Explain the impact of foreign multinational enterprises on the British economy?

The first 200 words of this essay...

Explain the impact of foreign multinational enterprises on the British economy?

Britain's position as the birth place of the industrial revolution in the late 18th century gave it a unique importance in the world economic system (Jones, 1996). Britain also had a geographical advantage which enabled access for multinationals to other markets. There were many corporations which established production bases in Britain from the 1850s onwards. The first of these the Colt gun manufacturing corporation and the North British Rubber Company which established its first base in Britain in 1853 and 1868 respectively (Jones, 1988). Although they did not continue to manufacturing for very long it did pave the way for further FDI in Britain. MNCs had a considerable impact on the British economy, be it positive or negative. The main sector that FDI has shaped over the years has been manufacturing. In terms of industries, foreign MNC have been particularly influential in electrical equipment before 1914 (Jones, 1988). Also the motor car industry was dominated mainly by companies such as Ford until the 1920s and by 1939 about a quarter of British production was controlled by Ford and Vauxhall (Jones, 1988). New technologies, management and stock control