Russia Essay

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RUSSIA Brief history on Russia Russia is the largest of the 21 republics that make up the Commonwealth of Independent States (InfoPlease, 2005) as it is the largest country in the world with more than 17 million square meters (CIA, 2011). It is one of the richest countries in raw materials such as oil, coal, natural gas and precious metals and is therefore the largest exporter of natural gas and the second largest exporter of oil. In addition, it is also rich in agriculture due to the vast land. As Russia accounts for majority of the natural gas and oil exports, it possesses large reserves for both these fuels. This abundance thus enables Russia to be practically self sufficient in energy as well as a dominant exporter of fuels. Economic Russia’s economy has experienced favourable growth since 1999 as it has achieved much higher growth than the average growth of the world economy. Despite the tremendous impacts of the global financial crisis in 2008 and 2009, Russia managed to recover with the help of government anti-crisis policies, the global rebound, and a rise in oil prices. In 2010, Russia generated a copious US$1.894 trillion (GfMag, 2011) GDP and this demonstrates its capacity and financial power as well as its sustenance. Currently, Russia is involved with numerous trade relationships between many different countries. According to GfMag (2011), its main exports are to Netherlands, Italy, Germany Turkey, Belarus, Ukraine and China, on the other hand the majority of its imports are from Germany, China, Ukraine, Japan, USA, South Korea and Italy. From a business’ perspective, this would be a major advantage for them especially if it relies and intends to import or export as these trade relationships signify good ties between the countries. This will also result in little or no barriers to overcome when trading. Furthermore, since the GDP is

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