INTBUS151, International Business Across Borders

Running head: INTERNATIONAL BUSINESS ACROSS BORDERS
International Business across Borders
Name of the student
Name of the University
Author Note

1INTERNATIONAL BUSINESS ACROSS BORDERS
Executive Summary
The economy of Russia displayed a commendable development between the two financial crises
of 1998 and 2009. Within 2000 and 2008, there occurred a 83% growth of GDP and a 70%
growth in productivity. In addition, in real terms, there occurred the doubling of expenses for the
accumulation of fixed capital. While in 1999, per capita GDP by purchasing power parity was
$9,300, by 2008, however, this indicator grew to $21,600, which resulted in a fourfold growth
over the same period of Russia’s share in the world economy, from 0.6% to 2.7%.

2INTERNATIONAL BUSINESS ACROSS BORDERS
Table of Contents
Introduction......................................................................................................................................3
General overview of the country.....................................................................................................3
PEST Analysis of Russia.................................................................................................................5
Natural resource and factor endowments for Russia.......................................................................7
Foreign currency and exchange influences......................................................................................8
Existing trade policies in Russia....................................................................................................10
Existing Levels of Foreign Direct Investment...............................................................................11
Conclusion.....................................................................................................................................11
Reference.......................................................................................................................................12

3INTERNATIONAL BUSINESS ACROSS BORDERS
Introduction
The assignment has delved with the general overview of the country. In this regard, the
political, economic, socio-cultural as well as technological aspects needs to be taken into
consideration. The national resource as well as factor endowments that created competitive
advantage will also get considered. Along with this, the countries existing trade policies as well
as existing levels of foreign direct investment will addressed as well. The contemporary Russian
trade policy, which is relying upon an export-oriented economy will be resulting in a scenario
when the country’s pattern of participation in global trade exchanges will be facilitating certain
processes in the national economy.
General overview of the country
The country that has been chosen for this research paper is Russia. The economy of
Russia showcased a commendable development between the two financial crises of 1998 and
2009. Within 2000 and 2008, there occurred a 83% growth of GDP and a 70% growth in
productivity. In addition, in real terms, there occurred the doubling of expenses for the
accumulation of fixed capital. While in 1999, per capita GDP by purchasing power parity was
$9,300, by 2008, however, this indicator grew to $21,600, which resulted in a fourfold growth
over the same period of Russia’s share in the world economy, from 0.6% to 2.7%. There
occurred a considerable increase in the welfare of the population, in which a growth of real
wages occurred by 3.4 times as well as real pensions rose by 2.8 times (Forsgren, 2014). In the
pre-crisis phase from 2000 to 2008, there occurred a 6.9% average annual GDP growth whereas
after the crisis, i.e. between 2009-2013, it reduced to 1.0%. There occurred an unexpected