Module 8: Assignment 1, Russia

Module 8: Assignment 1, Russia

International Business Potential

Advancements in industrialization, technology and globalization have accelerated global businesses to the next level. International business refers to cross border trading, which is affected by economics, politics, social concerns and international finance of a country that in turn reflects the Gross Domestic Product of a country. The World Bank supports Russia in increasing growth, diversification and advancement through a revised and effective management of public finances that lead to a stronger financial sector, improved climates for investment in the country, better infrastructure and protection of the environment (http://www.worldbank.org).

Russia's human potential has been expanded by the strengthening of social services and skills through improvements in the overall well being of the economy. The improvements in the economy of Russia are acquired through better educational systems, health protection, social and environmental systems, which also includes the pension systems. The global and regional role of Russia being a developed country has also been deepened as it has been providing assistance to the under developed countries (http://www.worldbank.org).

World Bank has enabled Russia to form a strong synergy among other members that support its government in achieving the set goals of the country. It enables Russia to put forward better service standards in procurement, public administration and in matters of finance. This enabled Russia in acquiring a richer human potential in a better economy. The World Bank enhances the Russian economy regionally, nationally and globally (http://www.worldbank.org).

Nationally Russia has been growing in Europe Central Asia (ECA) and is the largest country in the world therefore, the Bank typically reaches out to those regions of Russia that are poor and less developed. At the regional level of ECA, the Bank provides strengthens Russia's capacity by providing technical assistance and focuses on backing up Russia as a contributor. The government of Russia provides aid to the under developed countries situated in the ECA with which it has been linked economically. Russia, which has been the largest country in the world, has been highly functional globally. The World Bank provides knowledge and services that support Russia in participating in international business. Along with the World Bank, Russia has also been in close cooperation with other multilateral associations, for instance the International Monetary Fund (IMF) and the European Union (EU) which is Russia's third partner in trading. (http://www.worldbank.org).

Macroeconomic Condition

According to Shirov & Gusev (2011), the macroeconomic condition highlights the economic situation of Russia on a larger scale. The research states about the market growth, market share, rate of inflation in the country, exchange rates and the overall economic policy. Various researches and factors have been considered in the evaluation of the macroeconomic condition of Russia. It gives a short as well as a long term perspective on Russia's economic growth. The socioeconomic development also has an impact on the progress of the Russian economy by affecting its business expectations and management related decisions. The macroeconomic environment has always been affected by the external environment. For instance, the great depression in the ...