Globalisation

Globalisation has, in recent decades, facilitated not only the expansion of commercial activity across the world but has also ensured that the application of high level computer technology and the deregulation of financial markets have contributed to the much freer flow of investment funds for Foreign Direct Investment (FDI) around the world.

 

FDI projects have also benefited as the virtuous circle of market emergence, fuelled by political change and freer economic regulation, has opened up another, higher risk, outlet for investors in Central and Eastern Europe (CEE).

 

The continuation of globalisation as a process in the world economy is of vital importance to the maintenance and success of FDI projects in emerging economies generally, not only in Central and Eastern Europe (CEE).  Should political and economic pressures lead to the break down of the trend towards globalisation then it is likely that FDI as a sustainable force for the equalisation of economic activity would dry up and take with it many of the projects that it has brought about in the recent past.

 

In terms of the sustainability of FDI in Central and Eastern Europe in particular, the benchmarks of the sustainability of globalisation would seem to be American continued openness to free trade (interestingly, American firms are among the leaders in FDI in Central and Eastern Europe).  If America does not continue its commitment to global free trade then the edifice of international exchange, which is built on trust and the quid pro quo, will come tumbling down with negative effects for companies who are already taking advantage of Central and Eastern Europes moment of openness.

 

The sustainability of globalisation is, of course, also dependant on a prevailing atmosphere of world peace that in the circumstances of the early twenty first century has to be said to be under some strain.

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