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Those new markets will enable the companies to take advantage of cheap labour forces and large population as pool of labour forces and as customer base.
The relationship of companies from developed countries with emerging economies is quite complex. Those new markets will act as market for the company’s product, supplier as the company will source lots of their purchases from emerging economies to benefit from low costs of raw material and finally as competitors with the local companies now being able to compete in their domestic markets and in international markets.
Since the end of the Soviet Union in 1990, mass liberalisation and privatization happened in Central and Eastern Europe (Appendix 1), creating a huge market, both in surface and in population...
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