International Trade and Finance: A North American Perspective

By Khosrow Fatemi | Go to book overview

countries. It is equally unlikely that the top managers from the CMEA countries will be willing to turn over the control of their marketing organizations in the North American markets to national managers.

Finally, an overview of the five areas critical to successful marketing indicates that the CMEA economies do not have the internal capabilities to deal with the sophistication of the North American markets now and it is unlikely that they will be able to acquire these capabilities in the near future. Attempts to form joint ventures or attract foreign investment into the CMEA economies to enhance these capabilities were in the past and are currently being saddled with additional philosophical and ideological barriers.

It is anticipated that the relatively low productivity of the CMEA countries will continue. As additional modernization efforts are introduced, internal demand for higher-quality goods will also increase. Any increases in internal demand will have to be addressed by the CMEA countries by channeling products intended for exports into domestic markets. Consequently, the presence of Eastern European economies in North American markets during the late 1980s and early 1990s will be marginal and cosmetic in nature at best.


NOTES
1.
"Gorbachev has Planted the Seeds, but Will They Grow?" Business Week, February 2, 1987, pp. 44-45.
2.
For this discussion CMEA countries comprise those of Eastern Europe and the Soviet Union only. Yugoslavia is not a member of the CMEA.
3.
Jerzy Cieslik and Boguslav Sosnowski, "The Role of TNCs in Poland's East- West Trade," Journal of International Business Studies 16 (Summer 1985):121-37. See also Laszlo Csaba, "The Role of CMEA in the World Economy in the 1980s," ACES Bulletin 26 (Summer-Fall 1984):2-29.
4.
U.S. Congress, Joint Economic Committee, East European Economies: Slow Growth in the 1980s, vol. 3 ( Washington, D.C.: U.S. Government Printing Office, 1986), pp. 595-633.
5.
Ibid., vol. 2, pp. 1-5.
6.
Janos Kornai, "The Hungarian Reform Process," Journal of Economic Literature 26 ( December 1986):1695-1737.
7.
Keith Crane, "Poland's Mountain of Debt: Will it Dwindle?" Comparative Economic Studies 27 (Fall 1985):16-18.
8.
Michelle Krebs, "Dennis to Handle Yugo and Niva in Canada," Automotive News, July 22, 1985, p. 4.

-227-

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