ABSTRACT

This chapter provides two purposes that the first purpose is to review the reasons and empirical evidence on why one area attracts Foreign Direct Investment (FDI) compared to another area. The second purpose is to investigate the location of FDI at the UK regional level, focuses on the main periods of investment since the Second World War. The chapter presents a detailed account of regional pattern of FDI in the UK, using data for projects and jobs collated by UK Trade and Investment. It concerns the location decisions of multinational enterprises regarding, focuses on the distribution of this investment at the UK regional level. The availability of labour expected to exert a positive effect on FDI location, as a large amount of available labour provides the firm with a pool of workers from which its labour force. Agglomeration economies often measured by the infrastructure of an area, but this directly affects the firms costs and a classical factor.