It is obvious from the presentation that U.S. companies in Russia have high corruption levels in the region. Because of the low degree of accountability that affects firms, the market climate is not favorable. Intellectual property laws are insufficient. Russia, because of tensions with western countries, is facing low foreign direct investment. Laws like the Rotenberg Project pose a threat to international companies. Judicial structures are weak, ensuring that organizations with legal issues receive inadequate services. International trade is slow and lengthy with the high cost of doing business. However various solutions such as the income tax treaty, civil code, and reduction of tariffs levied being implemented. I recommend USA firms have to be effective in marketing, understand market conditions, commit resources and understand cultural differences.
I observed that U.S firms in Brazil face stiff competition from Chinese firms. The Labour market has low skilled labor. Poor infrastructure makes the distribution of goods and services to the market difficult. Recent ZIKA virus caused tourism sector to make losses of around $ 375 million losses which had adverse effects on businesses in the country. However solutions such as clean company act, cooperation with other nations in business and global partnership dialogue on trade. I think USA firms in Brazil should focus on building relations, adopt culture and language such as slang as well as know the various economic classes in the country.
The U.S. firms in China face cultural differences and weak regulations on intellectual property. However, I believe that the problem of cultural differences can be resolved through training and adoption. The Chinese government does at times have issues with foreign-owned businesses operating in the country. Local competition faced by USA firms in China is stiff. China at times does violate international trade policies which are favorable to its economic interests. Furthermore, the U.S firms in the European Union also face challenges such as Euro skeptic’s, for instance, recent BREXIT, current refugee crisis and terrorism which negatively impacts on trade. However, solutions such as bilateral investment ad strict procurement laws being introduced by the government will help to curb the above challenges. I believe that for any business to survive, resiliency is paramount and this is what these firms ought to possess.