.

Ben & Jerry's a company that produces full-flavored and multi-flavored ice cream, frozen yogurt and sorbet. Ben & Jerry's started with a $5 equivalent course in producing ice cream from Penn State and a $12,000 profit, with $4,000 of it was lent. In fact, their first ice cream scoop shop was a restored gas station in Burlington, Vermont. Also, guaranteed that all "Ben & Jerry's 100 percent Fair Trade and a 100 percent non-Genetically Modified Organisms (GMO)", says Jerry Greenfield, on Jimmy's The Tonight Show.

* Foreign companies, such as Nestle, have a strong competitive advantage. Nestle has a long-term investment strategy, use local production and supplier to reduce cost, train and develop local staff who has a better understanding of the local market , and develop its own storage facilities, distribution and marketing network.. In addition, Nestle develop product that fit Russian taste and traditions.

decided to establish foreign direct investment in Russia, we see that in 1991 as the Soviet

Subject : Appraisal of a MNE's recent market entry (2007-2010) ( 1. Firm Motivations for internationalization 2. Entry Strategy 3. Corporate Strategy)