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Globalisation is a challenge that creates both winners and losers. Until 2008 the small Northern European states were amongst the winners as they adjust well to rapid changes in the international political economy. These countries traditionally stay competitive by balancing open economies and flexible industrial policies within various forms of social partnerships and welfare systems. But what are the factors of their success, what is the significance of the state in a globalised economy, how do we explain the differentiated effects - and what has happened after the recent economic decline?The
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