Assignment 8.2 Final Project Report
Due to the global environmental changes many nations are aggressively seeking alternative renewable energy resources. Companies also are vigorously pursuing and offering cleaner energy options, for example, solar wind, coal, and natural gas. Because Russia has excelled above other nations in regards to economic growth with mass productions of natural gas and oil exportation, Russia has become the most sought after market for future investments. For companies interested in establishing a renewable energy company in Russia our recommendation is to establish a direct foreign investment business operation company.
Russia in the past few years, as well the rest of the world, has experienced an economic decline as well as its resources. Russia is a fragmented society, undergoing a radical period of change and readjustment. The older order, laws under the Soviet Union regime, have been pushed aside and no longer holds validity, leaving a political and economic void for the Russia business model. This raises the question of whether or not business will change on a day-to-day basis for Russian companies, in such a disparate country, what hold as evident for one region might not resonate in the next. It wasn’t until the fall of communism, Russians approach to do business was always structured by the communist approach. However, the present government has maintained tight control over Russia’s economy since 1996. Since that time, both economic development and foreign investment has increased significantly resulting in a more stable Russia. The government ability to successfully promote and regulate activities in the natural resources sector, including natural gas, has been the main source for the economic development within Russia as we see it today.
Despite, what one might believe, western countries face many challenge in totally understanding the proper approach for conducting business meeting with the Russians. The communal spirit and togetherness distinguishes Russians form Westerners. Esteemed characteristics such as individualism and competitiveness are more common in the West. Americans believe that time is money and punctuality is a virtue, opposite of what many Russians believe. Russians, with an agricultural heritage, believe that time is like the seasons – there is a time for sowing and a time for reaping. As far as the time in between meetings and negations, Russians generally are not very engaged. Russians are notoriously known for being tardy for meetings and feeling as if this type of behavior is standard and acceptable. Americans are often annoyed by the lackadaisicalness of the way things are done in Russia. For centuries, long before the advent of the Soviet system, Russia has always been considered as being the state of oppression and repression. Autocracy and centralized decision making are synonymous with the Soviet system in the opinion of many and is often seen to be manifested within most large Russian business organizations. These companies are usually driven by a strong central figure that makes strategic decisions with little or no consent of others. Therefore, viewing the laws and statues set by the government as ‘enemy’ avoiding and evading them at all cost.
Although Russia and the U.S. have faced many challenges and…