Russia has the market, the abundant natural resources and the human skills that foreign investors seek. Nevertheless, it still plunged into a post-reform crisis. Myopic policies based on short-term portfolio investments and massive imports have turned an otherwise promising transition to a market economy into a traumatic experience for the Russian people.The situation can be redressed through investments in the real economy. Russia's policy-makers need to spell out a viable and reassuring strategy to attract and optimize foreign investments. This book presents a new concept for foreign direct investment (FDI) and practical guidelines for implementing it in the five-year period 2000-5. The strategic approach to revitalize the economy through FDI can also be applied by authorities in other countries.Well-conceived FDI can benefit both the host country as well as the investor. This book therefore informs corporate executives about the advantages of becoming insiders in difficult markets through a local operation, be it a wholly-owned subsidiary or a joint venture. Special country chapters on the large emerging markets of China, India, Mexico and Russia provide potential investors with comparative information on investment patterns, future trends and legislation.

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