How American Executives Disagree about the Risks of Investing in Eastern Europe.

A survey of 120 U.S. firms indicated substantial East-West trade activity. However, almost no joint ventures between U.S. firms and Eastern European enterprises were found. There seemed to be a strong negative attitude among U.S. executives with regard to joint ventures with Eastern Europe. This negative attitude was partitioned into two parts, that dealing with the executives' perception of political risk and that associated with the belief that more managerial time is required to supervise ventures in Eastern Europe. Executives knowledgeable about Eastern Europe show more concern for the latter aspect, while those less familiar with Eastern Europe are more likely to worry about the political risks. [ABSTRACT FROM AUTHOR]