FDI

Question 1

Definition

Answer 1

An investment in an enterprise operating in a foreign economy, where the purpose is to have an effective voice in the management of the enterprise

Question 2

An effective voice def

Answer 2

Owning 10% or more of the company

Question 3

Portfolio investment

Answer 3

Any investment below 10% and is not included in FDI stats

Question 4

Inward FDI

Answer 4

Measures investments made in a country from another country eg investment from a foreign country into the UK

Question 5

Outward FDI

Answer 5

Measures investments made by domestic companies in a foreign economy eg investment from the UK into a foreign country

Question 6

Flows

Answer 6

Measures annual levels of investment on a net basis

Question 7

Stocks

Answer 7

Measures records the total book value of all existing fdi

Question 8

FDI positions

Answer 8

Is the value of the stock of investment at a point in time

Question 9

FDI earnings

Answer 9

Are the profits of multinational enterprises

Question 10

Repatriation of funds

Answer 10

Profits returning to the home country

Question 11

How many FDI projects where landed in the UK during 2023 to 2024

Answer 11

1,555

Question 12

How many new jobs where created in 2023 to 2024

Answer 12

71,500

Question 13

How many existing jobs where safeguarded in 2023 to 2024

Answer 13

11,600

Question 14

What is DBT

Answer 14

Department of Business and Trade

Question 15

What percentage of projects where secured through DBT

Answer 15

65%

Question 16

How many new projects did scotland have in 2023 to 24

Answer 16

125

Question 17

How many jobs where created in Scotland in 2023 to 24

Answer 17

4,035

Question 18

How many jobs where safeguarded in Scotland in 2023 to 24

Answer 18

2,307

Question 19

US created the most jobs in 2023 to 2024 of

Answer 19

19,000

Question 20

How many projects does India have in the UK

Answer 20

108 FDI projects as ethnic and culturally have a link

Question 21

Who does DBT encourage

Answer 21

Projects that align with the net zero ambitions

Question 22

What is net zero

Answer 22

a target of completely negating the amount of greenhouse gases produced by human activity,

Question 23

Benefits of FDI

Answer 23

Increase employment and income - with multiplier effect on an economy
Exchange of new technology and management issues
Increases choice and variety for consumers
Increased competition could increase efficiency and reduce costs/prices

Question 24

Disadvantages of fdi

Answer 24

Profits leave country and return to home country (repatriation of income)
Reliance on foreign firms who may lack loyalty and leave
Local businesses could be unable to compete and close