MULTINATIONAL CORPORATIONS’ ACTIVITY IN RUSSIA: PROBLEMS AND PROSPECTS
MULTINATIONAL CORPORATIONS’ ACTIVITY IN RUSSIA: PROBLEMS AND PROSPECTS
Aliyev E. V., 3rd year, Institute of Economics,
Management and Environmental Studies, Siberian Federal University
Supervisor-
Berezova K. G.
One of the most actual tendencies associated with globalization is a growing influence of multinational corporations (MNCs) on local economical environments. During recent decades, Russia turned from an isolated economic unit to a host country for foreign capital flows.
Multinational corporations are organizations that have affiliated branches and subsidiary companies in two or more countries. Nowadays there are more than 82000 MNCs. Most of the head offices are located in developed countries.
The history of MNCs’ activity in Russia virtually starts in 1995. Apparently, in the former Soviet Union there were no MNCs and even at the beginning of the 1990s Russia was not an attractive country for foreign investments. In fact, the Russian government gave a stimulus to MNCs’ activity by the legislation reform in 1995 that allowed foreign companies to invest in mining operations and explore the Russian natural resources.
Nowadays the investment climate in this country is not still perfect but this is not an obstacle for MNCs to be competitive. First multinational company appeared in Russia was ‘Sakhalin Energy’ that obtained a license to develop vast oilfield. During the last decade MNCs were active also in food industry (Nestle, Coca Cola) and automobile production (Ford, Kia). Companies specialized in catering and retail also made progress: the great example is ‘McDonalds’.
In general the Russian government support foreign investments that can give a possibility to break the technological gap and to create new workplaces, to reduce unemployment, to study new business technologies. Competitive spirit can encourage Russian producers to improve the quality of goods and to buy modern equipment. Foreign investments can also give an incentive to
Aliyev E. V., 3rd year, Institute of Economics,
Management and Environmental Studies, Siberian Federal University
Supervisor-
Berezova K. G.
One of the most actual tendencies associated with globalization is a growing influence of multinational corporations (MNCs) on local economical environments. During recent decades, Russia turned from an isolated economic unit to a host country for foreign capital flows.
Multinational corporations are organizations that have affiliated branches and subsidiary companies in two or more countries. Nowadays there are more than 82000 MNCs. Most of the head offices are located in developed countries.
The history of MNCs’ activity in Russia virtually starts in 1995. Apparently, in the former Soviet Union there were no MNCs and even at the beginning of the 1990s Russia was not an attractive country for foreign investments. In fact, the Russian government gave a stimulus to MNCs’ activity by the legislation reform in 1995 that allowed foreign companies to invest in mining operations and explore the Russian natural resources.
Nowadays the investment climate in this country is not still perfect but this is not an obstacle for MNCs to be competitive. First multinational company appeared in Russia was ‘Sakhalin Energy’ that obtained a license to develop vast oilfield. During the last decade MNCs were active also in food industry (Nestle, Coca Cola) and automobile production (Ford, Kia). Companies specialized in catering and retail also made progress: the great example is ‘McDonalds’.
In general the Russian government support foreign investments that can give a possibility to break the technological gap and to create new workplaces, to reduce unemployment, to study new business technologies. Competitive spirit can encourage Russian producers to improve the quality of goods and to buy modern equipment. Foreign investments can also give an incentive to