Describe pattern of DFI into/out of U.K.
The UK has been a popular economy to invest into in recent years second only to the United States. Endorsed by the fact that with only one percent of the world's population the UK receives nearly 8% of the worlds cross border foreign investment. The greatest amount of investment occurred in 2000 with a staggering 116,552 million dollars of investment into the UK, the highest figure ever recorded. In this year the amount of investment from Europe rose by 14 billion (but fell by 1 billion from the Americas). The amount of direct foreign investment has gradually been increasing over the past twenty years up until the year 2000, there was a reduction between the years 2000 and 2001 resultant, most probably from the events of September the 11th which follows the global trend. Out of the top 500 firms that operate in the UK, 313 of them are foreign owned.
There are a number of reasons as to why the UK would be an attractive place to invest in including: it is English speaking (common language), it has access to the large European market both geographically and in the fact that there are no trade tariffs imposed, it also has a large and educated workforce to name but a few.
Outward investment from the UK is considerably greater than inward investment. One fifth of developed country outflows come from the UK and the majority of this goes to the US. The amount of direct foreign investment has gradually been increasing since the 1980s most probably influenced by the 1979 abolition of foreign exchange controls which freed the flow of financial capital between the UK and overseas, in 1992 the approximate amount of foreign investment overseas was in the region of...