Strategies of multinational enterprises and the development of the Central and Eastern European economies

Foreign direct investment (FDI) manifests itself in different ways and in order to evaluate the likely impact of FDI it is necessary to examine the strategic aspirations of multinational enterprises (MNE). This involves analysing the entry modes which MNEs use to gain access to foreign markets and the type of subsidiary organization which is established in the host country. The countries of Central and Eastern Europe (CEE) have identified FDI as a key element of their transition to market economies. Drawing on the experience of influential FDI flows into Western economies, argues that the strategic ambitions of MNEs will not necessarily lead to a wholly favourable impact on the CEE economies and that there is a need to encourage technological and infrastructure development as well as a monitoring process of FDI projects, which includes an after‐care service.