Adaptation at the Cost of Adaptability? Restructuring the Eastern German Regional Economy
This chapter examines the motives of Western corporations investing in eastern Germany. It illustrates how the initial expectations for economic development in eastern Germany and in Eastern Europe have been disappointed: this is due to the rising labour costs as the anticipation of growing markets faded. Secondly, it reconstructs the strategies adopted by Western corporations to cope with these unforeseen challenges of their investment in eastern Germany. Finally, the chapter evaluates the impacts that these strategies have had on regional development in eastern Germany.
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