WHOI-90-52

Addendum
In the period since the presentation of this paper, there have been major changes in the political
struture of Europe. While it is beyond our scope to analyze the potential effects of these
changes on the markets for MEI technologies, we can outline a few points here. Th apparent
success of Soviet glasnost, the razing of the Berlin wall, and the "demoratzaton" of Eatern
European countries have resulted in a diferent economic environmnt than tha which existed
only months before. Thre is nes of
the possibilty of reduced defense spending, the relaxation
of export controls, and improved link between EC and EFTA countries in a new "European
Economic Space." But whether these changes will result in opportnitiesfor U.S. firm in MEI
technologies is extremely uncertain. Given the severe environmntal problems faced by many
Eatern European countries, we expect tha there is substantial needfor increased environmntal
monitoring and oceanographic research technologies, for example. However, existing
governntal andfinancial institutons, lack of
technological capabilties (especially computers),
and lower standards of living wil ma it dijcult, ifnot impossible, for such needs to be backed
by hard currenc and revealed in expandd markets. It is clear tha firm in some Western
European countries, especially West Germny (and possibly also Finland to a lesser extent), may
alread have head starts and locational advantages in the establishmnt of trading and joint
venture relatonships with Eatern European countries. Th opening of the Eatern European
markets will be yet another important factor for future consideration of the competitive position
of u.s. firm in the MEI field.
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