Unit 1 Individual Project Essay Example | Topics and Well Written Essays - 750 words - 1

Unit 1 Individual Project - Essay Example E may look for to start a Greenfield project in Hungary as the subsequent analysis would suggest that the from the start of making its transition to the market economies, Hungary has been able to attract most of the FDI in the form of Greenfield projects. Hungary has gone through a very tough period of its economic history however the same is now seems to be paying of to the country. Hungary has traditionally remained an agriculturalist country with lot of reliance on the agriculture as the main deriver of the economic growth in the country. It has remained under the socialist school of government however is believed to be undertaking the reforms under the socialist era much before the other communist countries in the region. Due to its structural reforms and economic restructuring, Hungary has now being considered as surviving its bad patch and is now on the route of economic growth. As discussed above that the historically, Hungary has remained an agriculturalist country however after the World War II, it turn to the industrialization however most of the industrialization was state owned and most of the agriculture output was coming out of the state owned firms. Over the period of time Hungary has been able to attract more than 90% of all the foreign capital being invested in the Eastern Europe showing the strong trust of the foreign investors into strength of the country. Over the period from 1992 to 2005, the average GDP growth in the economy has remained well over 5% with drastic reduction in inflation and public debt. The economic model followed by Hungary is considered as the model for the transition economies as it is considered as one of the most successful transition model. On the whole, Hungary has the stable economic outlook as well as supporting government policies encouraging foreign direct investment as well as other means of entering into the Hungarian model. (EU Commission, 2006). Hungary has remained a communist nation with centralized and