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Chapter 16:
Doing Business in Transition Economies
C&E Europe
FSU FSU
Vietnam PRChina
Copyright ©2003 McGrawHill Australia Pty Ltd PPTs t/a International Trade and Investment by John Gionea Slides prepared by John Gionea
LECTURE PLAN:
• Definition of Transition Economies (TEs) • Import markets
• Trade issues in TEs
• Export marketing issues
• FDI in TEs, including China
• Globalisation and China’s economy – Benefits and implications
Copyright ©2003 McGrawHill Australia Pty Ltd PPTs t/a International Trade and Investment by John Gionea Slides prepared by John Gionea
Transition Economies
• Current and former Centrally Planned Economies in transition to a marketbased economy
– Former Soviet Union countries;Central &Eastern Europe;PR China and Vietnam
• Chinathe world`s 3rd largest economy (PPP method)
• Government sectorstill the leading sector in FSU;However, in 1998 it accounted for less than 50% in most C&E European countries
• Privatisation of state enterprises
Copyright ©2003 McGrawHill Australia Pty Ltd PPTs t/a International Trade and Investment by John Gionea Slides prepared by John Gionea
Former Soviet Union(FSU)
• Most developed Commonwealth Independent States(CIS) markets
– Russia,Ukraine,Belarus,Kazakhstan
• The Baltic states
– Estonia,Latvia,Lithuania • CIS Islamic Republics
– Azerbaijan,Turkmenistan,Uzbekistan,Tajikistan
Copyright ©2003 McGrawHill Australia Pty Ltd PPTs t/a International Trade and Investment by John Gionea Slides prepared by John Gionea
Europe* in world merchandise imports,
12
10
8
6 China
4 E.Europe
2
0
1948 1953 1963 1973 1983 1993 2000
* Eastern Europe= Former Soviet Union and C&E Europe
Copyright ©2003 McGrawHill Australia Pty Ltd PPTs t/a International Trade and Investment by John Gionea Slides prepared by John Gionea
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