• napoleonsdumbcousin@feddit.de
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    1 year ago

    I have a genuine question that maybe somebody with more economic knowledge can educate me in:

    How is continuing the sale in Russia helping Russia? As I understand Russia is gaining money on the sales taxes, etc. but the rest of the earnings will go to the US parent company, which cannot be taxed directly by Russia. If Pepsi backs out, wouldn’t operations just be replaced by a rebranded russian company, where all of the earnings would be under russian “sphere of influence”?

    I genuinely do not understand why Pepsi backing out is considered bad for Russia. I thought countries generally prefer national companies over foreign ones.

    • detalferous@lemm.ee
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      1 year ago

      Your question is basically “why are embargoes effective”

      Collectively shunning an economy cripples it, and it’s most effective when widely adopted.

      Pepsi should be ashamed of their actions.