CSMP29 💷 Inward investment & regeneration

Question 1

28.1: Why did Birmingham need regenerating?

Answer 1

Birmingham was in a bad state in the early 1980s and 1990s because of the Israeli-Arab war, which caused a threefold increase in oil prices that impacted the city’s manufacturing industry. The competition from MNCs in other countries, such as Nissan, also affected the primary and secondary sectors.

Question 2

28.3: Business Birmingham

Answer 2

Key selling points about Birmingham according to Business Birmingham: more growth, #1 region for FDI, world-class research facilities, more innovation, record 34 million visitors, more space, highest quality of life outside London, award-winning street food. Additional key facts about FDI in Birmingham: more FDI projects in Greater Birmingham than any other region (2014), about 100 projects per year (last 5 years), 5000 jobs created through this, >50% in manufacturing sector, biggest was Jaguar Land Rover £1.5bn investment in Solihull site, big growth in the digital sector.

Question 3

28.3: Business Birmingham - Ten key reasons to invest in Birmingham

Answer 3

The ten key reasons to invest in Birmingham according to Business Birmingham are: 1. World-class universities and colleges, 2. Largest concentration of businesses outside London, 3. A dynamic and diverse population, 4. Excellent connectivity and infrastructure, 5. A great location, 6. Affordable business space, 7. Strong enterprise culture, 8. Leading export performance, 9. A lifestyle second to none, 10. Investment-ready support services.

Question 4

28.3: Business Birmingham - Which of the 10 key reasons would be most important for a technology company that specializes in computer chip design?

Answer 4

Leading Export Performance: Because they would want to invest in a place where they can export a lot of computer chips from.

Question 5

28.3: Business Birmingham - Can you think of a different industry that would be swayed for an alternative reason?

Answer 5

Industry: Restaurant (tertiary sector) <br></br>Key factor: Strongest growth in international tourism <br></br>Explanation: Restaurant owners would want to attract more international tourists to come and eat at their restaurants, so the strongest growth in international tourism would be a key factor in persuading them to relocate their business to Birmingham.

Question 6

28.3: Business Birmingham - Which of the 10 key reasons do you think would be least influential in making people’s minds up about relocating their businesses and why?

Answer 6

Affordable business space may be the least influential