Pros and cons of foreign ownership

Question 1

Cons

Answer 1

Profits flow overseas, loss of taxation revenue

Research takes place abroad ‘dumbing down’ UK and taking higher skilled work

Short term boost, long term decline as overtime efficiency takes over and there is risk of job loss

Question 2

Pros

Answer 2

Performance and productivity of foreign companies in Britain tends to be higher than domestic ones

Investment made in training up workforce, creates higher skilled workers in host country