Abstract
Russia is one of the largest markets in the world. As the western culture slowly infiltrated the eastern mentality many young people began adopting western culture and appearances. In the past few years Russia has not only began to accept western ideas and fashion, but has developed an energetic and affluent middle class. This has increased the demand for luxury markets that had been closed to the western world. In this environment Orcanta has found a lucrative opportunity to expand its operation and allow more people to enjoy the high quality products that it sells. The business environment in Russia has experienced many changes in a relatively short amount of time. Until recently the government was in charge of all production; and western goods were unable to be sold to the populace. After the fall of the Socialistic government several new barriers arose to hinder foreign investment. Besides normal, expected risks, Russia has unique and important qualities that should be addressed. We have divided the risks of entering the Russian market into political, legal, banking, logistical and competitive barriers.
