International Business; Russian Business Articles

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International Business:

Russian Articles on Business and Economic Activity

James Windsor 12TU2

Demand for Russian MBA’s drops

The demand for the Master of Business Administration courses in Russia has dropped over the past year by 50%. This comes as a surprise as there were a number of discounts and flexibility programs to combat the effect the recession would have on the program.

The extreme drop in MBA applicants is being blamed on employers cuts in employee’s education expenses due to the economic downturn as 90% of MBA applicants are funded by their companies.

Pavel Ulukaev- Director of MBA and business education programs at the Plekhanov economic academy is an example of this as his former employer paid half of the $15,000 course fee for his MBA.

However he has now claimed that experience is more valuable to a majority of businesses, a claim which is backed up by Mikhail Zhukov the CEO of recruitment firm Head Hunter.

Overall the MBA is still considered a very well respected qualification and applications are predicted to rise again in 2010 as the Russian economy recovers.

Positives to US and Russian Business Alliance

Barack Obama is set to ask Russia to remove trade barriers, At talks in Moscow with President Medvedev. There are an increasing number of American business men who are making it big in Russia

Paul Heth CEO of KinoStar in Russia is just one of these that has found that business in Russia can have big returns. He has stuck to his plans and has stayed in Russia working on his business since 1993 and he now has a massive market share. Paul believes that Russia is the most exciting dynamic market for business in the world today. However despite this strong link the US holds just 4% of Russia's trade.

U.S. Trade Representative Ron Kirk blames a number of items including; "unfair" import taxes, its ban on US meat, not to mention open violation of intellectual property. A major issue with Russian violation of Intellectual property is that a quarter of all revenue of Hollywood films in Russia is illegally pirated.

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Construction Market Suffers Due To Lack Of Funding

Russia’s Housing market sector appears to have been hit hard by the recession. House construction in Russia dropped dramatically; the reasons behind this have been associated with large developer debt and cuts in government funding.

For the sector to rise again it needs government subsidiaries and a new wave of demand, which is unlikely to occur given the state of the mortgage market. Russian banks have increased interest rates and made it generally harder to borrow.

The Russian government is doing its best however its promised ...

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