Moran, Abramson, & Moran (2015, pg. 494) explain that since the collapse of the USSR in 1991 Eastern Europe has been identifying themselves, increasingly, “with Western culture and free-market enterprises”. Perhaps this explains Entrepreneur’s article titled How Manufacturing in Eastern Europe Can Benefit Your Business (Zieba, 2018). In his article, Oskar Zieba (2018) explains why some big businesses, such as Volkswagen, Hyundai, and Philips, are moving their business to Eastern European countries.
High Ethical Standards
Unlike many Asian countries known for their child labor and sweatshops, Eastern Europe maintains Western like quality in their moral standards, explains Zieba (2018). As the USSR was once a superpower in the global economy, the ethical expectation in the workplace is still high (Moran, Abramson, & Moran, 2015). Western companies can expect to see adults working in their factories, within reasonable labor hours, and in decent conditions. This can ease some of the burden and backlash major companies have been feeling recently regarding child labor in other countries.
Expertise in Tailoring and Technical Clothing
Additionally, Eastern Europeans are known for superior quality in tailoring. I myself purchased my wedding gown from a seamstress in Ukraine, and it is this reputation that has led major fashion brand, Blackwood, to set up their manufacturing plant in Poland (Zieba, 2018). “The quality of the production can easily compete with the best and most established countries” (Zieba, 2018). Their strong sense of pride and nationalism leads to a quality product and businesses that are not afraid to do a little extra for their customers.
Low Costs of Production
Finally, it is much cheaper to produce products in Eastern Europe. While the quality and moral standards remain high, unlike other European countries Eastern Europe offers a competitive market. Eastern Europe has faced widespread unemployment and a deterioration in public services, leaving the market ripe for low cost goods at a higher quality (Moran, Abramson, & Moran, 2015).
Overall Eastern Europe can offer Western businesses a high-quality product at a lower cost without suffering the ethical dilemmas of using questionable services in some Asian countries. Eastern Europe is changing with the new century and is welcoming “trade, commerce, and travel” to other economies.
References:
Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Managing Cultural Differences (9th ed.). Oxford: Routledge
Zieba, O. (2018, November 14) How Manufacturing in Eastern Europe Can Benefit Your Business. Retrieved from https://www.entrepreneur.com/article/322616