Direct Foreign Investment

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 …

…driven by the decline in investment from the USA and electronics, telecom and business services. However EU enlargement will not only have adverse affects on present member countries, it will give for example the potential for direct foreign investment by the UK into new member countries where the potential growth is high, in the future this should hopefully bring a net flow of investment income and thus boosting the UK GNP and balance of payments.