Business perspectives

Russia is an emerging economy along with China, Brazil and India. Compare with other emerging economies much of its economic rise came thanks to oil prices. Russian president Vladimir Putin was wise in distributing petro dollars among ordinary Russians. But the question remains how long Russia can ride this wave of high oil prices?
It does not seem there will be a dramatic change in oil price in near future, oppositely it is going up and Russia's finest oil is priced 113$ per barrel. The main threat to Russian economy nowadays is their mentality. Russian authorities need to learn from their Chinese counterparts to keep politics as far as possible from business. Let me bring couple examples where Russian government harmed russian consumers.

First is when Russia banned meat imported from Poland, because Poland was willing to host american missile defense system. As a result of it russian consumers had to pay almost 67 cents more per each kg of meat at stores.

Second one would be when Estonian authorities relocated Bronze Soldier memorial, Russian government made sure that businesses did not use Estonian ports which used to handle russian cargos. Consequently it is hard for importer since they are losing opportunity to save some money by using estonian ports, since Estonia is a member of EU and has low tariffs.

For some people it might seem pure political problem and they might agree to that economical pressure should be used in order to defend your interests, but I am confident that it is not wise to do so at the expense of your own people, whom you make to pay more for the same product.

I wrote this article, since Prof. Lee mentioned in the class about perspective of korean conglomerates. I believe each culture is unique and should be preserved, on the other hand when it comes down to business we should able to use strategies and tactics which our opponents use and get rid off the so called "fats".

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