European Integration, Regional Subsystems and MNE Responsiveness

Jeremy Clegg, Adam R. Cross and Heinz Tüselmann

Chapter 7 in The Changing Global Context of International Business, 2003, pp 112-147 from Palgrave Macmillan

Abstract: Abstract Firms today operate in a global economy best analysed as comprising a number of interacting regional subsystems, of which the European economy - and primarily the European Union (EU) - provides a key example. These subsystems are cemented by ties of history, culture and trade, and, notably in the second half of the twentieth century, by political institutions and initiatives. Within each subsystem, foreign direct investment (FDI) plays a central role, in both integrating the individual subsystem and in providing linkages between subsystems through the activities and policies of multinational enterprises (MNEs). Of growing concern, not only to the MNEs themselves but also to national and supranational policy-makers, is to what extent these regional subsystems and the integration processes by which they are created shape patterns of investment within and between them. The EU is an exemplary laboratory in which to investigate the interplay between FDI and regional subsystem development.

Keywords: European Union; Member State; Foreign Direct Investment; Foreign Direct Investment Inflow; Outward Foreign Direct Investment (search for similar items in EconPapers)
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-50155-3_7

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DOI: 10.1057/9780230501553_7

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