ABSTRACT
At the beginning of the transition process away from the planned economy towards market-oriented systems, policy-makers and Western consultants were enthusiastic about the role FDI could play in Central and Eastern Europe. Transfers occur in form of technology, manufacturing and marketing know-how as well as in the form of organizational and managerial skills. MNCs are key channels for the cross-border transfer of culture and business customs and have invested in training and career development with determination. The expansion of MNCs into the region has transformed domestic markets, often augmenting the dominant positions of MNCs. In the Polish food processing sector, for example, classic oligopolistic characteristics of collusion and rivalry are exhibited. FDI has overtaken trade as the driving force in Central and East European countries ‘integration into the world markets. The impact of FDI on economic development in Hungary, Poland and the Czech Republic can be described as a ‘mixed bag’.
