ABSTRACT
This chapter provides the relationship between internationalization and unemployment. Compare the average rates of unemployment 1980-89 and the increase in these rates since 1970-74 in the OECD (Organization for Economic Cooperation and Development) countries, arranged according to population size in 1985. The Nordic countries and the other two European Free Trade Association (EFTA) countries Switzerland and Austria are all relatively small economies with high standards of living, low protection of imports of nonagricultural goods, national productive systems, and institutions particularly suited to their conditions. Integration into the Single European Market, either through a European Economic Area agreement or through full membership in the EC, could mean a disintegration of the particular national productive systems and modes of regulation. The standard theory of economic integration does not take into account the need to institutionalize markets and the role of nation-states in the creation of integrated and adaptable systems of production and regulation.
