This document provides an overview of Eastern Europe as a marketplace for international business. It discusses the geographical, political/historical, economic, and social aspects of the region. Geographically, Eastern Europe encompasses countries in Central Europe, Southeastern Europe, the Baltic states, former Soviet states, and Transcaucasia. Politically and historically, the region saw many changes in the 20th century from the fall of empires after WWI to Soviet control after WWII. Economically, Eastern European countries transitioned from communist to market economies, with varying levels of success, and still have developing industries. Socially, there is a desire to join the EU but also challenges like bureaucracy, corruption and lack of business experience. Opportunities

1. Eastern Europe as a
Global Marketplace
Subject: International Business
Prof.: Henrietta Carbonel
16.10.2013
By Daria Chizhova

2. Table of Content
 Geographical aspect
 Political and
Historical aspects
 Economic aspect
 Social aspect
 Opportunities vs
Challenges

3. Geographical Aspect (I)

4. Current Country Members (II)
 The Baltic States
 Southeastern Europe  Central Europe

Estonia
 Albania

Latvia

Lithuania
 Bosnia and
Herzegovina
 Former Soviet States 

 Russia

 Ukraine

 Belarus

 Moldova

Bulgaria
Kosovo

Croatia
 Czech
Republic
 Hungary
 Poland
 Slovakia
Macedonia
 Slovenia
Montenegro
 Transcaucasia
Romania

Serbia
 Armenia
Georgia
 Azerbaijan

5. Political + Historical Aspect
 WWI resulted in the breakup of the Russian, AustroHungarian, 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

7. 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

8. Unemployment Statistics

9. Budget Deficit

10. GDP/capita

11. GDP Growth

12. 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

13. 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

15. Bibliography

http://en.wikipedia.org/wiki/Eastern_Europe#Geographical

International Business By Griffin and Pustay

http://www.economist.com/blogs/graphicdetail/2013/07/europeaneconomy-guide

http://www.referenceforbusiness.com/encyclopedia/DevEco/Eastern-Europe-Doing-Business-in.html

http://www.computerweekly.com/feature/Why-more-businesses-arenearshoring-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/resolvinginsolvency/~/media/GIAWB/Doing%20Business/Images/TopicAnalysis/DB13/RI-figure3.gif