Abstract
Interactions between state and market in eastern Europe since 1989 are examined by focusing on inward investment in one sector the automobile industry which has been at the forefront in the development of new production strategies within the region, and one state Hungary where much foreign investment has been concentrated. The paper examines patterns of uneven development, the distinctive workplace organization and ownership form of state-planned economies, and their reconstitution as part of the process of transformation. The main direct foreign investment projects within the auto industry in eastern Europe are outlined to identify the global market context. The more detailed account of Hungary concentrates on the strategies of four leading companies: Ikarus, General Motors, Ford and Suzuki. The conclusion reconsiders the reconstitution of states and markets
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