How Trade has Effected Russia

Russia currently has an emerging economy. This is widely due to their foreign direct investments, international migration of labor, and of coarse, trade. Russia got its independence from the Soviet Union in 1991, and has been growing every since. It's top trading partner is China, followed by Germany and the Netherlands. Russia's main export is petroleum which has greatly boosted and sustained Russia's economy.

Foreign direct investment has helped Russia immensely. President Vladimir Putin pledged to boost foreign investment to 25% of economic output by 2015. This pledge has so far allowed foreign direct investment, net outflows (% of GDP) to reach its highest value (over the past 16 years) of 3.57 in 2009. These investments have largely been in the financial industry, followed by manufacturing and mining. Cyprus has become the largest foreign investor for Russia. The Netherlands, Luxembourg, U.K. and China are also key foreign investors. Interestingly, foreign direct investment has risen in almost direct correlation with the development of the Russian economy. This shows how beneficial foreign direct investment is for developing countries.

Russia is at a crucial point in their international migration of labor. Currently, Russia's labor migrants are predominantly Russian citizens. This has, up until recent years, been the cause for stability in the region. The problem Russia is facing now is a declining and aging population, especially in the working age groups. Another significant issue is that because Russia's emphasis on education is not as substantial as other countries, they are finding that there is a lack of skilled personnel in certain professions and occupations. Russia may need to increase their international migration of labor if they intend to competitively compete with other nations.

Russia is not a land locked region, the flow of trade has significantly impacted and enhanced their economy. This developing nation seems to be showing greater success each year, its only a matter of time before they become a vital trading partner for nations around the world.