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Adaptation of Market Strategies of TNCs in Russia

Author

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  • B.A. Kheyfets
  • V.Yu. Chernova2

Abstract

The policy of import substitution carried out in Russia objectively affected the interests of leading transnational corporations (TNCs) operating in the Russian markets. The restriction of imports of intermediate goods and the fall in the purchasing power of Russian consumers have formed for TNCs both new problems and new opportunities. The analysis of the integration of TNCs in the Russian policy of import substitution is carried out in the article; their role in the development of industries and agriculture is revealed. It is revealed that the strategies of TNCs are characterized by great flexibility, which allowed them to reduce the negative impact of sanctions and geopolitical tensions. TNCs widely use the strategy of acquisition of popular Russian brands. The weakening ruble and the cheapening of labor costs became additional decision-making factors for the localization of production and selection of local suppliers of intermediate goods, investing in modernization of production facilities, the establishment of added value chains with the involvement of national producers that contributed to the successful embedding of TNCs in the policy of import substitution.

Suggested Citation

  • B.A. Kheyfets & V.Yu. Chernova2, 2018. "Adaptation of Market Strategies of TNCs in Russia," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 192-205.
    • Handle: RePEc:ers:journl:v:xxi:y:2018:i:3:p:192-205
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    1. P. Kadochnikov & A. Knobel & S. Sinelnikov-Murylev., 2016. "Openness of the Russian economy as a source of economic growth," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 12.
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    Cited by:

    1. Veronika Yu. Chernova & Veronika Yu. Chernova & Vasily S. Starostin & Ekaterina A. Degtereva & Inna V. Andronova, 2019. ". Study of sector-specific innovation efforts: the case from Russian economy," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(1), pages 540-552, September.

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    More about this item

    Keywords

    Transnational corporations; investment strategies; foreign direct investments; import substitution; localization of production.;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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