Links to the world

• What does the UK's links with other countries mean for businesses?

  More businesses are arriving in the UK
• What is FDI?

  Foreign Direct Investment in different countries
• What are the two forms FDI can take?

  • Companies can buy land or buildings
  • Companies can buy part of an existing business
• How much did FDI increase in the UK from 2010 to 2014?

  From £720 billion to £1,066 billion
• Where does most of the investment in the UK come from?

  From transnational corporations (TNCs)
• What is globalization?

  • Process of countries becoming more integrated
  • Involves trade, investment, and cultural exchange
• Why is FDI increasing in the UK?

  Due to improved transport and communication links
• What has London developed as a global center for?

  As a global financial center
• Why have many foreign banks located in London?

  Due to the business culture and networking opportunities
• What do free trade policies do?

  • Reduce import and export restrictions
  • Make it easier for countries to trade
• How did the EU promote free trade?

  By reducing trade barriers between member countries
• What happened to FDI after the UK left the EU in 2020?

  The UK began negotiating new trade agreements
• What has increased FDI from non-EU countries?

  New free trade agreements being negotiated
• What services have been offered to private firms previously run by the UK government?

  • Services have been privatized
  • Foreign firms can now buy these services
• How has FDI increased due to foreign firms?

  They can merge with existing businesses
• What has increased due to foreign direct investment (FDI)?

  Foreign firms buying or merging with businesses
• Why can foreign firms buy or merge with UK businesses?

  To increase their market presence and resources
• Which UK electricity boards are now owned by foreign companies?

  Many UK electricity boards
• Who owns Scottish Power?

  The Spanish energy company Iberdrola
• How is the UK economy affected by TNCs?

  It is increasingly affected by their operations
• What are the positive effects of TNCs on the UK economy?

  • Job creation
  • Investment in infrastructure
  • Development of new products and technologies
• What is a potential downside of TNCs for the UK economy?

  Over-reliance on foreign companies can occur
• What can large-scale projects lead to in the UK?

  Creation of jobs and economic growth
• How much has been invested in UK infrastructure?

  £15 billion
• What types of infrastructure projects are mentioned?

  Offshore wind turbines and subsea power cables
• How do TNCs influence product development?

  They lead in developing new products and technologies
• What happens if TNCs relocate or change suppliers?

  It can lead to negative effects on local businesses
• What is a challenge for local businesses in competition with TNCs?

  They struggle to compete against larger firms
• What has forced independent coffee shops to close?

  Competition from large coffee chains
• What is the impact of TNCs on local coffee shops?

  They can lead to shop closures
• What is the author's hope regarding their revision?

  To spark some bright ideas for investment
• What does the author suggest about economics?

  It is a complicated subject
• What should you invest in according to the author?

  Time in learning about economics
• What are the reasons for increasing foreign direct investment in the UK?

  1. Foreign firms can buy or merge with UK businesses
  2. TNCs create jobs and invest in infrastructure
  3. Large-scale projects lead to economic growth
• What are the downsides of TNCs for local businesses?

  • Over-reliance on foreign companies
  • Competition leading to closures of local shops
  • Potential negative impacts on local economies