Analyzing AgriDigital's Growth Potential in Russia: A Case Study

This case study analyzes Russia as an emerging economy, highlighting its growth potential and attractiveness to foreign investment, particularly for companies like AgriDigital. It discusses the characteristics of emerging economies, focusing on Russia's trade openness, foreign investment trends, and challenges. The study emphasizes Russia's strong economic growth since the 1990s, driven by industrial and service sectors, and its increasing influence within the BRICS association. Despite facing geopolitical and inflationary pressures, Russia demonstrates stable trade relations and a growing foreign investment landscape, making it a conducive environment for AgriDigital's expansion. The report recommends increasing trade ties with geographically closer countries and diversifying the export basket to include more agricultural goods. Ultimately, the case study concludes that Russia's emerging economy presents a promising opportunity for AgriDigital to achieve greater returns and contribute to Russia's overall economic development. Desklib provides a platform to access similar solved assignments and study resources.

EMERGING ECONOMIES
Case of Russia

Introduction
 Emerging markets are basically countries that are less
developed when compared to developed countries.
The term implies that these countries are gradually
developing and are in the transition stage of
development.
 The concepts involving emerging economies and their
growth are studied in detail in this report. Further, the
growth of Russia as an emerging market is also
evaluated with the help of features like country
attractiveness to international trade and investment
opportunities within the country. In this aspect the
establishment of the subsidiary of the Australian firm
AgriDigital in Russia is discussed.

Emerging Market Economies
 AgriDigital being an established firm
in an already developed economy
will efficiently be able to bolster the
economic growth in the country that
it expands to and contribute to its
development by increasing the Gross
Domestic Product of the country.

Emerging Market
Economies
 These countries slowly start gaining
importance in the world and
continental platforms. The most
important characteristic of these
economies is that they are able to
develop themselves as emerging
powers in the political and military
contexts as well.

Barriers to Emerging
Economies
 There are several types of barriers
that these countries face. These
include barriers in different contexts
like geography, politics, economy,
military, population, diplomacy,
power and national identity. These
countries have different levels of
potential and different strategies of
growth.

Features of Emerging Economies
 Emerging economies are identified
with low per capita incomes, high
levels of social and political
instability, high levels of
unemployment and low levels of
business and industrial activities
including investment programs
compared to developed economies
of the United States.

Agridigital
 Agridigital is a technological firm primarily
providing easy and the best solutions to the
firms operating in the agricultural sector. The
firm helps in increasing the transparency and
reducing friction in the supply chain in the
agricultural sector firms. The firm uses smart
devices and effective disruptive business
models for this purpose. They help in
upgrading and improving the skills of the
workers operating in the agricultural industry
as well.

Investment in Emerging Economies
 For a firm like AgriDigital that has
been operating efficiently since
many years and managing funds and
investments in the best way
possible, investing in Russia will win
the firm increased amounts of
revenue generation.

Investment in Emerging Economies
 This is compensated by the levels of
higher economic returns and growth
as compared to most other
economies (Xia et al. 2014) This high
rate of growth coupled with high
rates of expansion slowly converts
into high profitability rates and
revenue generation for the corporate
investors.

Russia as an Emerging Economy
 There are five major economies in
the world currently which are
identified for having immense
influence regionally and are now
increasing the amount of global
influence too. Russia is one of these
countries, the other countries being
Brazil, India, China and South Africa.

Russia as an Emerging
Economy
 According to reports, BRICS as an association
has been able to steer up growth from a
percentage of 3.9 in 2015 to 4.6 % in 2016. It is
being estimated that in the year it expanded at
a rate of 5.3% in 2017 (Chkili & Nguyen, 2014).
Russia is one of these countries. Thus, as the
firm operates in the agricultural industry, it is an
added advantage for the firm to expand in
Russia as it is well known or its agricultural
sector and large areas of land mass and natural
resources used for agricultural purposes.

Russia as an Emerging
Economy
 After the 1990s, Russia has grown at
the fastest rate (7%) and is now
increasingly being recognised as the
fastest growing economy.