Cutting the Red Tape: How Western Companies Can Profit in the New Russia

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9780029327159: Cutting the Red Tape: How Western Companies Can Profit in the New Russia

The authors, a Russian businessman and the head of an American consultancy, examine how economic life in Russia has been affected by perestroika and democratization, and argue that the time is ripe for Western businesses to take advantage of low costs and weak barriers and enter the Russian market. They point out some of the difficulties of operating in Russian and the other former soviet republics - absence of hard currency and lack of a proper business culture, but state that once allowance is made for these anomalies and some attempt has been made to understand Russian attitudes, the benefits of early entry could be enormous. They examine joint enterprises as diverse as the exchange of space technology and the opening of an ice-cream shop to illustrate the difficulties and benefits of doing business in Russia.

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From Publishers Weekly:

Dense and specific, the most comprehensive study of its kind in memory, this is crucial reading for those looking to do business in the former Soviet Union. Tourevski, chief representative of a Soviet-American joint venture, and Morgan, a Vermont-based business consultant, use "Soviet" generically throughout the book because the term "captures the culture and mentality which are still present." If the new capitalist frontier promises riches--some 285 million eager consumers, according to the authors, who note that the only thing in abundance is shortages--the route is hazardous; hence Westerners who attempt to operate in the framework of their own business systems are at peril. To explore ways to neutralize the drawbacks, Tourevski and Morgan have done extensive research: conducted sociocultural studies, analyzed videotaped negotiations between Soviet and Western business people, interviewed some 1000 pioneers. The authors document the enormous resistance to change at all levels of society, and the thriving shadow market whereby goods stolen from the State are sold by workers and managers alike. The legacy of the command economy is persistent, the authors stress, and Western capitalists embarking eastward would do well to pack this book.
Copyright 1993 Reed Business Information, Inc.

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Tourevski, Mark; Morgan, Eileen
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