Russia and Central Eastern Europe as a market area an Example of the Topic Economics Essays by

Russia and Central Eastern Europe as a market area Russia and Central Eastern Europe as a market area in 2010:Forecast the future of business in Russia and your position within this context. Forecast the future of business in Russia and your position within this context. Russia and Central Eastern Europe is certainly one of the most promising market areas of the world. With an impressive legacy from the Soviet era, an educated population and vast natural resources, Russia has a great potential for development. Although beset by severe economic problems and political and governance inefficiencies at the time, the nation has the potential for a spectacular comeback this may happen as soon as 2010. Its revival can have a reinvigorating effect on other countries of the region that have possibility to expand by selling their products in Russia and have many of the same advantages as their larger neighbor. The success of any future business in Russia will depend on ones ability to find ways to success in this complex context. Need essay sample on "Russia and Central Eastern Europe as a market area" topic? We will write a custom essay sample specifically for you Proceed To appraise Russias future, one should remember first of all that the nation was the main formative part of the Soviet Union, one of the two superpowers that participated in the Cold War. Despite the obvious defeat in this rivalry with the US, the USSR was able to hold ground against the West for several decades, and not in the last due to its developed industry and military complex. As of now, Russian weapons, such as rockets, tanks, rifles and others remain a competitive product on the world arena. The nation is a major supplier of weapons in international markets, and this manufacturing involves many technological issues that are difficult to reproduce in other countries. With a skilful governance, the country can make this a serious advantage, and in 2010 more technologically advanced industries can develop. One need not remember, however, the Soviet production, defined by the government to meet their special political goals, was aimed at making the country powerful, not at making an individual citizen well-off. The neglect for individual consumption has led to under-development of this sector. This caused permanent deficiency of consumer goods, which is negative for citizens, but opens great possibilities for foreign companies with a well-known, product with world-renowned quality. The Soviet Union also left behind a quite impressive educational system that, being free for a long time, provided access to talented youths from all over the Soviet Union. This system survived to this day in Russia and Central European countries such as Ukraine, Belarus, and Moldova. With solid educational institutions and a sound school system, these nations can turn out a consistently high quality of educational programs and in consequence qualified specialists that can propel the economy. The post-Soviet states are especially remarkable for their research and education in mathematics and natural sciences, which is highly important for the development of industrial production in these countries. CIA World Factbook (2006) states that the literacy rate in Russia is around 99.6%. Thus, illiteracy is practically non-existent in these nations, which can also help them attain success in business. In five years time, Russia will continue to produce well-qualified specialists who will hav e hit the market and made changes in the economy. Natural resources are also not an issue to discount easily. This primarily refers to Russia as Central Europe does not contain so many resources. Russias development in particular will be seriously affected by the large reserves of oil of 69 billion barrels by 2003 estimates that make is second important oil supplier of the world after Saudi Arabia (CIA 2006). Fortunes made on oil such as those of Mikhail Khodorkovsky and Roman Abramovich testify to the fact the oil reserves are an important source of wealth if distributed equitably. The nationalisation of Abramovichs company Sibneft and the de-facto nationalisation of Yukos, for all the scandal associated with the event, mean that the Kremlin has regained control over the lucrative industry, and the oil revenues are more likely to stay in the country, delivering economic benefits. Oil earnings are believed to have contributed to an impressive decline in Russias foreign debt (dropping from 90% of GDP in 1998 to about 36%) and surge i n foreign reserves (from $12 billion to about $180 billion at the end of 2005) (CIA 2006). Certainly the impact of oil revenues will depend on the ability of the Russian government to harness the constant stream of revenue for modernization and improvement of economy, but at least this cushion can help the nation make a transition from Soviet-era outdated plants and factories to a more modern, advanced economy. With Russias current policies aimed at the construction of a stabilisation fund, this may become easier to realise by 2010. The same cushion for transition is afforded, for instance, to Belarus in the form of lower gas prices deemed proper by the Russian government due to extensive cooperation with Lukashenkos regime. Ukraine, true, has lost hold of an opportunity to profit from cheaper gas that was previously supplied by Russia after choosing a pro-Western political course, but with the new elections coming the nation can reassess its future direction and once again enter an agreement with Russia for cheap gas prices. These would offer Central Europe surely a dubious advantage in developing their economies, making them dependent upon Russia. However, lower gas prices can also help them to develop their economies to meet Western standards. In any case, the instability of the political situation and dependence on gas prices on politics makes the Central Eastern European economies of the region rather unstable. The development of the region will surely face many serious problems. The Soviet era left a negative legacy that is difficult to overcome. As a system grounded in corruption, it left an even worse corruption to the new market economy that accelerated in the tumultuous perestroika era and was connected in Russia to the epoch of Boris Yeltsin. Although Vladimir Putin is perceived as a stronger leader, more effective in harnessing this harmful phenomenon, there is no sign that it has ceased to be a factor both in corporate and government decision-making. Speaking of Central Eastern Europe, it is most definitely a factor in Ukraine where its current President gained power after successfully exploiting the topic of corruption in former President Leonid Kuchmas government. Corrupt officials continue to make biased decisions that affect the efficiency of business since contracts and licenses often go not to those with the greatest capabilities, but to those with the greatest connections. Ho wever, the experience of Italy, for instance, demonstrates that corruption is not invincible, and that the nation can make its economy function even with this harmful phenomenon present. All these factors will affect the development of Russia and Central Eastern Europe in the next few years. Most probably, by 2010 growth of the Russian economy will continue, although the goal proclaimed by Vladimir Putin, doubling the national GDP, will hardly be achieved. Russia will most probably continue to draw its growth from its natural resources as oil prices are likely to soar even further. This can result in the countrys economy growing, while the wealth will remain concentrated in the hands of a rich clique of businessmen and corrupt officials. This will make income distribution skewed continuing the trend of the past, as of 1998 when the top richest 10% of the nation consumed 38.7%, the bottom 10% accounted for only 1.7% of national consumption (CIA 2006). This makes the Russian market a good place for luxury goods that are eagerly consumed by the top rich, while also demonstrating the lag in public consumption. To this date, in the streets of Moscow, one can see luxury ca rs while the majority of the population cannot afford a vehicle and have to use public transportation. However, if economy continues to boom which is most likely, personal incomes that have posted increases over 12% in 2005 will continue to grow (CIA 2006). This will add impetus to the development of the Russian market for consumer goods that, as stated above. often remain below world standards an after-effect of the Soviet era. Thus, the Russian consumers that have recovered after the 1998 financial crisis will in future be better able to pay for goods and services, a fact which opens new possibilities for consumer-driven industries. The same will be observed most probably in Ukraine, Belarus, and Moldova that also exhibit a smaller disproportion (23.2% versus 3.7% in Ukraine) and a slightly more equitable income distribution, so in these nations a smaller rise in income will have greater impact on prosperity of ordinary citizens who are consumers for mass market products (CIA 2006). The company that wants to succeed in selling consumer goods to Russian, Ukrainian or Belarusian consumers will most probably have to open a business in one of these countries since imports may be seriously affected by duties and quotas. Thus, the two nations are making heavy efforts to protect their domestic automobile industries, slapping imported vehicles, especially used ones, with heavy import duties. A company that will venture into local assembly may soon gain competitive advantage over its rivals that will come later to the same markets. Besides, partnership with local businessmen can have other serious advantages. For instance, this will allow businessmen to navigate through complex networks of local officials and businessmen, establishing necessary contacts with greater ease. Since corruption is not likely to disappear any time soon, someone willing to start business in Russia will have to use something similar to Chinese guanxi, knowing the right people who will pull the triggers for you. Without this, a company with a world-class business reputation and large financial resources will most probably be successful in any case. For a smaller-size business that already has competitors among local companies, finding the right trustworthy contact may be the starting point for a business venture. The attraction of the Russian market is confirmed by the fact that many companies choose to do business there. After 2000, real fixed capital investments have averaged gains greater than 10% over the last five years (CIA 2006). Many reputable Western companies are ready to overlook instability and governance problems as well as country-specific risk to share in Russias growth story. Thus, since the financial blackout of 1998, Russias growth has averaged 6.4% per year and somewhat slowed down to 5.9% in 2005 (CIA 2006). Ukraine demonstrated a growth rate of 4.4%, well below its impressive 2004 growth of 12%, due to adverse external environment (drop in demand for steel, Ukraines main product) and inefficient economic policies. The future of the national economy is uncertain because of a sharp rise in gas prices initiated Russia that will adversely impact the fuel-inefficient Ukrainian manufacturing. Belarus, given its stable partnership with Russia, has better prospects for economic development. Ukraines plight, however, demonstrates vividly the problems faced by the countries of the region: dependence on Russia and its whimsical changes in policy-making, sharp swings in political course, including foreign policy, and on the export of a few raw materials that may economies subject to fluctuations in global markets. Long-term stagnation, however, appears unlikely because of the rich industrial and educational potential of Russia and Central Eastern European countries. Their markets will be boosted by industrial development even if their commodity exports fail, although one can envisage a temporary plunge in this case. In any situation, this will give impetus to nations to rethink their development strategies and emphasize production of high-value-added goods rather than raw materials. Thus, a company that has discovered a promising niche in the markets of that region should give serious consideration to the opportunity, beginning search for a reliable partner and connection in the area. Speaking of my own prospects within this context, I believe that I could be successful working in the Russian or Central European markets. I already have considerable cross-cultural competence developed during my work with the international customer service in Finland-headquartered company and the purchasing department of the US-based pharmaceutical firm. Having worked in Europe, I would most probably find many common points with Russians, Ukrainians, Byelorussians, and Moldavians, although I realize that their culture is vastly different from that of Western Europe. However, I believe that given the vast opportunities opened by this market including over 200 million people, I would find ways to adjust to cultural issues and take time to explore the business opportunities there. I also find that trading, pharmaceuticals and telecommunications have great potential for development in these countries, and drawing on my expertise in the area, I will be in a good position to profit from this development. Thus, with a relatively low income level by world standards, not all those who want to use wireless communications can do so, and international and inter-city connections are still too expensive for many people. With the above projections of rise in income levels of the mass consumer, this market can deliver more than it does today. The projected surge in upscale markets can cause rise in more advanced and expensive communication services including wireless Internet connections and others. Thus, I believe that the advances of the Russian and Central European markets hold significant implications for someone with my background and experience, as long as I undertake more substantial research into segmentation and niche markets in these countries. Central Intelligen ce Agency (CIA) think it is NOT regarding my company's position, but refer to my position as a student with below working experience: Four years of successful working experience with telecommunications in international customer service.(Companys headquarter in Finland) Five years of purchasing experience with pharmaceutical field in an international company.(Companys headquarter in US)

APEC essays

APEC essays The question is "Can the Canadian government maintain its committment to globisation without comprimising its stand on human rights and why or why not?" The answer is no. Canada's committment to globalization comprimises it's stands on human rights for different reasons. The main reason being APEC. The following paper will ague just that and how Apec is causing many problems in societies all over the world. APEC is a grouping of 18 "economies" which aims to impose a "free trade" zone in the Asia-Pacific region. Despite the rhetoric, there is nothing free about "free trade." It is the forced changing of rules to benefit corporations at the expense of people, governments and the environment. As Joan Spero, the US Undersecretary of State for Economic Affairs said, "APEC has a customer. APEC is not for governments, it is for business. Through APEC we aim to get government out of the way, opening the way for business to do business." The Termination of our Social Safety Net In theinternational market, there are cut backs made on employment insurance, welfare, education and health care are they are made under the excuse of luring investment. Any word of increasing taxes is extinguished by corporations forewarning to withdraw for a "preferable" business environment. Regardless of the skyrocketing profits, corporate contributions to tax revenues have plumetted from 50% in the 60's, to less than 8% today. It is suspected that it'll be sooner then later that Canada will adopt the impoverished American model - no safety net, just cold concrete. APEC has nagative effects on the Environment APEC and "Free trade" agreements like it, reduces international environmental standards by making the process of moving between states easier for businesses. In order for there to be compition, countries are obliged to slacken their environmental regulations to the lowest they can be by law. Canadian mining industries, which have been know ...

Communication stumbling blocks Essay Example | Topics and Well Written Essays - 1250 words

Communication stumbling blocks - Essay Example For example, Barna in his works noted,â€Å"increased interaction through travel, students exchange programs, and other ventures should result in more understanding and friendship between nations†(Barna, p. 66). However, this is different especially due to variations of cultural contexts. These variations in cultural contexts create intercultural communication stumbling blocks, such as non verbal communication and time sense variations, thus lack of consensus during mediation and negotiations. Although I do not agree with Barna’s presumption that intercultural communication would result in understanding between nations, I agree with his assertion that â€Å"it takes a long time before a foreigner can adjust in a new culture† (Barna, p. 66). According to Kinetics, (2010), among the six stumbling blocks to effective cross cultural communication is nonverbal misinterpretation.A good example is the one given by the Japanese student, whereby he noticed that his non verbal communication did not coincide with the one of his Japanese culture (Barna, p. 67). He received a smile from American girls but only came to discover that the girls had no interest for him, unlike in his Japanese case, whereby such a smile can mean the person is sexual maniac. In such a situation, it would take quite some time before the Japanese student can fully adapt to the American culture. In regard to my own experience, I think the situation is more complext that it can be explained in writing. As I noted earlier during my visit to Tanzania in East Africa, I learned many things apart from their time factor issue. As I was speaking with some young girls, I noticed that they talked to me while bowing. In my own culture, this could mean that the person you are talking to is not attentive to what you are talking about, while in African culture it means that the person has high respect for you,

MMM CO Essay Example | Topics and Well Written Essays - 750 words

MMM CO - Essay Example trust on the organization, increase the performance efficiency, grab the maximum market share and what strategies a company would implement to approach the customers. Internal drivers comprise of situations where the company is influenced to manage its profitability and retain its customers by applying various internal strategies. The internal drivers within an organization are centered to deliver: According to Michael Porter’s book, ‘Competitive Advantage: Creating and Sustaining Superior Performance† published in 1985, the concept of Value Chain was first coined (Michael Porter). According to this concept, value chain comprise of the entire primary and the secondary activities within an organization that would help the firm to strengthen its position in the market as well as to improve its product or service efficiency within the market. At this stage, it is important for MMM & Co. to focus on all the activities of the organization that are related with the receiving and storing of the raw materials especially those products which are used by the company to produce the end products. The better the inbound logistic system of the company would be, the better would be quality of the products and the raw materials. MMM & Co. needs to focus its attention on the operations within the company that initiate from the manufacturing of the products which involves the receiving of the raw materials and end on the final production. Throughout the operations, the company is in dire need to maintain the flow of the operations smooth as well as, to maintain the control on all the steps. Outbound logistics play a key role in getting the finish products to the customers. It revolves around the handling and shipping of the products from one place to another. The smooth flow of outbound logistics plays a crucial role in determining the profitability of the company. MMM & co. needs to focus its attention on this activity. Marketing and sales stand as the corner stone to

I have a dream Essay Example for Free

I have a dream Essay I have a dream that one day we shall all live in a world without bullies. No one to intimidate us, no one to tell us what to do and how to do it, but to lead our own lives in confidence, and being able to walk strong-mindedly through streets at night without feeling scared or threatened by others. Every day, children are too frightened to go to school as they are being bullied. There are children coming home in tears as they are having such a bad time at school. And those are just the children who do speak out! Many children are too scared to even tell an adult that they are being bullied, as they fear that it will only get worse. Are you being bullied? Have you ever had someone hit you, or make you feel threatened? Even name-calling is a form of bulling. If you are being bullied and have not told anyone, then now is the time to do so. Do it now, before it could get any worse. Why should you put up with it? Dont let them get away with it. And never feel like it is your own fault. Or maybe you are a bully? Are you? Ask yourself, have you ever picked on anyone for no reason at all. Maybe because they arent wearing the latest designer gear, or that they look different, talk differently or simply dont even listen to the same music as you? When people hear the word bullying, they automatically think of big, rough looking kids holding smaller children up by the scruffs of their necks and taking their dinner money. But mental bullying is just the same, maybe worse even, than physical bullying. Even a dirty look at someone is a form of bullying. Whether its physical or mental bullying, they all affect the victim. Bullies dont realise just how much they can effect someones life. They dont know the after-effects they can leave on their victims. Even name calling leaves scars inside. Victims of bullying often turn to drugs, turn anorexic, bulimia, and sometimes bully others to get over their trauma. In some sad cases, children sometimes take their own life to end the bullying! But bullying doesnt just go on at school. Its happening to pedestrians on the street, adults at work, and to be honest really, anywhere that someone can be seen vulnerable to others. This morning I opened a newspaper, only to be confronted by headlines such as, Old Woman Mugged at Knife-point and Young girl stabbed for the sake of 20 pounds. It disgusts me to think that humans can act like this towards each other. But the thing that repulses me the most about such crimes is that it is so common. Killing someone for the sake of a few pounds? Or a mobile phone? Too many incidents like these are occurring more frequently over the years and it looks like things are going to carry on like this if people dont look out for others and try to help those who are being bullied. So until people start to look out for others in the world, start to care about how they act towards others, and to basically appreciate other human beings as they themselves would like to be treated, my dream, that one-day we shall all live in a world without bullies. No one to intimidate us, no one to tell us what to do and how to do it, but to lead our own lives in confidence, and being able to walk strong-mindedly through streets at night without feeling scared or threatened by others, will continue to be a dream.

A Formalistic Analysis of The Fatal Sisters Essay -- The Fatal Sisters

A Formalistic Analysis of The Fatal Sisters  Ã‚      In â€Å"The Fatal Sisters† Thomas Gray has created a monologue pregnant with references to history, geography, and mythology. These reappearing references and allusions enrich the text, as they allow a closer look at the political situation surrounding eleventh century Britain.   The poems’ sixteen stanzas exhibit an ABAB rhyme scheme, which provides for systematic organization and positive aesthetic effects.   Closer examination of the setting, tone, and imagery of the poem permits insight into the text’s content and artistic genius. The setting for â€Å"The Fatal Sisters† is an eleventh century, war-ridden Ireland.   The nation’s fate appears to rest upon the shoulders of a few bloodthirsty monarchs who are entangled in a never-ending conflict.   Their massive armies wage battle after battle and therefore tint Britain’s outlook upon society and its future.   It is at such a troublesome time that twelve mysterious women are observed to â€Å"weave the web of war† and in such a way create the future of their nation.   This very day is ironically...

Cross Cultural Values and Ethics Essay

The terms high context and low context were first used by Edward Hall and they are used to explain the underlying cultural differences between societies. In high context cultures, a lot of the information is either internalized in an individual or it is in the physical context. This means that in this form of culture nonverbal messages are more important than the verbal messages. In addition, the people in high context cultures share a form of closeness which is due to their shared experiences. Some of the societies with high context communication are Korea, China and Japan. On the other hand, in low context cultures messages that are verbal are usually highly specific in addition to being elaborate. Verbal messages also tend to be very detailed. Some of the societies with low context communication include Switzerland, United States and Germany. There are several differences between high context and low context communications. One of these is that in low context communication messages are best passed by words (verbal) than by nonverbal methods. On the other hand, in high context communication the messages are best passed by nonverbal means than by words. Another difference is that in low context communication the verbal message is direct. On the other hand, in high context communication the verbal message is indirect and communication is effected by talking around a point. Another difference is that high context communication is used in well established relationships especially where people have been relating for long. On the other hand low context communication is used among people who have short durations of contact. 2. Explain how World War II changed women’s labor force participation. World War II changed women’s participation in the workforce. To begin with, at that time most of the women stayed at home and held no paying jobs and this is because this was a preserve of men. However with the World War II men were deployed in the military and this created a shortage of workers especially at a time when workers were desperately needed particularly for production of war equipments. Women who could not previously be employed as culture placed men in the workforce and women at home were able to get jobs. This led to an increase in the number of women who were in the workforce. Another thing is that women who were already in the workforce and who had been holding traditionally female jobs such as clerical jobs were able to switch to high paying jobs which were previously considered a preserve of men. Clearly, the World War II was a blessing in disguise to women. They were able to overcome culture and discover the great potential in them by holding jobs that were traditionally reserved for men. No doubt that this proved to women that they have capability to achieve just like men and it changed the position of women in the workforce. 3. Explain Hofstede’s masculinity-femininity dimension and the behavioral expectations set for each gender. The Hofstede’s dimension of masculinity/femininity focuses on the emphasis the society places on nurture and achievement. According to the dimension, femininity emphasizes sexuality equality, caring and nurturing, and environmental awareness. On the other hand, masculinity emphasizes wealth acquisition, distinct gender roles, and ambition. According to this dimension, there are set behavioral expectations for each gender. The behavioral expectations depend on context. For example when it comes to politics and economics, men are expected to solve conflict through force as well as priotize economic growth. On the other hand, women are supposed to priotize environmental protection and solve conflicts by negotiation. When it comes to social norms, men are supposed to be ego oriented and so they should focus on attaining money and things as these would boost their ego. As for women, they should be relationship oriented and so they should focus on people and quality of life. When it comes to work, men should show preference for higher wages while the women should show preference for less working hours because of their other responsibilities. When it comes to matters of education especially school performance, men are expected to consider failing as a disaster while women should consider failing as a minor accident. On matters of religion, religion should be very important to men while to women religion should not be a very important aspect of life. 4. List and describe the 6 similarities across all religions. As much as there are differences across the different religions in the world, there exists several similarities. One of these is the belief in divinity which is accorded names such as Allah, Krishna, and God. In all religions there is the belief that there is a being that is divine and which is above the man. Another similarity is the belief that it is possible for man to communicate with divinity through actions such as prayers, sacrifices and meditation. Another one of the similarities is the belief that man requires help in order for him to communicate with the divinity and that is why mediators such as prophets, apostles, and holy men are sent by the divinity to men. Another similarity is the use of sacred scriptures which provides sacred wisdom which is transmitted from one generation to the other for propagation of the religious beliefs. The religions believe that the scriptures have a divine origin. Another similarity across religions is the performance of rituals and these are meant to bring man close to divinity. The last similarity lies in speculation where people across all religions, from their birth to their death ask similar questions and are faced by many similar challenges and uncertainties about life. 5. Who are the Mosuo people? How is their way of living different from the United States, explain 3 significant contrasts between both societies. Mosuo people are people who belong to a small ethnic group that lives in the Sichuan and Yunnan provinces in China. These people have unique cultural practices which make their way of life very different from that of United States. One of the most significant contrasts is that among the Mosuo people lineage is traced through the female side. This is unlike in United States where people trace their lineages through their father’s side. This means that if one does not know their father but knows their mother they have a belonging and thus cannot face stigmatization. Another contrast lies in the fact that unlike in US where the man is the head of the family, among the Mosuo the woman is the head of a family. The female elder in a family handles the family matters such as assigning of duties and management of money. She has absolute power. This is unheard of in US where men are the head of their families and would not agree to be headed by a woman as it would hurt their ego. Another significant contrast is seen when it comes to marriage. Among the Mosuo people, they have what is called walking marriages. Unlike in US where people marry, live together and bear children which they raise together, among the Mosuo men and women who are in love and are having sexual relations do not live together and any children born out of the relationship belong to the woman’s family.