Case Assignment- Chapter Three
Analyzing Managerial Decisions: Property Right Protection in Russian Deprivatization Tina Crawn
1 What influence will the prospective client of deprivatization have about investment by managers of privatized companies? The prospect of deprivatization could have a negative influence on investments by managers of privatized businesses. If the government decides for reasons uknown they want to come up with that the sale was not legal, the purchase of the deal would be turned. The managers of these firms mat obtain their initial expense returned but you may be wondering what about the rest of the costs they may have sustained since acquiring the business? With no set legal guidelines to incorporate whether a privatization can be reversed, managers may not decide to invest in to companies that may be lost to them eventually anyway. a couple of What impact will deprivatization have about foreign expense in The ussr? Investments in The ussr will drop drastically in the event that investors will have to be interested in a company they are really trying to purchase becoming deprivatized. The shareholders won't want to spend their time and money on a task that may be terminated or hardly ever even move through. The buyers can choose to invest in companies far away who do not have deprivatized legal guidelines and will as a result hurt the overall economy of Russia. With no rhyme or reason to reversing privatizations, investors will not likely want to take the risk. 3 Do you think that mass deprivatization is in the long-run needs of Russian federation? I think deprivatization is certainly not in the best interest of Russia in the long term. Privatization was initially started to help the economy develop and take outside funds into Russia. It gave more options to companies pertaining to expansion and growth including creating more jobs and better pay out. If the nation decides to deprivatize, all business would venture back to govt control and...