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Corporate restructuring and cohesion in the new Europe

Amin, Ash and Charles, David and Howells, Jeremy (1992) Corporate restructuring and cohesion in the new Europe. Regional Studies, 26 (4). pp. 319-332. ISSN 0034-3404

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Abstract

This paper explores some of the conflicts between European policy that permit and underpin the process of corporate restructuring in Europe, and the aims of regional policy. It is argued that despite a focus of EC regional policy on the potential for indigenous development, the large firms continue to exert a major influence on the performance of the less favoured regions. Not only are such firms seeking to respond to new opportunities in the Single Market through restructuring, but this process is being aided by the Commission's own industrial policy. Two sectors that are likely to be particularly affected by the completion of the Single Market are examined---the telecommunications equipment and pharmaceutical industries---and the regional implications of current merger, acquisition and rationalization activity are reviewed. The paper concludes with consideration of the new forms of organization being adopted by firms in response to the threats and opportunities of a Single European Market.