Posts Tagged ‘foreign investment’

Doing Business in Mongolia: What to Expect

August 4, 2009

Foreign Expectations of Doing Business

Often foreign businessmen come into Mongolia with the expectations that doing business in Mongolia is going to the similar to working in the US, Europe, or Australia, or at the very least like China or Russia.  While there are definitely similarities between Mongolia and the rest of the world, doing business here is usually very different from what many foreigners expect.

Companies often expect Mongolia to be similar to China or Russia because of the proximity to these countries.  There are definite similarities, especially bureaucratically, to the old Soviet system, and there are hints of Chinese business practices, in no small part due to the amount of Chinese investment in Mongolia.  Despite this, Mongolians maintain their own brand of doing business that is a blend of past influences mixed with future ambitions.

Many people lose sight of the fact that Mongolians have only really been doing business in a fully capitalist system for 20 years.  The West has been practicing capitalism for centuries, making it very easy for those of us who have grown up in capitalist societies to forget about the newcomers.  Capitalism is ingrained in most of us who grew up in the West and therefore we perhaps have fewer problems with capitalist business models than those who grew up in different systems.

Read the rest of this entry »