The desire to attract inward investment is one of the few industrial policies pursued consistently by successive UK governments over the past twenty five years. (Pain, N.) It is widely recognized that foreign direct investment (FDI) may play a significant role in helping to transfer leading-edge skills, technologies, management styles and other best practices to host economies. (Potter, J. & Moore, B. & Spires, R., 2003) However, research that has assessed the benefits (and costs) of attracting foreign direct investments into host states and regions demonstrates that foreign firms, even within the same industry sector, may differ considerably in their ability to contribute to host regions’ economies. (Potter, J. & Moore, B. & Spires, R., 2003) This work will assess the impact of Multinational Enterprises on the British economy . With regards to Daniels, J. & Radebough, L. (2004) “a company that has a worldwide approach to markets and production is known as an MNE. It usually undertakes nearly every type of international business practice.” For the purpose of this work a MNE will further be defined as a company who owns and controls assets. The report is fundamentally structured into three parts. First there will be given a brief overview about foreign direct investment flows into the United Kingdom. The second part will analyse the cost and benefits of FDI for the United Kingdom both in theoretical and empirical terms. Based on the assessment the last section will suggest policy implications. The work is based on secondary research to a large extent.
Table of Contents
- Abstract
- Foreign direct investment flows into the UK (inward)
- Cost and benefits of FDI in theoretical and empirical terms
- Balance of payment effects
- Employment effects
- Technological effect
- Sovereignty
- Policy implications
- Bibliography
- Appendix
Objectives and Key Themes
This coursework assesses the impact of Multinational Enterprises (MNEs) on the British economy. It examines foreign direct investment (FDI) flows into the UK, analyzing the costs and benefits in both theoretical and empirical terms. Finally, it suggests policy implications based on this assessment. The work relies primarily on secondary research.
- Foreign Direct Investment (FDI) flows into the UK
- Costs and benefits of FDI for the UK economy
- The impact of MNEs on the British economy
- Policy implications for attracting and managing FDI
- Analysis of FDI across various sectors (services, manufacturing, resources)
Chapter Summaries
Foreign direct investment flows into the UK (inward): This chapter provides an overview of recent trends in inward FDI to the UK, using data from National Statistics. It highlights a significant decrease in net FDI flows from £36.6 billion in 2001 to £18.5 billion in 2002, representing a 49% decline. The chapter details the geographic origins of this investment, showing a shift from the US to the EU as the primary source, and analyzes the distribution across industry sectors, noting a decrease in the service sector and a net disinvestment in manufacturing. The data illustrates the dynamic nature of FDI flows and their fluctuations.
Cost and benefits of FDI in theoretical and empirical terms: This section would delve into a theoretical and empirical analysis of the costs and benefits associated with FDI. While the provided text excerpt doesn't offer detailed content on this, it's implied that this section would analyze aspects like balance of payments effects, employment effects, technological impacts, and implications for national sovereignty. This would necessitate a comprehensive review of existing literature and research to assess the overall net impact of FDI on the UK. The analysis would likely draw on various economic models and statistical data to support its claims and provide a robust evaluation of the multifaceted relationship between FDI and the host economy.
Keywords
Foreign Direct Investment (FDI), Multinational Enterprises (MNEs), United Kingdom, British Economy, Impact Assessment, Balance of Payments, Employment, Technology Transfer, Sovereignty, Economic Policy.
Frequently Asked Questions: Analysis of Foreign Direct Investment in the UK
What is the purpose of this coursework?
This coursework assesses the impact of Multinational Enterprises (MNEs) on the British economy by examining foreign direct investment (FDI) flows into the UK. It analyzes the costs and benefits of FDI in both theoretical and empirical terms and suggests policy implications based on this assessment.
What are the key themes explored in this coursework?
The key themes include foreign direct investment (FDI) flows into the UK, the costs and benefits of FDI for the UK economy, the impact of MNEs on the British economy, policy implications for attracting and managing FDI, and analysis of FDI across various sectors (services, manufacturing, resources).
What is the scope of the chapter on "Foreign direct investment flows into the UK (inward)"?
This chapter provides an overview of recent trends in inward FDI to the UK, using data from National Statistics. It highlights a significant decrease in net FDI flows between 2001 and 2002, details the geographic origins of this investment (shift from the US to the EU), and analyzes the distribution across industry sectors (decrease in the service sector and net disinvestment in manufacturing).
What does the chapter on "Cost and benefits of FDI in theoretical and empirical terms" cover?
This chapter delves into a theoretical and empirical analysis of the costs and benefits associated with FDI, examining aspects such as balance of payments effects, employment effects, technological impacts, and implications for national sovereignty. It uses economic models and statistical data to assess the overall net impact of FDI on the UK.
What policy implications are considered?
The coursework suggests policy implications based on the assessment of the costs and benefits of FDI in the UK. While the provided text doesn't detail specific policies, it implies recommendations derived from the analysis of FDI's impact on the British economy.
What are the key words associated with this coursework?
Key words include Foreign Direct Investment (FDI), Multinational Enterprises (MNEs), United Kingdom, British Economy, Impact Assessment, Balance of Payments, Employment, Technology Transfer, Sovereignty, and Economic Policy.
What type of research methodology is used?
The coursework relies primarily on secondary research.
What is the structure of the coursework?
The coursework includes an abstract, a table of contents, objectives and key themes, chapter summaries, a bibliography, and an appendix.
- Quote paper
- Alexander Dürr (Author), 2004, Multinational Enterprises and their hosts: An 'impact' assessment on the United Kingdom, Munich, GRIN Verlag, https://www.grin.com/document/32822
