The Movement of Industry from Western to Eastern Europe

EU has 455 million people

19% of world trade

46% of world outward forgien direct investment

24% of world inward forgein direct investment

growth is estimated at 4.5% a year

Labour costs are 5 times higher than in Poalnd

Eastern European countries work 40-42 hours and take fewer days of a week

Poland and Slovakia company taxes are 19% and Estonia there are 0 compared to 30% in UK and 38% in Germany

Reasons

• 2004-2006 European Commission provided 22 € billion euros to buld up motor industires
• high unemployment in most of new members of EU
• Poland unemployment rate is 20.6%
• labour costs in slovakia is 3.90€
• strong work ethic impresses TNC
• quality of infrastructure is best around Captial
• highly skilled workforce
• low transport…