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This work examines the role of multinational firms in the process of European integration. Using an empirical study of the process in multinational firms in Wales, it explores the impact and issues of integration. These issues include: the implications of the single market; the effect of integration on industry restructuring; the broader context of reorganization elsewhere in the world economy; the complex relationship between competition and economies of scale; the embeddedness of multinational investment in established production locations; and the possibilities for investments in peripheral regions.