Explores the obstacles facing trans‐national corporations (TNC) considering FDI in Russia. Dunning (1994) suggests that countries’ abilities to attract and exploit the potential economic benefits of inbound FDI vary according to their national political, economic and legal cultures, traditions and infrastructures, together with the economic objectives and policies pursued by host governments. This paper seeks to make use of Dunning’s model, in exploring the obstacles to FDI in modern Russia, and their implications for TNCs. The papers’ findings suggest that Russia’s relative lack of success in attracting FDI and exploiting its potential benefits during the 1990s can be attributed to her national infrastructural factors and government policies, as Dunning’s model suggests. Russia’s ability to attract a larger share of FDI in future seems likely to be constrained by national ambivalence towards the benefits of FDI, together with the political and economic realities of her current situation.
This paper explores and analyses the findings from a survey of UK participants in a trade mission to Moscow, with reference to relevant academic literature. The focus is on their experience of doing business in transition economy (TE) country‐markets (including Russia itself); their perceptions of Russian market opportunities and risks; their main sources of information and advice; and their strategies for Russian market entry and development. The findings suggest businesses with experience of TEs and Russia may be best placed to succeed in the Russian market, provided that they draw fully on the resultant lessons. Newcomers to the Russian market can maximise their chances of success by seeking out good information and advice, forging good contacts with Russian businesses, and by adopting a well‐structured, but flexible approach to their marketing strategies. Official support agencies can help UK businesses to succeed in Russia by maximising the quantity and quality of the support, information and advice that they provide.
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