Closed-market to open-market challenges facing Eastern Europe

Eastern Europe is in the early stages of capitalism with exorbitant inflation and a monumental challenge to overcome a generation of a ''closed-market'' economy that was controlled by the government to an ''open-market'' economy that is open to national and international markets. In order to provide a predictive model for cost estimation in the emerging ''open-market'' economies of Eastern Europe, this paper presents a Total Cost Management (TCM) methodology for price index factors that include growth rate, unemployment, acquisition of equipment and materials, and other economic and political factors. This paper also provides a conceptual simulation model utilizing the identified key external and internal factors of Eastern Europe economies.