Structure and objectives of Austria's foreign direct investment in the four adjacent Central and Eastern European countries Hungary, the Czech Republic, Slovenia and Slovakia



pattern is similar even in the financial and insurance sector. Both of these industries are typically not
connected with outsourcing activities. Moreover, investments within these service sectors are mainly
determined to take advantage of the new distribution markets. Neither trade nor finance and insurance are
industries which show any substitutive relation to their respective home based industries.

The strong investment activities of the petroleum industry is a typical resource motivated FDI which was
brought about through joint ventures between refineries of Austria, Slovenia, Slovakia and partially
Hungary. The other two industries of the manufacturing sector (food and beverages and non-metallic
products) will be discussed in more detail in the subsequent two sections.

11



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