CHAPTER 5

Challenges for Entering Eastern European Markets

Overview

As the developed Western economies still try to recover fully from the global financial crisis, Eastern Europe, a part of the world often neglected by investors and business leaders, has been showing impressive growth and maturity, both economically and politically. Stock markets in Bulgaria and Romania, for example, have appreciated significantly over the past year, and improving infrastructure coupled with still relatively cheap labor provide an attractive environment for investments in the manufacturing and service sectors.

Recent political unrest in some countries of the region, however, threatens to stymie economic progress and has reminded investors of the inherent risk ...

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