Essay about Pestel Analysis Russian Federation

Democracy was already viewed poorly in Russia, whose only other experience plunged them deeper into the depths of World War 1. This is significant because a majority of the Russian people felt during that time that their voices were not heard. Therefore, it should be noted then, that when Yeltsin took power, Russian’s had not seen true representative democracy. When, Yeltsin took power after the fall of the Soviet Union, Russians were wary. This illegitimate view towards democracy was one of the reasons the resource curse had such a profound effect. The other that the economy was weak and the government was unstable. This in part was attributed to the loss of over 15 states when the Soviet Union fell, and the trade and overall economic problems that the new Yeltsin government assumed when this occurred. Even if Putin had been in power during this time, he would have faced similar problems, the regime was not to blame. When the Soviet Union fell, it was during a time where oil prices where falling, in fact, they would continue to fall until around 1996. The falling oil prices dramatically hurt the Yeltsin administration. When Putin took over, world prices has begun to rise, further Putin privatized part of the oil industry, which allowed new technologies to form, thus causing a booming oil economy in

It is only reasonable that any investor interested in starting a company in a developing nation to research and investigate the business landscape in such an unfamiliar terrain before opening up operations there. This is beneficial, as it will provide the prospective investor with important information about the business environment and practices. In particular, an investor should analyze the labor market, examine the costs of founding a company and consider the possible business ethics challenges. In our case, Zhuk needed to make certain his business strategy was in tune with the local culture, business practices and laws in Ukraine.

As previously identified, there are also “non-legal/extra-governmental” political risks which could bring unexpected upheaval to foreign firms. Macro political risks such as the threat of violence, corruption, war or military coup, political instability and terrorism are all direct threats to foreign investors.

The foreign policies of Russia also compliments in many ways its domestic policies, both in the apparent want for dominance and security in the focal point on sovereignty. These aims lead to an importance on bringing back Russia’s international status and removing positions of power that Western states have had in Russia

19). That begin said, Russian politics have always governed around protecting themselves from threats inside and outside their boundaries both economical and militarily. In addition, Lynch elaborates that the capability of a state is so important in developing; in order to form a democracy since having been a built on post communist and Imperial auspices (Lynch, p. 5). In other words, a democracy does not merely come out of nowhere in a civil society, unless there is a capable national service where a political authority may draft, pass and enforce legislation. Furthermore, it is the neopatrimonial model that best describes the functioning of the Russian state that took hold in post communist Russia ruled by Yeltsin and Putin (Lynch, pp. 128-30). To clarify, it was significant that Russia established itself in a liberal economy, which was mostly supported by Western states, however the emergence and eventual consolidation under Putin established a neopatrmonial Political system.

Over the past decade (from 2004 to 2014), political corruption in Russia government is gradually uncovered by some global medias and organizations. Such tendency not only repainted the entire landscape of Russia government, but also raised public awareness on the significance of preventing a greater deterioration of this political phenomenon worldwide. This report aims to prove such political phenomenon is unethical through the comparison with code of conduct, and to provide tangible measures and solutions. The result suggests that high-level of corruption in the Russian government is one of the factors of inflation. It is also found that corruption will lead to social issues. Most importantly, such political behavior is unethical regarding the code of conduct. In order to achieve a revolutionary change in the Russia government, therefore, a redefinition of legislation and a recreation of domestic press are indispensible.

Political Risk- the unanticipated likelihood that a business’s foreign investment will be constrained by host government’s policy.

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.

However, the investment was not without risks. There are four types of risks in international business called cross-culture risk, country risk, currency risk and commercial risk. Cross-cultural risk refers to a situation or event where a cultural miscommunication puts some human value at stake. Country risk describes the potentially adverse effects on company operations and profitability holes by developments in the political, legal, and economic environment in a foreign country. Currency risk is the risk of adverse unexpected fluctuations in exchange rates. Commercial risk refers to potential loss or failure from poorly developed or executed business strategies, tactics, or procedures (Boter & Wincent, 2010). Investment in Rulmenti Grei, Timken might face the salient risks of political and economic instability. Romania’s economic growth was slower, inflation was higher, and the labor force was more volatile. Furthermore, there might be a risk of re-nationalization. It is said that economic risk analysis tells corporate leaders the ability of a particular country to pay its debt while political risk analysis tells them whether that country will pay its debt. Political risk measures the stability of individual countries through the

We can certainly view modern-day Russia as a world power which has superficially characterized itself as a nation operating more ethically than they were in past years. However, it seems that there are social norms and historically immoral behavior that the Russian government continues to impose upon the population. Over a ten-year span while Stalin was in power, approximately 5,600 people were convicted of bribery (Heinzen, 2007). During that time, there was an emphasis placed on punishing the judiciary members and law enforcement who were corrupting the systems of Russia. Looking back at this period it becomes more clear that the newfound morality among leaders of the country were nothing more than a method of deflection.

Its been estimated that the markets corruption has almost exceeded 260 million in 2006. Russian police institutions are far more centralized than the U.S. police, which could mean that Russians' views of the police are closely associated with their views of other federal government institutions rather than their personal experiences Corruption (Feifer, 2003). Russia corruption started around the 18th century when the government official would perform Kormlenie corruption, which means authority receiving fees, goods, and services from interested areas (Marenin, 1997). Since 1715 accepting a bribe in Russia was considered a crime. Official started to abuse this power and started to receive fixed salaries. At that time Peter the Great had increased so many fixed salaries that irregularity and bribes where out of control especially for official. Even official of lower rank were able to get these fix’s salaries. By 1922 bribery was considered a counter- revolutionary activity was a criminal code punishable by death.

In countries such as Russia, corruption and bribery are common because poverty is prevalent among the largest part of the population. On the other hand, Georgia has recently executed a rigorous fight against bribery and corruption. Even though, poverty is wide spread in the country of Georgia, it proved that corruption can be broken with appropriate and decisive reforms. The World Bank’s Doing Business listed Georgia 16th easiest place for a company to do business, up from 112th in 2005 (Organized Crime and Corruption Reporting Project, 2012) . With the

Corruption during the 1990’s increased and expanded with the developments of the Russian Mafia. “Many Russians believed that the unbridled pursuit of individual interests during the 1990s gave rise to

The oil industry is one of great power that countries are invest in. Russia is one of the leading contenders in producing oil and exports the goods to various countries. With great resources comes great strength. Oil is of the utmost important to every country therefore, Russia has an upper hand in some respects. Moreover, the history behind the oil pipelines and how Russia connects to different countries allows for insight into the power they withhold politically and economically, and on the improvements that need to be made to continue growth in this industry.

Corruption is a complex political, social, and economic anomaly that negatively affects developing and developed countries. It weakens democratic institutions, holds economic development, widening the rich-poor gap and certainly leads to governmental instability. The World Bank definition of corruption states that “…the abuse of public office for private gain”.