What is the Impact of Brexit on Foreign Direct Investment (FDI) within the UK with a Focus on the Manufacturing, Banking and Finance, and Oil and Gas Industries?

Master's Thesis , 2017 , 79 Pages , Grade: 2.1

Economics - Case Scenarios

Foreign Direct Investment (FDI) has been a complex topic, however its fundamental features have enabled it to shape the world we live in and is the backbone of many countries who would not survive without it. Being part of the European Union (EU), the United Kingdom (UK) was cocooned in a union full of rules and regulations that did not please its residents. The decision to leave the EU was taken and therefore these rules and regulations are not applicable and this in turn will drastically affect FDI.

Despite being one of the world’s greatest powerhouse, Brexit offers a great threat to its industries that have had solid foundations within the EU as well as the workforce it holds as the UK holds over 3 million EU nationals. The UK offers an abundance of incentives for investors although these have been affected by 3 the UK’s top industries, Banking and Finance, Oil and Gas and Manufacturing with many companies in these industries agreeing that Brexit will have a negative impact on their business practices even with the government trying to get the best Brexit deal.

This dissertation will critically analyse the literature on FDI and how the host country determinates will be used in order to analyse their affect and how it would differ after Brexit. The UK’s attractiveness for FDI was evident in the results that were obtained, which provided a similar theme to variables within the host country determinates that in turn allowed for recommendations to be made on the industries and how future practices could be handled.

Inhaltsverzeichnis (Table of Contents)

• 1 Introduction
  • 1.1 Chapter Outline
  • 1.2 Theoretical setting
  • 1.3 Topic Preview
  • 1.4 Research Question and Objectives
• 2 Literature review
  • 2.1 Chapter Outline
  • 2.2 Definition of FDI
  • 2.3 Types of FDI
    • 2.3.1 Resource seeking FDI
    • 2.3.2 Market seeking FDI
    • 2.3.3 Efficiency seeking FDI
    • 2.3.4 Strategic asset seeking FDI
  • 2.4 Eclectic Paradigm Theory (OLI)
  • 2.5 Product Life Cycle
  • 2.6 Host Country Determinates of FDI
    • 2.6.1 Political Determinates
    • 2.6.2 Economic determinates
    • 2.6.3 Business Facilitation
    • 2.6.4 Empirical studies
  • 2.7 Chapter Summary and Contributions
• 3 Methodology
  • 3.1 Chapter Outline
  • 3.3 Research Philosophy
  • 3.4 Research Approach
  • 3.5 Research strategies
  • 3.6 Time Horizons
  • 3.7 Data Collection Methods
  • 3.8 Quality and Limitations of Research
• 4 Findings and Results
  • 4.1 Chapter Outline
  • 4.2 United Kingdom Country Portrait
  • 4.3 European Union and Brexit
  • 4.4 Secondary Data
    • 4.4.1 FDI Trends
    • 4.4.2 Industries
  • 4.5 Primary Data and Host country determinates
    • 4.5.1 Host Country Determinates
  • 4.6 Concluding Discussion
• 5 Conclusion
  • 5.1 Chapter Outline
  • 5.2 Concluding the findings
  • 5.3 Recommendations
    • 5.3.1 Manufacturing
    • 5.3.2 Banking and Finance
    • 5.3.3 Oil and Gas
  • 5.4 Limitations and recommendations for future research

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This dissertation aims to critically analyze the impact of Brexit on Foreign Direct Investment (FDI) within the United Kingdom (UK), focusing on the Manufacturing, Banking and Finance, and Oil and Gas industries. The dissertation will utilize the Host Country Determinates framework to assess the attractiveness of the UK for FDI before and after Brexit. Key themes explored include:

• The nature and types of FDI
• The role of Host Country Determinates in attracting FDI
• The potential impact of Brexit on FDI inflows to the UK
• The specific challenges and opportunities faced by the Manufacturing, Banking and Finance, and Oil and Gas industries in the post-Brexit era
• Recommendations for businesses and policymakers in the UK to mitigate potential negative effects of Brexit on FDI.

Zusammenfassung der Kapitel (Chapter Summaries)

• Chapter 1: Introduction This chapter provides an overview of the research topic, outlines the structure of the dissertation, and presents the research question and objectives. It also defines the theoretical framework and briefly previews the main themes.
• Chapter 2: Literature review This chapter comprehensively reviews the relevant literature on FDI, encompassing its definition, types, and theoretical underpinnings. It explores the Eclectic Paradigm Theory (OLI) and the Product Life Cycle theory as frameworks for understanding FDI. The chapter further delves into the concept of Host Country Determinates, examining their impact on FDI attraction. It also analyzes relevant empirical studies on FDI and its determinants.
• Chapter 3: Methodology This chapter discusses the research methodology adopted for the dissertation, outlining the research philosophy, approach, strategies, data collection methods, and time horizons. It also addresses the quality and limitations of the research.
• Chapter 4: Findings and Results This chapter presents the findings of the research, focusing on the UK's country profile, the impact of Brexit on the EU, and the trends of FDI within the UK. It analyzes secondary data related to FDI trends, industries, and exchange rates. The chapter then examines primary data and assesses the impact of Host Country Determinates on FDI in the UK. It concludes with a discussion of the findings.

Schlüsselwörter (Keywords)

The key themes of this dissertation revolve around Foreign Direct Investment (FDI), Brexit, and its impact on various industries within the UK, including Manufacturing, Banking and Finance, and Oil and Gas. The dissertation utilizes Host Country Determinates as a framework for examining FDI attraction. Key concepts include: * FDI * Brexit * Host Country Determinates * Manufacturing * Banking and Finance * Oil and Gas * UK Economy

• College: Sheffield Hallam University
• Grade: 2.1
• Author: Anonym (Author)
• Publication Year: 2017
• Pages: 79
• Catalog Number: V381203
• ISBN (eBook): 9783668584297
• ISBN (Book): 9783668584303
• Language: English
• Tags: Brexit