1. Future Market Conditions

2. Czech Republic Profit repatriation better after EU membership
Reasonably wealthy (retained most assets after Czech/Slovak break-up)
Good location
Strong ties to Germany/Austria
Tourist income potential
Manufacturing-oriented

3. Russia Questionable political stability
Friction between Moscow and the Provinces
Improved profit repatriation
Significant cost of infrastructure upgrades
Huge resource base

4. Russia as an Economic Partner
Very large country with European and Asian populations
Extreme differences rural/urban
Inefficient production and government support only for favored firms
Erosion of economic influence in the region; potential EU member candidate
Crime uncontrolled, bordering on domestic terrorism

5. Russia: Geographic Presence
49% of population attracted 90% of FDI in 1997
Moscow, St. Petersburg and Nishny Novgorod attracted 75% of total FDI
Moscow gets 66% of total FDI

6. Problems for Investments
Russia’s political and economic culture
Taxation and legal system
Crime and corruption
Limited national privatization
Failure of domestic firms
Inability of managers to adapt to competitive market conditions

7. Ethics Examples Japan France/Germany Bribery scandals
Emerging corporate ethical standards
Aggressive discrimination and racial stereotyping
Large corporate spending on lobbying
France/Germany

8. Ethics Examples Japan France/Germany No laws against bribery
Overt discrimination against foreigners
Ethical test:
39% of US managers passed
12% of French managers passed
0% of German managers passed

9. Ethics Examples US
Short-term reporting cycles shorten the planning cycles
Incentives for managers are inconsistent with stakeholder benefits
Explosive effects of Enron, Worldcom, Arthur Andersen
Worldwide credibility crises for US business and its participants

10. Management Opportunities
Focus on Gender
Consider country-wide myopathy
Map out a future for the firm, the country and the region

11. Barriers for Women Culture Education Legal
Traditional role differentiation
Males usually attributed dominance
Religious beliefs constrain women in many situations
Education
Women generally under-represented in worldwide business schools
Legal
Switzerland: Voting since 1972
UK: Anti-discrimination laws 1976

12. Women in Parliament
Source: DER SPIEGEL, 12/99

13. Example New Zealand (prior)
Prime Minister: Helen Clark
Frmr Prime Minister: Jenny Shipley
Fmr Governor General: Dame Cartright
Chief Justice: Dame Elias
Fmr Attorney General: Margaret Wilson
Speaker of the House: M. Wilson

14. Pressing Worldwide Problems
War
Poverty
War
Poverty 42 35 18 27
Poverty
War
Poverty
Crime 21 26 18 17
Ecology
Ecology
Ecology
War 11 10 8 12
Bosnia
Crime
Bosnia
Drugs 10 7 8 7
Germany
Britain
Japan US
Source: DER SPIEGEL, April 1994

15. The “Jens Issues” List A commitment to education?
Are government regulations simple and supportive of business interests?
Is there a policy to balance the need to protect the unemployed with the need to encourage self-sufficiency?

16. The “Jens Issues” List
Is the population without large demographic gaps?
Does the country actively promote female participation in business?
Is there a commercialization of technologies?
Is the inevitability of business failures accepted?

17. The “Jens Issues” List Are markets open and can competition emerge?
Are social/cultural norms oppressive?