The working paper analyses the relations between multinational corporations and the Hungarian business system. Within the context of globalization, the paper outlines the strategies and organizational structures adopted by multinational corporations. It concentrates on two sectors which have been major sources of employment in Hungary, motor vehicles and electronics. The paper also analyses the business system in terms of the role of the state, national corporations and the business culture. The paper views multinational involvement in Central and Eastern Europe from an international rather than a regional perspective, identifying the ways in which the interests of multinationals and states coincide, and the ways in which they differ.