Motives and strategies for foreign direct investment in central and Eastern Europe

The countries of Central and Eastern Europe (CEE) are undergoing a process of transformation from centrally planned command economies towards a market orientation. During a period of forty-five years or more, CEE countries were isolated from the rest of the world trying to develop cohesion and interdependence with each other. These countries are now reversing their inward-looking legacy of central planning as they want to benefit from globalization. For CEE countries, the inflows of foreign direct investment (FDI) are of crucial importance for their integration into the world economy as globalization has a positive impact on the volume of FDI.