ipl-logo

Advantages And Disadvantages Of Doing Business In Russia

1147 Words5 Pages

DISADVANTAGES OF DOING BUSINESS IN RUSSIA
The paper wants to analyse the Disadvantages of doing business in Russia. The analysis starts with an introduction, which provides a general economic overview about the macroeconomic situation in Russia. The research focuses the attention on the five institutional complementarities according to Hall and Soskice in Russia. The last part wants to sum up the main disadvantages that a Business can face when operating in Russia.
Russia is the biggest country in the world with a land extension 17,098,242 sq km with 11 different time zones and huge natural contrast among the different regions.
According to the World Bank database in 2014 there were 143,499,861 people in the Russian Federation with positive …show more content…

The three criteria used are abuse of power, secret dealings and briberies: the low scores shows an nation where corruption is widely used in both political and business contexts.
In the following paragraphs, we try to highlight the main disadvantages of doing business in Russia analysing the institutional complementarities.
INDUSTRIAL RELATIONS
Industrial Relations is one of the five Institutional Complementarities and it refers to the relations between employers and employees, so in general about the labour market.
In 2013 according to the Russian Federal Statistic Agency 67.785.000 people were employed in the Russian economy of which the 60% in the private sector while the 28.4% in state or municipal entities while in 1992 (after the collapse of the Soviet Union) it was almost the opposite, 69.1% in state or municipal entities and 19.3% in private companies. This means that the labour market has changed a lot, from a planned economy to a more open society where people mainly work in private companies.
The Labour Code of the Russian Federation released in 2001 regulates the labour market in Russia. Furthermore, “…Russian labour legislation also governs the types of employments and conditions of their conclusions, amendments and …show more content…

That is a system based on “social partnership to regulate and balancing the interests of employees and employers such as: negotiation of collective agreement; Mutual consultation on employment issues; participation of employees in the management of the company and participation of parties in pre-court negotiations.”
Moreover, the Labour code recognizes the role of the Trade Unions which in Russia “are more typically formed at company level than industry level”.
The main Trade Union in Russia is the Federation of Indipendendent Trade Unions (FITU) which is “the largest union of workers of Russia and unites 46 trade unions nationwide…with 22 million members about the 95% of all union members in Russia.”
It is also important to look at the trend of the average monthly wage, because it can affect the business of a company. Considering the last 10 years the average monthly wage has increased from 5.000 roubles in 2004 to 33.563 roubles per month in September

Show More
Related
865 Words | 4 Pages

How important are these unions in nowadays? Perhaps, there is the main controversy about the theory of union power. The author believes that the entire structure must change and the central principle of representation "quid and the quo" need renovation. Estlund believes the new century needs new ideas and different approaches. The current employees can’t rely on the laws and concepts, which created centuries ago for that time's specific needs.

Read More
471 Words | 2 Pages

The second pernicious influence is human resource exploitation. Laborers become more like work tools for industrial monopolies rather than human beings. Genders and age do not matter to the authority as they prioritize their benefits over the workers’. Not only do they have to suffer from exploitative boss, the proletariat is also made advantage of by other powers, such as landlords.

Read More
1271 Words | 6 Pages

In 1917, Tsar Nicholas ll is the current ruler of Russia. Russia’s economic growth is increased by the Czar’s reforms of the production of factories. During this era, Russia desperately needed to keep up with the rest of Europe’s industry. This reform worked perfectly, but the working conditions of these factories didn’t charm factory workers. After the events of the Russo-Japanese War, “Bloody Sunday”, and WW1, Russia was in utter chaos under the Czar’s ghastly leadership.

Read More
1205 Words | 5 Pages

Conflicts between workers and employers are prevalent to this day. From fair wages, to better working conditions, and even to appropriate healthcare, there is always some form of questioning that needs to be addressed. Dating back to the late 1800’s the economy and labor market of the United States underwent massive changes which mainly revolved around people of all different racial and socioeconomic backgrounds becoming wage laborers. Due to these previously unheard-of changes, a conflict between the employees and employers began. Therefore, in order to resolve labor issues, through great difficulty workers created unions and protested against their employers.

Read More
945 Words | 4 Pages

People felt that the fate of the world was unknown as “Nobody knows what Soviet Russia and its communist international organization intends to do in the immediate future, or what are the limits” (Document A). As a reaction to this new fear of communism, programs such as the Employee Loyalty Program instituted

Read More
899 Words | 4 Pages

The transforming economy changed the visions of the Labor Unions. The result, early labor leaders chose to make two distinct classes, the rich and the poor. With goals of reaching every person they could do join the unions. Some of the goals the unions had was to increases income, this helps to insure a fair pay for the work they do, while also staying with the rising cost of living (Davoren 1). While increasing income the union tries to strive to improve working conditions, they demand shorter working or work weeks along with secure working environments, such as safety.

Read More
940 Words | 4 Pages

From 1900 through 1960, Russia participated in the First and Second World War and even started to fight in the Cold War. Russia was going through major reforms and industrialization to catch up with other countries. One change that occurred in Russia from 1900 to 1960 was that it tried to become more industrial so that it could be compared to other European countries. Russia was trying to do what other European countries were doing for years but it was seen a major threat because it was communist. However, Russia wasn’t always communist.

Read More
728 Words | 3 Pages

In entering a new union, the Wings Union demanded to abolished unreasonable contract system, prohibition of employment of child labor in workshops, enhance workers’ privileges and workshops, and both genders will receive an equal pay for equal work hours. The Wings Union aims to make a more suitable environment for everyone, especially for workers who work in small workplaces

Read More
293 Words | 2 Pages

Companies and corporations were also held accountable for the treatment of their employees from the formation of unions by the people. Today we see that the treatment of employees has become prioritized by some businesses and the evolution of voting

Read More
972 Words | 4 Pages

Corruption occurs in a government when politicians are bought out by private companies. These companies would pay the politicians large sums of money and in return, the politicians would do political favors for the companies. According

Read More
968 Words | 4 Pages

There have been several conflicts in Russia and Europe, especially early on. Before borders were set, mountains were natural borders. Many different cultures formed because people were isolated by these mountains. Eventually, when the groups began moving around, culture and religious conflicts occured. Genocide became a large issue.

Read More
1464 Words | 6 Pages

The topic of Labor Unions has been the focus of many political debates in recent years, with these discussions having people advocate for and against the unions. Labor Unions are an organization that represent a collective group of employees to protect and further theirs rights and interests. Labor Unions were first introduced in the eighteenth century with increasing numbers around the United States and the world, but unfortunately during the past decade these numbers have drastically decreased, resulting in less education and achievement of solidarity among employees. Solidarity is the unity or agreement of feeling or action, especially among individuals with a common interest. Workers in the United States would benefit more through labor

Read More
1331 Words | 6 Pages

“One man with a gun can control 100 without one . . . make mass searches and hold executions for found arms. ”- Joseph Stalin.

Read More
2101 Words | 9 Pages

The following section discusses the decline in trade union membership, reasons of decline union in membership and the solution of the declines, advantages and disadvantages of trade unions membership in any employment. Trade union is an organization who have come together to achieve common goals such as protecting the integrity of its trade, improving safety standards, achieving higher pay and benefits such as health care and retirement, increasing the number of employees an employer assigns to complete the work and better working conditions. Most trade unions are independent of any employer. However, trade unions try to develop close working relationships with employers. This can sometimes take the form of a partnership agreement between the employer and the trade union which identifies their

Read More
926 Words | 4 Pages

The term labour relations, refers to the system in which employers, employees and their representatives (management) and, the government who all interact and work together directly and indirectly to set the ground rules for working relationships inside and organization. labour relations has its roots stemming from the industrial revolution, where we saw the emergence of trade unions to represent workers and their rights. A labour relations system reflects the interaction between the main actors in the organization namely the government, the employer, trade unions and employees. Well set out labour relations in an organization safeguards fair labour practices, as well as contributes to long term success within the organization. There are multiple advantages to the Labor Relations Act, all of these advantages are put into place in order to protect the well being of the employee as well as the employer both on a fair and equal basis.

Read More

More about Advantages And Disadvantages Of Doing Business In Russia

Related Topics

Open Document