Why has it taken so long for new industries to move to Russia and set up factories there?

Question

is this true that even today that many western factories and companies choose not to base themselves in Russia? also, is it still a big deal to the average russian to buy an electric tea kettle or a washing machine etc?

how this has changed and why it was such a big deal?

WHAT HAPPENED TO ALL THE SOVIET INDUSTRIES AND WHY THEY DIDNT MAKE THINGS SUCH AS WASHING MACHINES FOR THE AVERAGE PERSON?

any help appreciated'

how this has changed russia, russians, and their daily life?

thanks for your answers!

Answer 1

I dont know about the washing machine thing. But yes some western companies choose not to invest or build factories in Russia, beacause of the political instability, corruption, and crony capitalism which is common knowledge to those in business. Mikhail Khodorkovsky is a great example of the political instability. Putin ruined him real good and the trial was over before it had even begun. Yury Mikhaylovich Luzhkov who is/was (i haven't updated my knowledge) Mayor of Moscow gave all the construction contracts to a construction company who just happened to be owned by his wife. And thats just two examples. This tends to create a big stink which scares off any foreign investors or corporations except those who are 'friends' with the Government.

Answer 2

They don't understand the language.They don't get used to the Maf-style negotiation.The Russian government is very cautious to let the foreign firms in,even to produce a coke.Only the German firms can do so well. But they have more options in Eastern Europe,such as Poland,Check,Bulgaria and Hungary. But good news, Russian becomes the favorite outsourcing destination for American firms,because Ireland is in trouble.

Answer 3

The Russian government has shown a predilection for confiscating or severely punishing the economic activity of those who don't "cooperate" with the government. If you set up a factory there you have to be prepared to lose it. I'm not. Are you?

Answer 4

they have. Russia has burgeoning production, IT and repair Industries. lots of them are abode grown, fairly than US or ecu based. After the fall down of the U.S. many Western industries confronted corruption, bribery and mafia practises that placed off many from making an investment. Then got here the financial fall down of 1998, while the Rouble, alongside with different currencies in rising markets, had to be devalued. on the grounds that 1997 Russia has focused on uncooked fabric exports - oil, coal and gasoline, as nicely as different mined products and wood. even with the undeniable fact that,between the outcomes of the 1998 disaster develop into that Russia's inner markets have been risk-free against remote places companies - this led a number of them, consisting of GAZ, UAZ and KAMAZ to consolidate and to start to enhance their ranges, or maybe to start to purchase Western companies. Russians can actual purchase kettles, washing machines and refrigerators. you are going to be able to desire to replace your perceptions approximately Russia, the chaos of the early placed up-Soviet era is long handed

Answer 5

socialist,communist country. profit is a dirty word. personal ownership is a dirty word. Communes. Everyone is equal.