The Research On Economic Activity Of British And American Enterprise In Late Imperial Russia

As domestic and western European markets daily matured, British and Americanenterprises had basically developed these markets in the1860s. However, unsatisfiedwith current capital, they’d constantly go after more profits. In the face of dailyincreasing competition, some British and American enterprises also tried to developnew market. Russia, adjacent to eastern Europe, become the first choice. ImperialRussia had completed serf system reform at the time, and accumulated labor force andcapital for the development of domestic capitalism. In1860s and1870s, British andAmerican enterprises conducted a series of small-scale trades with Imperial Russia,trying to open this market. As Imperial Russia relieved policies on introducing foreigncapital during the1880s and1890s, British and American enterprises had establisheda comprehensive sales network there, and some enterprises started to directly investand set plants in Tsarist Russia. In the beginning of20thcentury, many enterprises hadachieved excellent results. Domestic scholars studied the relationship between foreigncapital and the modernization of Russia from a macro perspective, were insufficient inthe analysis from enterprise’s perspective. In this paper, a number of British andAmerican enterprises were analyzed regarding their economic activities since1860s,product sales and direct investment were studied, and its influence is reviewed in anobjective manner.This paper consists of three parts:The first part is analysis of the background of economic activities of British andAmerican enterprises in Tsarist Russia in19thcentury from the perspective of Britishand American enterprises and Russia, thus preparing for follow-up discussion.During1860s, British and American enterprises just started their economic activities in Tsarist Russia. With abundant capital and experience, British andAmerican enterprises had kept smooth operation in their own countries and westernmarkets, and many of them viewed foreign market as the most important profitgrowth point. At this time, Tsarist Russia just completed the serf system reform.Landlords accumulated wealth through ransom form farmers, and lots of farmers wholost their land also provided abundant labor force, owning the objective conditions fordeveloping capitalism. British and American enterprises thought they’d rapidly openthis market due to the lagging industry and agriculture in Tsarist Russia. AlthoughTsarist Russia government remained unclear about introducing products and directinvestment from foreign capital, British and American enterprises were already ownedthe basic objective conditions for conducting economic activities.The second part analyzes economic activities of British and American enterprisesin later Tsarist Russia after1870s, including the method and influence of economicactivities.British and American enterprises achieved success in its trial product sales inTsarist Russia. As Tsarist Russia started to ease its policies on economic policies,British and American enterprises started to flow into Russian market and conductedeconomic activities. Many enterprises had established a comprehensive sales networkin Russia. As product sales expanded, direct investment and establishment of plantsalso became an alternative for some enterprises. Meanwhile, influence fromcompetition in Tsarist Russia, government’s daily management and local autonomousinstitutions gradually showed up. British and American enterprises also met problemsin personnel management in their plants in Tsarist Russia. Most British and Americanenterprises would take various measures to eliminate or reduce negative impact,consolidate and expand their meeting in Russia.The third part analyzes the performance and influence from economic activitiesof British and American enterprises in Tsarist Russia. Through a series of economicactivities, most British and American enterprises had occupied substantial markets inrelated fields in Russia with excellent achievements. These economic activitiespromoted local Russian enterprises to adopt new technologies, while British and American enterprises started to hire Russian workers and enhance connection amongworkers besides communicating technologies.In conclusion, economic activities of British and American enterprises in laterTsarist Russia, although meeting lots of difficulties, had basically achieved goodresults and exerted certain influence to the society of Tsarist Russia.