Key Question #10 Read the following article and answer the accompanying questions: For the Canadian owners of Moscow's step of sending a diplomatic note to the Aerostar Hotel, the last few days have Russian foreign ministry expressing been a grim reminder of Russia in the worry over the incident. "It sets a very 1990s, when commercial disputes were negative tone for the investment climate routinely resolved at gunpoint and doing in Russia", said embassy spokesman business meant constantly looking over Brian Ebel. It also set off a wave of your shoulder. The 343-room Aerostar, concern among members of Moscow's a four-star hotel and one of the oldest Canadian business elite. A source in Canadian businesses in Russia, has the Canadian business community, who been forced to close its doors after 30 wishes to remain anonymous, says the private security guards ordered its eviction of Aerostar's management is managers to vacate the building on extremely disturbing and other Friday in a dispute with the building's Canadian companies are concerned owner, a Russian company called about the future of their investments. Aviacity that some say is a front for The lawyer for Aerostar says it appears organized crime. "They came in and told Aviacity is trying to push the Canadian's us we had two minutes to leave, so what out and reopen the hotel under its own else could we do? We left," says management. This incident is just one Canadian Andrew Ivanyi, who has of a number of incidents involving the managed the hotel for the last 14 years hotel industry in Moscow. In the 1990s and says the company's lease is good conflicts over management and until 2017. About 200 guests were ownership rights frequently resulted in relocated over the weekend and by threats and violence. In one of the most Monday the hotel was empty safe for a high-profile contract killings at the time, skeleton staff. The incident is already a US businessman who was co-owner causing friction in Canada-Russian of the Radisson Slavyanskaya Hotel relations. Following the eviction, was gunned down during a dispute with Canada's ambassador to Moscow, the city of Moscow Christopher Westdal, took the unusual Source: Michael Manville, "Russians force out Canadian Hotel Staff". Toronto Star. Wednesday, August 18, 2004. A6 BBB4M - Introduction to International Business Unit 2 -Lesson 10 3. What other risks do you see in setting up a business in a foreign country that may not share Canada's legal or cultural beliefs? 4. Why do you think the Canadian businessman quoted in the article wished to remain anonymous? 5. This hotel was a joint venture between the Russian airline Aeroflot and IMP Group International of Halifax. IMP was given a $60 million loan from the Royal Bank of Canada to build the Aerostar into one of Moscow's first international standard hotels. Why do you think IMP Group International chose to participate in a joint venture with Aeroflot rather than be a sole investor? Who will be responsible for the $60 million loan if IMP cannot get back the hotel? 6. The Canadian embassy in Moscow has sent a diplomatic note to the Russian foreign ministry expressing worry over this incident. Do you think the Russian government is likely to get involved in this dispute? Explain your answer. 7. What advice would you give a businessperson intending to expand their company into Russia? Useful Resources Newspapers: The Globe & Mail The National Post Toronto Star Magazines Canadian Business Report on Business Profit Magazine Strategy Magazine