Today, Explained McMoscow
Jul 25, 2022
Patrick Foulis, the Business Affairs Editor at The Economist, delves into the intriguing history of McDonald's first opening in Moscow in 1990, representing a moment of globalization. He discusses how expectations of peace and prosperity faded amid geopolitical tensions. The conversation shifts to how local brands are filling the void left by Western companies, the growing mistrust in globalization following major global events, and how crises have necessitated a rethinking of global supply chains.
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McDonald's in Moscow
- The opening of McDonald's in Moscow in 1990 symbolized the arrival of American culture in Russia.
- It represented a cultural clash between communism and Western consumerism.
Golden Arches Theory
- Thomas Friedman's "Golden Arches Theory" suggests countries with McDonald's don't fight wars.
- This theory posits that economic links promote peace, although it has exceptions.
McDonald's Exit
- McDonald's exit from Russia in 2022, after 30 years, reflects a shift in globalization.
- A local firm reopened the original McDonald's under a new name, highlighting changing economic ties.