This feature is in three parts: the first two are case histories of the contrasting experiences of two Western companies which expanded abroad for the first time in the mid‐1990s, into different countries in Eastern Europe. One is so far successful, the other not. The third section draws out the implications of these experiences: although still quite risky, investment in Central and Eastern Europe can already be made to pay by firms that enter as part of a well‐conceived and financed global strategy. Particular benefits are lower labour costs and access to untapped mark