This book probes into the workings of business strategies in former socialist countries in East Asia, Central and Eastern Europe and the newly independent states of the former Soviet Union, which are collectively called `transition economies'. It provides a rich and in-depth understanding of fundamental, strategic issues confronted by domestic and foreign firms competing in these newly developed markets.
Chapter 2: Economies in Transition
Economies in Transition
It is impossible to cross a chasm in two leaps.
We have to touch the stones when crossing the river.
Toward the end of the 20th century, fundamental transitions swept through a huge landmass from the former boundaries separating East and West Germany to China's southern border with Hong Kong. By the time this book reaches its readers, it will have been 10 years since the fall of the Berlin Wall and more than 20 years since the beginning of the economic reforms in China. What is going on in these countries? What has prompted them to give up classical state socialism, which they took pains to construct decades earlier, and move toward market economies? As a historical excursion, this ...