Business in Russia essay

The country under consideration is Russia, the biggest country in the world, as it occupies the territory of about 17 million square km.  The USA and Russia are federations. Both states are rich in natural resources, including oil, natural gas, coal, and many strategic minerals, timber, copper, etc. According to the CIA-world fact book, Russia is still developing in comparison with the USA, having capitalist economy. Russia’s economy grows thanks to the fixed investments and the improvement of international financial position. Due to the overall development in the recent decade, “Oil export earnings have allowed Russia to increase its foreign reserves from $12 billion in 1999 to some $315 billion at yearend 2006, the third largest reserves in the world”(Lawson). The inflation rate is not that high as it used to be a number of years ago, after the Soviet Union broke out. The investors are surer about this country’s stable future development, but still there exist such problems as corruption, some legislation drawbacks, etc. Naturally, comparing these two countries, the USA is more developed and even has “the largest and most technologically powerful economy in the world, with a per capita GDP of $43,500”(Lawson). Hence, both countries have market-orientated economy. According to the PBS country report, Russia has a “segmented” economy.

Russian legal system is based on civil law, while the USA has federal court system; both states have “judicial review of legislative acts” (PBS Country Report). According to the recent data, unemployment is considerably lower in the United States than in Russia, and birth rate is respectively higher in the USA (PBS Country Report). In both countries the literacy and educated population rate is high and this results in rapid technological and cultural development. Russian culture is recognized as one the most significant in the world, it has a long eventful history.

While Russian technology is in the process of development and does not always have leading position, but the US scientific research and technological discoveries leave behind the majority of the contemporary states.

In spite of Russia’s recent prosperity, it still has problems to solve, judging from the present situation and news available. Russia “signed a bilateral market access agreement with the US as a prelude to possible WTO entry” (Minjack).  The article “U.S.-Russia Business Council Welcomes Comments on Russia’s WTO Accession by New Russian Minister”, released in September of the current year, concerns the prospects of Russia’s overall particularly economic development in terms of the world tendency of globalization. In the article Nabiullina, newly appointed Minister of Economic Development and Trade, points out that she supports the WTO accession and stresses that: “We are striving to fully integrate the Russian economy into the global market and believe that joining the WTO is necessary to ensure future economic expansion”(Nabiullina). The USA and Russia will possibly further have closer “commercial ties”, as they see Russia as an enjoying full rights member of the trading system. This agreement and further cooperation of the states will only make them benefit in future, when Congress adopts Permanent Normal Trade Relations for Russia. As Lawson remarked in the article under consideration: “U.S. businesses see great opportunity in Russia, and Russia’s WTO accession will strengthen bilateral commercial relations”(Lawson). If Russia functions as a part of a system and goes out in the open, taking advantage of its own peculiarities, it will be an important component of the world complex.

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