Detailed information on the global company structures of UK businesses provides an opportunity to investigate cross-border influences on UK businesses. This article contains experimental analysis using an extract from the Orbis dataset (compiled by Bureau van Dijk) consisting of information on UK businesses – the industries they operate in, their location and their global company structures. FDI can play an important role in a country’s long-term economic growth as it can create new jobs, introduce new and more efficient management practices, and be a catalyst for technological progress. The UK is both a leading source and a destination for foreign direct investment (FDI) a cross-border investment made with the objective of establishing a lasting interest in the host economy where the direct investor (parent company) controls at least 10% of the voting power (ordinary shares). Smaller companies tend to have fewer local units and those units are more likely to be based in London large companies tend to have more local units, which are more widely distributed across the UK. The construction industry constitutes 5.9% of total UK company assets but less than 1% of foreign-owned UK company assets. Most foreign-owned local units are based in London, but the North East has the greatest proportion of its local units under foreign ownership (approximately 15%). Of the foreign-owned businesses in the UK, 93% were majority foreign owned (more than 50% foreign ownership) and 7% were minority foreign owned (between 10% and 50% foreign ownership). Of the foreign-owned businesses, 19.1% of their assets were held by companies with an ultimate parent resident in the UK (that is, UK companies investing in the UK through a foreign affiliate). Experimental analysis shows that 1.1% of businesses operating in the UK in 2018 were foreign owned but they accounted for 13.4% of total UK company assets.
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