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Property Rights Security in Russian Deprivatization

In: Business and Management

Submitted By sajt38
Words 1337
Pages 6
Property Rights Security in Russian Deprivatization

by

HCM-540, MBOL5, Health Care Organization
Instructor: Wenyuan Teng
Saint Leo University
Distance Learning

October 24, 2013

Abstract
A strong system of property rights is the common requirement of a capitalistic economic system. Property rights the restrict authority to decide how particular resources can be used; whether it is owned by the government or the consumer. For many years, many critics throughout the world have argued that property rights often become the subject of scrutiny for security. Property rights extend beyond physical property to international boundaries. If owned by the government, it is subject to the governmental security laws enacted to protect the sovereignty of these rights. In 1992 Russia had 70,000 state-owned enterprises that were privatized. This case study examines deprivatization in Russian. After reading this paper, the readers will be able to conclude the ultimate purpose is to eliminate the competition for control of the resources and financial gain.
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Introduction
Deprivatization refers to the stripping of individual authority to conduct business, pressing it to conform to government control. For international firms operating in Russia, this will have significant impact. The viewpoint of deprivatization will force the international companies to come to the conclusion that their investments will now become subject to more risks with respect to any potential expected earnings. They can expect deprivatization to shorten their timeframe for any return on their investments. This hesitancy will stem from the extended timeframe of decision-making, which will make managers skeptical of entering the market as a private firm. The impact of deprivatization could possibly cause the owners of companies to lose any profits…...

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