The Political Economy of British Foreign Direct Investment

Foreign direct investment (FDI) is transforming the world economy, and the questions it raises are debated in every country. Is it in the interests of a country to receive large inflows of FDI which enhance its productivity and employment, but at the same time increase the extent of foreign control of its industry and commerce? If UK companies invest abroad, are they depriving their countrymen of jobs and incomes and the UK government of tax revenues? Is foreign investment by British companies a vote of no confidence, or an indication that businesses are so well managed that they can produce competitively in a variety of environments?