...PORTER’S 5 FORCES & THE RUSSIAN COMMERCIAL BANKING SECTOR AND WEALTH MANAGEMENT INDUSTRY Today’s Russian Federation is characterized by low competitiveness in the context of firm strategy and rivalry, a supportive infrastructure for industries, a mixed bag when factor or input conditions are assessed (human resources, capital resources physical infrastructure, etc.…), and a polarized consumer base, where some hold most of the wealth, while the rest are quite average or below the poverty line. It is an overachieving country, with high income compared to low competitive index. In Porter’s Diamond-E Framework, Russia is in the Efficiency-Driven Stage; it is an investment-driven economy. This is not congruent with the general analysis of the banking industry worldwide, when looking at it through Porter’s Five Forces Model. Applying the model to this sector yields high barriers of entry, a moderate power of suppliers in terms of their ability to lure away human capital, increased power of buyers in terms of switching costs, many substitutes, and a high competitive rivalry. To better assess the entry of The Royal Bank of Canada (RBC) into the Russian market, one must also consider Canada-Russian relations. Being the two largest Artic countries, Canada and Russia share many common opportunities and challenges. The countries have a long history of cooperation on issues such as science, energy and environmental protection, and in 2012, promising areas of cooperation...
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...The Financial Crises in Russia and East Asia: How the World Bank can Help. 1 - Overview of Asian financial crisis On July 2, 1997, the Government of Thailand abandoned its efforts to maintain a fixed- exchange rate – the Baht had been pegged to a basket of currencies dominated by the U.S. dollar – and allowed the Baht to float. This Baht quickly depreciated, falling 18% on the first day alone. The collapse of the Thai Baht was followed by speculative attacks on other countries’ currencies (including the Indonesian Rupiah, the Malaysia Ringitt, the Philippine Peso, and the Korean Won) and to a further round of forced devaluations. The collapse of fixed exchange rates was accompanied by a series of more general financial sector crises in several of these countries. Although the precise details vary, the immediate cause appears to be a mismatch between assets and liabilities in the corporate and banking sectors (in both currency and term length) and a sharp decline in asset values. These immediate problems were exacerbated by general financial sector weakness due to inadequate supervision and rampant insider lending. In many ways the crises in Asia were somewhat different than previously observed exchange rate crises. Corsetti, Pesenti and Roubini (1998) note that several of the usual indicators of a pending financial crisis – slow growth, large fiscal deficits, high rates of inflation and low savings and investment rates – were not observed in these...
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...Substantial and considerable development of the private sector in a developing nation, with the focus of democratization, requires pointed development of a country’s institutional framework and infrastructure. A large portion of aid to lesser developed countries is expended on short-term humanitarian goals. It is imperative to develop innovation in production to more effectively expand growth in the long-run. Therefore, proper allocation of monetary funds towards private sector development that encourages functioning institutions is beneficial to a country’s developmental efforts. Russia during the 1900’s is an example of an unsuccessful attempt to transition from communism to a democracy, attempting to follow similar patterns of growth exhibited by other countries throughout the 1900’s. The national liberalism of Russia’s communist party led to conflict within the country over economic and political...
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...Karachi school for business and leadership | Financial Institutions (Banks) & Industrial Development in Germany, Russia & India | Global and South Asian Business Development | Dr. Imran Ali | | 3/24/2014 | Salik Chaturbhai M2130024 Taimour Abdullah M2130017 Zeeshan Jessani M2130034 Salik Chaturbhai M2130024 Taimour Abdullah M2130017 Zeeshan Jessani M2130034 Contents Introduction 2 Review of Literature 3 Looking at the Past: Industrialization and Financial Institutions 8 Germany 8 Deutsche Bank, Germany 10 Russia 13 Sberbank, Russia 16 India 17 The State Bank of India 18 Major Themes: Comparison & Contrast 24 The debate between Capitalist and Communist Industrialization 25 Fiscal and Industrialization policy 27 Mission Statement and goals 30 The Banking Sector 31 Target Markets 32 Colonized Industrialization or De-industrialization 34 Conclusion 37 Appendix 1 39 Appendix 2 40 Work Cited 42 Introduction Mankind as a whole and the world as has been observed in the past has undergone much change in all aspects of human life. The concept of economic development in light of increasing industrial growth, free labour, the growth of private property as an institution and the development of the international trade as a concept have changed the way humans and hence nations interact and intervene in the world economic system. These gradual yet drastic changes in the structure of human interactions led to a wave...
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...stabilization (for countries with significant inflation and indebtedness) * New institutions * Legislation * Price and trade liberalisation * Radical privatization * Most of the “transformatology“ literature is based on the assumption that the elimination of deformed non-market economies, a restoration of market, and private ownership, paired with a laissez-faire free market system would automatically solve all major economic/social problems of the transforming countries. * The economic crisis within the Central and Eastern Europe area started much earlier – in the mid-late 1970s when growth slowed significantly and the terms of trade for the state socialist countries began to deteriorate (1973 first oil shock 20% decline, for some even 26-32%) Schumpeter’s theory of “structural crisis”: advancements in technology lead to decline of the old leading sectors and export branches based on old technology, generating wide-ranging slow-down and decline and causing an economic crisis even in rich, advanced countries. However, although rising new technology led to the emergence of new industries, new leading export sectors and an impressive new boom in the US and other advanced countries, the Central and Eastern Europe countries experienced a “peripheral structural crisis” – they suffered all the negative consequences of a the “structural crisis” but due to not having sufficient resources for R&D, know-how and financial sources, they were not...
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...sem) Contents 1. Introduction to BRICs 2. Brazil 3. Russia 4. India 5. China BRICS • In economics, BRIC is a grouping acronym that refers to the countries of Brazil, Russia, India and China which are all deemed to be at a similar stage of newly advanced economic development. • The acronym was coined by Jim O'Neill in a 2001 paper entitled "Building Better Global Economic BRICs" • It is typically rendered as "the BRICs" or "the BRIC countries" or "the BRIC economies" or alternatively as the "Big Four". • It has been replaced by BRICS since the 2010 inclusion of South Africa in the bloc. • In 2010, however, while the four BRIC countries accounted for over a quarter of the world's land area and more than 40% of the world's population. • Projections on the future power of the BRIC economies vary widely. Some sources suggest that they might overtake the G7 economies by 2027. • According to a paper published in 2005, Mexico and South Korea were the only other countries comparable to the BRICs, but their economies were excluded initially because they were considered already more developed, as they were already members of the OECD. Current leader Brazil - Dilma Rousseff, President China - Xi Jinping, President India - Manmohan Singh, Prime Minister `Russia - Vladimir Putin, President BRAZIL Brazil has the sixth largest economy by...
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...IMS Market Prognosis 2009-2013 EUROPE RUSSIA © 2009 IMS Health Incorporated or its affiliates. All rights reserved. IMS HEALTH 7 Harewood Avenue London NW1 6JB, UK Tel: +44 (0)20 3075 5888, Fax: +44 (0)20 3075 5999 service@imshealth.com http://www.imshealth.com The Information Service contained herein is confidential and provided subject to the IMS Health Information Services Standard Terms and Conditions. This Information Service is provided to the client on a personal basis under a non-exclusive and non-transferable licence for the Client’s own direct benefit and use only, and may not be copied or divulged to any other party. Whilst every possible care has been taken in the preparation of this information, the publishers do not hold themselves responsible for any expressions of opinion or error or omission, or any action resulting therefrom. © 2009 IMS Health Incorporated or its affiliates. All rights reserved. Published: June 2009 IMS Market Prognosis Europe 2009-2013 Russia 2009 Table of Contents MARKET SYNOPSIS ....................................................................................................6 FORECAST SUMMARY .................................................................................................8 MARKET FORECAST ...................................................................................................................................... 8 THERAPEUTIC CLASS FORECASTS ........................................
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...DEPENDENCE AND THE RISK OF THE DUTCH DISEASE 10 THE ROLE OF RAW MATERIALS IN RUSSIA’S EXPORTS 10 THE ROLE OF RAW MATERIALS IN DOMESTIC PRODUCTION 12 IS RUSSIA SHOWING SYMPTOMS OF THE DUTCH DISEASE? 15 2008 Economic Crisis 18 Conclusion 22 Introduction Since I could choose a country from Commonwealth of Independent States (CIS), the choice was pretty natural for me. I have chosen the major member which has the biggest global influence among the other participants. The country which has actually formed the CIS is Russia. The point of the whole research is to put oneself in the shoes of en exporter or investor. What does the investor want? He wants to gain as much return on investment as possible. What does this factor depend on? Actually, it depends on lots of nuances, but the most important is economic growth of a country. What if several countries show the same performance on average? The investor should choose between the ‘competitors’. Any favorable environment attracts new businesses and investments that increase its competitiveness. There are lots of factors to be taken into consideration when estimating the competitiveness of a county. Most of them have an impact on country’s GDP, so a brief look on it will give us a general picture of the state of a country’s economy and therefore its competitiveness. Russia has been showing stable GDP growth over the past years, which is certainly good. However, I strongly believe that the growth was rather artificial. Mainly...
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...future. Potential Markets Although there are several markets available all over the world right now, we are currently focusing our energy and attention on expanding and developing overseas in Russia. Unfortunately Russia is very advanced already and has recently begun to expand their business’s efforts towards reaching the consumers within the “green” market. Russia currently has one company that is already succeeding within this field due to the fact that they are local from the country, start up cost are high and equipment is more accessible. However, given the current economical conditions anything is possible and any business can be successful to those willing to take risks. Absolute and Comparative Advantage I would not say that Russia has a comparative or absolute advantage overall. We both have the equal resources and opportunities to gather materials necessary, we are both large in size, and we both have the same advances and availability of technological resources. Business Opportunity Analysis As a group we believe Russia to be the wisest choice for expansion of our green house constructions. Russia will also provide much cheaper labor costs. One difficulty may be to assign or find a manager within the country based on the simple fact that many of the people in Russia are still living within a communist government and may not fully grasp...
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...Transition The First Ten Years Analysis and Lessons for Eastern Europe and the Former Soviet Union Transition The First Ten Years Analysis and Lessons for Eastern Europe and the Former Soviet Union THE WORLD BANK Washington, D.C. © 2002 The International Bank for Reconstruction and Development/The World Bank 1818 H Street, NW Washington, DC 20433 All rights reserved. 1 2 3 4 5 05 04 03 02 The findings, interpretations, and conclusions expressed here are those of the author(s) and do not necessarily reflect the views of the Board of Executive Directors of the World Bank or the governments they represent. The World Bank cannot guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply on the part of the World Bank any judgment of the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is copyrighted. No part of this work may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or inclusion in any information storage and retrieval system, without the prior written permission of the World Bank. The World Bank encourages dissemination of its work and will normally grant permission promptly. For permission to photocopy or reprint, please send a request with complete information to the Copyright Clearance Center, Inc, 222 Rosewood...
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...has been to develop its supply potential and neutralize its potential competitors, principally China. India’s strategic interest in Iran as its energy partner and then the Iraq crisis are having a negative consequence on its economic prosperity, placing it on crossroads with the US. There is a divide between US and EU about the wisdom and desirability of imposing harsh economic sanctions on Russia. In any such confrontation, EU stands to lose much more than the US, though it can be argued that Russia will be the worst loser. In future, Russia may try to find new potential market for its gas and that could be India. So it is important for India to take its stand on Ukraine crisis carefully without tarnishing its relation with USA. India’s long-term prosperity hinges to some degree on a conflict free neighborhood; that an economically integrated region is in India’s overall security interests. Keywords: oil crisis, energy diplomacy, Ukraine Crisis, trade agreement, SAARC Nations Literature Review Indian foreign policy has always concentrated around major powerful nations like USA and Russia. The research which has been done so far is focused on building relations with these nations. We see that a lot of work has been done in this field- there is a...
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...sanctions on the financial sector 4 The impact of sanctions on the industry of the Russian Federation 6 The impact of sanctions Russia in the nearest future 7 Conclusion 9 Introduction The first sanctions against Russia were introduced on 6 March 2014, but they had a more symbolic and looked more like a friendly gesture from the West than on a real blow to the economy. The following steps restrictions for the Russian Federation have become much more significant and can cause serious damage to the Russian economy in the medium term. The effect of the sanctions were government officials, major banks, energy companies and the defense, in addition from European, American, Japanese, Canadian and Australian companies made a decision to limit the supply of technologies, weapons, minerals and other goods to the Russian market. According to analysts, in the current conditions on the results 2014 because of the sanctions, Russia will lose about 23 billion euros, or 1.5% of GDP, in 2015, almost 75%, which will further affect the economy and will account for almost 5% of GDP. It is important to note that in such conditions greatly slow down the inflow of foreign investment in Russia, 75% of them falling on the country's membership of the European Union. Main part The impact of sanctions on the financial sector Quicker just to positive and negative changes in the economy reacts financial sector. Since the beginning of the 2014 national currency in Russia fell by 17.5%. Exchange...
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................................................................................... 1 Faster and cheaper .............................................................................................................. 2 Extra-territoriality ................................................................................................................ 2 Large but Uncertain Costs........................................................................................................... 3 Pervasive Threat from Intelligence Adversaries and Partners ...............................................................4 China: Persistent Collector.......................................................................................................... 5 Russia: Extensive, Sophisticated Operations ..............................................................................5 US Partners: Leveraging Access ..................................................................................................6...
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...Essay on Facebook Posted by admin as Example papers Social Networking Sites like Facebook Made the World a Better Place Appearing on the world stage in 2003, Facebook has revolutionized the average person’s social network into an unprecedented web of information available in the palm of a hand. With just a few clicks or taps on one’s mobile app, one can meet people, see friends from high school and even make contacts with potential business interests. Unfortunately, social networking sites like Facebook have not made the world a better place because it is a waste of time for the user. As time is important to people, it can be better spent doing productive things, beneficial for one’s life. As the old adage goes, time is of the essence, and if it is not used wisely, the consequences are never good. Social networks have become more than just connections with people, they have accumulated add-ons like Farmville, Mafia Wars and other games in order to keep users entertained. In these games, the user plays for virtual money, often spending many hours each day building farms and collecting sheep and other animals. With millions of users signed-up for such add-ons, it is not hard to deduce that they are wasting millions of hours each day decorating farms and collecting garden tools. It is, however, true that if used right, the site can connect users with people of same interests, thus building a name for a person, if s/he is a writer for example. Nevertheless, a few possible connections...
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...AAR consortium - BP’s partners in the Russian oil company TNK-BP. In 2003-5, BP and the AAR consortium led by three billionaires with Russian connections - Mikhail Fridman, Len Blavatnik, and Viktor Vekselberg - merged their Russian oil corporate assets - TNK, Sidanko, and Onako and their subsidiaries - under the umbrella of TNK-BP.2 This joint venture was established on a 50/50 basis, the operation of which required mutual joint decision making. The partners also signed a shareholding agreement on TNK- BP’s right of first refusal in relation to potential future oil and gas projects offered to BP or AAR in Russia and Ukraine. This agreement was subsequently used by AAR to stop the BP-Rosneft deal in international courts. Unfortunately, this was not the first time that BP had been unable to change the way it conducted its business in Russia. The first example occurred in 2007-8 when BP was reported to be keen on having Gazprom as a partner instead of AAR. This move would have transformed the TNK-BP joint venture into Gazprom-BP. This did not transpire. Second, in the spring-summer 2008, there was a turbulent ‘misunderstanding’ between BP and AAR, over the corporate governance and future strategy of their joint venture. This led to the removal of Robert Dudley from the helm 1 Shamil Yenikeyeff is a Research Fellow at the Oxford Institute for Energy Studies and a Senior Associate Member at the Russian and Eurasian Studies Centre...
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