The Eastern Enlargement Of EU And The Strategies Of Foreign Investment Of Our HAEs

On May 1st 2004, the enlargement of the largest scale of membership in the history of EU ended. Ten Eastern European countries, Poland, Czech, Slovak, Hungary, Slovenia, Lithuania, Latvia, Estonia, Cyprus, and Malta joined the EU officially on that day. After the entry, the economic environment and the investment convenience of these countries have been improved greatly, of course, which will bring a great deal of investment from outside. At present, the industry of household appliances in these countries remains at a low level, while in our country it develops very fast and has been at the mature stage. So the industry of household appliances in our country has great advantage compared with that in Eastern European countries. Therefore, the Chinese household appliances enterprises must grab this chance to invest in the Eastern European countries, and then expand much more developing space for themselves.The household appliances investment from our country in Eastern Europe is still underway. After entering the EU, great changes have taken placed in the investment environment of theses countries, so our household appliances enterprises will face many new chances and challenges as well.Meanwhile, there are many international household appliances giants competing with us in the Eastern European market. These giants have great technical advantage compared with us. Therefore, our household appliances enterprises should make best use of their comparative advantages such as low manufacture cost, high flexibility. At the same time, we also need to pay much attention to improve our technology and recognition of brand. From this point, our household appliances enterprises still have a long way to go. In this paper, the author thinks that in our foreign investment, our HAEs (household appliances enterprises) should make themselves fully acquainted of their own development level and the characteristics of the target market. Our household appliances industry has comparative advantage compared with the Eastern European countries. Among the new members of the EU, Poland, Czech, Slovak and Hungary, these four countries have better economical condition and investment environment. For our HAEs' foreign investment, they are more ideal and more attractive than others. In terms of the development of our HAEs, the author puts forward several models on how to invest in the Eastern European market. These models are listed from simple ones to complex ones, from lower ones to higher ones. Enterprises on different levels can find the model that fits it well. In addition, when investing in Eastern European market, our HAEs also need to consider the problems such as culture differences and corporate governance etc, and then take some countermeasures corresponding to these problems. At the same time, the government also has work to do, it should offer financial and legal support and provide policy guidance for our HAEs' foreign investment.