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June 11, 1976 - Image 8

Resource type:
Text
Publication:
Michigan Daily, 1976-06-11

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Page Eight

THE MICHIGAN DAILY

Friday, June 11, 191(

231 south tate STARTS TONIGHT
HELD OVER
SHOWS AT ssO.s
7:00 & 9:00
Theatre Phone 4624264
OPEN At6:45L
FROM GHETTO TO SUPERSTARS
111/

Artists in Leningrad took their tools and brushes to this tree creating a fearsome mon-
ster whose feet are firmly planted in the ground.
Foreign investment inU.S. icreases

eaturing the sensational music f
CURTIS M rIED-
SPARKL[ . PHILIP M. THOMAS - IRENE CARA- LONETTE McKEE -DWAN SMITH
MART ALICt DORIAN HAREWOOD TONY KING
sUWUA 0(1)-flbM U 115 JOEL SCHUMACHER
MAHl HA ROSINMAN. BERYL VIRTU P1 TR0BROWN
CURTISMATOl 1111IC NCOLOR-
N, oi n cur Sp e sngbe ha WO 1 av aton an ecords andTaes

BONN, West Germany (AP)-
Volkswagen's decision to build
a plant in the United States
marks a shift in world invest-
ment. The days of one-way
American investments in the
cheap labor markets of Europe
are over, German and U.S. of-
ficials say.
"German - American invest-
ment once was a one-way
street, but now it has become
two-way," said a German gov-
ernment spokesman.
IN 1975, for the first time
since World War II, West Ger-
mans invested more in the
United 'States than American
firms invested in Germany.
U.S. investment in West Ger-
many for the year was $249 mil-
lion, compared with the $299
million the Germans invested
in the United States, the eco-
nomics ministry said.
One American analyst noted
that U.S. investment dropped
sharply in the first half of 1975
- and pointed out that talks
were then under way on a law
giving German workers nearly

the same control of large com-
panies that stockholders have.
THE SO-CALLED Mitbestim-
mung codetermination law was
passed late last year..
A German government spokes-
man said he thought the law
had little to do with the decline
in U.S. investment.
"That was at the worst of the
recession," he said. "Besides,
we say to businessmen, 'Which
would you rather have, strikes
or Mitbestimmung and labor
peace.' The Federal Republic
has the lowest strike rate in the
world."
GERMAN AND U.S. analysts
agreed that there were three
basic factors which lured Ameri-
can capital to Europe after the
war-favorable exchange rates,
low-cost labor and the develop-
ment of the European Common
Market.
American businessmen put
their own plants in Europe so
they could compete if the Com-
mon Market kept out U.S. im-
ports.

!'( P55111 tUIDANCE titFTFDl

From Warner Bros.
A Warner Communications Company 1

1214 °1 s. uHiversity HELD OVER!
C" V S.PA 3rd Sizzling Week
Shows Tonight at
7:00 & 9:00-Open at 6:45
No One Under 18 Admitted
7he masterpiece of bizarre love
that stunned France.
Aportraitof love and submission
to disorder the senses.

." ".=y HELD OVER-
3rd Hilarious Week
Shows tonight at
T- 7:00 & 9:00 --Open 6:45
BILL VELCH HARVEY
is Jugs" KEs
"Mother""Speed"
they don't call them that for nothing!
ALLEN GARFIELD - L.O. JONES'- BRUCE DAVISON ",,LARRY HAGMAN
JOSEPH R. BARBERA PETER YATES.-TOM MANKIEWICZ PETER YATES
TOM MANKIEWICZ STEPHEN MANES.,TOMtMANKIEWICZ
. "!_h 1 RA CK AA stX E ON AM cOROS ANDTAES COLON By DELUXE

But the dollar, which used to
buy four marks, has weakened
so that it is worth only 2.5
marks. Labor costs in the Unit-
ed States are the same and
sometimes less than in Ger-
many, financial experts say,
"EXPERIENCE shows that
when a European operation goes
into our area the per-unit cost
is 20 to 25 per cent cheaper -
because of labor, raw materials,
transportation, duties and espe-
cially fringe benefits," said Ar.
no Burckhart, who represented
the Pittsburgh area here in its
apparently successful campaign
to get Volkswagen to put its
plant in New Stanton, Pa.
States and cities in Germany
seek new plants and investment
much the way they do in the
United States, with negotiated
favorable treatment on site lo-
cation taxation and other rat-
ters.
But the German inces oives
have been sufficient to ar'ract
only a declining amount of r cw
American investment in recent
years. The economics miiistry
stys U.S. investment dropyed
from 1.9 billion marks in 193
to 1.3 billion marks in 1974 and
623 million marks last yar
THE DAILY DIE WELT aid
in an article Thursday th sire-
cent unrest and political .h tt
to the left in Spain Italy and
Portugal were slowing dmns
U.S. investment in all of Eu-
rope.
"That doesn't touch the Ved'
eral Republic" said a om'C-
ment spokesman. "Germa y 1
very stable."
The economics ministry id
Germans had invested 4 2 bil.
lion marks in the United Sses
since 1952 while Americans h:d
invested 17.1 billion mars in
Germany just since 1961.
ATTENDANCE UP
JEFFERSON C I T Y, Mao
.5P) - Missouri's four Nation-
al Park Service areas drew 318
million visitors in 1975, accord-
ing to Merrill D. Beal, NPS
Midwest Regional Director.
STYLING is
the name of
our game.
CHET, HAROLD &
DAVE.
U-h stylists
at the UNIONj

Rated X An AUietlArtlsts X21 ase

I

Rated X An Allied Artists ixetease I

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