Transforming Economies, Technology Transfer and Multinational Corporations Strategies

Foreign direct investment inflows in European transition economies, although limited in volume, plays a strategic role in restructuring and developing new businesses, in integrating these economies to the world economy, in bringing in technology, know-how and management skill. Entry on these new markets either through acquisition and merger, either through greenfields depends of different barriers, asset specificities, market regulations. In spite of important entry and transaction costs, foreign investors favour direct investment with full control of local assets allowing them to attain more easily their different objectives: market share, cost reduction, integration of local units in the global or regional strategy of the company.