The objective of the thesis is to define and describe the existing problems and difficulties that Swedish direct investors come across when investing in the Russian market. We aim to illustrate these problems with examples and provide recommendations on how foreign companies can avoid those problems. The research question of the thesis is:- What are the problems Swedish companies come across when entering and operating within the Russian market?
One of the limitations is the geographical location of the companies to be studied. We chose to focus on Swedish companies established in the Moscow and St.-Petersburg regions, as many of the foreign companies are established in these cities. Russia is a big country and it is hard to do a study of the whole country in one thesis.
The needs and conditions, as well as possibilities for the establishment of new companies, vary greatly in different regions of Russia. The two cities of Moscow and St.-Petersburg represent more or less the same level of needs and possibilities for the companies, therefore this would be fair to take these cities as the base for the companies to be studied.
We decided to focus on small and medium-sized Swedish companies as an object of our study. There was no industry specification.
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This study starts with the problem identification, describing the possible problems the foreign investors come across with when establishing and conducting business in Russia. The method chapter includes the description about how the research process was constructed and conducted in our case. Delimitations and criticism are included in the method-chapter. The theoretical frame presents the theories we applied on the empirical data in order to make the
Later main characteristics of the today’s environment for the investments are given as we describe the present market condition for foreign investment. After the overall market situation, we present the empirical data. An analysis in accordance with the theories is presented later.
The analysis is completed with conclusions, and we provide recommendations on how the described problems can be avoided. Critical evaluation of the thesis and proposal for further studies complete the chapter. The paper is finished with an appendix, including tables, figures, references and a questionnaire used in the research process.