Index

Accredited representative offices, 94

Agreements, 164–165

Attitudes and styles, 160–161

Avtoframos, 207–208

Bargaining, 161–163

Bridgestone, 238–242

Business culture

attribution and rationalization, 117–118

demographics

challenges, 125

dependency ratios, 124

overall life expectancy, 121, 123–124

Russia’s Slavic ethnic groups, 121

Russia vs. United States, 122, 123

urbanization, 124–125

determinants, 117

forces and forms, 117

generalizations, 116

geography and history, 118–119

highly centralized governance

industrial revolution, 119

politico-economic liberalization, 121

problem-solving attitudes, 121

repressive political system, 120

socioeconomic dependency, 119

Soviet laws, 119–120

Soviet penitentiary system, 120

individual and organizational behavior, 115–116

mental programming, 116

national profile (see Russia’s national profile)

practical applications, 153–156

agreements and contracts, 164–165

attitudes and styles, 160–161

bargaining, 161–163

Business Culture on the World

Stage, 143

communication, 157–158

conservative attire, 165

corruption, 148–149

crises management, 147–148

cross-cultural implication, 142

decision-making, 163–164

empowered organization, 145–146

Executive Planet, 143

Expat, 143

government and government agencies, 149–150

initial contacts and meetings, 158–159

international business, 141

leadership positions, 144

local rules, 146–147

long-term goals, 147

meetings and negotiations, 150–153

negotiation process, 141

one-company organizational culture, 144–145

punctuality, 166

relationships and respect, 156–157

women in business, 165

religion, 126–127

social system and family, 128

values and norms, 116

Business-to-business marketing, 72

Business-to-government marketing, 72

Central Federal District, 6, 9

City of Moscow and Moscow Oblast, 6

Civil Code of the Russian Federation, 97–98

Communication, 157–158

Consumer-to-business, 72

Consumer-to-consumer marketing, 72

Contracts, 164–165

Corruption, 148–149

Cost, insurance and freight (CIF) value, 110

Council of International Schools (CoIS), 62

Country Commercial Guide, 89

Decision-making, 163–164

Demographics

challenges, 125

dependency ratios, 124

overall life expectancy, 121, 123–124

Russia’s Slavic ethnic groups, 121

Russia vs. United States, 122, 123

urbanization, 124–125

Dependency ratios, 124

Direct marketing, 98–99

East-West Digital News (EWDN) report, 106

Economic regions, 3–4

Elderly dependency ratio, 124

Electronic commerce

cash-on-delivery, 106

Chinese retailers, 106

cross-border sales, 105

current economic downturn, 107

customer service, 105

domestic e-commerce market, 105

EWDN reports, 106

FOM report, 106

foreign online stores, 104–105

Research agency Data, 104

Russian data localization law, 107

Entrepreneurial business. See also Small- and medium-sized enterprises

accredited representative offices, 94

agents, 91

branch offices, 94

companies and taxation

dividends, interest, and royalties, 97

import duties, 95

land, property, and personal income taxes, 97

profits tax, 94–95

social security contributions, 96

social welfare taxes, 96

value added tax, 95–96

Country Commercial Guide, 89

direct marketing, 98–99

distribution and sales channels, 101–103

distributors, 91–92

due diligence, 112–113

educational attainment, 88

electronic commerce

cash-on-delivery, 106

Chinese retailers, 106

cross-border sales, 105

current economic downturn, 107

customer service, 105

domestic e-commerce market, 105

EWDN reports, 106

FOM report, 106

foreign online stores, 104–105

Research agency Data, 104

Russian data localization law, 107

foreign subsidiaries, 92–93

franchising, 97–98

FTS, 93–94

fuel and energy sectors, 91

government procurement, 100–101

intellectual property rights, 112

joint ventures/licensing, 99–100

local professional services, 111

metropolitan cities, 88

mineral resources, 90

natural resources, 91

Northwest Federal District, 90

pricing, 110–111

representative/branch offices, 92

sales service/customer support, 111–112

selling factors/techniques, 103–104

trade promotion and advertising

advertisers, 107–108

enforcement, 107

market development, 109

media outlets and print publications, 108, 110

nonstandard communication methods, 108

social networking, 108

U.S. Commercial Service, 87

Executive Planet, 143

Expat, 143

Federal districts, 3–4

Federal Tax Service of the Russian Federation (FTS), 93–94

Franchising, 97–98

Get Taxi, 209–211

Global Entrepreneurship Monitor report, 76

Globalization and World Cities Research Network, 17

Global Leadership and Organizational Behavior Effectiveness (GLOBE) study

autonomous style, 136–138

charismatic/value-based style, 135

cultural dimensions, 134

cultural parameters, 137

humane style, 135

leadership and societal culture, 134

participative style, 135

self-protective style, 136

team-oriented style, 135

Highly centralized governance

industrial revolution, 119

politico-economic liberalization, 121

problem-solving attitudes, 121

repressive political system, 120

socioeconomic dependency, 119

Soviet laws, 119–120

Soviet penitentiary system, 120

Hofstede’s cultural dimensions

comprehensive framework, 128–129

Individualism versus Collectivism, 129–130

masculinity versus femininity, 130

Power Distance Index (PDI), 129

Uncertainty Avoidance Index, 130

“Horizon” framework, 151

Individualism versus Collectivism (IDV), 129–130

Indulgence, 131

Information and communication technology (ICT) infrastructure

active subscribers, 43

average cost of internet access, 45

average data transmission speed, 46

expenditures by organization, 42

fixed broadband internet access subscribers, 42, 46

internet access, 41–42

internet broadband access quality, 45

mobile radio telephone communications subscribers, 43

number of PCs with internet access, 44

own web sites, 44

Information sources, 170–176

Intellectual property rights (IPR), 112

Joint ventures/licensing, 99–100

Lada Automotive, 214–218

Local professional services, 111

Masculinity, 132

Masculinity versus Femininity (MAS), 130

MasterCard Global Destination Cities Index, 17

Meetings, 158, 159

Military district, 4

Ministry of Economic Development (MED), 101

Moscow city investment

business activity, 23–25

business and financial services, 42–43

credit institutions, 48

employment, 49, 50

professional outsourcing services, 44

providers, 47

commercial real estate access

average class A office rent, 34

average warehouse rental rates, 35

high-quality commercial space, 33

high-quality warehousing, 35

lease conditions in retail centers, 34

vacancy rate, 33

culture, leisure, and entertainment, 61, 63

economic and financial stability

balanced financial results, 31

budget deficit, 29

budget indicators, 30

public debt, 30, 31

economic-geographical position, 21–24

educational infrastructure

academic institutions, 60

consumer sophistication, 56, 58

Council of International Schools, 62

general education schools, 61

higher education institutions, 60, 62

preschool educational centers, 58, 60, 61

electricity availability, 40–41

housing and hotels

apartment rental rates, 54

average cost, 53

dynamics and availability, 52–53

hotel room cost, 53

industry development scheme, 53

networks development, 54

new residential construction and financing, 53

ICT infrastructure

active subscribers, 43

average cost of internet access, 45

average data transmission speed, 46

expenditures by organization, 42

fixed broadband internet access subscribers, 42, 46

internet access, 41–42

internet broadband access quality, 45

mobile radio telephone communications subscribers, 43

number of PCs with internet access, 44

own web sites, 44

investment activity

foreign direct investment inflows, 26–27

stock in fixed assets, 24–26

labor force

adult population and higher education, 28

average hourly labor rates, 29

economically active population, 27

unemployment rate, 27, 28

Moscow City Investment Agency, 16–17

opportunities

average per capita income, 19

gross regional product, 19–23

money spent, 20

ratio of outstanding loans, 21

Russia’s retail trade turnover, 18

urban agglomerations, 17, 18

volume of individuals’ deposits, 20

public safety

crime rates, 65, 66

police staff, 67

residents and guests, 66

safety index, 67

traffic accidents, 65, 66

public transportation

average public transport fares, 65

metro (subway) lines, 64

Moscow Metro, 63

volume of passengers, 64

research and development

inventions and models, 51

metropolitan area, 47, 48

organizations involved in, 50

personnel employed in, 51

software and multimedia design, 49

taxation, 51–52

taxation of legal entities

corporate profit tax rates, 32

land tax exemptions and investment tax credits, 33

standard value added tax rates, 32

tax benefits, 31

trade and public catering infrastructure

catering enterprises, 58

food price index, 57

food stuff prices, 55

international consumer brands, 57

market turnover dynamics, 59

quality of life, 54–55

restaurants, 59–60

retail facilities, 58

retail trade facilities, 55

turnover dynamics, 56

transportation infrastructure

airline passengers, 36

development, 40

hard surface roads, 37–38

radial-ring road design, 37

rail transport density, 39

railway passengers, 39

retail gasoline prices, 38

road haulage, 38

road network density, 37

Moscow Railway Center, 39

Negotiation process, 141

PickPoint, 103

Potential support ratio, 124

Power distance, 132

Power Distance Index (PDI), 129

Presentations, 159

Profits tax, 94–95

Public sector marketing, 72

Regional analysis

Belgium, 2

Central Federal District, 6, 9

comparative investment profiles, 13–16

economic characteristics, 6–8

exporting and importing regions, 10–11

federal administrative subjects, 2–3

federal districts and economic regions, 3–4

foreign direct investment, 5

Japan, 1–2

market dynamics variation, 2

military district, 4

Moscow City Investment Agency (see Moscow city investment)

regional governance and development, 5

Russian Investment Agency, 12–13

Singapore, 2

total foreign portfolio investment, 9

WAIPA, 5

World Investment Report, 9

Religion, 126–127

Russia’s national profile

Hofstede’s cultural dimensions

comprehensive framework, 128–129

Individualism versus Collectivism, 129–130

masculinity versus femininity, 130

Power Distance Index (PDI), 129

Uncertainty Avoidance Index, 130

pragmatic vs. normative approach

GLOBE study, 133–138

individualism, 132

indulgence, 131, 133

long-term orientation, 133

masculinity, 132

power distance, 132

uncertainty avoidance, 133

World Values Survey, 138–140

Self-expression values, 139

Skill development

cases, 207–242

cross-cultural negotiations, 191–194

export market research, 199–202

International Market Research in the Health and Wellness Sector, 195–196

international market strategy, 182–185

joint venture manufacturing partnership, 203–204

location selection, 180–181

strategic assessment and organizational logistics, 186–190

take-home final exam assignment, 205–206

tariffs, trade barriers and leads, 197–198

Small- and medium-sized enterprises (SME), 73

characteristics, 79

economic activity, 82

financial instruments, 83–84

GEM reports, 76, 84–85

limitations, 80

microenterprises, 80

product innovation/competitiveness index, 86–87

regional structure, 83

revenue growth, 82–83

Russia vs. European countries, 81

sectorial/industrial structure, 81

structural renewal, 85

technological innovations, 80

turnover, 80, 82

Small business and entrepreneurship

early-stage entrepreneurial activity, 77

e-commerce, 71–72

enablers and constraints, 78

entrepreneurial environment, 78

foreign investment and technology transfer, 73

free market developments, 75

Global Entrepreneurship Monitor report, 76

international trade and foreign direct investment, 72

large corporations, 72–73

large-size foreign-based corporations, 73–74

restrictive legislation and constraints, 75

small- and medium-sized enterprises, 73

characteristics, 79

economic activity, 82

financial instruments, 83–84

GEM reports, 76, 84–85

limitations, 80

microenterprises, 80

product innovation/competitiveness index, 86–87

regional structure, 83

revenue growth, 82–83

Russia vs. European countries, 81

sectorial/industrial structure, 81

structural renewal, 85

technological innovations, 80

turnover, 80, 82

state-owned enterprises, 74

TACIS program, 75

total entrepreneurial activity key indicators, 77

Social welfare taxes, 96

Stalin’s harsh prosecution system, 120

Starbucks, 211–213

State-owned enterprises (SOEs), 74

Sukhoi Superjet 100, 219–238

Survival values, 139

Targeted Investment Program of Moscow, 40

Technical Assistance to the Commonwealth of Independent States (TACIS) program, 75

Total dependency ratio, 124

Uncertainty avoidance, 133

Uncertainty Avoidance Index (UAI), 130

Value added tax (VAT), 95

World Association of Investment Agencies (WAIPA), 5

World Intellectual Property Organization (WIPO), 98

World Investment Report, 9

World Values Survey (WVS), 138–140

Youth dependency ratio, 124

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