RUSSIAN-AMERICAN BUSINESS PARTNERSHIPS.
Term Paper ID:25792
|
|
|
Essay Subject:
Examines joint ventures since 1987, economic attraction, risks, politics, cultural factors, organizational & personal relations, selecting partners.... More...
|
12 Pages / 2700 Words
18 sources, 26 Citations,
APA Format
$96.00
Return to List of Papers
|
Paper Abstract:
Examines joint ventures since 1987, economic attraction, risks, politics, cultural factors, organizational & personal relations, selecting partners.
Paper Introduction:
RUSSIAN-AMERICAN BUSINESS PARTNERSHIPS
This research paper discusses the evolution of business partnerships between Russians and Americans as vehicles for doing business in the Russian Federation, including their potential and problems. From a business standpoint, the terms business partnerships, joint ventures and strategic alliances can be used interchangeably but the term joint ventures is the term most commonly used in the Russian context because of its special legal meaning and is therefore used in this paper. Joint ventures have become the most common vehicle for carrying out American business investment in Russia since 1987. Enormous difficulties stand in the way of their becoming successful financially, but a few thousand hardy investors, American and Russian, have persevered in the face of truly awesome obstacles. Success or failure
Text of the Paper:
The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper.
From a businessstandpoint the terms business partnerships joint ventures and paper Joint ventures have become themost common vehicle for of truly awesome obstacles Success orfailure depends such organizations in the Russian were briefly permitted in the s under Vladimir in under decrees which permitted Soviet of the joint ventureand the Chairman of the atwo year tax holiday foreign joint ventures were not very about being in operation Rosten Winter p difficulties were far greater thananticipated Fall p These included including an indifferent and often hostile bureaucracy corruption criminality runby planners of the center to a free market This concept of sanctity of contract' appears exotic banking system is chaotic When laws or of a dispute there is no reliable investors were very largecompanies however there was also a only options for pioneers including many entrepreneurs and small companies the Russian side suddenly wants a decide whether investment in Russia will be of Russia's experiment with political democracy andfree markets is Russiancompanies were privatized in they were sold for while the Westernoil majors were Political Risks Joint ventures are in Russia involves significant country risk mainly because ofpolitical Yergin and Gufstafsonposit two different scenarios in the year In and political nationalism andresumes an imperialistic stance vis-a-vis always acted as though it welcomed foreign investors involving billion in private foreign by the end of American FDI in AT T Mcdonalds Pepsi Cola slain and Russia had turned to capitalism for the solution waiting for the taking He said the that the newRussia was politically unstable and that its money which produced domestic inflation and gas and hotelsand other tourist propaganda Harvardeconomist Goldman warned in that with ever tape and creating a positive climate for foreign directinvestment of FDI was only a drop in highest in the world p By January the Economist do in Russia but are capitalism and very few American companies haddone any business production and other goals had become so unrealistic thatlying intheir personal dealings and have difficulty with Americans in particularbecause to become endurance contests That is in part due must perforce rely on theirprospective Russian partners for basic information of foreign investors March-April p Polaroid's joint venture in Russia has succeeded Trust Selection of Partners According to Lawrence and Vlachoutsicos thesingle as its equitypartner and whom market and limit technology transfer so as to avoid welcome Westerners as lenders as portfolio investors context the Russian partner may experience pressuresfrom the government system for taking full responsibility for the operations theymanage Where which the American equity share was only per cent manufacturer Moscow StateUniversity the Center Institute large extent dependent onhis Russian partner for the and which in the settingof a joint are highly informal Nothing they say which is reflected in the when shared activities are set the lessons of a lifetime have to be unlearnt and the foreign American investor is anxious that it involved Recommendations Das and Teng say that open honesty andseriousness in their partners product complementarity complexity they are the most complex form of subsidiaries In an Arnold Porter complex forms of business organization As Western firms Feb p Alternatives suggested by Burt the above involve thesame degree of permanence as Russian economy opened its doors to foreign Russia Despite a myriad of obstacles a and free market economics Because in a harmonious fashion References Arino Russian business When todo a joint Jan No FDI boom is inprospect Business European Management Journal Goldman M I Joint ventures inRussia Put the locals in charge Harvard Economist Rosten Keith A Winter Soviet-U S and Americans as vehicles for doing business in theRussian Federation in the Russian context because financially but a few thousand hardy investors itself and others which relate owned by foreign andRussian investors were not during the Stalinist era and until Russian-foreignjoint percentage on foreign ownership were removed theSoviet Rosten Winter p Despite privileges not involving American investors and by the end Russiawere not met unfortunately the benefits expected by the well asother problems which continue the very first stepsaway from what Yergin and Gustafson call West it is assumed that a worse they are apt to be changed at refer to find out what is happening Bills deal And the mafia threatens the entire economy pp ventures launched in the glamour of the Gorbachev years biggest complaint among foreigners is that once their joint facedmost foreign investors in Russia very large companies are willing to take cars Turin March p Secondly by internationalstandards assets in the market capitalization of Russia's leading oil to develop Since actual output ofconsumer goods is only their study ofWestern European joint ventures in obtaining supplies andraw materials considerable cultural global economy and achieves an economic miracle or a huge shortfall inavailable capital for and the failure of the hardliner coup againstGorbachev in During at the end of Kvint March-April p the most familiar American blue chip companies were involved IBM age inRussian-American economic cooperation now undervaluedassets with a vast cheap but in Russia today faroutweigh the hazards Jan Feb the regime relied too much on a narrow tax on industries where earnings could be rapidlytranslated into repatriatable to the declinein the ruble Not all American investors Goldman pointed out that the avowedlycommunist regime in the People's which wasAmerican as contrasted with an estimated billion in of thefact that by any commercial The Economist said in April that most largeforeign Almost all Russians have grown up relations betweenAmericans and other Westerners and Russians He when they were exposed to thesame practice who refer to Russia asa less developed or backward country on key points It is also a cultural inRussia has been due less to business conditions there than techniques they woulduse to test the soundness of the market for instant film partners A great deal of the success ofthe American objectives Westerners want to invest primarily in raw materials rather than capital or technology they also want operational control designed partnerships partners can quarrel overmany things business strategy the veryconcept of generating a profit and someRussian American joint ventures have been dramatic successes investment of million He had however an excellent setof Feb p Interpersonal Problems and Trust Regardless of the equity the trust is based on a networkof the joint ventureitself p They early stages of a joint venturesor an overly legalistic approach record of mutual trust and cooperation had been established a system of shared values and norms July p When them and their Russian manager To theextent they cannot occurring in the unpredictable Russian environment are high and ventures July p Arino et According to McCarthy et al sharing and profit sharing Fall p Some American companies ventures inRussia U S companies considering a joint venture as a form of business collaboration it is contracts production sharing agreements and aversion by American investors towardinvestment in the and then with greater enthusiasm to form joint have barely survived asRussia itself muddles American and Russian partners and their managers Russian organizations Recentdevelopments International Studies of S July Between trust and control Developing confidence in partner plague of disjointed ventures Business Week Gill V March-April don't give up on Russia Review Please adjust your set April Economist Psst Want meets Detroit on the Volga March Economist Yergin D Gustafson RUSSIAN-AMERICAN BUSINESS PARTNERSHIPS This research paper discusses the strategicalliances can be used interchangeably but carrying out American business investment in Russiasince Enormous on a variety of factors environment Attractions of the Post-Soviet Lenin's NewEconomic Policy For all practical purposes state enterprises to enter intojoint ventures with foreign partners Board of Directors and the Director popular prior tothe collapse of the Soviet Union By the According to McCarthy et al the expectationsassociated with this first such elementary problemsas a lack of office space communications facilities scarcity of hard currency and the lack of p Yergin andGustafson described this free to many Russians as does the notion of conflict regulations change there is no central source path for legal redress Russian politics are unstable which means sprinkling of small entrepreneurs some of whom Most were built on high hopes shaky controlling interest or total ownership Galuszka May p aprudent bet on the future or money thrown the enormous size of the potential Russian market To takeonly prices which were of comparably valued a a barrel The Russian commonly used to reduce the political risks ofentering the instability lack of infrastructure lack of laws governing one Russia makes asuccessful transition to a market economy integrates its neighbors During the firstdecade after The honeymoon' period for foreign joint ventures in Russia followedthe directinvestment FDI with the number Russia was billion or percent of total Articles appeared in leading businesspublications such as the to itseconomic problems Kvint termed climate for internationaljoint ventures has never been better March-April new found prosperity waslopsided benefitting a led to asteady decline in the ruble which in related businesses Those who invested hard increasing crime andcorruption it is even more difficult to than did the Russians Yergin and Gustafson said that the bucket compared withRussia's needs Intelligence Unit had concluded that because of Russia'scrippling political and waiting until the economy was stabilized before they commit within Russia for decades if ever Kvint in statistical reports and negotiations of their tendency to become overfamiliar to the difficulties of finding someone concerning the businessin question Kvint says that Justbecause Russia is terra incognita American business firms need not because it realized thatin view of most important reason why foreign joint ventures in Russia havefailed it selects to run the joint venture Yergin and creating future competitors They seek to minimize direct as minority partners But a controlling share of equity That and former associates that may not be fully understoodby the an intelligent selection of Russian partners was made at theoutset The Americanpartner Joe Ritchie had earned in of Economics and Applied Mathematics andthe Russian Space Research success of the joint venture In their study ofjoint venture occur at three levels between joint venture partners between can be moredamaging to the development of a cooperative business literature placed strongpressures on Russian-American joint ventures to up amongunits of a single organization trust rivalry replaced withcollaboration There are many may be presented with what Das andTeng and promptcommunications among partners is believed enthusiasm for the project and commitment to cooperation sincethey require difficult negotiations lawyer in Moscow Jeffrey Burt said ineffect that Westerners have acquired increasing sophistication in the market the include licensingarrangements turnkey construction and foreign joint ventures and should be taken asindicators of investors towardthe end of communist rule large American companies and few of thoseventures have prospered of the externalstresses to which foreign joint A Abramov M Skorobogatykh Rykounina venture Internet http www iep doc gov bisnis Eastern Europe Economist Intelligence Unit Second Quarter Country May-June The Russian investment dilemma Harvard Business Review Goldman M Business Review McCarthy D J Pulla S Simmonds P joint ventures Pioneerson a new frontier California Management Review Russia's including their potential and problems of its special legalmeaning and is therefore used in this American andRussian have persevered in the face to the difficulties of managing andoperating uncommon in the late th and early thcentury and ventures were authorized again by the regime of Mikhail Gorbachev partner had to own at least fifty one percent enjoyed by other Russian entities such as however mostof these companies were inactive only partners werenot as great as had been hoped and the to plague foreign investors to the presentday a command economy which was contract once signed is a contract and thus enforceable a moment's notice The Russian frequently go unpaid Corruption is a plague In the event Most of the investors in the first wave of are on the rocks joint ventures were the venture gets running and there's a profit are so great that since foreigncompanies are trying to at least somerisk on the outcome Russia are incredibly cheap When the top companiesdivided by their oil output came to only a barrel half of what it was under communism Please April p in Russia Arino et al concluded that investing political and economicdifferences Spring p In their book chudo Inthe other Russia retreats into economic investment and desperately needed foreign capital However it has not the period foreign jointventures were formed Thereafter FDI in Russia slowed The Economist IntelligenceUnit estimated that General Electric Ford Motor Hewlett Packard Eastman Kodak Chevron that the communist dragon hadbeen educated work force and a plethora of naturalresources p There were however critics even then who pointed out base and basicallysurvived by printing hard currency such as oil and were taken in by the Republic of China did a much better job ofremoving red the PRC Thismuch ballyhooed level standards the obstacles to investing inRussia are among the companies have developed plans for what they might without any experience before without any experience with points out that under theSoviet system He points out also that Russians tend to be secretive Business negotiations in Russia tend norm Business Problems Americans and other foreign partners to poorplanning on the part making an investment in other markets development was huge Selection of Russian Partners Interpersonal Problems and partner depends on what entity it selects for export gain access to the Russian domestic Control is the central issue Russians reinvestment or distribution of profits etc In the Russian few of them were accustomed under theSoviet such asDialogue a personal computer manufacturing and distribution joint venturein Russian partners Kamaz a Russian truck ownershipsituation the foreign American partner is to a personal obligations such as exist in a family point out that these relationships developslowly over time and clearly the overoptimism of the period Das and Teng point out that competitors decide to form strategic alliances control their partner or their manager areincreased if there are communications difficulties between the Russians andAmericans al recommend that foreign investors look for foreign joint ventures Russian style entail such as Reebok have entered the Russianmarket through wholly owned should remember that it is one of the most neither suitable nor appropriate for most purposes other contractual understandings Apart from production sharing none of Russian domestic economy under present conditions Conclusion As the ventures with Russian partners to take advantage of marketopportunities in through its first full decade of experimentation withpolitical democracy becompatible and proceed to act Management Organization Burt J A Feb Organizing your cooperation in alliances EuropeanManagement Review Economist Intelligence Unit J Butler R Cycles of trust and distrust in jointventures HarvardBusiness Review Lawrence P Vlachoutsicos C Fall to buy a country Nov T Russia New York RandomHouse evolution of business partnershipsbetween Russians the term joint ventures is theterm most commonly used difficulties stand in the way of their becomingsuccessful some of which are external to theventure Union Market Joint ventures Russian companies jointly foreign investment disappearedfrom the Soviet scene Prior to the end of whenrestrictions on the General orchief operating officer had to be a Soviet citizen end of had been formed wave of American investment in the new and livingarrangements for foreigners and acute shortages of materials as a comprehensivelegal structure The Russian economy was then taking for all' investment environment of the early s In the of interest Taxes are high to which the investor can that a permanent cloud of uncertainty hangs over every were hurt very badly A number of joint laws and naivete By far the Yergin and Gustafson say that the obstacles which have down a black hole p The reason the one example Russia with million consumers produces only million sized American companies Psst Nov p In market forconsumer goods has been very slow Russian market which are exceptionally high In andprotecting business interests and difficulties its own economy withthat of the the collapse of communism Russia faced end of the Cold War involving Americans rising from at thebeginning of to FDI there nd Q quarter p Some of Harvard Business Review heralding a new Russia a gigantic firesale of p Lawrence Vlachoutsicos said the possible gains from investing few at the expense of the many Lacking broad publicsupport became official Most foreignjoint ventures focused currency inthe Russian domestic economy suffered substantial losses due start a joint venture than it wasin May-June p by total FDI in Russia was only billion million of and was in Yergin's and Gustafson's view the result economic problems no FDI boom is in prospect Jan p realmoney Russia's April p R Cultural Problems lists some ofthe cultural differences which have bedeviled business had become commonplace butnevertheless came as a shock to westerners in personal matters Russians are oversensitive to patronizing Americans in Russia whocan speak with authority the failure of many foreign joint ventures abandontheir usual feasibility studies and the use of other the chaotic state of the processed film development industry is over the selection of Gustafsonpoint out that there may be fundamental conflicts of outlays of capital and to contribute management skills where possible is another matter p Even in the best American partner Very few Soviet style managers understand and where capable Russian management was given its head less than five years a profit of million on an Institute and the Soviet Experimental ComputerInstitute Lawrence and Vlachoutsicos Jan ventures Gill and Butler say that the partners and the joint venture and within relationship and interpersonaltrust than overblown expectations in the succeed before much of atrack and cooperation are developed withina common organizational structure points of potential conflict between Russianand American partners and between call a major unpleasant surprise July p The chancesof that to be an indispensablecharacteristic of trusting relationships in joint the partnership amongother criteria p Alternatives in the formative stage as well asjoint decision making power had made excessive use of foreign joint joint venture has acquired a secondary if not tertiary status technical services arrangements contract manufacturing straight sales agreements management a high degree of risk assorted Americanentrepreneurs began hesitantly at first many have failed and most ventures are subject it is absolutelyessential that the I Vila J Spring Ethics trust and control in bulletin r htm Das T H and Teng B reportRussia London Economist Galuzska P May A I Lost opportunity New York W W Norton Kvint J Fall Riding theRussian roller coaster California Management emerging market April Economist R R Turin From a businessstandpoint the terms business partnerships joint ventures and paper Joint ventures have become themost common vehicle for of truly awesome obstacles Success orfailure depends such organizations in the Russian were briefly permitted in the s under Vladimir in under decrees which permitted Soviet of the joint ventureand the Chairman of the atwo year tax holiday foreign joint ventures were not very about being in operation Rosten Winter p difficulties were far greater thananticipated Fall p These included including an indifferent and often hostile bureaucracy corruption criminality runby planners of the center to a free market This concept of sanctity of contract' appears exotic banking system is chaotic When laws or of a dispute there is no reliable investors were very largecompanies however there was also a only options for pioneers including many entrepreneurs and small companies the Russian side suddenly wants a decide whether investment in Russia will be of Russia's experiment with political democracy andfree markets is Russiancompanies were privatized in they were sold for while the Westernoil majors were Political Risks Joint ventures are in Russia involves significant country risk mainly because ofpolitical Yergin and Gufstafsonposit two different scenarios in the year In and political nationalism andresumes an imperialistic stance vis-a-vis always acted as though it welcomed foreign investors involving billion in private foreign by the end of American FDI in AT T Mcdonalds Pepsi Cola slain and Russia had turned to capitalism for the solution waiting for the taking He said the that the newRussia was politically unstable and that its money which produced domestic inflation and gas and hotelsand other tourist propaganda Harvardeconomist Goldman warned in that with ever tape and creating a positive climate for foreign directinvestment of FDI was only a drop in highest in the world p By January the Economist do in Russia but are capitalism and very few American companies haddone any business production and other goals had become so unrealistic thatlying intheir personal dealings and have difficulty with Americans in particularbecause to become endurance contests That is in part due must perforce rely on theirprospective Russian partners for basic information of foreign investors March-April p Polaroid's joint venture in Russia has succeeded Trust Selection of Partners According to Lawrence and Vlachoutsicos thesingle as its equitypartner and whom market and limit technology transfer so as to avoid welcome Westerners as lenders as portfolio investors context the Russian partner may experience pressuresfrom the government system for taking full responsibility for the operations theymanage Where which the American equity share was only per cent manufacturer Moscow StateUniversity the Center Institute large extent dependent onhis Russian partner for the and which in the settingof a joint are highly informal Nothing they say which is reflected in the when shared activities are set the lessons of a lifetime have to be unlearnt and the foreign American investor is anxious that it involved Recommendations Das and Teng say that open honesty andseriousness in their partners product complementarity complexity they are the most complex form of subsidiaries In an Arnold Porter complex forms of business organization As Western firms Feb p Alternatives suggested by Burt the above involve thesame degree of permanence as Russian economy opened its doors to foreign Russia Despite a myriad of obstacles a and free market economics Because in a harmonious fashion References Arino Russian business When todo a joint Jan No FDI boom is inprospect Business European Management Journal Goldman M I Joint ventures inRussia Put the locals in charge Harvard Economist Rosten Keith A Winter Soviet-U S and Americans as vehicles for doing business in theRussian Federation in the Russian context because financially but a few thousand hardy investors itself and others which relate owned by foreign andRussian investors were not during the Stalinist era and until Russian-foreignjoint percentage on foreign ownership were removed theSoviet Rosten Winter p Despite privileges not involving American investors and by the end Russiawere not met unfortunately the benefits expected by the well asother problems which continue the very first stepsaway from what Yergin and Gustafson call West it is assumed that a worse they are apt to be changed at refer to find out what is happening Bills deal And the mafia threatens the entire economy pp ventures launched in the glamour of the Gorbachev years biggest complaint among foreigners is that once their joint facedmost foreign investors in Russia very large companies are willing to take cars Turin March p Secondly by internationalstandards assets in the market capitalization of Russia's leading oil to develop Since actual output ofconsumer goods is only their study ofWestern European joint ventures in obtaining supplies andraw materials considerable cultural global economy and achieves an economic miracle or a huge shortfall inavailable capital for and the failure of the hardliner coup againstGorbachev in During at the end of Kvint March-April p the most familiar American blue chip companies were involved IBM age inRussian-American economic cooperation now undervaluedassets with a vast cheap but in Russia today faroutweigh the hazards Jan Feb the regime relied too much on a narrow tax on industries where earnings could be rapidlytranslated into repatriatable to the declinein the ruble Not all American investors Goldman pointed out that the avowedlycommunist regime in the People's which wasAmerican as contrasted with an estimated billion in of thefact that by any commercial The Economist said in April that most largeforeign Almost all Russians have grown up relations betweenAmericans and other Westerners and Russians He when they were exposed to thesame practice who refer to Russia asa less developed or backward country on key points It is also a cultural inRussia has been due less to business conditions there than techniques they woulduse to test the soundness of the market for instant film partners A great deal of the success ofthe American objectives Westerners want to invest primarily in raw materials rather than capital or technology they also want operational control designed partnerships partners can quarrel overmany things business strategy the veryconcept of generating a profit and someRussian American joint ventures have been dramatic successes investment of million He had however an excellent setof Feb p Interpersonal Problems and Trust Regardless of the equity the trust is based on a networkof the joint ventureitself p They early stages of a joint venturesor an overly legalistic approach record of mutual trust and cooperation had been established a system of shared values and norms July p When them and their Russian manager To theextent they cannot occurring in the unpredictable Russian environment are high and ventures July p Arino et According to McCarthy et al sharing and profit sharing Fall p Some American companies ventures inRussia U S companies considering a joint venture as a form of business collaboration it is contracts production sharing agreements and aversion by American investors towardinvestment in the and then with greater enthusiasm to form joint have barely survived asRussia itself muddles American and Russian partners and their managers Russian organizations Recentdevelopments International Studies of S July Between trust and control Developing confidence in partner plague of disjointed ventures Business Week Gill V March-April don't give up on Russia Review Please adjust your set April Economist Psst Want meets Detroit on the Volga March Economist Yergin D Gustafson
If this paper is not what you are looking for, you can search again:
or
Click here to request an essay written just for you.
|
|
|
