Problems of Global Russian Markets Essay

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Introduction

It is always difficult to enter an international market as another country has absolutely different values and principles of running business. The company managers usually get used to particular economical situations, norms and rules of behavior in business sphere, still, it is important to remember that another country has other norms and it is important to consider those norms and try to accept them.

Still, having entered the Russian market by means of joint venture, we have faced the problem of corruption which contradicts our understanding of fair business and moral values. Considering the situation, the problem of corruption on the global markets is gong to be discussed. Additionally, we will try to search for the ways for running fair business in the conditions of immoral economy.

The problems at the Global Markets

Considering the situation at the global market, it should be stated that it is important to mention the fact that different areas have personal problems.

Having a desire to enter Russian market, it is important to know that the area has the following problems, underdeveloped financial sectors and infrastructure, lack of intellectual property protection, low levels of disposable income, poor regulatory systems, unemployment, political instability, low level of literacy and corruption (Kumar and Waheed 180).

We understand that these problems are really important and their solution within our company should become a priority as we have got used to different situation, other conditions and problems. Some scholars believe that the main reason for the financial crisis which still echoes in economic area is “the failure to combine morality with our modernistic reliance on outdated cause and effect, empiricist thinking” (Gallagher 37).

Therefore, the problem of corruption exists in the whole world, still, it is more open in Russia and other Asian countries due to lower level of life and higher level of unemployment. The problem of corruption is going to be the main concern for us after our join venture with a Russian company.

Corruption as the Reason for Concern

Living in the capitalist world, many companies follow the main principles of capitalist system in the economics. However, the raise of corruption in the society prevents many companies from functioning appropriately.

The corruption in Russia has increased while the crises as being unable to cope with the problem by means of the official measures, many people and companies understood that acting illegally they are eager to gain necessary results (Bower, Leonard, and Paine 107). Therefore corruption is a reason for concern for those who enter Russian market as being having used to run business fairly, we may have many problems.

Still, it is possible to remain sincere and run fair business even in the morally ill society. It is important to understand that acting illegally, Russian people just want to gain the result they are unable to get using normal ways. One of the main reasons for corruption in the Russian society is the awareness that it is possible to get more illegally.

The elimination of this opportunity may become the first step on the way to combating corruption (Jaffe and Tsimerman 9). Entering Russian market, we should take care of the following, we are to remain ethically concerned even though making money is our primary goal.

Ethical Attitude to Business Aimed at Making Money

The desire to get higher profit does not mean that the company is ready to act unethically. We got used to fair business and having entered to the international market we will still remain fair. We understand that the country principles may prevent us from fair play, still, we are going to act ethically as we believe that he company reputation is much more important.

The quality of the services we are going to offer presuppose to be much higher and that is why the desire to pay more for these services is also going to be higher than the desire apply to corruption methods for running business. It has already been proven that “the correlation between corruption and economic development disappeared when cultural values were modeled as influencing both” (Chandler and Graham 257).

In other words, it is possible to make money and remain beyond corruption only in case the ethical principles of the company are followed precisely, no matter where the company is based.

Conclusion

Therefore, it may be concluded that we are going to have a number of problems after having entered international market, still, it becomes obvious that it is possible to run business fair even in the society where corruption is highly developed. Using the example of the situation at the Russian market where corruption is highly developed, we are not going to apply to the methods used in the society.

Providing top quality services and hiring only professionals, we are going to gain positive image and other partners and clients will not have a desire to pay us illegally, they will search for other legal ways for dealing with our company.

Works Cited

Bower, Joseph L., Leonard, Herman B. and Lynn S. Paine. “Global Capitalism At Risk. What Are You Doing About It?” Harvard Business Review 89.9 (2011): 104-112. Print.

Chandler, Jennifer, and John Graham. “Relationship-oriented cultures, corruption, and international marketing success.” Journal of Business Ethics 92.2 (2010): 251-267. Print.

Gallagher, Jerry Alan. “A normative solution to the economizing problem.” Review of Human Factor Studies 16.1 (2010): 36-62. Print.

Jaffe, Eugene D., and Alexandr Tsimerman. “Do business ethics worsen during economic crises? A study of Russian attitudes.” Journal of Academic & Business Ethics 4(2011): 1-13. Print.

Kumar, Sameer, and Usman Waheed. “Foreign market entry and expansion – directions for strategic organizational growth based on a global system perspective.” Information Knowledge Systems Management 6.3 (2007): 177-196. Print.

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IvyPanda. (2019, July 2). Problems of Global Russian Markets. https://ivypanda.com/essays/global-markets/

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