Question

Bunyan Heavy Equipment, a U.S. firm, is investigating expanding into Russia using a greenfield venture. The committee researching this project has delivered a negative report. The main concern of the committee is probably

a. loss of intellectual property due to Russian piracy.b. the fluctuation in the value of the ruble.c. the numerous and conflicting legal authorities in Russia.d. Russia's recent actions to gain state control of private firms' assets.

Answer 1

All of these are valid concerns and very relevant indeed, but the most problematic situation would be:

D) Russia's recent actions to gain state control of private firms' assets.

Step-by-step explanation:

Russia is perceived as a very corrupt state, I don't live in Russia so I can't be 100% sure. Russian leaders are famous for being multi-billionaires that used to be communists, sounds weird.

The problem with Russia is that when their leaders want a private company they just take it away from its rightful owner and many times when the rightful owners complain they are sent to prison and beaten up to death. This may sound crazy but it happened several times including Russia's largest private company Yukos in 2003. Its owner whose last name is Jodorkovski was sent to prison for about 10 years, and its CFO was beaten to death while being held in a Siberian prison.