Multinational Enterprises and Global Economy System

Question: Discuss about the Multinational Enterprises and Global Economy System. Answer: Introduction: There are various aspects which have changed more rapidly for Russia in the global economy. During the economic crisis, it was bankrupt and it owed a lot of money to the International Monetary Fund more (IMF) than it was present in the foreign currency reserves. Russia has suffered from a virtual macroeconomic revolution as it is one of the largest creditors of United States debt. The nominal dollar GDP has reached to more than $2 trillion. During the year 2010, The Ministry of Economic Trade and Development developed an ambitious plan representing the Russian economic goals till the year of 2020 (Carnoy et al, 2013). If the goals and objectives are achieved then Russia will easily become the largest economy in Europe and also the fifth largest in the whole world after United States, China, Japan, and India. Russia is one of the influential member of the nuclear club which has certain roles and position within the UN Security Council and thus created some influence in the post Soviet environment. During the year 2012, it was found that the economy consists of no more than 4.1% of the global economy. The population has been aging rapidly and also resulted in under developed and ineffective infrastructures and the best university present there are ranked at 167th in global ratings (Myant Drahokoupil, 2011). Russias leadership is insecure and is mostly concerned with the achievement of power for itself. In such cases the policy-making techniqu e could be helpful in tactical survival rather than strategic planning and execution. The ruling class people of Russia are more focused on the remnants of the Soviet superpower, as a result of which there has been major shift in world economics during the last 20-25 years and furthermore weakened its positions (Newell Paterson, 2010). There has been certain limitation as well, which have hindered the responsibility of protecting the principles in managing international relations. The shale gas revolution in global energy further weakened the dependence of Europe on Russian gas and this lead to making US market out of the political reach of Gazprom (Castells, 2010). The global information and data revolution also deteriorated the ability of the states to set up appropriate domestic policy agendas. The present reports showed some good news for Moscow which has been the European Union crisis. The crisis brought out the fact of previous conviction of Kremlin that European project was not sustainable in the long run of success (Dunning Lundan, 2008). But still the satis faction is comparatively low as because in the present, the biggest trading partner of Russia has been on the brink and there is possibly no chance of Moscow to stand aside in case the European crisis becomes more bizarre. But Russia also joined the WTO which confirmed that its global economy is linked with other aspects during this globalization. It will take time for the domestic political aspects to change and make way for new leaders to make it successful. This is the reason for which Russia cannot be termed an emerging power (Gaddy Ickes, 2010). References Carnoy, M., Loyalka, P., Dobryakova, M., Dossani, R., Froumin, I., Kuhns, K., ... Wang, R. (2013).University expansion in a changing global economy: Triumph of the BRICs?. Stanford University Press. Castells, M. (2010).End of Millennium: The Information Age: Economy, Society, and Culture|(Vol. 3). John Wiley Sons. Dunning, J. H., Lundan, S. M. (2008).Multinational enterprises and the global economy. Edward Elgar Publishing. Gaddy, C. G., Ickes, B. W. (2010). Russia after the global financial crisis.Eurasian Geography and Economics,51(3), 281-311. Myant, M., Drahokoupil, J. (2011).Transition Economies: Political Economy in Russia, Eastern Europe, and Central Asia. Wiley. Newell, P., Paterson, M. (2010).Climate capitalism: global warming and the transformation of the global economy. Cambridge University Press.