Running Head: Russia

Contributions to World Trade in Russia

Jason Lijewski

Delta College – University, Michigan

MGT 265: International Business

Kristal K. Zielinski

November 18, 2010

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 ABSTRACT

The purpose of this application paper is to research what contributions that Russia has to

offer in contributions of world trade. I will focus on Russia’s growth rate, population growth, free

market economic growth, specialization, education , trade with U.S. and foreign direct investments.

RUSSIA’S ECONOMY

Growth Rate
Russia’s growth rate is 2.7%. This percentage has set the country further isolated from

other key rising economies.

Population Growth

Russia, also know as the Russian Federation, is a country in northern Eurasia. Russia is

the largest country in the world in terms of area. Russia is also the ninth most crowded nation

with a population of 141,927,297 as of January 2010. The nation encompasses the whole

northern Asia and almost 40% of the European continent. It has 11 time zones, as well as an

enjoyable diverse climate.

The Russian economy has undergone considerable changes since the fall of the Soviet

Empire, transitioning from a state restricted, socialist organization to an added market based, and

globally incorporated economy. Russia’s deep dependence on commodity exports made the

country weak to the global economic disaster of 2008.

Free Market Economic Growth

 There has been very little change in the support for free markets. This has been since the

early 1990s in Russia. In Russian the citizens are separated as to whether open markets have yet

to carry benefits to the standard person. When asked whether the economic conditions for most

people today is improved, worse or about the same as it was under communism, it was 45%

saying yes and 39% declaring it was worse.

Specialization

Russia has been through major changes since the folding of the Soviet Union, stirring

from a globally-isolated, centrally-planned nation to a new market-based and globally-integrated

nation.

The safety of property rights is still frail and the private sector remains subject to deep state

interference. Russian industry is mainly torn between globally-competitive commodity producers

- just recently, Russia was the world's biggest exporter of natural gas, the second largest exporter

of oil, and the third leading exporter of steel and primary aluminum - and other fewer

competitive industries that stay needy on the Russian home market.

Education

Education plays a great role in forming social standings in Russia. Children who leave

school after eight years normally can find only unqualified jobs. Those that only complete

secondary education may climb no higher than experienced labor or low-level white-collar

employment. A college or university education is essential for an abundance of professional and

practical positions and appears to be highly attractive for a position of supporting power.

Trade with U.S.

The Alliance for U.S.-Russia Trade, a multinational group of U.S. companies and trade

associations that represents the U.S. economy supports the connection with U.S.-Russian ties for

a stronger profitable connection. It increases a greater simplicity, adhering to the rule of law and

increased belief for U.S. trade and investments.

The Alliance provides a stage for agricultural benefits and U.S. businesses to engage with

public officials and advocate policies that will make certain that U.S. firms and farmers are able

to take complete advantage of a Russian market that is included into the rules-based system of

international trade.

Russia, one of the world’s biggest and greatest rising economies in transition over the

latest years, is on the path to unite with the World Trade Organization (WTO) and imagine the

international official obligations of the world trading system.

Foreign Direct Investment

The second major part of Russia’s reform strategy to support international economic

relations is foreign investment. The Soviet government outlawed foreign investment because it

would have damaged the state's decision-making prerogatives on savings, invention, and

consumption from the late 1920s to the late 1980s.

Russia’s investment situation has not been strong because of high inflation, a falling

GDP, an unbalanced exchange rate, a doubtful legal and political environment, and the impulsive
performance and completion of tax and narrow regimes.

In recent news, PepsiCo Inc will soon buy control of Russian juice and dairy company

Wimm-Bill-Dann (WBD.N) for a near 4 billion, its most determined overseas purchase, making

it Russia's leading food and beverage maker. This deal is one of the prime foreign investments in

Russia outside the energy sector.

CONCLUSION

In conclusion, Russia is a country that the United States is just starting to warm up to.

Even now nevertheless, our ties to it are strained. We spent several years afraid of Russia, and

Russia was evenly frightened of us. It is a nuclear powered country that just recently became a

republic. President Obama stated last year that Russia and the United States are “more in

common than they have differences”. I believe time will heal old wounds.

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REFERENCES
https://www.cia.gov/library/publications/the-world-factbook/geos/rs.html
2010 The World Fact Book

http://www.asiaing.com/russia-after-the-global-economic-crisis.html
From Russia after the Global Economic Crisis June 08 2010
Retrieved November 28, 2010 from Asiaing.com

http://www.encyclopedia.com/doc/1G2-3404100393.html
ROSEFIELDE, STEVEN. "Economic Growth, Intensive." Encyclopedia of Russian History.
2004. Retrieved November 28, 2010 from Encyclopedia.com

http://www.tradingeconomics.com/Economics/GDP-Growth.aspx?Symbol=RUB
Russia Q3 GDP Growth Pace Lags Other Emerging Economies
Published: 11/13/2010 3:07:12 AM By: TradingEconomics.com, Reuters

http://pewresearch.org/pubs/1598/czech-republic-pre-election-still-support-democracy-free-
market-despite-economic-pessimism
Czechs' Commitment to Free Markets and Democracy Stays Strong Amidst Troubled Economic
and Political Waters by Erin Carriere-Kretschmer, Senior Researcher, Pew Global Attitudes
Project May 19, 2010

http://www.usrussiatrade.org/index.php
U.S.-Russia Trade Continues to Grow
Coalition for U.S.-Russia Trade
November 11, 2010

http://www.russiansabroad.com/russian_history_247.html
Russia - Foreign Investment 2010