4 Korean Automotive FDI in Europeas a determinant for Korean automotive FDI has been conceived in three steps. Firstly, the assertion of Yannopoulos that economic integra- tion holds implications for the motivations of FDI (Yannopoulos 1990a: 235–57, 1992: 329–48) is applied to the context of European automobile industry. Secondly, the factors and determinants of FDI according to the ‘Eclectic Theory’ are identified with particular reference to the Korean VMs. Thirdly, the possible effects of integration on the automo- bile industry have been deliberately related to each determinant of Korean automotive FDI and industrial location in Europe.
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