Doing Business with the Former Soviet Republic Essay

This essay has a total of 535 words and 5 pages.

Doing Business with the Former Soviet Republic



CASE 1.2 Doing Business with the Former Soviet Republic


1.FACTS
- as managers become aware of all the different people with old U.S.S.R., U.S. businesses
are realizing that they face not just one but fifteen or more new markets opening
themselves to western trade.

- The former Soviet Republics are eager to do business in part because they are all suffering from severe economic woes.
- Their gross national products are falling, their budget deficits are rising, and
inflation is dissolving citizens buying power.

- So all the republics need to sell products to bring in stable western currencies and
most are negotiating to sell their natural resources like oil, gold, furs, fish, and
reindeer products.

- Companies are also eager to use waste as a natural resource.
- Recycling, mining, metallurgical, and agricultural waste may prove to be a big business.
- Japanese companies are already buying coal wastes from Russia to turn into chemicals for manafacturing.
- Western businesses must deal with poor communication and transportation networks, a lack
of experience in Western business practices, and a currency that is not convertible.

- The former Soviet republics can lure Western companies with their low-cost labor, but
most workers need extensive training to work with modern technology and methods.


2.STATE THE PROBLEMS
1. When approaching the old U.S.S.R. market about Western trade you must approach fifteen
or more markets instead of just one.

2. Their gross national products are failing, and they are suffering from severe economic woes.
3. Western businesses must deal with poor communication and transportation networks, a
lack of experience in Western business practices and a currency that is not convertible.

4. How long of a wait for positive feedback?
5. How much time, money, and managers will we be giving up?



3.STATE SOLUTIONS TO PROBLEMS
1. Work around the gross national products to try and find some other natural resources
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