Foreign Direct Investment and Europe

This chapter seeks to tackle the issue of foreign direct investment (FDI) and Europe — in particular the European Union (EU)1 — within a synoptic view of international business writings. The short-term economic factors are relatively well discussed, but the historical, cultural and political dimensions are rarely touched upon in mainstream international business. It is not our purpose to do this thoroughly here, but simply to take a step back and put the economic factors in perspective. It transpires that the familiar economic influences appear part of a more permanent and pervasive system. With this perspective; the issue of foreign direct investment and Europe appears part of the natural establishment of an interlocking economic system.