Tales from the ‘global’ economy: Cross-national production networks and the reorganization of the European economy

Abstract

This essay considers the reorganization of the European economy in light of the fundamental new phenomena emerging in the international market economy: cross-national production networks in economically heterogeneous regions. Cross-national production networks have emerged as part of a reconstitution of competition and production best characterized as ‘Intelism’, visible especially in the cutting-edge electronics sector. The East Asian regional case is used here to illustrate how cross-national production networks operate in practice. Cross-national production arrangements may become decisive elements in the Eastern transition to a market economy, the reintegration of Europe and the evolution of Europe's regional position in the ‘global’ economy. Underpinning the discussion is the assertion that core attributes of the new ‘global’ economy may be found in national foundations, regional architecture and an ‘Intelist’ production influence.