Identifying Key Factors Determining Foreign Investment in the UK

This report investigates the factors determining foreign investment in the United Kingdom, examining both positive and negative impacts on investors' decisions. It highlights the significance of foreign direct investment (FDI) for economic success and identifies key factors such as transportation, infrastructure, market access, skilled labor, technological advancement, and macroeconomic stability. The research uses a qualitative approach, analyzing data from bank managers and secondary sources to recommend ways to maximize foreign investment in the UK economy. It addresses the research questions on FDI's role in economic growth, the factors influencing global investors, and strategies for the UK to attract more foreign investment. The study acknowledges limitations such as time and cost constraints, and outlines the research methodology, including data collection, analysis techniques, and the conceptual theory framework.

RESEARCH PROPOSAL
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ABSTRACT
This dissertation explains the numerous factors affecting foreign investment in the United
Kingdom. It explores both the positive and negative impact of different component on the decisions
of foreign investors while deciding to invest money in UK. Through this, appropriate ways can be
identified to attract more and more investors for the economic growth and development.
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TABLE OF CONTENTS
INTRODUCTION OF THE PROJECT...............................................................................................4
Title of the project............................................................................................................................4
Problem statement............................................................................................................................4
Research objectives..........................................................................................................................4
Research questions...........................................................................................................................4
Scope of the study............................................................................................................................4
Research types.................................................................................................................................5
LITERATURE REVIEW.....................................................................................................................5
Prior research study.........................................................................................................................5
Conceptual theory framework.........................................................................................................5
RESEARCH METHODOLOGY.........................................................................................................7
Overview of the sample...................................................................................................................7
Sampling population........................................................................................................................8
Data collection method....................................................................................................................8
Data analysis plan............................................................................................................................8
Types of questions...........................................................................................................................8
Research instruments.......................................................................................................................8
Limitations.......................................................................................................................................8
GANTT CHART..................................................................................................................................8
REFERENCES...................................................................................................................................10
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INTRODUCTION OF THE PROJECT
In economic context, foreign investment is regarded as the process of making investment in
an economy by an establishments based in other nation. Thus, it is a process of acquiring ownership
or controlling power in businesses operating in foreign countries (Moosa, 2016). It is of huge
importance for the UK economy to make growth and progress. Transportation, infrastructure, access
to market, economy size, availability of skilled labourers, technological advancement, liberalized
policies, stability in exchange rate, health of banking system and macroeconomic stability are the
factors that determine foreign investment in the UK economy (Neumayer, Nunnenkamp and Roy,
2016).
Title of the project
“To identify factors that determines foreign investment within the economy”
Problem statement
In July 2015, UK faced several difficulties due to lack of foreign investment to required
extent (UK net foreign direct investment, 2016). As a result, nation suffered many problems to
attract more and more foreign investors so as to enhance their growth rate.
Research objectives
Research aim:
“To identify various factors that determines foreign investment in UK economy”
Objectives:
 To evaluate the significance of foreign direct investment (FDI) in economic success
 To identify various factors that influence foreign investors’ investment decisions
 To recommend appropriate ways to maximize foreign investment in UK economy
Research questions
1. How foreign direct investment plays an important role in the success and growth of
economy?
2. Which factors influence global investors to invest their money in other nations?
3. What are the ways available to UK economy to maximize their foreign investment?
Scope of the study
This study will investigate the role and importance of foreign direct investment in UK growth
and development. Along with it, researcher will also examine both the positive and negative impact
of various factors that affect the decision of foreign investors.
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Research types
It will be a type of qualitative investigation because scholar will use qualitative information
about foreign investment for the growth and progress of UK (Silverman, 2016).
LITERATURE REVIEW
Prior research study
According to the view point of Thomas, (2012) foreign investment plays an important role in
increasing the growth rate of economy. Moreover, before making invest in other nations, global
investors are greatly affected by trade policies, government rules and regulations, foreign affiliates
treatment, privatization policies, facilities like incentive, investment promotion and amenities.
However, as per Grimsley, (2013) macro-economic indicators like stability in exchange rate,
prevailing interest rate, capital market liquidity, foreign exchange reserve and success of foreign
banking system are the most important component that affect global investors decisions.
Contradicting these, Owen, (2015) argued that general economic indicators have a great impact on
portfolio investors, henceforth, ease of dividend, capital investment, tax rates on capital gain, stock
market regulations, dispute settlement system and degree of protecting right of investors have a
great impact on their decisions.
Conceptual theory framework
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Develop brief
understanding of
the foreign direct
investment
Formulating research
aims and objectives
Framing research
questions on the basis of
aims and objectives
Conducting literature
review
Identifying
factors
affecting UK
FDI
Examining
how factors
influence
global
investors
Significance of
FDI for the
economic
growth and
success
Research
Methodology

RESEARCH METHODOLOGY
Research methodology is defined as very important sections of a research as it supports in
accomplishing aim objective of the research in the best possible manner (Kothari, 2004).
Furthermore, the section consists of different techniques and tools which have been used by scholar
in order to arrive at a valid conclusion.
Overview of the sample
In order to carry out the present investigation on identifying factors that determine foreign
investments within the economy, the sample selected will be bank managers (Taylor, Bogdan, and
DeVault, 2015). The key reason behind selecting this sample size is that this sample will help in
getting more accurate and reliable information about the core factor which encourages foreign
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Research
approach
Research
Type
Data
collection
techniques
Data
analysis
technique
Research
limitation
Research
philosoph
y
Data finding and analysis
Concluding the entire
dissertation
Recommending ways to
maximize foreign
investment in UK

investors to invest their money in a particular economic.
Sampling population
In order to carry out the present research and accomplish its entire objective a sample size of
50 managers will be selected. Information gathered from 50 respondents will supports in getting
adequate and more appropriate data for conducting the entire study.
Data collection method
Data collection can be termed as the method which is used in order to gain information
about a particular topic. Furthermore, primary and secondary are the two major sources from which
information can be collected (Pardo and Prato, 2016). In order to conduct the present research both
sources will be considered by the researcher. Primary information will be gathered from bank
managers whereas secondary information will be collected with the help of various books, online
sources and journals.
Data analysis plan
Data analysis is the process in which information gathered from various sources is evaluated
with the help of different tools and techniques (Robson and McCartan, 2016). Here, qualitative
technique of data analysis will be used in this research. Furthermore, collected information will be
presented with the help of graphs and tables.
Types of questions
In this research both open and close ended questions will be used by researcher to gain
adequate and required information.
Research instruments
Inductive approach and interpretive research philosophy will be used. Along with this,
descriptive research design will be applied (Pardo and Prato, 2016).
Limitations
It can be stated that time and costs are going to be the two major limitations of the present
study.
GANTT CHART
Activities/Time duration
(in weeks)
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Develop brief
understanding of title
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Formulating aims and
objectives
Conducting literature
review
Preparing proposed
methodology
Collection of primary and
secondary data
Analysis of data and
interpreting findings
Conclusion
Recommendation
Submit to the tutor
Make modifications
Final submission
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REFERENCES
Books and Journals
Kothari, C. R., 2004. Research methodology: Methods and techniques. New Age International.
Moosa, I., 2016. Foreign direct investment: theory, evidence and practice. Springer.
Neumayer, E., Nunnenkamp, P. and Roy, M., 2016. Are stricter investment rules contagious? Host
country competition for foreign direct investment through international agreements. Review
of World Economics, 152(1), pp.177-213.
Owen, E., 2015. The Political Power of Organized Labor and the Politics of Foreign Direct
Investment in Developed Democracies. Comparative Political Studies,
p.0010414015592641.
Pardo, I. and Prato, G. B., 2016. Anthropology in the city: methodology and theory. Routledge.
Robson, C. and McCartan, K., 2016. Real world research. John Wiley & Sons.
Silverman, D., 2016. Qualitative research. Sage.
Taylor, S. J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research methods: A
guidebook and resource. John Wiley & Sons.
Online
Grimsley, S., 2013. What is Foreign Direct Investment? [Online]. Available through: <
http://study.com/academy/lesson/what-is-foreign-direct-investment-definition-advantages-
disadvantages.html>. [Accessed on 22nd October 2016].
Thomas, P., 2012. Factors Affecting the Foreign Direct Investment. [Online]. Available through: <
https://www.questia.com/library/journal/1P3-105853/factors-affecting-the-foreign-direct-
investment-decision>. [Accessed on 22nd October 2016].
UK net foreign direct investment. 2016. [Online]. Available through: <
http://www.tradingeconomics.com/united-kingdom/foreign-direct-investment>. [Accessed
on 22nd October 2016].
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