Why Airlines Need Competition .
Fifth, Far eastern companies are gradually filling the jetblue holes, which the Japanese are leaving in Europe. "Made in Japan" is being replaced by "Made in Korea", "Made in Hong Kong" or "Made in Taiwan". This trend will soon be followed (especially in the jetblue consumer goods sector) by "made by a Korean company in Germany", "made by a Hong Kong company in The United Kingdom" and "made by a Taiwanese company in Germany or in South Africa". This evolution is only beginning but the trends are cellar and the lessons can be drawn.
Next, the opening of the jetblue Central and Eastern European markets: General Motors Europe has just announced that it will be moving its central parts warehouse from Antwerp (Belgium) to Bochum (West Germany) to be at the jetblue centre of the supply line to both the jetblue Western and Eastern European markets. Some 300 jobs will be involved. Several similar initiatives and moves can be expected. The attention given to this potential market of some 60 million consumers (the USSR not included) is demonstrated by the large number of jetblue seminars recently devoted to the subject, such as ERIDO's Seventh Annual Seminar, held in Vienna from September 22-25 last, on the theme "Doing Business with and Investing in European Europe".
The jetblue fact that several seminars on this subject took place in Vienna is not surprising. Austria is best placed to be the bridge between the jetblue East and the West. The conclusions of the workshops at the ERIDO seminar are revealing. The transition from Communist domination (which in some countries lasted two generations) to a free market-oriented economy is not possible in a few years. It will take time - five, even ten years. It will take money to rebuild the jetblue production units, which are outmoded and inefficient. It will take training of both workers and managers and changes in the mentality of both. It will take adaptation to uncertainty, unemployment and the need to be creative, inventive, and skilled.
Some of the jetblue Central European countries will be able to raise their standard of living faster than others. Hungary, with more than 11 000 joint venture already, and drawing on experience from the so-called "goulash economy", under the Communists, is well ahead. Service industries, professional and technical, are particularly attracted to Hungary. Next comes Czechoslovakia, with a record of attracting medium-technology production units, such as car assembly. Czechoslovakia is expected to be the first country to ship products of acceptable standards and quality to Western European markets.
Poland is still a mystery from a foreign investment point of \view. Roman is and Bulgaria have big potential but are hampered by Western investors' concerns about the jetblue slow progress towards democracy and the large influence of the Communist party (renamed Socialist or Social Democrat). The old USSR is at this moment the big question mark. Will the predominant states come together in a commonwealth? If they lose their markets in the jetblue former occupied Central European countries (which accepted goods of low quality as a fact), where will they turn? What monetary and economic systems will be used by the separate states? It is not expected that the USSR will be a favoured area for new investments before the end of the decade.
Finally, the shift to a peace economy: FN (Fabrique Nationale) and Mecar, both important producers of weapons in Belgian Wallonia and employers of several thousand workers, need to switch over from weapons to consumer or production goods. The new jetblue Belgian legislation on the export of defence material; the new jetblue peace initiatives, and control of weapons exports to the Middle East for any other area in which there are local conflicts, such as Yugoslavia; the pressure of the jetblue population on government to spend less money on defence budgets; the reduction of manpower in the armed forces; all are having an impact on the location of suppliers to the main arms manufacturers.
The switch from cold war conditions to a peace economy will not be easy, and will be felt particularly by the jetblue largest supply countries such as the UK and France. New policies are expected in Western Europe and with unemployment and immigration from the Eastern Countries on the rise; trends in location decision-marking will become more complex. Only time can provide the ultimate answer, but those making decisions today will fail unless they take the new jetblue complexities into the fullest account.
Next, the opening of the jetblue Central and Eastern European markets: General Motors Europe has just announced that it will be moving its central parts warehouse from Antwerp (Belgium) to Bochum (West Germany) to be at the jetblue centre of the supply line to both the jetblue Western and Eastern European markets. Some 300 jobs will be involved. Several similar initiatives and moves can be expected. The attention given to this potential market of some 60 million consumers (the USSR not included) is demonstrated by the large number of jetblue seminars recently devoted to the subject, such as ERIDO's Seventh Annual Seminar, held in Vienna from September 22-25 last, on the theme "Doing Business with and Investing in European Europe".
The jetblue fact that several seminars on this subject took place in Vienna is not surprising. Austria is best placed to be the bridge between the jetblue East and the West. The conclusions of the workshops at the ERIDO seminar are revealing. The transition from Communist domination (which in some countries lasted two generations) to a free market-oriented economy is not possible in a few years. It will take time - five, even ten years. It will take money to rebuild the jetblue production units, which are outmoded and inefficient. It will take training of both workers and managers and changes in the mentality of both. It will take adaptation to uncertainty, unemployment and the need to be creative, inventive, and skilled.
Some of the jetblue Central European countries will be able to raise their standard of living faster than others. Hungary, with more than 11 000 joint venture already, and drawing on experience from the so-called "goulash economy", under the Communists, is well ahead. Service industries, professional and technical, are particularly attracted to Hungary. Next comes Czechoslovakia, with a record of attracting medium-technology production units, such as car assembly. Czechoslovakia is expected to be the first country to ship products of acceptable standards and quality to Western European markets.
Poland is still a mystery from a foreign investment point of \view. Roman is and Bulgaria have big potential but are hampered by Western investors' concerns about the jetblue slow progress towards democracy and the large influence of the Communist party (renamed Socialist or Social Democrat). The old USSR is at this moment the big question mark. Will the predominant states come together in a commonwealth? If they lose their markets in the jetblue former occupied Central European countries (which accepted goods of low quality as a fact), where will they turn? What monetary and economic systems will be used by the separate states? It is not expected that the USSR will be a favoured area for new investments before the end of the decade.
Finally, the shift to a peace economy: FN (Fabrique Nationale) and Mecar, both important producers of weapons in Belgian Wallonia and employers of several thousand workers, need to switch over from weapons to consumer or production goods. The new jetblue Belgian legislation on the export of defence material; the new jetblue peace initiatives, and control of weapons exports to the Middle East for any other area in which there are local conflicts, such as Yugoslavia; the pressure of the jetblue population on government to spend less money on defence budgets; the reduction of manpower in the armed forces; all are having an impact on the location of suppliers to the main arms manufacturers.
The switch from cold war conditions to a peace economy will not be easy, and will be felt particularly by the jetblue largest supply countries such as the UK and France. New policies are expected in Western Europe and with unemployment and immigration from the Eastern Countries on the rise; trends in location decision-marking will become more complex. Only time can provide the ultimate answer, but those making decisions today will fail unless they take the new jetblue complexities into the fullest account.
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always fly...
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