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Russia has made great progress in achieving macro-economic stabilisation and is currently pursuing a successful transition to a market economy.

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Introduction Over the past year the subject of WTO accession has become one of the hottest foreign policy issues in Russia. It is clear from Russia's long history, the size of its internal market, and its importance in the shaping of world politics that the process of Russian economic reform will have wide-ranging political and social implications. Now Russia is going to become one of the members of the World Trade Organization (WTO). It not only gives lots of advantages to the Russian company, but also some negative problem. After joining the WTO, there will be lots of foreign investment in Russia. Whether it's environment suitable for foreign investors? In this article, I will analyse the economic, political and culture environment in Russia. Economic environment Russia has made great progress in achieving macro-economic stabilisation and is currently pursuing a successful transition to a market economy. * Income Through out twenty years of development, the Russian income level has increased constantly. We can conclude this by the GDP and GNP. .Over the last few years, the annual Gross Domestic Product (GDP) growth 6% in Russia.Moreover, we can see at the figure of Gross National Product (GNP), which was 8,660 US dollars, rank 79 in the world. Here, we should notice that in 2001 the GDP went up 5.1 percent, which is one of the best figures in the world. Furthermore, Russia's GDP grew 4.2% 2002 and GNP grew by approximately 4% in the first half of 2002. Rapid Russian real GDP and GNP growth both has benefited from rapid rise of net exports and domestic demand. On the other hand, according to a forecast released by the Russian Economic Development and Trade Ministry, growth of real incomes reduced the share of the population below the subsistence level to 33% in 2002, and this figure is extremely high by international standards. In 2002, the number of citizens with income below the subsistence level was registered at 27 percent, and this figures expected to go down to 26 percent in 2003, 25 percent in 2004 and 24percent in 2005. ...read more.


While portfolio investment declined to 2.4 %, and other foreign investment grew up to 75.2 %. The excess of other investment as compared to the amount of direct and portfolio investment is a negative factor. The sectored structure of foreign investment is characterized by a growth in investment in industry at the background of declining investment in other aspects of economy. In the first six months of this year, the rates of growth in foreign investment in industry (+ 30.5 %) exceeded the similar indicators of growth of aggregate amounts of foreign investment in the Russia's economy. At the same time, the direct investment in industry increased by 6.7 % as compared with the figures registered in the first six months of 2001 and made US $ 887 million (47.4 % of the aggregate foreign direct investment in the RF economy). Other investment in industry made in this period increased by 48.1 % and reached US $ 2.26 billion (36 % of the aggregate foreign direct investment in the RF economy). The decline in the amount of portfolio investment made 26 %.Therefore, boosting FDI is a key priority of the Russian Government. On this part, the EU has been stressing the need for Russia to provide a stable and reliable legal and institutional framework, which would encourage foreign investor confidence in the Russian market. in perspective Russia's ratification of the WTO accession, Energy Charter Treaty, would also contribute prominently to boost FDI inflows. Foreign companies` opportunities and threats When a foreign company consider invest in Russia, both the economic growth and the reform policies about the country are thought by the investor. Nikola (2002) stated that while the prospects for Russia's oil industry look bright in the medium term, should be warn that Russia's precarious legal system -- its lack of transparency and widespread corruption -- are keeping away many potential long-term foreign investors. ...read more.


Russian does not like the number of thirteen, just like the western people, because they think that number means danger and death. * Business amenity In Russia most of businessmen will prefer dressing in grey or cyan colour. They would avoid black cloth. Dressing good or not is very important for Russian, because it not only presents your standing, but also represent that you have been concerned of this business or not. Some recommendations to the companies for the HRM strategy According to the cultural differences, foreign companies want to enter the Russia's market that they must pay more attention on human resource activities, such as equal opportunities, health and safety, training and development. Firstly, consider different language. I suggest that when organisations recruit people, the language should be considered. Because the Russian language is the most people language, so, recruit the people speak this language is better for the business communication. Secondly, because the colour preference, I recommend the companies can choose the lucky number to promote their products. For example, use number 7. Thirdly, if the foreign companies want to cue the Russia's customer into positioning their brand in a certain way, the colours and the logos used in the design, packaging and advertising of a product can send very powerful message about the personality of their brand. Fourthly, be aware the dress. Concerning the business amenity in Russia, the investors should avoid dressing black suit when the business men take part in the business occasions. Conclusion On the whole, Russia economy future is positively despite some aspects insufficiency. For example, a lot depends on the bureaucrats. As far as WTO accession is concerned, it could boost restructuring by Russian firms. With increased international competition and better access to imported components and foreign consumer markets, Russian firms will become more productive and efficient. For foreign investors to come, Russian needs to have a normally functioning legal system and legislate understandable taxation system to foreign investors. Besides, a normal banking system is needed. Pt-Russia 1 ...read more.

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