Volkswagen In Russia Case Discussion Questions

What factors underlay the decision by Volkswagen to invest directly in automobile production in Russia? Why was FDI preferable to exporting from existing factories in Germany?

How do you think FDI by foreign automobile companies might benefit the Russian economy? Are there any potential downsides to Russian from this inflow of FDI?

Volkswagen ahs signaled that it is going to stay the course in Russia, despite current political and economical headwinds. Why do you think it made this decision? What are the pros and cons of this decision? In your opinion, is it the correct decision?