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MNE Strategies in the Czech Republic

In: Strategies of Multinationals in Central and Eastern Europe

Author

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  • Yordanka Chobanova

Abstract

Of all the new member states, the economy of the Czech Republic is the most advanced. It was among those CEECs that attracted the most FDI in the region, thanks to its liberal trade rules (WTO, 1996a) and generally open direct investment regime. The introduction of investment incentives in 1998 stimulated a massive inflow of FDI into both greenfield and brownfield projects, and, since 1993, more than €46 billion in FDI has been recorded. The food and tobacco industries occupy fourth place, taking 11 per cent of all FDI (1993–2004). The first place was occupied by the manufacturing sector — 41 per cent of FDI; the second by the metallurgy sector — 15 per cent of FDI; and the third by the refined petroleum and chemicals sector with 14 per cent of FDI. The Czech food sector is considered the best placed out of the new member states (CzechInvest, 2007). Yet, the accession has been the Czech food industry’s biggest challenge since the fall of the Communist regime in 1989, as the food industry faces increased competition and regulation.

Suggested Citation

  • Yordanka Chobanova, 2009. "MNE Strategies in the Czech Republic," Palgrave Macmillan Books, in: Strategies of Multinationals in Central and Eastern Europe, chapter 5, pages 125-152, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-25095-6_6
    DOI: 10.1057/9780230250956_6
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