Hungary adapts to the market system

Hungary adapts to the market system - Adriatico,LeaB....

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Adriatico, Lea B. TTh, 12:30-2:00pm July 13, 2010 Hungary adapts to the market system - Hungary restructures economy to attract foreign investment Business America , Nov 2, 1992 by Brian Toohey Hungary, the nation which led the political transformation of Eastern Europe in 1989, is also leading the region's economic transformation. Hungary began its economic reform process before other countries in the region, creating a relatively advanced economic infrastructure to support foreign investment. The Hungarian leadership remains committed to scrapping the centrally planned economic system and replacing it with one based on private ownership and free markets. Despite what has been a painful period of economic adjustment, Hungary's commitment to the market system is already yielding positive results. Monthly inflation rates are falling rapidly and the country has been successful in redirecting its foreign trade westward and managing its large foreign debt responsibly. Trade Liberalization Measures Hungary has taken significant steps to liberalize its trade regime. Since January of last year, 93 percent of imported products no longer require an import license. Moreover, the government of Hungary intends to reduce its average tariff rate to under 10 percent. Despite a severe Hungarian economic recession, U.S. exports to Hungary jumped by more than 70 percent early this year, making Hungary the leading Eastern European export market for the United States during the first quarter of 1992. Even more encouraging was an increase in U.S. sales in a wide variety of commodities, signalling that U.S.-Hungarian trade will continue to grow. Hungary established, early on, the legal framework to undertake privatization and facilitate and
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This note was uploaded on 08/14/2011 for the course ECON 103 taught by Professor Profkinney during the Spring '11 term at Athens Tech.

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Hungary adapts to the market system - Adriatico,LeaB....

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