"Good in part"

Economist, July 19, 2001

Synopsis: The closing case in Chapter 7 describes the risks that foreign companies had to bear when undertaking foreign direct investment (FDI) in Russia in the late 1990s. This article explains the current business conditions in Russia. Despite its modest economic success, Russia has not yet been perceived as a good place to conduct businesses. It is Russia's bureaucracy that prevents Russia from becoming a long-term home to internationally competitive companies. Coupled with taxes and bad management, such bureaucracy is the major factor that makes foreign businesses largely stay out of Russia.

Full-text Article: http://www.economist.com/surveys/PrinterFriendly.cfm?Story_ID=698694&CFID=2344367&CFTOKEN=53809090

Case connection: "Li & Fung" in Chapter 16 (pp.502-503).