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The document outlines 15 benefits that foreign direct investment provides to the UK as well as 22 benefits of locating a business in South East England. Some key benefits of FDI to the UK include increased capital, employment, productivity, and tax revenues. Benefits of locating in South East England include access to European markets via ports and airports, a skilled workforce, business-friendly climate, and proximity to London as a financial hub. The region is also a center for research and development partnerships with universities.
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- 1. Keith@Blackey.net Keith Blackey 15 Benefits to the UK from Foreign Direct Investment (FDI) 22 Benefits to Locating in the UK
- 2. Keith@Blackey.net 15 Benefits to the UK from Foreign Direct Investment (FDI)
- 3. Keith@Blackey.net Why FDI • Nations are increasingly competing against each other to attract strategic global investments that support economic growth & fund economic transformation. • Competition for Foreign Direct Investment (FDI) is intense & success is increasingly determined by the ability of a country to develop & implement a range of policies, regulations & standards that create a superior business & investment climate.
- 4. Keith@Blackey.net UK FDI Benefits 1. Increased capital 2. Increased employment 3. Infrastructure investment 4. Increased productivity – 1 % rise in output of foreign firms in a particular industry will raise technical progress by 0.53 % in domestic firms in that industry. • Hubert & Pain (2000), ‘Inward Investment and Technical Progress in the UK Manufacturing Sector’, National Institute of Economic and Social Research. Available at: http://www.niesr.ac.uk/pubs/dps/dp175.pdf
- 5. Keith@Blackey.net UK FDI Benefits 5. ‘Clean’—service sector 60 % of FDI 6. Access to ‘Best Practices’ – 3/4 of FDI in the UK comes from EU, USA or Japan 7. Increased local market competition 8. Increased technology transfer.
- 6. Keith@Blackey.net UK FDI Benefits 9. Increased employee training 10.Increased corporate tax revenues 11.More stable that FPI – “Bolted down and cannot leave easily at first sign of trouble.”
- 7. Keith@Blackey.net UK FDI Benefits 12.Faster growth – FDI growing faster than world GDP 12.Increased market for SEE products 13.Limits ability of governments to pursue bad policies.
- 8. Keith@Blackey.net UK FDI Benefits 15. ‘Fast track’ to priority industries: • ICT • Business Services • Life Sciences (bio/pharma) • Environmental Technology • Media • Women-owned • High-Tech Engineering: – Automotive – Aeronautical – Marine.
- 9. Keith@Blackey.net 22 Benefits to Locating in South East England
- 10. Keith@Blackey.net SEE Location Benefits 1. Common language 2. Reduced financial risk—diversified lending & investment. 3. Be part of a dynamic business climate • By 2012, SEE will be one of top 15 regions in the world in terms of labor productivity, competitiveness and employment rates.
- 11. Keith@Blackey.net SEE Location Benefits 4. European-centric time zone 5. Rapid/easy access to EU, Middle East & African markets • Highest rate for exporting in the UK—£28 billion exported annually • Heathrow (largest traffic volume international airport in Europe) & Gatwick • Dover, Southampton, Portsmouth • Channel Tunnel.
- 12. Keith@Blackey.net SEE Location Benefits 6. Reduced manufacturing & distribution risks 7. Access highly skilled, motivated workers • 88% of working age population holds some form of qualification • 73,000 new graduates per year.
- 13. Keith@Blackey.net SEE Location Benefits 8. Sell to a thriving local market • 22nd largest economic region in the world • Largest population of any UK region, with approximately 8 million residents 9. Be part of 2012 Olympic Games festivities & economic boom 10.Access global capital—London is EU financial center
- 14. Keith@Blackey.net SEE Location Benefits 11. Free, confidential re-/location advice 12. Grow your R&D edge • Partner w/ 24 universities including Oxford • Region gets 25 % of national R&D expenditure 11. Take advantage of flexible employment regulations.
- 15. Keith@Blackey.net SEE Location Benefits 14. Take advantage of Enterprise Hubs & Global Regions programs 15. Low utility costs 16. Attract employees: • Ideal living environment • Moderate living costs • Easy access to London, major towns, rural and coastal areas.
- 16. Keith@Blackey.net SEE Location Benefits 17. Connect to the world w/ advanced telecommunications infrastructure 18. Take advantage of attractive business climate • Government-focused economic & social growth area.
- 17. Keith@Blackey.net SEE Location Benefits 19. Join industry leaders • ICT: 2nd highest Information & Communication Technology (HW, SW, e- commerce, telecom, electronics) market growth in Europe • Lifesciences: • World’s top 12 pharmaceutical companies • 2nd to USA in developing new medication • Aerospace: 2nd largest in world.
- 18. Keith@Blackey.net SEE Location Benefits 20. Similar business culture 21. Positive attitude & affinity to US 22. Follow the leaders—UK is largest recipient of US investment in Europe for over 36 years.
- 19. Keith@Blackey.net 22 Benefits to Locating in South East England Questions?
- 20. Keith@Blackey.net Keith Blackey • 15 Reasons why the UK Benefits from Foreign Direct Investment (FDI) • 22 Benefits to Locating in South East England