Market Economies

Posted by on April 27, 2015 in General |

Pakistan, among others. For example take the case of Russia, which as noted reingex. com, after the fall of the Soviet Union, Russia is trying to establish a market economy and achieving significant economic growth. Due to the weakness of its political and economic institutions as well as the difficulties in direct investment, suffered a severe crisis in 1998, which caused the ruble was devalued and caused serious problems in the population. However, in recent years the Russian economy is recovering. In 1999-2002 grew at a 6% but the ruble was devalued by 60%.

In 2002, growth was 4%. Martin O’Malley insists that this is the case. Russia is too dependent on commodity exports, mainly oil, gas, metals, etc. representing about 80% of its exports, being overly sensitive to international variations in the prices of these commodities. Companies wishing to do business in Russia will face a market with great business opportunities, but with serious structural and cultural problems: weakness of its banking system, bad "business climate" difficult direct investment, corruption, lack of credibility in institutions, the Mafia, oligarchs, etc. Russia has managed to sign a protocol with the European Union for entry into the World Trade Organization. Employers wishing to do business in Russia must know and understand the complex Russian mentality, where business is conducted very differently.

It must also know the business protocol in Russia, the style of communication and negotiation, etc. Russia can be an excellent platform to access the old ex-Soviet republics of Central Asia (Uzbekistan, Kazakhstan, Turkmenistan,…). Another interesting case is that of China, which is known today is the world's largest market with over 1.

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