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    FTD - Answer To Case Study - 3 - ToYOTA UK

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    Ferdinand Dingle
    This case study examines factors influencing Toyota's investment in the UK. Key factors making the UK attractive include its liberal economy, business-friendly policies, highly skilled workforce, and London as a global financial hub. The expansion of the European Union could both benefit and hinder future foreign investment. On one hand, EU expansion has increased the single market size and fostered peace and prosperity. However, integrating new members also brings uncertainties that could negatively impact business cycles, the single market, and foreign investment inflows.

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    FTD - Answer To Case Study - 3 - ToYOTA UK

    Uploaded by

    Ferdinand Dingle
    119 views3 pages
    This case study examines factors influencing Toyota's investment in the UK. Key factors making the UK attractive include its liberal economy, business-friendly policies, highly skilled workforce, and London as a global financial hub. The expansion of the European Union could both benefit and hinder future foreign investment. On one hand, EU expansion has increased the single market size and fostered peace and prosperity. However, integrating new members also brings uncertainties that could negatively impact business cycles, the single market, and foreign investment inflows.

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    FTD_Answer to Case Study_3- ToYOTA UK

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    This case study examines factors influencing Toyota's investment in the UK. Key factors making the UK attractive include its liberal economy, business-friendly policies, highly skilled workforce, and London as a global financial hub. The expansion of the European Union could both benefit and hinder future foreign investment. On one hand, EU expansion has increased the single market size and fostered peace and prosperity. However, integrating new members also brings uncertainties that could negatively impact business cycles, the single market, and foreign investment inflows.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    119 views3 pages

    FTD - Answer To Case Study - 3 - ToYOTA UK

    Uploaded by

    Ferdinand Dingle
    This case study examines factors influencing Toyota's investment in the UK. Key factors making the UK attractive include its liberal economy, business-friendly policies, highly skilled workforce, and London as a global financial hub. The expansion of the European Union could both benefit and hinder future foreign investment. On one hand, EU expansion has increased the single market size and fostered peace and prosperity. However, integrating new members also brings uncertainties that could negatively impact business cycles, the single market, and foreign investment inflows.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Case Study 3 – Toyota UK

    Submitted by: Ferdinand Dingle


    Student
    Submitted to: Reynante Diodos
    Professor

    Course: BA 112-IBE – International Business and the Environment

    Questions:
    1) What do you think are the key factors which have made the UK an attractive
    location for direct foreign investment?
    2) To what extent do you think the expansion of the European Union will affect
    future inward investments decision?

    Answers:

    1.) One of the main strengths of the United Kingdom (UK) economy in attracting DFI is
    that its economy is one of the most liberal in Europe and its business environment and
    investments framework are extremely favourable to Direct Foreign Investment.

    The UK is one of the leading business locations in the world. A rich and diverse market
    with world-class industries including Life Science, ICT, Creative, Financial and
    Professional Business Services, Aerospace and Automotive engineering, the UK offers
    an attractive location for businesses with easy access to customers, product innovators,
    suppliers and partners. The UK maintains this leading position by creating a range of
    highly attractive conditions for business and investment. The UK Government’s planned
    for Growth drives co-ordinated action that seeks to create the most competitive tax
    system in the G20.

    The UK encouraged investment and exports and create a highly skilled workforce that is
    the most flexible in Europe. The legal system supports and protects business interests,
    and cuts to bureaucracy are reducing burdens on business. The UK’s proximity to
    Europe makes it a natural choice to locate for investors coming from outside the EU and
    it is home to London, the world’s leading financial centre.

    The UK is a world leader in the financial services sector. Its banking sector is healthy
    and robust. The legal framework is among the most flexible in the world.

    The UK labour market flexibility is more flexible than most countries in the world,
    particularly among the Organisation for Economic Co-operation and Development
    (OECD) thirty seven member countries.

    2.) Inward Investment involves an external and foreign entity either investing in or
    purchasing the product and services of a local economy. It is foreign money that comes
    into the domestic economy.
    Two (2) extent or ranges are in the line when it comes to future inward investment with
    regards to EU expansion: A) the beneficial, and B) non - beneficial.

    A) The beneficial
    European Union (EU) expansion are beneficial to future inward investment considering
    the facts that only six (6) European state members are in when the European Economic
    Community (EEC) formulation in 1957 to 1992 was originally formed in the treaty of
    Rome. That aims to bring about economic integration among its members. Another
    treaty was signed in 1992 to 2007 the Maastricht treaty and by this time Euro zone has
    increased to nineteen (19) members and European Union EU was formally establish
    and came into force on November 1993. In 2007 up to present Lisbon treaty was
    entered into force and reformed many aspects of EU and by this time Croatia become
    the 28th EU member. For the current year 2021, EU member states are down to twenty
    seven (27) state members after UK left on January 31, 2020.
    After six (6) decade of cementing economic growth ultimately paved the way to today’s
    EU, achievement are vast to include; 500 million people the freedom to live, study and
    work anywhere, create one of the world biggest single markets policy for goods, labour,
    services and capital, won the novel Peace Prize in 2012, the biggest programme on
    environmental legislation in the world, creating mountains of butter and lakes of wines
    and milk, meaning boosting farmers and agricultural products and most of all Tariff-free
    trade. EU is the second largest economy in the world after the US and third when it
    comes to purchasing power after PRC and US. The EU GDP is $15 billion in FY2020.
    While there is no way of knowing how Europe would have fared without the EU in place.
    Six (6) decades have been a time of unprecedented peace and prosperity for this
    continent with a long history of atrocities. Through this demonstrations or manifestation,
    future inward investment has a greater chance to mark with a high degree of
    development even the upcoming integration of Western Balkans and Turkey to EU.

    B.) Non-beneficial
    European Union (EU) expansion may not be beneficial to future inward investment but
    might be a risky undertaking due to the regional different impact. Expansion will convey
    an unfamiliarity or strange business field leading to asymmetric disturbances in the EU.
    This could pauses the process of business cycle synchronization including the single
    market policy and Foreign Direct Investment can put into uncertain condition that will
    lead to relocation and deviations. Gross Domestics Product (GDP) also appears to have
    negatively affected economic growth. Relatively, inward investment will affected by this
    various reasons and surely face a complex nature of investment.

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