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Samsung Question a) Examine the reasons why companies like Samsung might decide to make an investment in the UK. Fixed capital investment is spending on capital machinery, buildings and technology so that the economy can produce more consumer goods in future. Most economists agree that investment is vital to promoting the long run growth of the economy through improvements in efficiency and productivity. A feature of global economics in recent years has been expanding overseas investment by multinationals throughout the world. The abolition/reduction of foreign exchange controls in a lot of countries allows for freer movement of financial capital between nations. This has therefore stimulated foreign investment. Another reason for the increase in foreign investment is that many multinationals are moving towards investment instead of trade- so preferring to invest in plant and machinery closer to the markets they export to. Samsung, for example, is based in South Korea, but by building a...

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