This is a study in the political economy of the multinational enterprise. It looks at the internationalization in the 1980s of the 12 leading French and German owned multinational enterprises (MNEs) in chemicals and electronics, who form part of a European Challenge in international competition in technology. The book examines how and why the internationalization of these MNEs has interacted with their embeddedness in the domestic structures of their home countries (France and Germany) particularly in terms of their power relationships with home governments and financial institutions. The primary themes are: the MNE's roles as political actors; domestic government policy vis-a-vis the MNE's; MNE financial relationship with banks in France and Germany; and MNE political activity at the level of the European Union, especially evident in technology policy.