Russia as a business destination - Essay Example

Furthermore, foreigners would heighten their chances of success by working with local partners who would guide them there. Labor costs largely depend upon the region under consideration and western style hotels cost much more than they do in the US. Possible areas of business include oil related services or products, consumer products and the IT sector. There are a number of misconceptions about Russia as a business destination. Some people believe that conducting business in Russia is an all too easy process and that all it takes are some good connections or simply meeting with the right people.

On the other hand, others believe that in Russia, it is almost impossible to do business and that enterprises are not governed by the basic principles of economics. While these latter assertions might have some validity in certain respects, it is essential to understand that they do not represent the business climate, market opportunities or entry strategies required to make it in Russia. Russia as a business destination requires its own set of rules. One needs to be ready to do business in an unconventional way.

Additionally, one should be ready for the disparities that occur across various sectors and also across a number of geographical areas. In Russia, some areas are oversupplied while others are undersupplied. The latter could either act as rewarding business opportunities in certain instances or they could signify areas that need to be ignored because if the Russians themselves do not see any potential in it, then what makes a foreigner think that he/she can turn it around. (Fetsenko, 2008)Business in Russia is not for the feint hearted.

It requires a great deal of imagination and resilience. But after exercising all the latter traits, it can then become easy to enjoy the rewards of investing in this country. Consequently, one should be well equipped with all the business environment information, market intelligence, import and export opportunities and market strategies required to succeed in Russia before venturing there. These are all aspects that will be covered in the report below.Market Intelligence Report (MIR)The Russian PeopleThere are a number of misconceptions held by westerners about the Russian people.

Some of them believe that Russian cities are too susceptible to crime and that one would lose their property at any one time. However, compared to crime levels in the United States, Russian cities are safer. Other people believe that in Russia, organized crime overrules the basic principles of economics and that one cannot expect to find considerable profits without collaborating with these high profile criminals. However, this is another misconception; one can still conduct business in Russia without having to involve members of organized crime.

While the latter issue may exist in certain sectors of the economy, others are not affected by it. Consequently, businessmen interested in doing business there need to familiarize themselves with the sectors that are untouched by such kinds of issues. (Donga, 2008)It should also be noted that not all Russian people are interested in taking bribes. The case of corruption has been a rising concern among business men from the US because most of them may not understand the dynamics of the Russian business environment.

However, this is an issue that has been exaggerated by many individuals. In fact, this could simply be a result of the culture shock which one