The role of joint ventures in East-West trade up to 1990

The aims of the research described in this thesis have been to examine the role of joint ventures in trade between Western countries and the former socialist countries of Eastern Europe up to and including 1990; and to provide original case study materials of EastWest joint ventures established in the former Cornecon area during this period. By choosing 1990 as a cut-off date the author was able to record the effect of the post-1989 reforms on joint ventures before the fragmentation of the Soviet Union. The research methods of the thesis, namely literature search, structured interviews and a postal questionnaire survey enabled the author to examine the role of joint ventures from existing research on the subject as well as contribute new knowledge to the subject by recording Western companies' immediate responses to the rapidly changing economic and political environment in Eastern Europe and the former Soviet Union. The thesis begins by presenting the factors which led the author to research East-West joint ventures, gives the rationale for the application of the above research methods and the consequent practical implications of the methodology. This is followed by an examination of the role· of joint ventures in international business, and the effects of Soviet and East European reforms on East-West trade and industrial co-operation, thereby providing the theoretical and historical framework for analysing the role of joint ventures in East-West trade. This analysis begins with an examination of the legal provisions for joint ventures in the former CMEA countries, followed by a discussion of the data obtained from literature searches. This data provides information about the number of joint ventures, the size of foreign capital invested, the joint ventures' activities and the extent of individual Western countries' participation in East-West joint ventures. The literature search is succeeded by the case histories of Western companies engaged in joint ventures collected between 1986 and 1989 which were up-dated in March/April 1992, and the results of a survey conducted in December 1990 among the British partners of AngloSoviet joint ventures. These provide illustrations of Western companies' experiences at micro-level before and after the political changes in Eastern Europe in 1989. To conclude, the author comments on the effectiveness of the research methods employed, reflects on the findings of the thesis and makes suggestions for further research based on the evidence presented in the thesis.