The natural administrative borders of South West Hungary are Croatia in the south, Lake Balaton in the north, the river Danube in the east and the North West Hungarian (West Pannonian) Region to the west. The three counties constituting the region (Baranya, Somogy and Tolna) have a population of about 1 million and can be regarded as a gateway to the Mediterranean area, through the Southern Slavic territories. Foreign companies The Finnish Elcoteq project implemented in the Industrial Park of Pécs in 1997 has had a stimulating impact on the economic life of Baranya county and the local labour market as well. Eimo supplying Elcoteq with precision synthetic material, built its own plant next to its partner, a leader in the manufacturing of microelectronic products. Outside the county seat, the industrial park of Bóly, a small town in Baranya, has also attracted several smaller businesses. In Somogy county it is primarily Kaposvár, the county seat, that has managed to benefit from the positive impact of the inflow of working capital. The companies established in the Videoton MBKE Industrial Park mainly produce for Sony and Philips, while the Keleti (Eastern) Industrial Park prefers green field investments (the Hungarian plant of Purina, the American fodder- producing giant is also operating here). The new plant of NABI Plc., exporting buses to the USA, is expected to boost the economy of the town. Other big investors in Somogy include Flextronics in Tab, manufacturer of electronic components, Coats, a thread factory in Nagyatád and Sió Eckes Ltd. specializing in fruit juices. Tolna county has also been discovered by investors in the past few years; this is well- illustrated by the Szekszárd plant of Samsonite, Massive of Belgium, lamp manufacturer in Tamási, and the German cable manufacturer Prettle and Jürgenhake in Szekszárd. Of course, Paks Nuclear Power Plant Plc. still remains the biggest company in Tolna county. The strengthening of innovation in South-Transdanubia is indicated by the development of the innovation centres in Pécs and Dombóvár, as well as the operation of the Flamish Incubator House in Kaposvár. The emerging network of suppliers counts on orders coming form the large companies establishing branches in Hungary or the region. Sylviculture, hunting, shooting and fishing (mainly in Lake Balaton) have long traditions here. There are several advantages foreign investors can enjoy if they decide to settle in South-Transdanubia. This region boasts one of the most highly developed infrastructure of higher education in Hungary, training a large number of well qualified professionals for the businesses, which can also obtain local tax benefits in the course of negotiations with the local governments. Foreign businessmen investing in the area of Mohács and Barcs are automatically offered corporate tax allowance. The region (South West Hungary)