Foreign Direct Investment Impact Analysis

This assignment delves into the effects of foreign direct investment (FDI) on nations. It examines how effective FDI policies can benefit citizens through resource allocation and economic development. The analysis emphasizes the need for government support and privileges to attract foreign investors, highlighting the importance of creating a favorable market environment. The logbook format is provided as a guideline for documenting observations and reflections throughout the assignment process.

running head: Global Issues
Position papers

Global Issues 1
Contents
Component 1: Position paper on ‘Poverty and Inequality’............................................................2
Component 2: Position paper on ‘Youth unemployment and economic growth’........................3
Component 3: Position paper on ‘FDI and country attractiveness’..............................................5
Component 4 Reflective Learning Journal and Logbook..............................................................7
References..........................................................................................................................................8

Global Issues 2
Component 1: Position paper on ‘Poverty and Inequality’
Poverty and equality are treated as a peoples’ incapacity to meet the basic necessity in the
standards of life. Evidence of poverty and inequality exist in both developed and developing
nations of the world. It is a basic life fight to cope up with a severity in the scale of scarcity in
present time. The poverty in the UK exists in a form of “absolute poverty” where basic
framework of living standards determines the poverty unit. Another one inequality
determines on the basis of “fiscal report” made every year. On an average one in four
families survives without proper resources provided by government.
The term “Poverty and Inequality” are the two most controversial issues exist in the nation
like United Kingdom. It has a seventh position in the inequality and poverty as paralleled to
other settled nations. Though the nation is categorised under developed, still the disparity in
the income inequality and poverty exist (Belfield, Hood and Joyce, 2016).
The constant high level of poverty and inequality in the United Kingdom states the general
consequences of poverty and inequality. Both the terms are interconnected with a lack in
societal resources. It completely depends on the governmental actions in favour of disabled
or weaker segment of the society. Unemployment, weak education system and unavailability
of good opportunities in providing quality lives are current challenges in front of government
in which responsible authorities are escaping. There is an urgent need to put best endeavour
to curb these challenges by the government.
The causes of the poverty entirely depend on the inequality because poverty does not mean
only with a situation that person having no money. It is beyond the problem of money. It
mainly deals with such drastic circumstance in which poor person finds no resources to
survive even a day that is scarcity in food, cloth and shelter. The United Kingdom is
experiencing such issue on poverty and inequality from last many decades and still
struggling with it (Beteille, 2007).
The present statistics of UK shows the negative vision of “poverty and inequality”. The
poverty line is declining by the major growth in nations’ revenues and values of basic
commodities. In order to eliminate the highest level in poverty and inequality, the proper
generation and distribution of income must take place. Several economists argue that the
status of poor is affected mainly by the increase of price in the agricultural sector. The
agricultural sector mainly affected by the least liberal schemes and policies in it. Small sector
or households is also facing the same issues in respect of unequal level in price system
(Brewer, Muriel & Sibieta, 2017).

Global Issues 3
The record of 2012 till present year of National Statistics, UK represent that the UK is
holding a fifth ranking in the persistent decrease in poverty and nearly 16.7 is context of
inequality. The rough draft states that almost 30.2 per cent of population is in risk of poverty
and inequality. It is also reported that the gap between male and female is approximately
1.9 per cent. The neighbouring countries of UK are not experiencing such a downfall in the
context of poverty and inequality. For instance-the southern and eastern Europe has a slight
rate in poverty and inequality (Davidson & Duclos, 2016).
The reformative policies on poverty and inequality must include the agricultural development,
rapid capital accumulation and proper implementation of the technology advancement and
growth. The introduction of “sustainable economy” must take place in order to curb the basic
disparity of the income system. Policies must ensure an individual’s standard of living where
every basic commodity is affordable to consumption. No one should be deprived by any
basic material resources due to threatening cause of poverty and inequality.
The facts and figures on the Inequality and poverty conclude that the lack of monetary
flexibility and economic opportunities is one of the major causes in the United Kingdom.
Broadening of poverty and inequality contributes vital ideas in modification of economic
policies. The economic policies of UK must aim to focus on stability of the terms of monetary
scale. It must also stress to reduction of unequal investment of the government. Thus in
spite handling the issues of poverty and inequality, the reformative or social legislation must
be created for benefits of the economically disabled or disadvantageous section of the
society.
Component 2: Position paper on ‘Youth unemployment and economic
growth’
Youth employment is another serious impact exists in the development of any nation. The
economic literature of United Kingdom states the explanation of term “youth” as a teen or
young citizen between the ages of 18 to 25. The present statistics of the UK evaluates the
unemployment rate of 18.6 per cent and it is one of the highest ranges of unemployment
rate in past twenty years. Such high unemployment rate in the developed country like United
Kingdom requires a deep concern for future interest of youth. The economic growth and
development is adversely affecting by the problem of “youth unemployment”. Thus, the direct
relationship creates between youth unemployment and economic growth (Elias, 2014).
The decreasing rate in “youth unemployment” can be possible if the youngsters are provided
with numerous employment opportunities by the every public and private unit of the nation. It

Global Issues 4
is significant measure to highlight the hidden talent or skill of the young citizens. The youth
requires an enthusiasm and motivation for the work (O'higgins, 2011).
The current statistics on UK Economy determines that the half of the young population is
facing issues in “lack of job opportunities”. Almost 29.6 per cent recorded the current rate of
young’s as job less. The report also classified two types of youngsters who are unable to get
jobs. The first category of youngsters belongs to small cities or towns particularly Swansea,
Middlesbrough and Bradford. On the other side, the second category of youngsters belongs
to urban or developed cities like London. Both the categories are disabled in context of job
opportunities and the rate is rising day by day. In the year 2014, the rate was 14.9 and the
current year the rate is 19.6 per cent. The young unemployed claimants are in a range of
1.45 million which is very high in respect of economic growth.
According to International Labour Organisation (ILO), the causes of youth unemployment are
fiscal calamity, lack of quality education and lack of monetary resources. The world
economist argues that youth unemployment is increasing mainly due to lack of appreciation
of individual talent and skills. At least 72 million of young population are unemployed due to
non-consideration of their skills and talents. The economist also stressed that the strong
necessity of “man power” for the economic growth of the nation (Marelli & Signorelli, 2012).
The National Youth Development Agency (NYDA) suggests that the government should
ensure the effective policies or schemes so that youth development takes place in a proper
manner. Such policies or schemes must include the exploration of numerous job
opportunities especially in their first job. The diversity in working environment also leads a
positive measure to attach the youngsters for numerous job opportunities. If such effective
policies does not implement practically then it may cause a factor of “an increased crime
activities” among youngsters. Even the suicides cases may also emerge due to depression
in the jobless youngsters. The current crime report evaluates the “unemployment” as one of
the factors for crime. Almost 32.5 per cent youngsters engaged in crime activities
(MacDonald, 2008).
The mutual relationship of youth unemployment and economic growth affects according to
both external and internal economic stage any nation’s economy. Such external and internal
factors include the present scenario of market system, employment, job opportunities,
development or expansion in the numbers of private or public enterprises. Thus, it is
recommended that the effective policies or schemes to be implemented for infrastructure
development in order to curb the grass root of unemployment. The present report states the
high changes in the youth unemployment per cent among the cities like brad worth,

Global Issues 5
Budapest and north east region of UK due to weak infrastructure which fails to provide a
diversified job opportunities among youngsters.
Therefore, it is concluded that economic growth of the nation can be raised only when the
constant endeavours be put by the administration authority. It is also important to foresee the
future medical impacts of youth unemployment. For instance-high number in young suicides
or depression recorded. No young person can determines or evaluates its own integral role
towards nation. It is true to state that youth is a future assets which need to preserve at any
cost.
Component 3: Position paper on ‘FDI and country attractiveness’
The general meaning of foreign direct investment (FDI) refers to a speculation of a governing
possession and proprietorship in a business in any nation. The concept of FDI deals with an
investment of national economy in respect of commercial enterprises. It commonly includes
the contribution in management by union and purchase or building different services. In
other words, the foreign direct investment confers investments by one nation to another with
an aim of shaping an attractive country.
A nation’s economy growth mainly raised by the factor of “private investments” among two
countries. It is able to increase the economic output and employment opportunities.
Moreover, the low rate of investment may become a threatening cause to nation’s economy.
It is significant to promote the foreign direct investment to facilitate the nation’s growth. The
domestic multi-national companies get boost by the direct contribution of foreign direct
investment. The nation like United Kingdom holds approximate 38 per cent of FDI from non-
European countries. Thus, UK has a great attractiveness power in context of FDI (Erdal &
Tatoglu, 2012).
Undoubtedly, the long history of UK states that the investment sector is capable to stem the
high growth of investor’s business. The recent year confirmed that UK’s FDI index is highly
contributing a good share in Gross domestic product (GDP) of the nation. The survey on FDI
states that the index of investment has high attracting sector for foreign investor. The city like
London is giving a deep influence to high rate in FDI. However, the affirmative policy on FDI
needs a priority action in reference of UK attractiveness strategy. Such strategies are based
on developing comprehensive perception over skills, delivering a best infrastructure system,
signing of effective trade policies to grow UK market, need introduction of productive
incentives in investment sector and lastly there is urgent need to create the efficient digital
platform to both foreign investment skills and technology (Noorbakhsh, Paloni & Youssef,
2011).

Global Issues 6
The strategic policies on foreign direct investment must reflect such positive tailored
amendment to establish the strong investment system. For the purpose of shaping of strong
investment market an identification of effective or productive approach especially for
corporates requires, need clear classification on sectors’ type or investment programme and
tracing of investor’s origin. Hence, such policies must base on specific drivers to commit
productive resources.
An investment sector should provide the optimum resources for creating an efficient policies
and schemes. The recent research on FDI index, it is suggested that the investor skills must
be modified according to present era. There is an urgent need to improve the weak
infrastructure especially in the small areas or cities of UK. It is also recommended the
implementation of skilled labour by the foreign investors. The infrastructure like air, road,
telecommunications and railway is highly on the demand in investor’s list.
Recently, the survey also identified the additional challenges in the growth of FDI due to
changing approach in foreign investor’s in practical implication. These additional challenges
includes focusing of market system by striking trade practices with new countries, schemes
for reduction in corporate tax levels and other attractive incentives for foreign investor
especially in the research and development sector. Further, the top skilled foreign industry
should access fairly in terms of combating the drawback of investor system. There must be
a fair and appropriate negotiation dealing takes place between two foreign investors of the
two different nations (Murat & Pirotti, 2010).
The mutual relationship of foreign direct investment and its attractiveness analysis that the
UK government should identifies the key factors of investors’ approach. There should be a
shaping of proper goals for investors skills. The investor’s’ skills may include the services of
software investors, accessibility of European market, enhancing of business services and
lastly putting of an effective incentive schemes for infrastructure regime (Barrell & Pain,
2009). Moreover, the UK government should ensure the articulated and ambitious
marketing schemes to shape the scheme on foreign direct investment. Therefore, the mutual
relationship of foreign direct investment and country’s attractiveness should focus on the
enhancing the integrated sectors of infrastructure, skill, research & development, taxation
and trade practices through the practical implication by government endeavours and policies
or schemes in favour of foreign investors.

Global Issues 7
Component 4 Reflective Learning Journal and Logbook
The above stated components enhance my inner conscience about the serious issues of the
nation. These components develop my learning outcomes in all spheres of the nation. Such
broadens my perception over critical issues of the society at large.
Firstly the component on “Poverty and Inequality” describes the essence of nation’s basic
issue on the present facts or figures. Such facts or figures presented a feeling of astonishing
while doing research. These figures were as threatening to me as now I have realised the
true value of material resources which are handy and available to me. Though the poverty
often considered as a basic challenging issue of every nation but its challenges are hard to
explain the real circumstances of the poor. Challenges like poverty and inequality need to
curb by a reformative ways and methods. I am satisfied that government is putting its best
endeavour to deal with such sensitive issue of the nation. The research analysis represents
the fair graph and statistics of the poverty line and gender discrimination in the nation like
United Kingdom. The report provides truly remarkable information about the factors of the
poverty and inequality.
Further, the impacts of the poverty and gender inequality are so drastic in nature that
deteriorating the living standard of the society. Recently, the facts and figures referred in the
component are able to provide a general understanding that consequences of the poverty
and inequality are drastic in nature. The poor became poorer and rich become richer. Such
inequality scale is getting uncertain nowadays. It needs to stress on such vague or
ambiguous situation in the poverty and inequality. The mutual relationship of the poverty and
inequality does not provide any affirmative methods unless a best endeavour put by both
government and individual. I think it is significant to promote basic awareness about the
adverse impacts by the effective programmes and policies. Thus, such programme and
policies must contain sound and strict norms so that every individual take it as a burden to
curb such basic challenges of the nation.
Secondly, the component on “Youth unemployment and economic growth” states the terrible
stage of the youngsters. The unemployment of the youth is directly impact to the economic
growth of the nation. This component provided a lesson to me that employment issue is very
common in the young generation. Even this issue threatens my job security and more
opportunities for the jobs. This issue needs a deep analysis about the numerous causes and
impacts. I think it is important to understand the root level of the youth unemployment. The
facts and the figures mentioned the basic understanding of the consequences. One must
need to understand that the youth requires motivation and encouragement. In fact I also
require a strong sense of motivation and encouragement by my parents’ ad well-wishers.

Global Issues 8
There is constant requirement to fulfil the gap of job opportunities. The statistics of the youth
unemployment allow me to evaluate the base of the youth problems. Now I am able to tackle
situation of my unemployment.
Moreover, the decreased in the employment rate shaken my inner conscience that person is
not safe even in context of job. There is lack of ethics among professionals or managers of
the company who neglects the skills and qualification of the aspirant youth. According to my
perception, the nation’s economic growth may never raise unless every young aspirant
provided with full resources. The component explored my learning part to present my
reformative theory. My reformatory theory states that the youth must participate in creative
activities like meditation. One must not sit idle if he’s unemployed. It is true proverb that fit in
present situation that “an empty mind’s is a devil’s mind”. One must not forget that the youth
is an important asset to the nation as it directly contributes in the growth in the economy.
Lastly, the component on “FDI and its attractiveness” enhances my knowledge about the
role of foreign investors. I understand the crucial role of investors that how they magnificently
maintained the beauty of the nation by building attractive infrastructure. The construction of
the infrastructure and investment of the funds in the sector of education, employment and
health by the investors is seriously appealed me. I truly appreciate the significant role of
foreign investors that how they organised directly in the attractiveness of the nation. Such
uncompromised role of investors provided that investors are also considered as a capital of
the nation. Foreign investors are equally important as any citizens of the nation as it
showing their real contribution towards the nation.
Further, the statistics of the foreign direct investment shows their best endeavours towards
the nation. I appreciate the certain facts and figures about the foreign investment where
investors the basic availability of certain resources to every citizen of the nation. An
implementation of the effective polices or schemes of the foreign direct investment provide
awareness in me about the impacts of their role. Now I am able to justify the realistic role of
the foreign investor. According to my view, foreign investors require certain privileges for
their smooth functioning by the government so that a strong market can be established in the
nation and more attractiveness characteristics can be highlighted. Therefore, a strong efforts
and promotion of the Foreign Direct Investment’s policies should be implemented. such
policies should be free from any burden or obligation of the a nation in context of their strict
norms.

Global Issues 9
Format of logbook
Name of
candidate
Date Time Signature Remarks

Global Issues 10
References
Barrell, R., & Pain, N. (2009). Domestic institutions, agglomerations and foreign direct
investment in Europe. European Economic Review, 43(4), 925-934.
Belfield, C., Hood, A., & Joyce, R. (2016). Living standards, poverty and inequality in the UK:
2014 (No. R96). IFS Reports, Institute for Fiscal Studies.
Beteille, A. (2007). Poverty and inequality. Economic and Political Weekly, 4455-4463.
Brewer, M., Muriel, A., & Sibieta, L. (2017). Poverty and Inequality in the UK: 2017.
Davidson, R., & Duclos, J. Y. (2016). Statistical inference for stochastic dominance and for
the measurement of poverty and inequality. Econometrica, 68(6), 1435-1464.\
Elias, P. (2014). Influences of past history on the incidence of youth unemployment:
Empirical findings for the UK. Oxford Bulletin of Economics and Statistics, 55(2), 161-
185.
Erdal, F., & Tatoglu, E. (2012). Locational determinants of foreign direct investment in an
emerging market ec... Multinational business review.
MacDonald, R. (2008). Youth, transitions and social exclusion: some issues for youth
research in the UK. Journal of Youth Studies, 1(2), 163-176.
Marelli, E., & Signorelli, M. (2012). Youth unemployment rate and impact of financial
crises. International journal of manpower, 33(1), 76-95.
Murat, M., & Pirotti, T. (2010). The attractiveness of countries for FDI. A fuzzy
approach. Fuzzy Economic Review, 15(2), 43.
Noorbakhsh, F., Paloni, A., & Youssef, A. (2011). Human capital and FDI inflows to
developing countries: New empirical evidence. World development, 29(9), 1593-
1610.
O'higgins, N. (2011). Youth unemployment and employment policy: A global perspective.

Global Issues 11