This case study analyses the possible impact of globalization on the state governance of FDI (foreign direct investment) and NEC (non‐equity forms of cooperation) in Germany in six sections. The first is an introduction, and the second looks at the German economy after unification, and gives an overview of the major influential factors on this issue—the economic situation and the international competitiveness of the German economy. The third section estimates the role of outward and inward FDI with special reference to the new Länder (Neue Bundesländer), and attitudes and policies of the German government towards FDI are discussed in the next section. The features of globalization are then outlined and challenges for federal state governance of FDI are deduced; because of the important role of trade unions in Germany, their position is also briefly discussed. The chapter ends with a short summary and outlook.
Keywords: case studies, competitiveness, economic policy, foreign direct investment, German unification, Germany, globalization, governance, government, Länder, market competition, non‐equity forms of cooperation, trade unions
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