FDI in Central and Eastern Europe - The business perspective

Foreign direct investors have experienced a roller-coaster ride since the political and economic opening of CEE. The euphoria of the first years was suddenly stopped by one of the worst recessions in history. These two phases shaped significantly the business model that MNCs have been following in their “going east”. While motives and entry strategies are still valid today, investment patterns vary by industry, company size, and time of entry. Current challenges for MNCs operating in CEE are seen in the rise of new investors from emerging markets, in pressures to move higher-value activities to the region and in the increasingly adversarial relationship between national governments and foreign multinationals.