Table of Contents - Crater High Schoolbisstudents.cratercomets.com/student_portfolios... · and...

Table of Contents Introduction .................................................................................................................................................. 3

Issue .............................................................................................................................................................. 3

Non-Profit ..................................................................................................................................................... 5

Geographical Area Analysis ........................................................................................................................... 6

Economic Analysis ......................................................................................................................................... 8

Economic Analysis Two ............................................................................................................................... 12

Political System ........................................................................................................................................... 16

Trade Laws .................................................................................................................................................. 21

Population ................................................................................................................................................... 22

Diet and Nutrition ....................................................................................................................................... 27

Housing and Communication ...................................................................................................................... 29

Transportation ............................................................................................................................................ 30

Labor ........................................................................................................................................................... 34

Education .................................................................................................................................................... 38

Clothing ....................................................................................................................................................... 42

Recreation and Leisure ............................................................................................................................... 44

Language ..................................................................................................................................................... 46

Religion ....................................................................................................................................................... 48

Bibliography ................................................................................................................................................ 49

Appendix ..................................................................................................................................................... 59

American Print-Ad ................................................................................................................................... 59

Russian Print-Ad ...................................................................................................................................... 60

Etiquette ................................................................................................................................................. 61

County Selection Letter........................................................................................................................... 63

Brochure: ................................................................................................................................................ 64

Kody Kinser Russian Federation

3

Introduction International Marketing Project

The Russian Federation has changed drastically since the fall of the U.S.S.R. This report will

discuss several key factors that are required for making a decision on expanding our business.

These significant influences include (but are not limited to) the analysis of education, diet and

nutrition, economic industries and resources, population, housing, etiquette, political system,

trade laws, and transportation. These sections go in-depth on their subjects and give applicable

information on Russia.

Russia is a nation that can support a non-profit organization that combats drug and alcohol abuse

because Russia is currently suffering from declining demographics. Russians drink 18 liters of

pure alcohol a year (twice as much as health problems is clearly evident). Russia also has over

5.1 million drug users that cause 70,000 deaths a year (forbes.com). Drug related crimes have

increased 15-fold in a ten year period (narconon.org). This increase in drug use can affect the

global market in a large way.

The demographics in Russia are declining at a rate of -.48% (CIA.gov). This is a direct result of

the world’s second highest death rate, and a low life expectancy (CIA.gov). There is also a large

difference in the life expectancy between males and females; females are expected to live 13

more years than males. This is a result of large violence rates in males because of drinking and

drugs. There is a more in-depth results are in the “population” section of this report.

Russia is the largest country in the world is home to approximately 138 million people; ranked

9th

in population (CIA.gov). However, a large population does not always make a non-profit

organization succeed. Our organization will excel in Russian because their emphasis on

education provides a good basis for our foundation to start. The high literacy rate in Russia

(99.45%) allows for an easy way for our foundation to educate the Russian population. Support

for our programs will be evident because of the Russian government’s desire to correct the

declining demographics. President Dmitry Medvedev has said that drug and alcohol problems

represent a “serious threat to Russia’s future” (forbes.com).

Issue

International Marketing Project

Since the disbandment of the U.S.S.R. in 1991 the Russian Federation’s economy has improved

greatly. This is shown by moving the poverty line from 25% (from 1991) to 13% (in 2009)

(CIA.gov). This increase in economic stability has resolved many problems in Russia; but not

all. The major problems that still exist in Russia are alcohol abuse, drug abuse. Drug use alone

kills over 70,000 people a year; and is a leading factor in the declining demographics.

Drug related crimes in Russia have increased 15-fold, and drug users have increased 10-fold

from 1996 to 2006 (narconon.org). The main drugs that are used in Russia are ecstasy, cocaine,

heroin and LSD. Access to heroin in Russia is unmatched, taking in over 20% of Afghanistan’s

heroin production (over 800 million $) (globalpost.com). Russian alcohol consumption has


4

tripled in the last ten years (telegraph.co.uk). Russia’s alcohol per capita rate is at 18 liters of

pure alcohol. According to the WHO, the level where serious medical and genetic damage is

evident at nine.

The influence of drug and alcohol abuse in Russia is evident. The amount of alcohol consumed

has increased three fold in 12 years (telegraph.co.uk). Some conservative estimates state that

over 70,000 people die from drug overdoses, and over 50,000 die from alcohol abuse

(narconon.org). These deaths are a large factor in the low life expectancy in Russia. According to

President Dmitry Medvedev drug addiction, along with alcoholism, and smoking represent a

serious threat to Russia's future.

(nationmaster.com)

These internal problems have a large potential to affect global markets. If Russia was to

experience turmoil prices of oil could shoot “sky high”; making prices of everything rise; just

like we have seen in the past few years. The spread of HIV in Russia is largely caused by sharing

needles that are used while injecting heroin. The agency that I aim to create will decrease the

possibility of disorder, and it will also slow the spread of HIV.

The main social issues in Russia are alcohol and drug abuse. The drastic increase in drug and

alcohol consumption (according to President Dmitry Medvedev) represents a serious threat to

Russia’s future. These issues have a large potential to affect global markets and plunge the world

deeper into a recession. I plan to implement an agency that teaches Russians the danger of drug

and alcohol abuse.

0

10

20

30

40

50

60

70

80

90

Russia (167) Japan (5) Bangladesh (154) Mexico (76) United States(49)

Life Expectancy (Years)

2005

2008

2011


5

Non-Profit International Marketing Project

Name: Reliable Assistance in Russia (RAR)

Mission Statement: To provide drug and alcohol assistance to Russians in order to reverse the

increases in drug and alcohol abuse.

What we do: RAR shows the Russian population the side effects of using drugs and a large

amount of alcohol. RAR creates ads through billboards, television, and newspapers; that show

Russians the bad side of drugs; what they will make you do; look like; what happens when you

are caught; and side effects. These images will be graphic that may include HIV deaths and

prison cells. RAR also creates schooling opportunities at no cost to Russians that wish to

participate. These programs will teach the same things as the ads but more in-depth. Both of

these methods will provide numbers and areas where current abusers can go to for help. The ads

and programs will also appeal to the great Russian sense of pride; making reference to President

Dmitry Medvedev saying drug and alcohol abuse poses a serious threat to Russia’s future.

These ads and programs easily show the young Russian population that drugs and excessive

alcohol leads to a short and painful life. Teaching young Russians will be as important as

rehabilitating users. The young Russians that are growing up right now only live around drugs

and alcohol, at this moment in their society the children do not learn any better; that’s our job.

Showing making sure that Russian children know what they are getting into if they are an avid

drug user; drug addicts in Russia have a lifespan of four years (narconon.org). It is important that

we educate young Russians because these problems will not be solved overnight; they can only

be solved over generations.

Rehabilitation centers will be run by RAR; more effective and efficient facilities that want to

help the users that we get. The RAR facilities will give drug users a place to go for help. The

current facilities that the Russian government provides are famed for jail-like places, with

shackles and bars. These rehab facilities are stretched far and thin, as less than 10% of abusers

make it to a drug facility (narconon.org). The education that we provide would give Russians the

education that they need to make correct life decisions, and also give drug users options to

become clean.

Ways you can help:

Donations:

o Money; any amount of money is greatly appreciated.

o Time; if you are willing to donate any of your time it would affect many lives.

o Goods; school supplies are the main merchandise donations that affect RAR.

Buy our products:

o Ushankas; warm Russian fur hats that have the RAR logo and words if desired.

o Matryoshkas; elaborate sets of wooden dolls that are can be very decorative.

o Lanyards, bracelets, and stickers are also sold: these objects will have the RAR

logo on them; versions will include words and different colors.


6

Volunteering:

o Fundraising; fundraise locally for RAR

o Time; plan a trip to Russia and volunteer in our rehabilitation or schooling

centers.

o Speak; make our cause known!

Partnerships: Russian Government- the Russian government will support us because they acknowledge

that drug and alcohol use pose a serious threat to Russia’s future. The Russian government will

work with us to help reduce their drug and alcohol problems.

The World Health Organization- the WHO will be an influential partner because they are

concerned for world health. They will endorse our organization because reducing drug and

alcohol use increases the world’s overall health. The decrease of drug use will reduce the spread

of HIV; something that the WHO is committed to fighting.

The United States Government- the United States government will endorse our

organization because combating drug abuse will directly affect the amount of heroin that is

bought from Afghanistan. We will indirectly decrease the amount of heroin that is sold from

Afghanistan. This will create more stability in the area that the United States has tried to bring to

Afghanistan for 11 years.

Geographical Area Analysis International Marketing Project

From one continent to another, Russia is the biggest country in the world, and is one of the six

transcontinental nations (Wikipedia.org). The size of Russia is nearly incomprehensible; it is

over 10,500,000 square

miles, or 1.8 times the size

of the United States

(CIA.gov). The vastness of

this country contains terrain

including broad plains,

highlands, and metropolitan

areas; all of which could

potentially benefit our

company (CIA.gov).

Russia’s transportation

system mainly relies on

railways and rapid transit

systems, making transporting

goods and people extremely

(novaonline.edu)


7

quick and simple (Wikipedia.org). With enormous size and quick transportation methods, there

is an immense opportunity for rapid growth. Even with enormous size and quick transportation,

there are still several elements that need to be accounted for; such as location, climate, and

topography.

Russia covers the entirety of northern Asia and northeastern Europe. With such an enormous

land area there is also a massive coastline; over 23,000 miles of coastline (CIA.gov). The country

is bordered the Arctic Ocean, Pacific Ocean, Sea of Okhotsk, Bering, Barents, Baltic, Caspian,

and Black Seas. With this water accessibility there is a number of ports that we can use to our

advantage. The Volga is the main river that can be used to transport materials; 11 out of Russia’s

20 biggest cities are located in the Volga’s drainage Basin (Wikipedia.org). Russia also borders

14 countries, including China, Mongolia, Azerbaijan, and Finland (CIA.gov). This surplus of

neighboring countries adds to the potential of rapid growth because of the ease of receiving

supplies from a broad range of suppliers. The main railroad company is Russian Railways; their

railway system has nearly 53,000 miles of track (rzd.ru). This extensive railway system lines the

country, making transporting people and materials easy.

Most of European Russia experiences a humid continental climate, receiving long harsh winters

and brief summers, with widespread temperatures ranging from 14°F in January to 65°F in June;

although this area is subject to large variations; one year it may not fall below 32°F

(RussianSt.Petersburg.com). Most of southern Russian has a steppe (grassland) climate. With

temperatures ranging from over 100°F in the summer to under 40°F in the winter

(Blueplanetbiomes.org). East of the Urals the climate of the Siberia Plains are mainly subarctic

(CIA.gov). This subarctic area has an average temperature of 32°F (Koreanhistoryproject.org).

These low temperatures may make transporting materials via roads difficult because of ice; the

main waterways that we would be using would be unaffected by ice formation. Bulk

transportation would be is left mainly unaffected by Russia’s climate because of railway

reliability. Annual precipitation ranges from 25-30” in European Russia to 2” in central Asia

(Nationsencyclopedia.com). Central Russia is extremely susceptible to drought, in the 2010

Russian drought there were over 75 fires reported in less than 24 hours. These droughts lead to a

huge reduction in the grain yield; this lead to increasing inflation in Russia (CNN.com).

The country has a wide variety of topography. Russia’s many rivers play a huge roll in Russian

energy; Russia is ranked fifth in hydroelectric energy in the world (indexmundi.com). West of

the Ural Mountains there are broad plains with low hills (CIA.gov). This type of terrain is

exceptional for transporting people and supplies because vehicles and trains can move very

quickly. Coniferous forests and tundra range far into Siberia (CIA.gov). This should not create

too much of a problem because of the existing railway’s through these regions. Traveling by

vehicle during winter in eastern Russia will be difficult because of Russia’s nine major mountain

ranges (Photius.com).Most of the Siberian Plain is not good for agriculture because of the

temperatures, but it is host to a long list of precious metals. These metals created the need for

extensive railways that we can use for transportation.

The massiveness of Russia holds many promising business opportunities. Transporting goods in

and out of Russia is made easy, with a widespread railway system, easy access to ports, and

borders to 14 countries. The rivers that make Russia a hydroelectric leader will make


8

transportation by ship a top transport option. Russia’s cold climate will be harsh to small

business competitors that cannot secure reliable transportation methods. With the information

that I will be providing throughout the rest of my report, there should be no reason why any

business should not thrive inside the Russian Federation. The following table tells some

geography that we can capitalize on:

River access will make transportation by ship a leading option.

The existing railways will be a cheap and efficient way to transport materials and people.

The accessibility to 14 countries creates a diverse set of industries that we can buy from

and sell to.

The immense plains are an exceptional area for transportation.

Access to over eight major bodies of water forms an obvious route to transport materials

around the world.

The massiveness of Russia has a broad range of natural resources that we can use to our

advantage.

The size of Russia also creates an area where we can work in an isolated area in Siberia,

or a metropolitan area such as Moscow.

Economic Analysis International Marketing Project

The economic system of the Russian Federation is capitalism.

Description: Russia’s new globally-integrated economy was the world’s largest exporter of

natural gas, second largest exporter of oil, and the third largest exporter of steel and aluminum in

2009 (CIA.gov). Russia’s relatively new capitalistic economy was hit hard by the 2008-2009

world economic crises. The Central Bank of Russia spent over $600 billion international

reserves, along with the government spending $200 billion in a rescue plan to increase liquidly

the banks and other businesses. After drought and fires in central Russia reduced agricultural

production the Russian government put a ban on grain exports for part of the year.

Economic Statistics and Activities: According to the CIA World Factbook; Russia was the

world’s leading producer of oil, and second most producer of natural gas. Russia is also the third

largest exporter of steel and aluminum. These natural resources lead Russia to having the 7th

largest GDP (CIA.gov). This is also a big contributor of Russia having a $188.5 billion trade

surplus. The Russian economy is susceptible to boom and bust cycles that shadow the global

commodity project. The government has had little success reducing this dependency and

building high technology sectors. Since 2009 unemployment has fallen; since 2010 inflation has

started to drop.


9

Non-renewable Resources:

Oil → is a thick, combustible clear liquid; used to create gasoline and power generation.

Leading oil producing and second most oil exporting country (CIA.gov).

Natural Gas → is an odorless gas (a chemical is added to make it smell like rotten eggs);

used for heating and power generation. World’s largest natural gas exporter and second

highest producer (CIA.gov).

Coal → is a black combustible rock-like mineral that can be used for power generation.

According to Rt.com Russia has the world’s second largest coal deposits estimated at 157

billion tons. Russia is currently ranked 5th

for coal extraction volume and coal exporter.

Uranium → According to AskAndy.com uranium is a soft, silvery white radioactive

metal that is used to fuel nuclear reactors (to create electricity) and to create nuclear

weapons. Russia is moving forward quickly in its nuclear power program, and exports of

nuclear goods and services are a major Russian policy and goal (world_nuclear.org).

Renewable Resources:

Hydroelectric → uses water to spin turbines that create electricity. Russia’s renewable

energy mainly consists of hydroelectric energy (Wikipedia.org). Hydroelectric energy

creates 159 TWh of Russia’s 925.9 TWh (17%) (CIA.gov).

Geothermal → is energy that is derived from the earth’s heat. Water is pumped through

pipes where the underground heat pocket is and the steam that is produced spins a

turbine. Geothermal energy is Russia’s second most renewable energy source; although it

only amounts for 1% of Russia’s total energy production (Wikipedia.org).

Solar power → is power that is derived from the sun’s rays. Russia has a small quantity

of solar power. The realistic amount of solar power that Russia is capable of is

approximately 101 TWh. There are currently plans in place for more solar plants that are

projected to create over 40 MW a year (Wikipedia.org).

Wind → uses wind power to spin turbines that creates electricity. Wind power in Russia

is mostly locate in unindustrialized areas with low population densities. In 2006 Russia

had a wind capacity of 15 MW, and current plans have a combined (predicted) capacity

of 1700 MW (Wikipedia.org).

This energy is important because Russia exports over 17.7 TWh, and a trade surplus of 3.07

TWh.

Energy Industry: According to the CIA World Factbook Russia is the world’s second largest oil

exporter and largest natural gas exporter. Also, according to RussianOilCompanies.net these are

the five biggest Russian oil companies:

Rosneft

Lukoil

TNK-BP

Surgutneftegaz

Tatneft

According to the Fortune Global 500 the combined 2010 revenues for these companies is $210

billion; with $31.7 billion in profit (CNN.com, Wikipedia.org, and TKN-BP.ru).


10

Manufacturing: According to RT.com (Russia Today) five of the top 12 Russian companies are

manufacturing companies. These manufacturing companies make anything from steel to

furniture. The following businesses are the top 5 Russian manufacturing corporations:

NLMK (Novolipetsk Steel)

Severstal

Evraz

MMK (Magnitogorsk Iron & Steel Works)

Mechel

According to RT.com, Reuters.com, MMK.ru, and Mechel.com the combined revenue for these

companies in 2011 was $50 billion. The combined net profit for these companies was over $4.5

billion.

Precious Metals: Precious metals is a business division that includes the selling of precious

metals such as gold, silver, and/or platinum. According to ThomasWhite.com these are the top 5

precious metal companies in Russia:

Norilsk Nickel

UC Rusal

NMLK (Novolipetsk Steel)

Evraz Group

Severstal

According to RT.com, MiningWeekly.com, and Reuters.com these companies have a combined

revenue of over $62.2 billion. The combined net profit was $15 billion.

The current exchange rate is 1 USD to 29.2505 RUB (yahoo.com).


11

(CIA.gov)

The numbers in the parenthesis are what the country was ranked (out of 226) Total GDP

Purchasing Power Parity (PPP) is important for our business to expand in the Russian Federation

because it shows the cost of living in Japan is a lot lower than living in the United States.

(CIA.gov)

The numbers in the parenthesis are what that country was ranked (out of 215).

2.38

4.463

0.282

1.657

15.04

0

2

4

6

8

10

12

14

16


Total GDP Purchasing Power Parity (PPP) (2011)

Trillions

4.30%

-0.50%

6.30%

3.80%

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

Russia (92) Japan (202) Bangladesh (37) Mexico (108)

GDP Real Growth Rate (2011)


12

(cratercomets.com)

The numbers that are in the parenthesis are what that country was ranked (out of 210)

(cratercomets.com). The average Russian earns approximately the same amount of money as

Mexicans. Russia is ranked in the 36th

percentile in income per capita. This high ranking allows

for Russians to buy luxurious items.

Economic Analysis Two International Marketing Project

The Russian Federation is a major exporter of non-renewable rescores, exporting the most

amount of natural gas, and the second most amount of oil (CIA.gov).

Major Exports:

Energy (Natural gas/Oil)

Metals

Minerals

Wood

Chemicals

Variety of Manufacturing

(CIA.gov)

$9,620

$38,210

$520

$9,980

$47,580

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

Russia (75) Japan (30) Bangladesh (186) Mexico (74) United States (14)

Gross National Income per Capita (2011)


13

(CIA.gov & Globalnet.co.uk)

(WTO.org)

Food 2%

Mineral Goods 68%

Chemical Products 5%

Wood 4%

Metals 16%

Machinery 3%

Others 2%

Exports ($498.6 Bllion)

European Union 52.30%

Ukraine 5.81%

Turkey 5.11%

China 4.51%

Belarus 4.51%

Others 27.76%

Export Trade Partners


14

Major Imports:

Machinery

Vehicles

Pharmaceutical products

Plastic

Food

Medical Instruments

Metals

(CIA.gov & Globalnet.co.uk)

(WTO.org)

Food 13.70%

Mineral Goods 1.00%

Chemical Products 14.40%

Woods 2.60%

Metals 5.90%

Machinery 54.30%

Others 8.10%

Imports ($310.1 Billion)

European Union 38.30%

China 15.70%

Ukraine 5.60%

United States 4.50%

Japan 4.10%

Other 31.80%

Import Trade Partners


15

Scarcity in Russia: There is a shortage of housing in Russia; many people live in small

apartments (khorkina.com). Food in Russia can also be a scarcity; during the 2010 drought and

plain’s fires the government put a ban on all grain exports (CIA.gov).

Balance of Payments: Russia has a trade surplus of approximately $188.5 Billion.

Trade Balance: Russia’s trade surplus of approximately $188.5 billion is important because it

shows that Russia is a country that is gaining wealth. Russia’s trade surplus is ranked within the

top 10 (CIA.gov). A trade deficit is a major factor that contributes to a nation losing money.

When a nation loses money, the nation’s people lose money, so they cannot afford luxuries;

making it a bad place to invest in.

Currency: An exchange rate is the rate of what one currency is worth against another; 1 United

States Dollars (USD) may be worth 2 Pesos. A high number of the local currency converted to 1

USD means that there would be an advantage for our company to buy products, but selling

things in Russia may be perceived as overvalued because our profit margins will be in USD,

while the consumers will be thinking in their currency.

Russia’s current currency is the Russian Ruble (RUB).

The current exchange rate is 1 USD to 29.2505 RUB (yahoo.com).

(Countries were chosen because of relative population; population and inflation rates estimated

by CIA.gov)

In 2010 the Russian government started putting forth efforts to reduce inflation (CIA.gov).

6.9

1.6

8.1

-0.7

4.2

1.1

8.9

3

10.7

3.5 3.5

2.2

Russia United States Bangledesh Japan Mexico Germany

Inflation Rates (%)

2010 2011


16

Notes: Mexico’s underemployment rate may be as high as 25%, Bangladesh’s may be as high as

40%; working not enough hours at low wages (CIA.gov). Russia’s unemployment rate is higher

than most other countries because they were hit hard by the 2008 world economic crisis when oil

prices plummeted; they have still not recovered fully (CIA.gov).

(Countries were chosen because of relative population; population and unemployment rates

estimated by CIA.gov)

Political System International Marketing Project

Introduction: The Russian Federation formed after the U.S.S.R disbanded on December 25th

1991. The Russian Federation is a federal semi-presidential republic; the Russian people vote for

their President and Federal assembly. Since May 7th 2008 Russian President is Dmitriy

Anatolyevich Medvedev; Prime Minister (Premier) Vladimir Vladimirovich Putin (CIA.gov).

Vladimir Putin has been elected Russia’s next president, he is to be inaugurated on May 7th 2012

(RT.com).Russia has nine time zones, and has elected to stay on daylight savings time

permanently. Moscow is Russia’s largest city and Capital; it is 11 hours ahead of PST (during

standard time).

Political Structure: According to CIA World Factbook the Russian Federation’s political

structure is a federation. As defined by Google, a federation is “A group of states with a central

government but independence in internal affairs” and/or “An organization or group within which

smaller divisions have some degree of internal authority” (Google). The Russian Federation has

a political framework of a federal semi-presidential republic; meaning Russia is a federation (a

group of self-governing states) that has a President and Prime Minister that both have power; and

the offices of state are directly or indirectly elected by the people.

7.5

9.6

5.1 5 5.4

7.1 6.8

9.1

5 4.8 5.1 6

Russia United States Bangladesh Japan Mexico Germany

Unemployment Rate (%)

2010 2011


17

According to Countrystudies.us the Russian government is divided into three branches, the

executive, legislative, and judicial.

Branches of Government: The executive branch is headed by two people, the President, and the

Prime Minister. The President is elected by the people and the President nominates the Prime

Minister. The Prime Minister acts like the United State’s Vice President with more duties

(Differencebetween.net). The President of Russia can only be elected for two consecutive terms,

after two consecutive they have to take a term off of president (although they can still become

Prime Minister). Starting after Vladimir Putin is inaugurated as President, Presidents serve for

six years (Telegraph.uk).

The legislative branch is made up of a 628 member parliament, called the Federal Assembly

(Countrystudies.us). The Federal Assembly is constructed of the 450-member Duma (lower

house) and the 178-member Federation Council (upper house). The Duma is the more powerful

of the two “houses”, the Duma must first be considered through the Duma before the Federation

Council can ratify it. The President must work with the Duma to pass laws. Bills approved by the

Duma must have a second reading through the Federation Council, and if they reject it the Duma

can override it with a 2/3 vote. The Federation Council mainly deals with national issues

(Countrystudies.us).

According to the Countrystudies.us the Ministry of Justice administers Russia’s judicial system.

The Ministry establishes courts and appoints judges (below the federal level). It also gathers

statistics and conducts educational programs to prevent crime. Russia has three courts in the

Judicial branch, the Constitutional Court, the Supreme Court (last resort court in law), and the

Supreme Arbitration Court (Commercial disputes).


18

(Telegraph.uk)

Political Parties: According to About.com the major political parties are:

United Russia: Conservative and national party that was founded in 2001. Has over 2 million

members and holds an overpowering majority of the Federal Assembly. Has goals of free

markets and redistribution of wealth. Vladimir Putin and Dmitry Medvedev are members of this

party (About.com).

Communism: Founded after the fall of the Soviet Union; it is the second largest party in Russia

with more than 160,000 members. Constantly comes in second to United Russia; in 2010 called

for “Re-Stalinization” (About.com).

Liberal Democratic Party of Russia: A statist (government should widely control economic,

political, and related controls (Dictionary.com)) party that was formed in 1991. Currently holds a

decent minority in the Federal Assembly. Headed by a controversial politician, Vladimir

Zhirinovsky; he has a wide range of views, racism and odd (demanding Alaska) (About.com).

A Just Russia: A party that calls for new socialism and calls itself the party of the people.

Supports welfare and equality for all; does not want to revert to the Soviet socialism

(About.com).

The Other Russia: A group that opposes the Putin-Medvedev government. They aim to restore

the principles of Federalism and a separation of powers. Wants a restoration of self-

administration and independence of media; also calls for the Judicial system to protect each

citizen equally (About.com).


19

Leadership:

Pres. Dmitriy Anatolyevich MEDVEDEV

Premier Vladimir Vladimirovich PUTIN

First Dep. Premier Igor Ivanovich SHUVALOV

First Dep. Premier Viktor Alekseyevich ZUBKOV

Dep. Premier Aleksandr Gennadiyevich

KHLOPONIN

Dep. Premier Dmitriy Nikolayevich KOZAK

Dep. Premier Dmitriy Olegovich ROGOZIN

Dep. Premier Igor Ivanovich SECHIN

Dep. Premier Vladislav Yuryevich SURKOV

Min. of Agriculture Yelena Borisovna SKRYNNIK

Min. of Civil Defense, Emergencies, & Natural

Disasters Sergey Kuzhugetovich SHOYGU

Min. of Communications & Mass Media Igor Olegovich SHCHEGOLEV

Min. of Culture Aleksandr Alekseyevich AVDEYEV

Min. of Defense Anatoliy Eduardovich SERDYUKOV

Min. of Economic Development Elvira Sakhipzadovna NABIULLINA

Min. of Education & Science Andrey Aleksandrovich FURSENKO

Min. of Energy Sergey Ivanovich SHMATKO

Min. of Finance Anton Germanovich SILUANOV

Min. of Foreign Affairs Sergey Viktorovich LAVROV

Min. of Health & Social Development Tatyana Alekseyevna GOLIKOVA

Min. of Industry & Trade

Min. of Internal Affairs Rashid Gumarovich NURGALIYEV

Min. of Justice Aleksandr Vladimirovich

KONOVALOV

Min. of Natural Resources & Ecology Yuriy Petrovich TRUTNEV

Min. of Regional Development Viktor Fedorovich BASARGIN

Min. of Sport, Tourism, & Youth Policy Vitaliy Leontyevich MUTKO

Min. of Transportation Igor Yevgenyevich LEVITIN

Dir., Foreign Intelligence Service (SVR) Mikhail Yefimovich FRADKOV


20

(CIA.gov)

Stability of Government: The government of Russia is stable. According to the CIA World

Factbook the President can serve two consecutive six year terms. The current Prime Minister

Vladimir Putin will be inaugurated as President on May 7th

2012. The last Russian war was the

2008 South Ossetia war (called the Russo-Georgian War or Five-Day-War). It was an armed

conflict between Russia and Georgia where Georgia invaded South Ossetia and Russia defended

it successfully. Losses on both sides number approximately 500 killed(Wikipedia.org).

According to the CIA World Factbook the legal system in Russia is a civil law system; with

judicial review of legislative acts.

According to the CIA World Factbook the legal voting age is 18 and universal.

(CIA.gov)

Flag: The Russian flag is composed of three equal horizontal bands. According to the CIA

World Factbook there is no official meaning of the colors. This flag has inspired other Slavic

(Russian) countries to adopt the same colors but in different arrangements for their flags.

Dir., Federal Security Service (FSB) Aleksandr Vasilyevich BORTNIKOV

Head, Govt. Apparatus Anton Eduardovich VAYNO

Sec., Security Council Nikolay Platonovich PATRUSHEV

Procurator Gen. Yuriy Yakovlevich CHAYKA

Chmn., Central Bank of Russia Sergey Mikhaylovich IGNATYEV

Ambassador to the US Sergey Ivanovich KISLYAK

Permanent Representative to the UN, New York Vitaliy Ivanovich CHURKIN


21

(Enotes.com)

Russian coat of arms

Trade Laws International Marketing Project

Introduction: On December 16th

2011 the World Trade Organization (WTO) accepted Russia

after 18 years of negations. Russia was the last major economy remaining to join the WTO

(rferl.org). The joining of the WTO will bring Russia firmly into the global market; making it an

attractive place to do business. From this joining the WTO the average legal tariff ceiling will

drop from 10% to 7.8% (WTO.org). Russia’s membership will not come into effect until the

Duma ratifies it; which is expected sometime during mid-2012 (rferl.org).

Tariffs: According to WTO.org tariffs in the Russian Federation will be on the decline; the legal

tariff ceiling will (on average) drop from 10% to 7.8%. This will become a reality when the

Duma ratifies Russia’s integration into the WTO in mid-2012 (rferl.org). According to WTO.org

the current tax for information technology is 5.4%, after joining the WTO it will become 0%.

Another tariff that is being lowered is the tariff on electric machinery; it is currently at 8.4% and

will drop to 6.2% (WTO.org). The tax on wood and paper is currently at 13.4%, and it will be

lowered to 8% (WTO.org).

Trade Laws: Russia has several restrictions and prohibition on imports. According to

Visahq.com any photographs that are directed against the Russian Federation are prohibited. Any

sturgeon fish or live animals are also prohibited (live animals are subject to a special permit).

Military arms, ammunition, narcotics, fruits and vegetables are illegal to enter Russia

(visahq.com). All cats, dogs and birds must have a veterinarian health certificate. All animals

other than cats and dogs must have permission from the Veterinary dept. Ministry of Agriculture

is required (visahq.com). According to Visahq.com there is also a 65,000 RUB limit

(approximately $2,200).

http://en.wikipedia.org/wiki/File:Coat_of_Arms_of_the_Russian_Federation.svg


22

Russia also imposes import tariffs. One import tariff Russia imposes is textile/textile articles over

a value of $2,300; if there is an amount exceeding $2,300 it will be taxed between 5% and 30%

(ehow.com). There is also a tax imposed on excessive precious metals (gold, silver, platinum) at

a standard rate of 20%. Another import tariff is imposed on electronic equipment that is deemed

not to be for personal use; this tariff can range from 5% to 15% (ehow.com).

Russia has several import/export quotas. According to Reuters.com Russia has an import quota

of 600,000 tones for U.S. poultry, and 57,500 tonnes of U.S. pork. Russia and Ukraine currently

have an agreement that 300,000MT of steel pipes will be traded tax free (Steelorbis.com).

According to Forestbusinessnetwork.com the Russian export quota for softwood is currently 17.5

million cubic meters. The Russian quota for steel exports to the EU is 6.5 million tonnes.

Population International Marketing Project

Introduction: According to the CIA World Factbook Russia is ranked ninth in population; with

over 138 million people. This means there is a wide market to sell to. 73% of Russians live in

urban areas; this means that we will not have a big problem reaching the average household

because they are in easily accessible areas. There are approximately 4.3 physicians per 1000

people (ranked 8th

), and there are approximately 9.66 beds per 1000 people (ranked 5th

)

(CIA.gov). These high rankings help keep people healthy; when people are healthy they can

work, and working people spend more money than non-working people.

There are approximately 138,082,178 people in Russia.

(Nationmaster.com)

-0.37%

0.05%

2.09%

1.17%

0.92%

-0.47%

-0.14%

2.02%

1.14%

0.88%

-0.47% -0.28%

1.56%

1.10% 0.96%

-1.00%

-0.50%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

Growth Rate

2005

2008

2011

Russia (216) Japan (208) Bangladesh (73) Mexico (107) United States (117)


23

The numbers inside the parentheses are that countries rank for 2011. The negative percentages

demonstrate that the population of the country is going down, while positive figures show a

growing population. The population growth rate in Russia has stayed the about the same; Japan’s

has been steadily going down for 6 years; Bangladesh and Mexico’s has also been going down

for the past 6 years; and the United State’s has stayed about the same. (Information from

Nationmaster.com)

(Nationmaster.com)

The values are out of 1000 people, so a value of 10.94 means 10.94 births every 1000 people

(per year). The numbers inside the parentheses are that countries rank for 2011. The birth rates

in Russia in are lower than most countries around the world; being ranked near the bottom 20%

(there were results from 218 areas). The major contributing factor of the low birth rate in Russia

is the high alcoholism and economic struggle women are less obliged to have more than one

child. (All information pertaining to this table and paragraph came from Nationmaster.com and

about.com.)

10.09 9.61

29.9

21.92

14.14 9.8 9.47

30.01

21.01

14.14

11.03

7.87

28.86

20.04

14.18

11.05 7.31

22.98 19.13

13.83

0

5

10

15

20

25

30

35

Russia (172) Japan(217) Bangladesh (70) Mexico (103) United States(147)

Birth Rates

2003

2005

2008

2011


24

(Nationmaster.com)

The numbers in the parentheses are that country’s rank for 2011. Russia has been recovering

from a drop in life expectancy for six years. Russia’s life expectancy is lower than the world

average of 78.82 because of a high death rate (nationmaster.com). According to About.com the

high death rate in Russia is mainly caused by high consumption of alcohol, an increasing amount

of violence, and a large quantity of smokers. Our organization will decrease the death rates in

Russia by combating the large amount of drinkers, smokers, and violence.

(CIA.gov)

0

10

20

30

40

50

60

70

80

90


Life Expectancy (Years)

2005

2008

2011

10.8 10.2

47.5 52.1

5.5

12.6

0

10

20

30

40

50

60

70

80

Males (63.8) Females (74.9)

Distribution of Population (Millions)

65 and over (13%)

15-64 (71.8%)

0-14 (15.2%)


25

The distribution of population is important in expanding our business because this shows that

there are more women than men; and the bulk population is of working age. A large working age

population creates a large consumer market. This graph also shows that there are a lot less males

that make it to 65 years old.

(Biggerpictureresearch.net)

This picture shows that most of the Russian people live in western Russia. This is important

because is displays that most of our sales would be concentrated in the west. According to the

CIA World Factbook 73% of the Russian people live in Urban Areas; this tells us over 100

million people live in urban areas, and the main urban areas are in the West.

(CIA.gov)

79.80%

4%

2%

1.20%

1.10%

12.10%

Ethnic Groups

Russian

Tatar (Turkic)

Ukrainian

Bashkir (Turkic)

Chuvash (Turkic)

Other

http://bigpictureresearch.typepad.com/.a/6a00e55367bf1388330148c86a70f7970c-popup

http://bigpictureresearch.typepad.com/.a/6a00e55367bf1388330148c86a70f7970c-popup


26

The Tatar originates from the Northern Gobi Desert (Wikipedia.org).

The Bashkir originate from Bashkortostan (in Russia), expanding on both sides of the Ural

Mountains (Wikipedia.org).

The Chuvash originate from the area stretching from the Volga region to Siberia

(Wikipedia.org).

(CIA.gov)

These top five cities are home to approximately 14% of Russia’s population. The following map

shows some railway routes in Russia; bigger cities have bigger dots on the map.

(Waytorussia.net)

Moscow is the capital of the Russian Federation. Moscow is a metropolis that houses

approximately 10.5 million Russians; it located on the Moskova and Yauza Rivers

(wikitravel.org). Moscow geography is mainly defined by ring-roads. Moscow is a center for

railway activities. Saint Petersburg is located on the eastern tip of the Baltic Sea and the Neva

River, making it essential for trade (wikitravel.org). Novosibirsk is a city that is on the banks of

10.5

4.6

1.4 1.3 1.3

0

2

4

6

8

10

12

Moscow SaintPetersburg

Novosibrisk Yekaterinburg NizhniyNovgorod

Biggest Cities (Millions)

Population


27

the Ob River. To the west lies the West Siberian Plain, and to the south lies the Ukok Plateau

(Wikipedia.org).

Diet and Nutrition International Marketing Project

Introduction: The Russian diet is laden with fish, poultry, game, mushrooms, berries, honey,

rye, wheat, barley, and millet. These ingredients are extremely plentiful in the harsh conditions

of Russia (Wikipedia.org). Russians are very heavy bread eaters; according to

foodbycountry.com it is not uncommon for a Russian family to eat four loaves a day. According

to Wikipedia.org vodka and tea are the most common alcoholic and non-alcoholic drinks in

Russia. Russians have three meals a day; breakfast (завтрак) around 7:00am to 8:00am; the

main meal, lunch ( ) around 1:00pm to 3:00pm; and dinner ( ) around 7:00pm to

8:00pm (masterrussian.com).

(earthtrends.wri.org)

This graph shows that Russians eat less meat than Americans and Germans; they eat about the

same amount as Japanese people; and much more than Bangladeshis. From this graph it can be

inferred that Russians are wealthy enough to afford meat, but they may not have it in such large

quantities, or in every meal.

0

20

40

60

80

100

120

140

Russia United States Germany Japan Bangladesh

Meat Consumption per Capita (kg)

1996

1998

2000

2002


28

(rbth.ru)

This graph shows that Russians are fond of eating. According the Russian site pravda.ru the

Russian Federation does not have epidemiology (tracking medical data).In Russia, eating a lot is

considered a sign of a good worker. Russian teenagers suffer from obesity like Americans, but

they do not acknowledge that they are overweight (pravda.ru). Russians have a high obesity rate

and it can be inferred that approximately ¼ of Russians may have a difficult time doing physical

labor.

(earthtrends.wri.org)

23%

30.60%

12.90%

3.20%

9.40%

0%

5%

10%

15%

20%

25%

30%

35%

Russia United States Germany Japan France

Obesity Rates

3455

2378

2933

3460

0

500

1000

1500

2000

2500

3000

3500

4000

Russia Low IncomeCountries

Middle IncomeCountries

High IncomeCountries

Calorie Supply per Capita

Calories


29

Housing and Communication International Marketing Project

Introduction: Russians predominantly rent in urban areas. The apartments that are generally

rented are small and will probably not have more than one television. The urbanization of Russia

is 73%; this makes most people ride the metro or other public transportation (nationmaster.com).

The Russian ownership of telephones and access to internet allow for some easy marketing

techniques that can be used to our advantage.

Typical Housing: Typical structures in Russia are like in the United States; houses and

apartments (wordpress.com). The latter is more common because during the Soviet era the

Soviets made blocks of extremely similar apartments in order to make life equal. These

apartments are generally small with multi-purpose rooms. According to wordpress.com

entryways to housing may be poor to hide what is inside from burglars.

(nationmaster.com)

73 77 79

88

26

0

10

20

30

40

50

60

70

80

90

100

Russia United States Japan Germany Bangladesh

Urbanization (%)


30

“CC” stands for city center (numbeo.com)

Russia has a large amount of telephone users; according to the CIA World Factbook Russia has

the fourth most number of main telephone lines in use, and also the fourth largest number of

mobile phone subscribers. Russia also has a large number of people that have access to the

internet; ranked tenth in internet hosts and internet users (CIA.gov). Russia also has a large

number of television stations; over 3,300 (CIA.gov). There is also good amount of public and

commercial radio stations; over 2,400 (CIA.gov).

Transportation International Marketing Project

Overview: Russia has the

world’s second largest railway

system; second only to the

United States (CIA.gov). One-

third of Russian households own

a car so the large railway system

allows for Russians to travel

around the country while not

owning a car

(kgbanswers.co.uk). Traffic in

metropolitan areas such as

Moscow is horrible. The

underground metros offer a great

was to circumvent these

horrendous situations. The

$0.00

$500.00

$1,000.00

$1,500.00

$2,000.00

$2,500.00

Russia United States Japan Germany Bangladesh

Apartment Rent

1 Bedroom

1 Bedroom CC

3 Bedroom

3 Bedroom CC

(waytorussia.net)


31

Moscow metro is very efficient, fast, and beautiful; it was originally built to be an underground

shelter (waytorussia.net). There is also a lasting tradition that you can hail any car on the street

and they will more than likely give you a lift for a sum of money (waytorussia.net).

Transportation Analysis:

(CIA.gov)

The numbers in parenthesis represent the world rankings in total roadway length. The United

States has a total of 6,506,204 km; 4,374,784 km of paved roads and 2,131,420 km unpaved. The

United States is not graphed because of the proportions (United States is ranked 1st in roadway

length) (CIA.gov).

This chart shows that Russia is ranked 7th in the world in roadway length. This is an extremely

low length because of the proportions of the size of Russia and the size of other countries. For

example; Russia is 45 times bigger than Japan but it has 1.2 times more road. This shortage of

road will severely limit the possibility to move supplies to rural areas via highway.

776,000 973,234

644,480

239,226 295,356

206,000

237,017

0

216,500 128,641

0

200000

400000

600000

800000

1000000

1200000

1400000

Russia (7) Japan (5) Germany (11) Bangladesh(21)

Poland (15)

Length of Roadways (km)

Unpaved Roads

Paved Roads


32

(CIA.gov)

The numbers in the parenthesis represent the world rankings in total railway length. The United

States is ranked 1st in the world and has a total railway length of 224,792. The United States was

not graphed because of proportions (CIA.gov).

Russia’s expansive railway system allows for quick and easy transportation of goods from one

city to another. The railway system is the most widely used system to transport goods and people

from one place to another. The length of the railway system in proportion to the size of Russia is

not as important as the roadway system because railways only need to go from city to city, not

from city to town.

46,857

7,709 21,669

2,622 7,623

40,300

19,473

20,053

0 11,805

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

Russia (2) Japan (11) Germany (6) Bangladesh(64)

Poland (15)

Length of Railway (km)

Electrified

Railway


33

(CIA.gov)

The numbers in the parenthesis represent the world rankings in total waterway length (CIA.gov).

Russia’s waterways are second only to China’s. These waterways provide an excellent system of

transportation. According to Wikipedia.org 11 of Russia’s top 20 cities are located on the Volga

River Basin. The proximity of waterways to metropolitan areas makes transporting goods via

ship a viable option.

(CIA.gov)

102,000 110,000

41,009 50,000

7,467 8,370 3,997 1,770

0

20000

40000

60000

80000

100000

120000

Length of Waterway (km)

Water

1,143

684

427

2,030

393

0

500

1000

1500

2000

2500

Russia (11) Japan (16) Germany (24) China (3) United States(26)

Number of Commercial Vessels

Ships


34

The numbers in the parenthesis represent the world rankings in total commercial vessels

(CIA.gov).

Russia is ranked 11th

in the world for number of commercial vessels. This chart shows that

Russia has approximately three times as many commercial vessels as the United States. This

demonstrates that Russia ships a higher volume of goods to more places.

(CIA.gov)

The numbers in the parenthesis represent the world rankings in total airports. The United States

is ranked first 1st in the world with 15,079 airports; 5,194 paved, and 9,885 unpaved. It was not

graphed because of proportions (CIA.gov).

This chart shows that Russia has a large number of airports that can be used. This amount of

airports (paved and unpaved) allows for quick transportation of people around the country. The

number of paved airports also allows for a good amount of transportation via air. The number of

paved airports also allows for a list of destinations for international inbound and outbound

flights.

Labor International Marketing Project

Job Market and Availability: According to Ehow.com the most important thing a person trying

to get a job in Russia is speak Russian. Non bilingual workers (English-Russian) will find it very

difficult to be competitive in the job market. Creating a professional resume with several letters

of recommendation helps a lot to get a job. According to NCbuy.com the labor code in Russia

prohibits the regular employment of children under the age of 16, but with parent permission it is

allowed over the age of 14. According to ToRussia.org according to the labor code an employee

593

144 330

86

442

620

32

219

43

60

0

200

400

600

800

1000

1200

1400

Russia (5) Japan (34) Germany (13) Poland (45) China (15)

Number of Airports

Unpaved

Paved


35

is someone who is working for payment, and an employer is someone who has entered into an

employment relationship; the document regulating the relationship between the employee and

the employer is an employment contract. The employee has a say in his work; if the employee

believes their rights have been violated he can lodge a complaint with the State Labor

Inspectorate, the Labor Disputes Commission, or the courts (acg.ru). The employee can expect

compensation for physical and emotional damage. According to Practicallaw.com employee

benefits are (but not limited to) paid time off, sick days paid, maternity rights, paternity rights,

adoption rights, parental rights, career rights (including overtime, business trips, nightshifts, and

holiday work), data protection, and state pension. Discrimination against foreigners, women,

blacks, Jews, Asians, and homosexuals is evident in not metropolitan areas (Ehow.com).

(nationmaster.com)

51.04%

48.96%

Total Labor Force

Men

Women


36

According to the CIA World Factbook the Russian sectors of employment is as follows:

(CIA.gov)

With Russia’s workforce of 75.41 million people there are approximately 47.28 million people in

service type jobs, 20.74 million people in industrial jobs, and 7.39 million people in agricultural

jobs.

This chart shows how Russia is compared to other first world countries (and Bangladesh):

(CIA.gov)

9.80%

27.50%

62.70%

Sectors of Employment

Agriculture

Industry

Services

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

Russia Japan Germany Bangladesh France

Agriculture

Industry

Services


37

Industries: Russia has a much higher agricultural sector than most developed countries, and an

above average industrial sector.

Major industries that provide jobs include:

Oil

Natural gas

Metals

Timber

Information technology (IT) outsourcing

Mobile technology

Manufacturing

Banking

(prospects.ac.uk)

According to buyusainfo.net there are numerous markets that are expanding or soon to expand,

these markets include:

Agricultural Equipment

Apparel

Automotive Parts and Service Equipment / Accessories

Aviation

Chemicals / Plastics

Construction

Consumer Electronics

Electric Power Generation & Transmission Equipment

Energy Efficiency / Green build

Medical Equipment

Refinery Equipment

Safety and Security Equipment

Travel and Tourism to the U.S.

Workday

According to prospects.ac.uk the normal workweek is 40 hours.

According to buyusainfo.net business hours for companies and offices is usually 9:00am

to 6:00pm.

Male employees usually wear dark suits and a tie. Females wear business suits or

conservative skirts that cover the knees (cyborlink.com). Refer to Clothing for a more in-

depth look at business attire.

Russian lunch breaks are around 1:00pm to 3:00pm and are an hour long

(masterrusian.com).


38

There are eight official holidays that are recognized by the Russian federation. This totals

for 12 holiday-days (New-Year’s Vacation is from January 1st – 5

th)

(rusconhouston.mid.ru).

o New Year’s day (January 1st) – One of the favorite Russian holidays; about the

same as the United States New Year’s.

o Orthodox Christmas (January 7th

) – Russians try to be better people and perform

good deeds. From the 7th

to 19th

Russians have a lot of fun, wearing fancy clothes

and travel from home to home.

o Defender of the Motherland Day (February 23rd

) – A tribute to all Russian

soldiers who have fought for the motherland (Russia). Boys and men receive

special greetings and presents.

o International Women’s Day (March 8th

) – Celebrated since 1913, people cherish

the love and beauty of Russian women.

o Spring and Labor Celebration (May 1st) – On May 1

st 1886 workers in Chicago

demanded an eight hour workweek.

o Victory Day (May 9th

) – The day Russia commemorates the millions of Russians

killed in WWII.

o Russia Day (June 12th

) – Celebrates the Declaration of Sovereignty and the

founding of the Russian Federation in 1991.

o Civil Unity Day (November 4th

) – Celebrates the liberation of Moscow in 1612

from Polish invaders. This liberation consisted of a people’s army containing all

Russian social classes.

According to buyusainfo.net business cards are exchanged are exchanged frequently.

Business meeting begin with firm handshakes and short introductions. Also, because

Russians are immensely proud of their culture they may talk about their composers,

authors or artists (prospects.ac.uk). Refer to Etiquette for a more in-depth look at Russian

business etiquette.

Education International Marketing Project

General Description: Russians have shown a great concern for education. The right to

education is stated in their constitution, and it is required until the 9th

year. If the student wishes

to go onto a higher education two more years are required, making primary and secondary

schooling an 11 year process. After completing primary school the student can choose to go to a

secondary school or a vocational school. Required schooling starts at age six and goes until age

15 (Russiancrafts.com). Russia has 43 teaching weeks throughout the year (ranked 3rd

), while

the United States has 32 (nationmaster.com). The school life expectancy for males is 14 years,

and 15 years for females; the United States school life expectancy is 15 years for males, and 17

years for females (CIA.gov).


39

(UNESCO.org)

According to UNESCO.org Russia is behind the United States in school enrolment ratio; 89% of

Russians (that are of age) are in secondary school, while 96% of Americans are in secondary

school; a 7% drop. The big decent is in tertiary enrollment; 76% of Russians are enrolled in

tertiary schooling while 89% of Americans are.

(CIA.gov)

89% 96.00%

76.00%

89.00%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Russia United States

School Enrollment Percentage

Secondary Tertiary

99.70%

92.20%

99% 99%

99.20% 88.50%

99% 99%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Russia China Germany United States

Literacy Rates

Males

Females


40

The literacy rates in these four countries are all approximately the same. Russia’s stats are less

than a percentage higher than the United States and Germany’s. This may be a result of a more

specific survey. The literacy rates in Russian males are seven percentage points higher than

Chinese males, and Russian females are 11 percentage points higher than Chinese females.

(Nationmaster.com)

This statistic shows that Russia has approximately the same amount of teachers per student as

other first world countries. Bangladesh has about the same amount of people as Russia does, but

the student to teacher ratio is over three times larger.

(Nationmaster.com)

16.65

50.87

14.91

19.15

14.21

0

10

20

30

40

50

60

Russia Bangladesh Germany Japan United States

Student to Teacher Ratio

Students/Teacher

43

35 35

39 42

28

0

5

10

15

20

25

30

35

40

45

50

Russia Japan France Germany Mexico United States

Teaching Weeks

Weeks


41

According to Nationmaster.com Russia is ranked third in teaching weeks (behind Jordan and

Indonesia with 44). Russians go to school six days a week and from about 8:00am to 1:00 or

2:00 pm. The school hours are not ironclad though, because some lessons may finish sooner

(Yahoo.com).

(Imo-official.org)

According to Imo-official.org Russia has placed very high in the International Mathematical

Olympiad for the last five years. Russia has placed higher than the United States and Japan on

four of those five years. This trend of rankings show that students going through the Russian

education know more than students going through the United State’s system.

Evaluation: The Soviet Union’s emphasis on education has carried into the Russian Federation.

Russia is fairly close to the United States in education. Although the United States has a higher

enrollment rate than Russia the literacy rates are the same. The student to teacher ratios are very

close to each other too. According to the CIA world Factbook the school life expectancy is a year

less for males. Russia would be “neck and neck” with the U.S. in education except many families

in Russia cannot afford (money or time) to keep going to tertiary school. Luckily the Russian

economy is growing (4.3% GDP, 5% industrial) and is posed to make a splash on the global

market with the joining on the WTO (CIA.gov). The Russian focus on building the high

technology sectors will force more Russians to receive a higher education. Russia has

approximately Russia has 43 weeks of schooling a year, while the U.S. has around 28 weeks.

Although they have more teaching weeks the school days are flexible. Russian teenagers will

have less of an opportunity to use our products than American teenagers because they go to

school for six days a week (Yahoo.com)

1 2

15

5 6

58

2 1

20

3

11

50

3 1

9 6

2

47

2 1

9 3

7

39

4 1

11

2

12

43

0

10

20

30

40

50

60

70

Russia China Germany United States Japan Switzerland

International Mathematical Olympiad [Ranks (1 is highest)]

2007

2008

2009

2010

2011


42

Clothing International Marketing Project

Business Attire: According to cybotlink.com typical male business attire for males is dark suits

a tie and dress shoes. Russians believe that a

professional wardrobe demonstrates a

qualified individual. Females should either

wear conservative skirts that cover the knees

or business suits (cyborlink.com).

Conservative attire should be worn at all

times. Jackets and gloves are constantly worn

in the bitter winter months.

Try to avoid wearing backpacks; they are

viewed as a mark of low position (rbth.ru).

Vladimir Putin and Dmitri Medvedev wearing business attire (wordpress.com).

Dmitri Medvedev and Vladimir Putin wearing business jackets (aei.org)


43

Vladimir Putin and Dmitri Medvedev outdoor winter attire (newstimes.com).

Casual Attire: Russian casual

attire is more formal than the

United States; shorts and a T-

shirt would not be worn in

public (wikihow.com). Jeans

are very popular and are worn

every day. Wearing bright

colors would make you stand

out in a crowd; Russians dress

conservatively but casual

(whattowearonholiday.com).

A lot of Russians wear fur

because it is warm and cheap

(whattowearonholiday.com).

Russians in Moscow (bbc.co.uk)


44

Traditional Clothing: According to buzzle.com

traditional clothing for males is called a

kosovorotka. This type of garment buttons off-

center at the collar. This was worn by peasants and

townsfolk in the 1900s. It is now mainly used for

Russian song dance and folk music. Traditional

dress for females is called a sarafan. These dresses

are a single piece with no sleeves. It has thin straps

at the shoulders that are decorated. It is usually

worn over an off-white or bright blouse

(buzzle.com). A traditional Russian hat is called a

hat is called an ushanka. An ushanka is a fur cap

with ear flaps that can worn down or worn up.

Ushankas are the official hat of the Russian winter

uniform.

A woman wearing an ushanka with A women wearing an ushanka with the ear

the ear flaps down (Wikipedia.org). flaps up (animesuki.com).

Recreation and Leisure International Marketing Project

When the name “Russia” is mentioned most people automatically think of yearlong snowfall.

This common misinterpretation of the Russian Federation leads a large amount of Americans to

think Russian recreation would mainly consist of skiing and snowboarding. Although Russian

recreation include many winter

activities Russians also adore

western forms of recreation and the

outdoors.

Russians have adopted many

western activities, as they often go

to theaters to watch various ballets

and plays. Russians theaters hold a

large quantity of dance contests.

These contests include Flamenco,

Russian traditional clothing; male on the left, female on the right (buzzle.com)

http://en.wikipedia.org/wiki/File:White_ushanka.JPG






45

Modern, and Jazz (blogspot.com). Russians go to concerts to listen to bands like Bi-2, Dance

minus, Leningrad, and DJ Smash (yahoo.com). Russians also go clubbing on a regular basis.

Many clubs in Moscow allow people in for free unless a concert is scheduled (waytorussia.net).

Banya bathing is a social must in Russia; banyas allow for people to get out of the cold and

socialize (hoteltravel.com).

(nutcracker.com)

Russians enjoy participating and watching many sports. Ice skating a favorite in Russian culture,

along with skiing, tennis, ice hockey, and football (soccer) (russiatrek.com). Most housing

blocks have a football (soccer) field that

people of all ages can use (yahoo.com).

Volleyball is also popular among girls in

Moscow. Russians are very prideful of their

country, and in the 2008 Summer Olympics

they had 445 competitors in over 25 sports.

They accumulated a total of 73 metals (23

gold, 21 silver, 29 bronze) and finished 3rd

(Wikipedia.org).

(yahoo.com)

Russians are particularly fond of nature and the outdoors. It is extremely common for Russians to

go to the woods or dacha (summer house) and have a barbeque with family and friends

(yahoo.com). Trips to lesoparks (forest-parks)

offer endless trails through the forest with no

connection to civilization (yahoo.com). Russian

According to Yahoo.com there are many

climbing, fishing, and hiking locations that

Russians travel to frequently. The white water

rafting of the Katun and Chuya rivers offer

exciting and challenging adventures; while the

Lukh and Kerzhenets rivers offer a more relaxed

journey (yahoo.com).

(Russian dacha; blogspot.com)

Entry and Exit requirements:

To be able to enter the Russian Federation a valid U.S. passport must be present and a visa

issued by the Russian consulate (a visa cannot be obtained upon arrival). All travelers to

Russia must also have a Russian sponsor, such as a hotel, tour company, relative, employer,

university etc. Most foreigners can remain on Russia for 90 days during a 180 day period. A

traveler is not allowed to leave Russia if their visa is expired; it can take up to 20 days to

receive a renewed visa that allows you to leave (travel.state.org).


46

Language International Marketing Project

Introduction: Russian is the official and most frequent language that is spoken. English is a

second language for 20% of the population and it will be spoken in meetings if there is a non-

Russian speaking businessman (revenue-growth.com). Most executives can speak English;

although we can form better relationships if we speak Russian. The existence of “face” is still

used wisely in Russia; for example, if we say a proposal that is ill advised a manager will

generally ask if a subordinate thought of the idea (revenue-growth.com). Russians rarely forget if

a person has embarrassed them.

Language: According to the CIA World Factbook Russian is the official language of the

Russian Federation.

Russian is official language of the Russian Federation, but there are also other official languages

in several Republics, there are also over 100 minority languages spoken in Russia

(Wikipedia.org).

Abaza (Karachay–Cherkess Republic)

Altay (Altai Republic)

Lezgi (Republic of Dagestan)

Bashkir (Republic of Bashkortostan)

Erzya (Republic of Mordovia)

Ingush (Republic of Ingushetia)

Kabardian (Kabardino-Balkar Republic and Karachay–Cherkess Republic)

Kalmyk (Republic of Kalmykia)

Mansi (Khanty–Mansi Autonomous Okrug)

Moksha (Republic of Mordovia)

Nogai (Karachay–Cherkess Republic)

Tatar (Republic of Tatarstan)

Udmurt (Udmurt Republic)

Yakut (Sakha Republic)

(Wikipedia.org)


47

(ignatius.edu)

(ignatius.edu)

0

200

400

600

800

1000

1200

Top 11 Languages (Millions)

Speakers

0

5

10

15

20

25

30

35

40

Most Influential Languages

Points


48

Religion International Marketing Project

Introduction: The main religions in Russia are Russian Orthodox, Muslim, and Christianity.

Russian Orthodox is by far the most common religion with approximately 70.2% of the

population (Wikipedia.org). Other minority religions include Judaism and Buddhism. The

Russian Orthodox Church does not interfere with the workplace.

(Valley.net)

Effects of Religions: According to wiseGEEK.com there are several small differences between

the Russian Orthodox Church and the Roman Catholic Church. These differences are subtle and

do not affect the workplace. The only way the Russian Orthodox Church interferes with the

workplace is the Sabbath day on Sunday, and several holidays that are throughout the year (such

as Christmas on January 7th

) (rusconhouston.mid.ru). These interferences do not affect the

workplace as much as one might think because all businesses consider the holidays within their

schedules; such as the week of New Year’s to Christmas businesses usually shut down

(buyusainfo.net).

71.80%

5.50% 1.80%

0.70%

0.60%

0.30%

0.90% 18.90%

Religion in Russia

Russian Orthodox

Muslim

Catholic

Protestant

Buddhist

Jewish

Other

No Affiliation


49

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51

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"The World Factbook." CIA World Factbook. Web. 8 Apr. 2012.

<https://www.cia.gov/library/publications/the-world-

factbook/rankorder/2001rank.html?countryName=Russia&countryCode=rs®ionCode=cas&rank

=7#rs>.

"The World Factbook." CIA World Factbook. Web. 8 Apr. 2012.

<https://www.cia.gov/library/publications/the-world-

factbook/rankorder/2119rank.html?countryName=Russia&countryCode=rs®ionCode=cas&rank

=9#rs>.


57

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"TNK-BP Holding 2010 Financial Results." TKN-BP. Web. 7 Apr. 2012. <http://www.tnk-

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59

Appendix

American Print-Ad


60

Russian Print-Ad


61

Etiquette International Marketing Project

1. Have plenty of business cards with two sides of information. One side should be printed

in English, the other side in Russian (cyborlink.com).

2. Take off your gloves when you shake hands with someone, it is considered rude not to

(cyborlink.com).

3. It is considered rude to stand with your hands in your pockets (cyborlink.com).

4. Russians value honesty and openness; it is much appreciated (scribd.com).

5. Hand your business card so the Russian side is readable (kwintessential.co.uk).

6. As foreigners, we are expected to be on time to all business appointments. We should not

demonstrate any attitude if our business appointments begin one or two hours late. This

may also be a test of our patience (cyborlink.com).

7. The first meeting is often a bridge that determines if you and the company are credible

and worthy of future business dealings (kwintessential.co.uk).

8. Meetings and negotiations are slow; Russians do not like being rushed

(kwintessential.co.uk).

9. Russians see negotiations as win-lose. They do not tend to believe in win-win scenarios


10. It is still a good idea to develop a network of people who we know and trust. The Russian

word "svyasi" means connections and refers to having friends in high places, which is

often required to cut through red tape (kwintessential.co.uk).

11. Patience is an extremely important virtue among Russians; punctuality is not

(cyborlink.com).

12. If attending dinner at a family residence, it is appropriate to bring a gift; such as a bottle

of wine, dessert, or a bouquet of flowers (bring an odd number of flowers because even

numbers are reserved for funerals) (cyborlink.com).

13. Always remove your shoes at the front door; generally the host will offer house slippers

to wear inside (worldtravelguide.com).

14. Male guests are expected to bring flowers (kwintessential.co.uk).

15. Do not give yellow flowers (kwintessential.co.uk).


62

16. Russians accept that their lives are difficult and they pride themselves on being able to

flourish in conditions that others could not (kwintessential.co.uk).

17. Dress in clothes you would wear to the office. Dressing well shows respect for your hosts


18. Offer to help the hostess with the preparation or clearing after a meal


19. Leaving a small amount of food on your plate shows your hosts they have provided

ample hospitality (kwintessential.co.uk).

20. If you need to beckon a server, discreetly raise your hand with your index finger

outstretched (globaledge.msu.edu).

21. Russians are more comfortable with third-party introductions (globaledge.msu.edu).

22. A firm handshake is very common between Russian men. Men should wait until a

woman extends her hand (globaledge.msu.edu).

23. Do not sit with the legs apart or one ankle resting on the knee (globaledge.msu.edu).

24. To summon someone, turn your hand so that the palm faces down and motion inward

with all four fingers at once (globaledge.msu.edu).


63

County Selection Letter International Marketing Project

Kody Kinser

BIS Inc.

655 North Third

Central Point, OR 97502

(541)-494-6300

International Market Research Specialist

February 13, 2012

Dr. Johnny Allen Hendrix

Human Resources Director

BIS Inc.

845 United Nations Plaza

New York, NY 10017

Dear Doctor Hendrix:

I am writing this letter to inform you about more opportunities for BIS Inc. non-profit

organizations around the world. As some of our non-profit organizations are successful because

of generous benefactors, many more are successful because of broad research about the

benefiting country. Through extensive research I have decided the three best choices for a

potential non-profit organization are the Russian Federation, the Kingdom of Sweden, and the

Kingdom of Denmark. If we focused on the dangers of violence, drinking, and smoking in

Russia we could potentially save millions of lives.

I believe the Russian Federation would be an outstanding candidate for a potential non-profit

organization. I believe Russia requires help from sources outside their borders. Russia is a

gigantic country (the biggest in the world), and according to The Telegraph they are currently

suffering a low life expectancy in males (62 years). This lower life expectancy is a major

contributing factor to declining demographics in Russia. A major influence in the low life

expectancy is the increase in violence, excessive drinking, and smoking. I aim to create a non-

profit organization that focuses on teaching young Russian males the dangers of violence,

smoking, and drinking. I am interested in Russia because I plan to learn how to speak Russian in

the future. I am also interested in Russian history and I hope I can travel there in my life.

Russia’s prime minister is currently Vladimir Putin, a former KGB agent. Vladimir Putin was

appointed prime minister by the Russian President Dmitry Medvedev.

I also believe the Kingdom of Sweden would be an excellent choice for a non-profit organization

because Sweden takes in more Iraqi refugees than any other western country. With this influx of

refugees, Sweden has been forced to reform immigration laws. Only about 25% of refugees that

travel to Sweden are allowed to stay. After two and a half years, only 20% of those who were

allowed to stay can support themselves. The refugees see no need to integrate themselves into the

Swedish social structure because they can live off of the system. Sweden is ripe for a new non-


64

profit organization to immerge onto the scene. This organization I am planning would focus on

teaching immigrants the positives of incorporating themselves into the system. I am interested in

Sweden because I like their society. Everything is provided for the people, so everyone receives

the same care. It is a weird concept but it is turning out for the better. I am really saddened that

people from around the world would try to take advantage of this giving society.

Another great choice would be the Kingdom of Denmark. Denmark is a great choice for a

possible non-profit organization because of the continuation of prostitution. Although

prostitution is legal through newspapers and the internet, street prostitution is illegal. Many

women cannot leave the situation they are put into. For example, one woman was promised a

cleaning job in Denmark, but when she arrived her passport was taken and she was beaten and

raped. Due to prostitution’s criminal nature, almost all women are constrained from seeking help.

I plan to create a non-profit organization that focuses on teaching young women how to stay

away from prostitution and offer a place for them to go if they were involved. I would choose

Denmark because it is a country I would like to visit. Greenland is part of Denmark and I am

curious about the situation of relations. Such as, how the government works between them since

Greenland is so much bigger than Denmark.

In conclusion, there are ample opportunities for a new non-profit organization in the Russian

Federation, the Kingdom of Sweden, and the Kingdom of Denmark. Russia is the prime

candidate for a non-profit organization because of increasing violence, drinking, and smoking.

Creating a non-profit organization that focuses on educating Russian teenagers the dangers of

drinking and smoking could potentially save millions of lives.

If I do not hear back from you within two weeks I will be calling your office to confirm that you

received this letter. If you wish to contact me before my two week check-up please email me at

[email protected], or call be at (541)-301-8121.

Sincerely,

Kody Kinser

International Market Research Specialist

Brochure:

Background

Russia has a very high literacy

rate of 99.45%. Russian in the

official language of the Russian

Federation but English is spoken

during meetings with non-Russian

speakers.

Russia exports over half of its

products to the EU, and imports

1/3 from them also.

Etiquette:

Russians value honesty and

openness.

Take off your gloves when you

shake hands.

Patience is an extremely

important value to Russians.

Do not sit with legs apart or

ankle resting on a knee.

Reliable Assistance

In Russia

(RAR)

Reliable Assistance in Russia

Telephone: (541) 855-1190

Protect the Global

Market!

Kody I. Kinser International Marketing Manager

Reliable Assistance

in Russia

5454 Kane Creek Road

Central Point, Oregon 97502

655 North Third Street

Central Point, Oregon 97502

Cell: (541) 301-8121 Office: (541) 855-1190 E-mail: [email protected]

Russian Prime Minister Dmitry Medvedev and President Vladimir Putin.

Issue:

Drug related crimes have risen 15-fold in

the past 10 years, and alcohol consumption

has increased 10-fold from 1996 to 2006.

The current alcohol consumption rate per

capita is 18 liters of pure alcohol per

capita; twice as much as the WHO says

health and genetic problems are evident.

Affects:

The Russian lifestyle of drugs and alcohol

lead to declining demographics in Russia,

and a low life span of approximately 66

years. This lifestyle also produces an

unstable business environment.

Why should you care?

Russia is the second largest exporter of oil,

and largest exporter of natural gas. They

also export the most energy to the Euro-

pean Union. The Russian instability has a

very large potential to wreak havoc on the

global market. If Russia was to experience

Geography: Russia is the largest

nation in the world and has immense

natural rescores. With climates

ranging from steppe, sub-arctic, and

continental. East of the Ural

Mountains there is the Siberian Plain

that include the sub-arctic climate.

West of the Ural Mountains there is

mainly a continental and steppe cli-

mate. The biggest cities in Russia

experience a continental climate.

Russian Federation turmoil the international implications

would be enormous. Any crisis will

affect the price of Russian energy,

thus increasing prices inside the EU

and plunging the world deeper into a

recession.

Russian Social

Responsibility: Prime Minister Dmitry Medveldev has

said that drugs and alcohol are a seri-

ous threat to Russia’s future. This has

created a basis for our non-profit to

base itself on. The Russian people still

have a large sense of pride, and any-

thing that they believe is a threat to

them will soon be eradicated. Our job

is to make them aware of the implica-

tions drugs have.

The World’s Responsibility: It is our civic duty to educate the

peoples of the world about the choic-

es that they make in life. Many Rus-

sians do drugs simply because they

think they are “cool”. Russian teenag-

ers nor-

mally try

heroin at

age 14.

They

have no

way to

know the

repercus-

sions of

the drugs that they

are using.

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