The development of Eastern Europe

11 important questions on The development of Eastern Europe

In what was Europe divided after the second world war?

into capitalist Western Europe and the communist Eastern Block.

What did the communist rulers introduce?

a command economy in all the countries of Eastern Europe.

What are the two major disadvantages of a command economy?

- the economy does not produce what people need, and the quality of products is poor. The command economy generated less wealth than the free market economy of the west. Yet in most eastern European countries the basic necessities were reasonably well provided for.
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When did the communist dictatorship came to an end?

between 1989 and 1991. The Iron Curtain disappeared and the borders opened

What were the major political and economic consequences of this?

Money, goods, people and ideas began to flow between east and west. Many countries in Eastern EUrope wanted to be connected Western Europe, and joined the European Union in 2004.

What are two fabourable location factors that companies in Western Europe which invested a lot in Eastern Europe benefit from?

In the first place, wages are low and employees work longer hours compared to Western Europe. low-wage economies

Second, workers were skilled, thanks to the communist period, in which basic provisions such as education were well established.

What did car manufacturers do due to the availibility of skilled people?

they also moved their development centeres, whre new models are designed. That is high-tech work. New development centres can be found in university cities such as Prague.

Why does the opening of a car factory give an enormous boost to an area or city?

These factories need many other companies to supply semi-finished products

What are major contrasts in Eastern Europe?

Many villages in the countryside are neglected. The inhabitants are poor and often unemployed. The captal cities are at the other extreme.  Multinationals from Western Europe, the Us and Asia like to set up in Budapest, Prague or Warsaw.

Why do they like to set up in capital cities?

In a capital city they are close to the seat of power, where the government and parliament are based. The big banks also have head offices in capital cities, which is useful if you want to borrow a lot of money. There are economes of agglomeration.

What makes Wroclaw so attractive?

The city is favourbaly located near a motorway
The city is not very ar from Germany
The old city has been beautiflly resotred. That is why Wroclaw tracts foreign employees who work for multinationsl.
The focus on research and development. There are universities o applied science, laboratories and technlogy parks

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