ent approximately $10 billion on new plants and facilities for those acquisitions. "Investing in Europe today requires guts," says London business school professor Sumantra Ghoshal. "GE has guts." (Koenig, Peter; Brown, Ed, 1996). GE has stated that European profits have jumped 59% while Asia's profits have declined. GE's European managers were caught celebrating and said, "Asia makes the headlines, and Europe makes the money." (Koenig, Peter; Brown, Ed, 1996).
             "GE came to Hungary in 1989 by privatizing Tungsram and since then it has set up five plants at various locations in the country. GE investments in Hungary amount to USD 1.1 billion. GE currently employs about 14,000 people and GE Hungary Rt., which posted revenue of HUF 185.8 billion in 2000, holds the five production divisions together. "'In 2002, GE in Hungary represents a USD 1.1 billion investment in a world class commercial, technological and manufacturing center of excellence", said Ferdinando Becalli, president and CEO of GE in Europe'"(www.amcham.hu/BusinessHungary/16-03/articles/16-03_06.asp)
             Some background facts of the Hungarian people are: 7% out of the 10.4 million people have a college education and education is mandatory until the age of 16. The official language is Magyar and two-thirds of the population is Roman Catholic with the rest being Jewish and Protestant (Bangert, 1994).
             Hungary is now a member of the European Union. This being said, corporate representatives and entrepreneurs are flocking to Budapest with their dollars, yen, and marks to form joint ventures or to buy complete companies (Bangert, 1994). With such dramatic, sweeping changes and intervention, Hungary provides a stimulating occasion to conduct management research as its economy evolves from one form to another (Bangert, 1994). One of the ways for Hungary to evolve into a free market economy is foreign...