2.1.2 British Business Marches Cheerfully Into the Unknown
PDF: British Business Marches Cheerfully Into The Unknown
Questions
Key Term: Foreign Direct Investment: Capital equipment purchased in your country using foreign funds, e.g. BMW (a German company) buying machines for its Mini factory in Cowley (located in the UK)
Why might an economist expect for investment would slump following the Brexit referendum of June 2016?
What types of items might be included on the list of things that Makar Technology has purchased as part of its investment? What sorts of things might Amazon purchase as part of its expansion in Shoreditch?
What is the general sense of what is happening to investment in the UK at the time of this article being written? (9 September 2017)
“Investment is at the root of improvements in productivity and, hence, pay-packets.” Explain the link between investment, productivity, and wages.
“Wear and tear means that some investment is due each year.” Explain how depreciation of computer systems may have led to higher investment levels in Britain lately.
Explain how the cost of borrowing has affected investment levels.
Why does business uncertainty not seem to be such a big factor affecting investment levels?
Why might corporate tax rates affect business investment?
Study the final paragraph. According to this article, what dangers could cause British firms to invest less in the future?
Extension: Use ideas from this article to make a list of the things that affect investment levels. Rank order these, if possible.