Eastern Europe as a Global Marketplace

Subject: International BusinessProf.: Henrietta Carbonel

16.10.2013By Daria Chizhova

Table of Content

Geographical aspect

Political and Historical aspects

Economic aspect

Social aspect

Opportunities vs Challenges

Geographical Aspect (I)

Current Country Members (II)

The Baltic States

 Estonia

 Latvia

 Lithuania

Former Soviet States

Russia  

Ukraine

Belarus

Moldova

Southeastern Europe

Albania

Bosnia and Herzegovina

Bulgaria

Kosovo

Macedonia

Montenegro  

Romania

Serbia

Central Europe  Croatia

Czech Republic  

Hungary  

Poland  

Slovakia

Slovenia

Transcaucasia  Georgia

Armenia

Azerbaijan

Political + Historical Aspect

WWI resulted in the breakup of the Russian, Austro-Hungarian, and Ottoman empires => ethnic nationalism created new states in Eastern Europe, validated by the Versailles Treaty of 1919

After WWII USSR Members, Communist Countries

No market economy

No private property

Collectivization

USSR collapsed in 1991 => Former Soviet Countries

Formation of NIS

Formation of CIS

Czechoslovakia and Yugoslavia

Enter of EU or candidates to EU

Economic Aspect

Transition from communist countries to market economy => long and difficult way

Privatisation issues in Russia, Ukraine, etc.

Hyper inflation issues

Nowadays Russia - one of the strongest economies in the region

Eastern Europe countries mostly - small economies, catching up after European Union

Unemployment Statistics

Budget Deficit

GDP/capita

GDP Growth

Social Aspect

Ex-Soviet countries desperately want to get in European Union

Russia still is considered as developing country with dictatorship plans

Bureaucracy and corruption

Lack of financial and humanitarian education in the regions

Lack of long-term management and business experience and practices

Opportunities VS Challenges

Opportunities

Low-cost labour

Lower costs (rent, energy, etc)

High IT and engineering skills

Close to Western Europe (time zone, cultural, location)

Developing region with various countries and various developing industries

Challenges

Bureaucracy and corruption

Lack of education for locals

Lack of experience in doing Long-term business

Cultural Differences

Considered as non-stable economies

Bibliography http://en.wikipedia.org/wiki/Eastern_Europe#Geographical

International Business By Griffin and Pustay

http://www.economist.com/blogs/graphicdetail/2013/07/european-economy-guide

http://www.referenceforbusiness.com/encyclopedia/Dev-Eco/Eastern-Europe-Doing-Business-in.html

http://www.computerweekly.com/feature/Why-more-businesses-are-nearshoring-in-Eastern-Europe

http://eandt.theiet.org/magazine/2009/19/eastern-europe.cfm

http://www.omniglot.com/language/articles/polandtales.htm

http://www.doingbusiness.org/data/exploretopics/resolving-insolvency/~/media/GIAWB/Doing%20Business/Images/Topic-Analysis/DB13/RI-figure3.gif