ABSTRACT
Twenty years ago, the post–war hegemony of the United States as an unrivalled economic power was coming to an end as US firms gradually lost their competitive ground to firms from Europe. By the early 1980's the competitive or ownership–specific advantages of European firms had grown sufficiently large for them to compete effectively against US producers in their home market. The subsequent wave of market– and strategic asset–seeking foreign direct investment (FDI) from Europe was joined by increasing investment from Japan in the 1980s.
