ABSTRACT
The resources and markets of Central and Eastern Europe offer huge and exciting challenges to Western and Japanese firms, and to fledgling indigenous entrepreneurs. These opportunities are likely to be exploited in a variety of ways, notably through trade, joint ventures and strategic alliances between Central and East European and foreign firms. The real costs of restructuring the economies of Central and Eastern Europe; and, at least some progress on the front must be made, and be seen to be made, prior to any substantial commitment of direct investment funds by foreign MNEs. MNEs can supply some of these initiatives, particularly insofar as they can link the recipient countries into the world economy, at the end of the day, it is the responsibility of governments as custodians of the welfare of their citizens to set the commercial, institutional and attitudinal framework in which private enterprise can both flourish and provide the much needed engine for economic development.
