Affiliation:
1. Finance XXI Consulting, Portugal
2. Universidade do Porto, Portugal
Abstract
Despite connections and common traits between geopolitics and international business based on geography and location, literature on this matter is somewhat scarce. This chapter aims to contribute to this literature gap. Using the Russian Federation as a case study and by framing its geopolitical situation, it seeks to answer the following question: What is the importance of geopolitical factors in international location decisions? Applying a hybrid methodology which combines qualitative and quantitative analyses, the chapter concludes though Russia has an innately favorable geopolitical situation, its full potential is not being exploited, remaining latent and underutilized. Additionally, the pragmatic standing of Russia's foreign policy, the permanence of some structures recalling the USSR and the persistence of corruption, and an unsteady business environment place constraints on improving the open market and raises obstacles to FDI.
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