In the late 1990s and early 2000s (shortly after the breakup of the Soviet Union), General Motors was trying to enter the Russian auto industry and get a significant market share in this new frontier. Russia presented numerous business challenges, however, for example: • Inflation was very high, as the Russian ruble was falling in value Unemployment was rising until 2000, and over 10% thereafter. There was little real growth in GDP, The average income was equal to about $100 per month and the average car price was $3000. These are examples of O Economic risk O Political risk Management risk Categorical risk
