German Investment in Ireland and in the Central and East European Countries

Abstract

The accession of Central and Eastern European countries (CEECs) to the EU is expected by many to lead to the diversion of foreign direct investment towards the CEECs and away from other EU countries. The following paper focuses on the investigation of the internationalisation strategies and location choices of German multinational corporations (MNCs) in manufacturing against the background of growing regional economic integration, and particularly the fifth EU enlargement. It draws on the findings of a case study and interview results covering three German MNCs and their location choices for investment in both Ireland and the new EU member countries from Eastern Europe.