Starbucks to Russia Essay

5284 Words Oct 31st, 2006 22 Pages
Overview

Russia is the largest country in the world with a total population of 143 billion and areas stretching over Europe and Asia. Formerly the dominant public of the Union of Soviet Socialist Republics (USSR), Russia now is an independent country and the most influential member of the Commonwealth of the Independent States (CIS). Several governmental policies have been launched in the last few years aiming to transform the country to be more democratic with a market-oriented economy. From 2002 to 2006, Russia's economic growth has been improving with the average of 6.1% annually. Its real personal incomes and consumer expenditure has also been rising dramatically. Poverty has declined steadily and the middle class has continued to
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and foreign commercial services (2005), JV is considered to be as a way to secure a local partner with experience in the Russian market by American managers. In contrast, it is viewed primarily as a source of working capital a foreign partner brought by Russian executives; as a result, these managers may not have enough commitment to develop local market as Americans demand. Selecting potential partners in Russia, therefore, requires due diligence in evaluating their business expectations and priorities to ensure that they meet the same needs.
Setting up legal entities in Russia has to go through several complex procedures and has to meet numerous requirements. The registration (renewal of registration) of companies with foreign investment, including joint ventures, wholly owned foreign companies, branches, representative offices, is handled by the Russian State Registration Chamber. Companies whose volume of foreign investments exceeds 100.000.000 rubles (at the rate on the day of registration) shall have to be registered with the Russian Agency on International Cooperation and Development. In order for U.S. documents to be valid in Russia, companies must bear an Apostille1. Nevertheless, official organizations may not accept the documents if they are not accompanied by a certified translation, which is required to be legalized by consular offices of the Russian Federation in the countries where the documents originated. Aside from this, legitimate

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