UPS In Russia Draft
Proposal
By: Sara Mcdonald and Nora Gedei
UPS’s Best Opportunity is
For East Region Expansion into Russia
INTRO - COMMERCIAL RELATIONS
The United States and Russia has a very complicated geopolitical relationship at the moment with new regulatory developments effecting both investors and policy experts. But the United States – Russian Business Council (USRBC) has recently allowed business and entrepreneur’s access to the latest information on the market conditions in the hopes of spurring progress in commercial relations, strengthening economic engagement and successfully managing investments in this challenging period. Problems in Russia’s public sector have lead them into talks internationally in the medical and communications fields.
OPPORTUNITY
Russian post offices have been working overtime to prevent a collapse of its international mailing system under the weight of backlogged e-commerce parcels. They are also facing considerable domestic network problems as well; thousands of people have signed an online petition at Change.org calling on President Vladimir Putin to deal with the mail network. (Post & Parcel, 2015) Delays, disruption, criminal activity, cries for help and the USRBC considering outside help provides us with considerable leverage and an excellent opportunity for access into the Russian market place.
VOLUME OF TRADE
Russia spans 6.5 million square miles that are home to 142.9 million people, including a workforce of 75.55 million. However, the country is experiencing a population decline that is expected to reduce the population by 30% during the next half-century. Services employ 58.1% of the workforce, followed by industry (31.9%) and agriculture (10%). Real disposable incomes grew by 10.4% in 2007 spurring considerable growth in private consumption. (Get to Know Russia, 2015)
Half of all Russians live in just two areas: the Central and Volga federal districts. The further east you go --to Siberia and beyond -- the less dense the
By: Sara Mcdonald and Nora Gedei
UPS’s Best Opportunity is
For East Region Expansion into Russia
INTRO - COMMERCIAL RELATIONS
The United States and Russia has a very complicated geopolitical relationship at the moment with new regulatory developments effecting both investors and policy experts. But the United States – Russian Business Council (USRBC) has recently allowed business and entrepreneur’s access to the latest information on the market conditions in the hopes of spurring progress in commercial relations, strengthening economic engagement and successfully managing investments in this challenging period. Problems in Russia’s public sector have lead them into talks internationally in the medical and communications fields.
OPPORTUNITY
Russian post offices have been working overtime to prevent a collapse of its international mailing system under the weight of backlogged e-commerce parcels. They are also facing considerable domestic network problems as well; thousands of people have signed an online petition at Change.org calling on President Vladimir Putin to deal with the mail network. (Post & Parcel, 2015) Delays, disruption, criminal activity, cries for help and the USRBC considering outside help provides us with considerable leverage and an excellent opportunity for access into the Russian market place.
VOLUME OF TRADE
Russia spans 6.5 million square miles that are home to 142.9 million people, including a workforce of 75.55 million. However, the country is experiencing a population decline that is expected to reduce the population by 30% during the next half-century. Services employ 58.1% of the workforce, followed by industry (31.9%) and agriculture (10%). Real disposable incomes grew by 10.4% in 2007 spurring considerable growth in private consumption. (Get to Know Russia, 2015)
Half of all Russians live in just two areas: the Central and Volga federal districts. The further east you go --to Siberia and beyond -- the less dense the
References: WPR. (n.d.). Retrieved February 27, 2015, from http://worldpopulationreview.com/countries/russia-population/ Post & Parcel. (n.d.). Retrieved February 27, 2015, from http://postandparcel.info/55347/news/companies/the-week-that-was-19-april-2013/ Get to Know Russia. (n.d.). Retrieved February 27, 2015, from http://www.dhlusa.com/en/express/small_business_solutions/country_facts/country_facts_russia.html To Russia, No Love. 5 Tips for Shipments to Russia. (n.d.). Retrieved February 27, 2015, from https://www.shipwire.com/w/blog/russian-orders-to-individuals/ Exchangerates.com. (n.d.). Retrieved February 27, 2015, from http://www.exchangerates.com Trading Economics. (2015). Buy Russian Rubles. Trading Economics. Retrieved on February 10, 2015 from http://www.tradingeconomics.com/russia/inflation-cpi UPS Weber, A. (2015). Russian FDI to fall 50% in 2014 on risk, institute says. Bloomberg. Retrieved on February 21, 2015 from http://www.bloomberg.com/news/articles/2014-06-05/russian-fdi-to-fall-50-in-2014-on-risk-institute-says Kuznetsov, V., Doff N White, B. (2015). Here’s why the dollar is so strong and what it means for investors. Business Insider. Retrieved on February 21, 2015 from http://www.businessinsider.com/why-the-dollar-is-strong-2015-1 RT