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date: 25 March 2019

Abstract and Keywords

This chapter examines how multinational enterprises (MNEs) headquartered in the region or investing from outside manage their production capacities in Central and Eastern Europe (CEE) through inward and outward foreign direct investment (FDI), or other forms of engagement of those firms in host countries. It shows that Western and intra-regional MNEs adjust their strategies to local conditions dictated by the regulatory framework of individual host countries, the availability and quality of local business partners, and the quality of available skills and infrastructure. It points at different ways through which local and international MNEs adapt their production plans to a context that in the bulk of the region can be called “post-transition.” These choices in turn affect the decisions that different types of MNEs take in locating various parts of their value chains in the region, and their strategies vis-à-vis the upgrading or relocation of existing capacities.

Keywords: Central and Eastern Europe, post-transition, emerging multinationals, foreign direct investment, value chains, corporate strategies, upgrading, relocation

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