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I found the following somewhere on the Internet. If anyone has any more info to add to it, feel free to let me know.
The Moscow McDonalds is the largest in the world. The expansion of McDonalds Canada to Russia was accomplished after thirteen years of difficult negotiations and an investment of $50 million.
McDonalds has built an entirely indepdent Russian organization with its own farms to supply potatoes and its own processing plants to make hamburger buns, apple pies, and other food products for the restaurant. Profits will be small at first, with a 50-50 split between the company and the Russian government. Business is conducted entirely in Russian rubles that are nearly worthless outside the country. If McDonalds Canada wants to take any profit out of Russia they will have to do so by buying Russian products with rubles and then exporting them to Europe or North America for sale.
However, McDonalds isnt worried about exporting profits. They are investing in more restaurants and plan to eventually sell Big Macs all over the country. If the Canadians gamble pays off and the Russian economy prospers they will make an enormous fortune for a comparatively small initial investment.
I found the following somewhere on the Internet. If anyone has any more info to add to it, feel free to let me know.
The Moscow McDonalds is the largest in the world. The expansion of McDonalds Canada to Russia was accomplished after thirteen years of difficult negotiations and an investment of $50 million.
McDonalds has built an entirely indepdent Russian organization with its own farms to supply potatoes and its own processing plants to make hamburger buns, apple pies, and other food products for the restaurant. Profits will be small at first, with a 50-50 split between the company and the Russian government. Business is conducted entirely in Russian rubles that are nearly worthless outside the country. If McDonalds Canada wants to take any profit out of Russia they will have to do so by buying Russian products with rubles and then exporting them to Europe or North America for sale.
However, McDonalds isnt worried about exporting profits. They are investing in more restaurants and plan to eventually sell Big Macs all over the country. If the Canadians gamble pays off and the Russian economy prospers they will make an enormous fortune for a comparatively small initial investment.
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