U.s. Foreign Corporations ( Mncs ) Essay

876 Words Mar 20th, 2016 4 Pages
Since the collapse of the Soviet Union and the onset of the “third wave” of democracy, spreading across former communist regimes, foreign direct investment (FDI) has skyrocketed to unprecedented levels. It seems now as if though engaging in foreign direct investment outweighs establishing trade relations (dependent on the formal and informal trade barriers and economies of scale). Many countries have benefited drastically to the increased investment into their economies and their labour population. Though, other countries have not been able to secure viable and long lasting investment opportunities because of the nature of their political system. Possibly one of the most surprising and interesting cases where a country has failed in this endeavor is that of Russia. Russia has always had several difficulties in attracting FDI, this paper will demonstrate how Russian difficulties in attracting FDI are a cause of the countries weak domestic institutions, its corrupted political system, and its conflict [more recently] with the West. This paper will demonstrate which factors attract and dissuade Multi-National-Corporations (MNCs) to engage in investment abroad, and what countries can do to signal the quality of their markets to such investors. In doing so, we will be able to compare the Russian state to the theoretical framework in which is established, and see how and why Russia is lacking. Adding further to the ongoing discussion we will attempt to connect the nature of the…

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