| Abstract: | Globalization is changing the game of economic development, but the emerging rules and optimal strategies remain somewhat unclear. The Mercedes case discussed in this article illustrates the rough and uncertain nature of this transition. From the perspective of the traditional strategy, the price of the jobs initially promised by Mercedes seemed high; and the ultimate cost was increased by the intense competition among the bidding states. Yet from another perspective, the incentives offered by Alabama can be viewed as “table stakes” for the new global game of economic development. |
