Altered states
Article Abstract:
Opportunities exists in the eastern European market for persistent foreign investors. Investors expecting immediate gain would be dissapointed, given the state of the eastern European economies, but long-term investments are are extremely promising. The three countries that have been doing well in attracting foreign investors are Hungary, Czechoslovakia and Poland. Hungary, the eastern European state most ready to embrace capitalism, has had over $3 billion worth of western investment since 1988. Poland currently has some 5,000 joint ventures representing $690 million in foreign investment. As for Czechoslovakia, over 4,000 joint ventures have been established in the country valued at about $760 million. Investing in these countries, however, is not problem-free. Bureaucracy, poor infrastructure, and the lack of managerial talents tend to slow down the growth of business in the region.
Publication Name: International Management
Subject: Business, international
ISSN: 0020-7888
Year: 1992
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The grim reality
Article Abstract:
Western investors enthusiastic about economic opportunities in the Eastern European nations face formidable obstacles due to the region's obsolete infrastructure, including transportation, telecommunications, and plant capacity. Much of the early investment will have to be targeted towards infrastructure improvements. Of the non-German countries, Czechoslovakia, with its well developed industrial base, should prove the most stable climate for investment. Hungary has a history of Western-oriented reforms but is hobbled by a large external debt. Poland, too is troubled with a large debt and Bulgaria and Romania are troubled by political instability. Individual portraits of East Germany, Czechoslovakia, Hungary, Poland, Romania, and Bulgaria are presented.
Publication Name: International Management
Subject: Business, international
ISSN: 0020-7888
Year: 1990
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Unhappy hunting ground
Article Abstract:
The surge in mergers, acquisitions, and joint ventures between Hungarian firms and western companies has created economic uncertainty, controversy over how the some of the ventures have been valued, and xenophobia that could turn public opinion against foreign investment in the country. Around 1,100 joint ventures have been consummated in Hungary between the early 1980s and 1990. The government has blocked or delayed the buyout of several state-owned companies on the grounds that local managers undervalued the firms. A law passed in the summer of 1990 gives the government the right to veto certain acquisitions of state companies.
Publication Name: International Management
Subject: Business, international
ISSN: 0020-7888
Year: 1990
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