Competing for Capital: Europe and North America in a Global Era. By Kenneth P. Thomas. Washington, DC: Georgetown University Press, 2000. 333p. $65.00.

Extract

Much has been written over the years about the impact of increasing levels of capital mobility both on national governments and on the international economic system as a whole. Owners of capital can now “shop” among a variety of economies for the investment climate that suits their needs most—lower inflation, better interest rates, less restrictive labor policies, and so on. In this sense, the increase in capital mobility over the last few decades has meant that investors (particularly large investors) are no longer restricted to searching for investment opportunities in their domestic economy. Thus, domestic economic policy must increasingly accommodate the needs of the international marketplace.