ABSTRACT
It is often postulated that multinational enterprises (MNEs) pay above the industry average for a country and that this impinges, not only on their competitors, but on the UK labour market as a whole. While issues concerning competition in the product market of MNEs have been well covered in the literature, an issue which is less often addressed is the extent to which employment policies of firms will impinge on this. Indeed the arguments that follow will demonstrate how the employment effects of FDI can not only be a source of gain to the firm concerned, but can also have serious implications for their competitors.
