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MNE Strategies in Bulgaria

In: Strategies of Multinationals in Central and Eastern Europe

Author

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  • Yordanka Chobanova

Abstract

The objective of this chapter is to address the level of embeddedness of MNEs in Bulgaria. It is organized in three sections. The first section provides a brief overview of the Bulgarian innovation system. It analyzes the government’s investment promotion policies and looks at the policies that encourage the creation of linkages between MNEs and domestic firms in general: there is no information available for the food industry in particular. This section also discusses the degree of interaction between foreign companies and host organizations and institutions. The second section focuses on FDI in the food industry in Bulgaria. It draws attention to the gradual change of consumer behaviour in Bulgaria, and the role retail chains and MNEs play in the promotion of Western lifestyles. Consumer trends and the purchasing power of the population have a considerable impact on the strategies of food MNEs, as busier lifestyles lead to higher consumption of frozen and semi-prepared products, which are mainly manufactured by large MNEs. The third section discusses the policies and indirect spillovers of Unilever, Nestlé and InBev in Bulgaria.

Suggested Citation

  • Yordanka Chobanova, 2009. "MNE Strategies in Bulgaria," Palgrave Macmillan Books, in: Strategies of Multinationals in Central and Eastern Europe, chapter 6, pages 153-178, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-25095-6_7
    DOI: 10.1057/9780230250956_7
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