Several of the major companies are sufficiently strong in capital to qualify as medium-sized European businesses, and they have become players in the regional movement of capital. Freeing up trade in manufactures has helped transform the targets, amount, product pattern and product quality of Hungary s foreign trade. In 2000, its exports totalled USD 28.5bn and its imports came to USD 32bn, with the EU as the target or originator of two-thirds of the transactions. Last year businesses operating with foreign capital were the source of three-quarters of exports and 70pc of imports. The ratios of sophisticated products including machinery, installations and other highly processed goods doubled, and currently make up four-fifths of total trade.
Analysts expect free trade in manufactures to reduce the consumer price of cars in Hungary.
Andr s Inotai, director of the Research Institute for World Economics, believes that EU car manufacturers will gain an advantage over Asian and US competitors on the Hungarian market. Some forecasts also suggest that thanks to free trade, Hungarian consumers will also be able to buy EU-made computers at better prices.