Read the post below and create a response. Each of your response posts should be between 100-150 words. In your replies, you should consider the following:
Do you agree or disagree? Why/why not?
Add an additional perspective or key player.
Discuss the potential impact of your perspective or key player.
Cite your sources.
McDonald's Selling Restaurants in Russia
The company McDonald's has decided to sell its restaurants in Russia and leave the region altogether. This decision took place after the company decided to shutter its Russian locations in March, which led to a "...cost [of] $55 million per month" (Durban - 2022). The key players include the company, the U.S., and Russia. Entering foreign markets for a company can be very difficult. There are several risks a company has to take when going into a foreign market, such as credit, intellectual property, shipping, ethics, and political risks. According to Dee-Ann Durbin with the Associated Press, "McDonald's was among the first Western consumer brands to enter Russia in 1990. Its large, gleaming store near Pushkin Square in Moscow signaled a new era of optimism in the wake of the Cold War shortly after the fall of the Berlin Wall" (Durban - 2022). So when the company decided to leave the region it couldn't have been easy. Prior to this, McDonald's has never left a major market before. The key players will all be impacted differently. Russia and its citizens will lose the company and its branding. McDonald's may lose the opportunity of re-entering the Russian market. The company stated that there is a possibility of returning to the region in the future. With that being said, the company may face more difficulties if it chooses to return later than it did originally. Overall, this event relates to global business because it reflects how political events can impact business and business relations.