Challenges of Russian market to international companies

Abstract

Stepping out of another nation to expand the business, not an easy task now days and whereabout if that country having bad condition then it become a worst choice for businessman to look out for a business in that country, and expansion for any business is only the key for success and that expansion leads to another country then it quite become a great deal. So in this article we are going to discuss about challenges face by international companies while stepping out on none other than world’s biggest demographically market Russia, with huge and great potential although Russian’s economy is developing at an extremely quick pace and it has a huge potential for the global undertakings. But there are hurdles that come out even when its about the successful country. Small and medium sized companies likewise face challenges in the custom process and because of the elevated level of administration. So, if we talk about political challenge, so government plays a crucial role for ant of the foreign company because they are only the one that can impose taxes, heavy custom duties on imports and trades and other sort of charges. But also they are the one who give many benefits like no tax for first three years, or giving free land for the manufactures so we can see it is necessary factor. And if we talk about the legal condition then a multinational company must go through the legal systems and legal formalities of the country before entering. Because there might be a chances that product manufacturing is illegal in that country because of its pollution and likewise essential to take note of that visit that unusual changes happen during the process that can only be resolve by giving some incentive to complete that work and for no interference in future. And another challenge is economic condition, for global firms it is fundamental important to figure out financial condition of that country before going into the market as certain awful monetary conditions can lead to disappointment for the firm in future. Also check the current year GDP and level of pay of the employees as this decides the potential size of the market and buying intensity of the consumers. And last but not the least challenge that will going to be discussed in this article is corruption , it is considered as a key element for any enterprise before entering into the foreign market as they are so many countries in the world even if they are successful but they are having the highest corruption ranking amongst other countries and this kind of problem is quite become huge if small and medium sized enterprises face it because they don’t have much scalability that they can pay some bribe money to run their business. So, these all above points are the crucial for any enterprise and there is detailed discuss on this in this article.

Выход страны на международный рынок для расширения бизнеса – непростая задача в наши дни, хотя расширение для любого бизнеса – это ключ к успеху. В данной статье речь идет о вызовах, с которыми сталкиваются международные компании, выходя на один из самых больших рынков мира – Россию. Российская экономика развивается быстрыми темпами и имеет огромный потенциал для глобальных начинаний. Тем не менее, малые и средние компании часто сталкиваются с проблемами в таможенном процессе из-за повышенного уровня администрирования. В этом контексте в статье подчеркивается роль правительства страны, поскольку именно оно может вводить налоги, высокие таможенные пошлины на импорт и торговлю и другие виды сборов. В то же время, правительство может предоставлять льготы, такие как отсутствие налога в течение первых трех лет или предоставление свободной земли для производства. Следующий вызовы, рассматриваемые в статье – это правовая система и юридические формальности страны, ее экономическое положение, так как это определяет потенци-альный размер рынка и покупательскую активность потребителей. И последний, но не менее важный вызов, который будет обсуждаться в этой статье – это коррупция. Она рассматривается как ключевой элемент для любого предприятия перед выходом на внешний рынок. Все вышеперечисленные вызовы анализируются в данной статье.