ABSTRACT
We shall limit our analysis to two main time periods: first, the early post-war years through the establishment of the European Economic Community (EC) on 1 January 1958, to around 1975, and second, from that date to the present day. While the first period was mainly characterized by an inflow of US MNE activity into Europe, the latter saw both a widening of the sources of inward investment and a shift in its nature from both primarily import substituting to efficiency or strategic asset seeking. In addition, the latter years of the second period saw a marked increase in inward investment in anticipation of EC 1992, and a liberalization and harmonization of both national and regional policies towards such investment.
