ABSTRACT
This chapter presents the question of the impact of enlargement on European competitiveness as an opportunity to apply, combine and discuss some of Susan Strange's theses on production, power and knowledge in a fast-changing world economy. It explores that the process of European Union (EU) enlargement is taking place at a quite specific time in the history of international competition, characterized by the increasing knowledge content of competitiveness. Eastern enlargement of the EU has considerable potential to alter the bases of competitiveness in Europe. This is an argument that is all too often neglected, if not ignored, but which could give a decisive turn to negotiations between the EU and prospective member states to the east. The opening up of Central and Eastern European countries is taking place at a quite specific time in the history of international competition: 'global competition' is characterized by the increasing volatility of conditions with which firms and states are confronted.
