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After a decade of Eurosclerosis the EC is moving with renewed
economic growth and increasing multinational investment toward a
single European market under the heading "Project 1992". The
creation of a single EC market creates dynamic adjustment needs and
opens up new opportunities for international business in a period
of intensified global competition and dramatic politico-economic
changes. Since the mid-1980s Eastern Europe is undergoing a radical
shift towards market-based economic systems -a difficult and
fragile development so far which is further complicated by economic
and political unification of Germany in central Europe. After the
era of British and, later, U. S. leadership in multinational
investment German and Japanese multinational companies are becoming
more influential players worldwide. Firms from Germany playa
special role because German unification of 1990 implies a bigger
home market, but also the diversion of total investment activities
towards the greater German home market. While the political divide
of Europe has ceased to exist, the economic division is becoming
more apparent, and it could indeed transitorily increase because
the EC 1992 project primarily generates growth impulses in Western
Europe, while systemic transformations in Eastern Europe reduce
output growth in the short term.
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