Abstract
Since the collapse of the Soviet Union in 1991 rapid changes have occurred in Central and Eastern European countries. Their economic development has literally boomed and they rapidly fulfil the requirements of the Copenhagen Criteria to be a member of the European Union. In 2004, most of them (Czech Republic, Poland, Estonia, Latvia, Slovakia, Hungary, Lithuania, Slovenia) have gained access to the European Union. In 2007, these countries have entered the Schengen area. All this process has completely reshaped the European Union; the new entrants represent about a 100 million more inhabitants and 16% of its new area. 60 years after the division of Europe during the Yalta conference, Europe has been reunified. The fact that Eastern Europe is now included in the Schengen area means that goods can travel without internal border controls throughout Europe. One of the most dramatic changes to affect businesses has been the change from centrally planned economy to free-market economy. The extension of the European Union and the Schengen area has been very positive for the development of business in Europe. Businesses in developed countries which had wanted to internationalize in Eastern Europe before the abolishment of boundaries had encountered a lot of difficult because of tariffs and non tariffs barriers. Since 1st January 2007, there are no more barriers for Western Europe companies who want to internationalize in these countries, and it is now easier to cash in on the incredible opportunities of these fast growing economies.
