Multinational Corporations Impact on South Eastern European Market

The autumn of communism has led to major alterations in South Eastern European Countries. The part holds primary importance in the trade activities between Europe and Asia. Having heterogonous construction of these states, they act otherwise in economic and political platforms. Furthermore, with the outgrowth and rank of European Union, trade policies are besides capable to alter for these states.

The thesis is about Multinational Corporations that penetrate the South Eastern European Market. Because of its geographics and heterogenous conditions, this part strategically holds important place in the continent of Europe. The thesis will show the comparing of portion of economic indexs in the three epochs of earlier, during and after fiscal crises. The chief focal point is on the schemes of the nutrient industry.

Multi National Corporations play an of import function in globalising trade and give a manifold encouragement to Gross Domestic Product and Gross National Product. Since the effectual economic integrating achieved by European Union in the context of common market and abolishment of custom responsibilities, its Member States have improved their economic systems and upgraded their life styles. Furthermore, following the prostration of communism in late eightiess and early1990s, the state of affairs in South East Europe changed to a great extent ( Buchanan 2006 ) .

South Eastern European states enjoy the important part of distinction in the strategic geographics of Europe and Asia by moving as way for transit between Greece and remainder of the European Union provinces ( The World Bank 2000:121 ) . In this part Albania, Croatia, Bosnia and Herzegovina, Federal Republic of Yugoslavia, Bulgaria, Romania and the Former Yugoslav democracy of Macedonia are included. After the autumn of Communism, these states entered into Stabilization and Association Process ( European Commission 2001:2 ) with particular focal point on conveyance substructure development.

Aims of the Study

The aim of the survey is to add valuable information in the theories of MNCs involvement in peculiar geographical parts. More specifically, happen out the grounds for the involvement of MNCs in South East European states and their elaborate scheme at all phases of pre, during and post fiscal crisis. A comparing between Gross Domestic Product, Gross National Product, Foreign Direct Investment histories and stock monetary values all mentioned three epochs is required. Much literature is available on working of MNCs and European Union ‘s economic integrating but their proliferation in South Eastern Europe is still uncontrived.

The states of South Eastern Europe have much diverseness in their politico-economic construction ( Liebscher 2005 ) . Keeping in position the rank of European Union for these states and their Euro acceptance policy, the function of economic geographics and new trade theories as defined by agglomeration of market, may besides be applied in the survey to prove their cogency in this niche of Europe.

Research Question

In the epoch before, during and after fiscal crisis, is at that place any common strategic theoretical account, MNCs follow to emerge in South Eastern European states? In respect to assorted industries peculiarly nutrient industry, how this part differentiates itself from other parts?

Literature Review

Foreign Direct Investment drama cardinal function in globalisation. The impact of foreign direct investing within the part is good documented ( e.g. , Bitzenis, 2008 ) . MNCs ‘ market entry manners have been studied for some states in the part ( Demirbag et al. , 2007 ; 2008 ) , but states in the SEE part have different types of institutional substructure ( Mellahi et al. , 2009 ) .

Stephan Barisitz has analyzed the banking sector of Central and Eastern Europe ( 2007 ) and has stated much alteration after the autumn of communism. Bartlett, Bateman and Vehovec ( 2002 ) have focused on the function of little and average endeavors in the sustainable growing of South Eastern European states. Council of Europe under the umbrella of European Union ( 2008 ) has thrown light upon proficient cooperation in the part ( 2008 ) . Maier and Pischeke ( 2004 ) have discussed the function of Germany in the upheaval of fiscal sector in South Eastern Europe. Germany, being the laminitis province of European Union, has contributed a batch for the economic cooperation among the European provinces.

The integrating of nutrient industry has remained a end in European integrating during the ear of formation of common market. While taking trade barriers, this industry was besides considered. Common Agribusiness Policy was adopted to hike trade of nutrient merchandises within European provinces. It is to be mentioned here that all European provinces are non the member of European Union nor all South Eastern States have its rank. So the trade policies with European Union member provinces and non-member provinces have ever remained different. With the increasing member provinces of European Union, the policies have been reshaped and attempts have been made to come to common evidences for all member provinces maintaining in position their competitory border in their peculiar industry. History has seen up and down of trade of agricultural merchandises as in 1970s, nutrients in France and Italy became cheaper than that found in Germany and Holland ( Thoddy 1997:19 ) .

The Selected Cases

The MNC s from nutrient industry bing in South Eastern Europe will be taken every bit sample to analyse their scheme for investing in this part. Strategy will be analyzed with acute focal point on constitution periods, nature of concern, operations scope and volume.

Much literature is available upon the construction of these economic systems and failings have besides been highlighted. Liebscher considers occasional power deficits as the primary obstruction in industrial operations ( 2005 ) which may earnestly be considered by Multi National Corporations while planing their incursion scheme in this part. He besides considers the partial rank of European Union by the South Eastern Europe a large challenge to this part ( 2005: 203 ) . States are free to make up one’s mind where to merchandise their nutrient merchandises ; be it European Union member provinces or non-member provinces or non-European provinces. In all instances, the schemes will be different. There can besides be an beginning between the benefits acquired from European Union ‘s rank and the nutrient monetary values. On these evidences, a hapless adult male may acquire dissatisfied to purchase high priced nutrient. He may non hold much favourable positions about European Union rank and may raise the inquiry of his rights and corporate societal duty. The Common Agribusiness Policy ( CAP ) of European Union was threatened on evidences of such grounds. ( Thoddy 1997 )

It is compulsory to advert here that acceptance of Euro is non compulsory for all member provinces so there is another challenge if provinces get European Union rank but do non follow Euro as their official currency.

The environment in these states will besides be a factor in cultivation and trade of nutrient merchandises. The millenary development ends emphasize of healthy environment and companies are concentrating on environment protection and pollution control.

Furthermore, conveyance and energy substructure ( European Commission 2001 ) is another challenge for trade activities peculiarly export of nutrient and other perishable points. Proper saving mechanism and attachment to hygienic conditions are required to accomplish the coveted consequences.


As mentioned earlier, much research has non been done upon the topic of this thesis. In add-on to published books and on-line secondary informations, I will travel more for primary beginnings and instance surveies. In this respect, serious attempts will be undertaken to reach Multi National Corporations representatives runing in the South Eastern Europe and their clients. Common Agribusiness Policy of European Union will besides be analyzed and the schemes of Multi National Corporations will be reviewed in its pros and cons. In add-on to agricultural merchandises, tinned and packed nutrients industry will besides be taken into consideration.

Multi National Corporation

The nutrient merchandise lines, concern paperss and fiscal studies, if and when possible to get, will be the chief beginning for information acquisition. The regional caput of MNC will be contacted for past accomplishments and future programs. The information of market portion at different degrees of operations and the reactivity of nutrient merchandises towards new auxiliary and utility merchandises and will besides be analyzed. The advertizement and publicity scheme in add-on to distribution channels will be looked into to hold better penetration into marketing scheme.


The people of Balkans will function as a sample for questionnaires nevertheless other South Eastern people will be asked on-line for feedback about the Multi National Corporations in their countries. Based on demographics, the informations would be analyzed in relevancy to the mark market specified by Multinational Corporations.


Interviews of Economic experts and European Studies Professionals will be conducted. In the context of Multi National Corporation and economic integrating, the positions of experts like Charles Pattie and Ian Bache from Sheffield University, Jean Monnet Professors would add value to the originality of the thesis.

Center of European Surveies

The regional centre of European Studies will be visited for formal informations aggregation. The books and other thesiss upon the similar topics will give more penetration into the topic. European Union information desk will besides be contacted if any needed information is non found in the mentioned beginnings.

Likely Benefits of Study

This survey will dig deep into the procedures for South Eastern European market incursion of MNCs. Keeping in position the applied theoretical account, the similar countries can profit from the suggestions for economic integrating and to hike trade activities. Furthermore, other campaigner states for the rank of European Union, will besides happen it fruitful to their adaptation procedure. In European literature, a challenge of enlargement is found i.e. with increased figure of member provinces, the operational scheme is capable to neglect. The studied theoretical account may besides function European Union to reconstitute its operations for successful enlargement of its activities.

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