This textbook looks at the origin, development and potential limits and prospects of the process of European integration by considering the principal EU economic policies. The book also discusses topics such as foreign direct investment, transnational corporations and the location of firms and industries. The complex material is presented in a reader-friendly way, yet underpinned by a sound theoretical framework and revealing examples. This accessible and approachable text is aimed at upper level students in the fields of European studies, economics - particularly international economics - business studies, international relations and economic geography.