International Business of united kingdom

8/12/2019 International Business of united kingdom

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UNITED KINGDOM- INTRODUCTION

The economy of the United Kingdom is the sixth-largest national economy in

the world measured by nominalGDP andseventh-largest measured bypurchasing power

parity (PPP). The British economy comprises (in descending order of size) the economies

of the countries ofEngland,Scotland, Wales andNorthern Ireland.

The UK is a member of the Commonwealth of Nations, the European Union, the

G7,theG8,theG20, theInternational Monetary Fund, the Organization for Economic Co-

operation and Development, the World Bank, the World Trade Organization and theUnited

Nations. In the 18th century the UK was the first country in the world to Industrialize,

and during the 19thcentury possessed a dominant role in the global economy. From the

late 19th century the Second Industrial Revolution in the United States and the German

Empirepresented an increasing challenge to Britain's role as leader of the global economy.

By the turn of the 20th century the German Empire had vastly outperformed the British

economy. The size of the German economy had surpassed the British by 25%. The costs

of fighting both the First World War andSecond World War further weakened the relative

economic position of the UK, and by 1945 Britain had been superseded not only by

Germany but by the United States as the world's dominant economic power. However,

the UK still maintains a significant role in the world economy.

The UK is one of the world's most globalised countries. London is the world's

largest financial centre alongsideNew York and has The largest city GDP in Europe.
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The United Kingdom of Great Britain and Northern Ireland, is commonly

known as the United Kingdom(UK) or Britainofcontinental Europe. The country

includes the island ofGreat Britain (a term sometimes loosely applied to the whole state),

the north-eastern part of the island ofIreland, and many smaller islands.Northern

Ireland is the only part of the UK that shares a land border with another state:

theRepublic of Ireland.Apart from this land border, the UK is surrounded by

theAtlantic Ocean,with theNorth Sea in the east, theEnglish Channel in the south and

theIrish Sea in the west.

The UK's form of government is aconstitutional monarchy with

aparliamentary system and itscapital city isLondon. The currentBritish monarch

since 6 February 1952is Queen Elizabeth II. The United Kingdom consists offour

countries:England,Scotland,Wales andNorthern Ireland.The latter three

have developed administrations, each with varying powers, based in their capital

cities,Edinburgh,Cardiff and Belfast, respectively.Guernsey,Jersey and theIsle of

Man areCrown dependencies and are not part of the UK. The United Kingdom has

fourteenBritish Overseas Territories.These are remnants of theBritish Empire which, at

its height in the late 19th and early 20th centuries, encompassed almost a quarter of the

world's land mass and was thelargest empire in history.British influence can be observed

in thelanguage,culture andlegal systems of many of its former colonies.

The UK has been apermanent member of theUnited Nations Security

Council since its first session in 1946. It has been a member of theEuropean Union (EU)

and its predecessor the European Economic Community (EEC) since 1973; it is also a

member of the Commonwealth of Nations, theCouncil of Europe, theG7, theG8,

theG20,NATO,theOrganization for Economic Co-operation and Development (OECD)

and theWorld Trade Organization (WTO).
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Edinburgh is also one of the largest financial centres in Europe.Tourism is very

important to the British economy and, with over 27 million tourists arriving in 2004, the

United Kingdom is ranked as the sixth major tourist destination in the world and London

has the most international visitors of any city in the world.

Theautomotive industry is a significant part of the UK manufacturing sector and

employs over 800,000 people, with a turnover of some 52 billion, generating 26.6

billion of exports. Theaerospace industry of the UK is the second- or third-largest

national aerospace industry depending upon the method of measurement and has an

annual turnover of around 20 billion. Thepharmaceutical industryplays an important

role in the UK economy and the country has the third highest share of global

pharmaceutical R&D expenditures (after the United States and Japan).

Agriculture is intensive, highly mechanised and efficient by European standards,

producing about 60% of food needs with less than 1.6% of the labour force (535,000

workers). Around two-thirds of production is devoted to livestock, one-third to arable

crops. Farmers are subsidised by the EU'sCommon Agricultural Policy.The UK retains a

significant, though much reduced fishing industry. It is also rich in a number of natural

resources including coal, petroleum, natural gas, tin, limestone, iron ore, salt, clay, chalk,

gypsum, lead, silica and an abundance of arable land.
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FOREIGN DIRECT INVESTMENT

UK confirmed as leading European destination for foreign direct investment

Final annual investment figures released today show the UK has continued to strengthen

its position as the leading European destination for foreign direct investment.

TheUKs 2012/13 Inward Investment Annual Report, published today by UK

Trade and Investment (UKTI), confirms rises in the number of projects and jobs secured

compared to 2011 to 2012.

The report shows that in the last financial year:

the UK saw 1,559 investment projects secured 11% more projects than the number

recorded during the previous year

these projects are estimated to have brought with them 170,000 jobs 51% higher

than in the previous year. Of these, nearly 60,000 were new jobs and 110,000 existing

jobs were safeguarded

UKTI and its partners were involved in delivering nearly 85% of the projects secured

These final investment figures published in the UKTI report show improvements on the

preliminary results announced at the Global Investment Conference in London on 9 May.

The annual report also shows that the recorded increases are spread throughout the UK.

Wales and Northern Ireland in particular have recorded significant increases in

investment projects 191% and 41% respectively while Scotland registered a 16%

increase in the number of investments. The number of FDI projects landing in England

(excluding London) increased by 10% reaching 759 projects.

The investment results at the local level in England are also positive with most Local

Enterprise Partnerships recording an increase in the number of investment projects in

their areas.
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Trade and Investment Minister Lord Green said:

The UK has received a major vote of confidence from foreign investors confirming that

the UK remains a world leading business destination. Attracting foreign investment is an

important element of the UK Governments economic and growth programme

and UKTI will continue to work with companies to help create and sustain a globally

attractive, highly competitive and truly international economy.

The data published by UKTI bears out trends reported by independent reports including

those published by Ernst and Young, Financial Times and UNCTAD, whose figures all

showed the UK enjoyed a strong year for inward investment in 2012 to 2013 UNCTAD,

in particular, reported recently that despite global FDI inflows declining by

18%, FDI inflows into the UK have risen by 22%.

The UK continues to attract high quality investment from around the globe both from our

established economic partners in Europe, North America and Japan but also from key

growing markets such as India and China. Investments are also made across a broad

range of innovative and economically important sectors. The combination of these factors

means the UK continues to be in a strong international position for attracting foreign

investment.


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United Kingdom - Foreign direct investment

Foreign direct investment, net outflows (% of GDP)

Foreign direct investment, net outflows (% of GDP) in United Kingdom was 3.77 as of

2011. Its highest value over the past 6 years was 12.97 in 2007, while its lowest value

was -1.19 in 2009.

Throughout the past decade, the UK has remained Europes top recipient of foreign direct

investment (FDI) projects. It retained this position in 2012, securing more investments

and a higher market share of projects across Europe than in 2011.

This strong performance in 2012 saw the number of projects coming to the UK rise by

2.6% to 697, the third highest number in the past ten years. And it achieved this increase

against the background of the first decline since 2008 in total projects at the European

level.

These figures suggest that - despite the UKs relatively sluggish pace of recovery from

the recent downturn - the Governments efforts to enhance the countrys attractiveness in

areas such as taxation, trade missions and support for SMEs are going down well with

cross-border investors.

This view is borne out by our research study, which shows that overseas companies

believe the UK has made advances in a number of areas over the past year. These include

improvements in the countrys financial flexibility, policy regime for start -ups, and

entrepreneurial culture


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CHALLENGES ON THE HORIZON

However, the research also points to some emerging challenges that mean the UK

has no room for complacency. While staying ahead in overall projects, the UK slipped

behind Germany in 2012 for the first time in new projects from first-time investors.

Germany also maintained its lead over the UK in attracting projects from emerging

sources of FDI such as China.

Taken together, these findings suggest that Germany was well-placed to overtakethe UK in the next few years as Europes number one location for FDI. Again, this v iew

is supported by global our research among overseas investors, who rank the UK second

behind Germany among Europes most attractive countries for FDI over the next three

years.

KEY STRENGTHS

The overall message is clear: the UK needs to keep working hard to sustain its leadershipin European FDI, by continuing to enhance its offer to foreign investors. As the UK

strives to do this, it will be able to build on a number of established strengths.

One of the most important of these is its continued position as the European destination

of choice for US investors. With the US appearing to enter an economic upswing ahead

of Europe, the UK needs to sustain its strong US relationship, while simultaneously

building closer links with other sources of FDI, especially growth markets.

Another key strength for the UK is its lead in fast-growing business services FDI, as well

as in software and financial services. While projects from the financial services industry

are currently declining, overseas companies expect this to be the number one sector


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driving UK growth in the coming years - suggesting the UK is well-placed to capture any

upturn.

In an increasingly competitive global market for FDI, the UK cannot compete for

every opportunity. So it needs to define a strategy for where to focus its efforts in terms

of sector, function and region. Now is the time to act, while the UK is still leading the

way as Europes top FDI location.


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UNITED KINGDOM FOREIGN DIRECT INVESTMENT

Foreign Direct Investment in the United Kingdom increased to 5841 GBP Million

in the third quarter of 2013 from 5070 GBP Million in the second quarter of 2013.

Foreign Direct Investment in the United Kingdom is reported by the Office for National

Statistics. Foreign Direct Investment in the United Kingdom averaged 4895.29 GBP

Million from 1963 until 2013, reaching an all time high of 70710 GBP Million in the

third quarter of 2005 and a record low of -7354 GBP Million in the second quarter of

2010. This page provides - United Kingdom Foreign Direct Investment - actual values,

historical data, forecast, chart, statistics, economic calendar and news. 2014-02-09

ACTUAL PREVIOUS HIGHEST LOWEST FORECAST DATES UNIT FREQUENCY

5841.00 5070.00 70710.00 -7354.00 7083.16 | 2013/121963 -

2013

GBP

MILLIONQUARTERLY

CURRENT

PRICES,

NSA


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LEGAL ASPECTS OF UNITED KINGDOM

TheUnited Kingdom has threelegal systems.English law, which applies

inEngland and Wales,andNorthern Ireland law,which applies in Northern Ireland,are

based oncommon-lawprinciples.Scots law, which applies inScotland, is a pluralistic

system based oncivil-lawprinciples, with common law elements dating back to theHigh

Middle Ages.While England and Wales, Northern Ireland, and Scotland diverge in the

more detailed rules of common law and equity, and while there are certain fields of

legislative competence devolved in Northern Ireland, Scotland, Wales and London, there

are substantive fields of law which apply across the United Kingdom.

Legal aspects on:

1. Sale of goods

Sale of goods act 1979

The Sale of Goods Act 1979is anAct of the Parliament of the United

Kingdom which regulates English contract law and UK commercial law in respect of

goods that are sold and bought. The Act consolidates the originalSale of Goods Act

1893 and subsequent legislation, which in turn had codified and consolidated the law.

Since 1979, there have been numerous minor statutory amendments and additions to the

1979 Act.

The Act applies to contracts whereproperty in 'goods' is transferred or agreed to be

transferred for a monetaryconsideration,in other words: where property (ownership) inpersonal chattels is sold.
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Property passing and delivery

The main purposes of retention of title clauses are to ensure that where goods are

supplied on credit, if the buyer subsequently goes intobankruptcy, the seller can

repossess the goods.

The methods of entering the foreign market, with choice made balancing costs, control

and risk, include:

1. Export directly.

2. Use of foreign agent to sell and distribute.

3. Use of foreign distributor to on-sell to local customers.

4. Manufacture products in the foreign country by either setting up business or by

acquiring a foreign subsidiary.

5. Licence to a local producer.

6. Enter into a joint venture with a foreign entity.

7. Appoint afranchisee in the foreign country.

2. Taxation

Local and foreign companies are taxed alike. Inward investors may have

access to certain EU and UK regional grants and incentives that are designed to

attract industry to areas if high unemployment but no tax concessions are granted.

The UK taxes corporations 24 percent on profits over GBP 1.5 MILLION (USD2.4

MILLION).

Small companies are taxed at a rate of 20 percent for profits on to GBP

300000(USD 471000) and marginal tax relief is granted and marginal tax reliefs is

granted on profits between these thresholds. Tax deductions are allowed for

expenditure and depreciation of assets used for trade purposes. These include
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machinery, plants industrial buildings and assets used for research and development.

A special rate of 20 percent is given to unit trusts and open ended investment

companies

Taxation in the United Kingdom may involve payments to a minimum of

two different levels of government: thecentral government (Her Majesty's Revenue

and Customs) andlocal government. Central government revenues come primarily

fromincome tax,National Insurance contributions,value added tax,corporation

tax andfuel duty. Local government revenues come primarily from grants from

central government funds,business rates in England and Wales,Council Tax and

increasingly from fees and charges such as those fromon-street parking.In thefiscalyear 2007-08, total government revenue was 39.2 per cent ofGDP,with net taxes and

national insurance contributions standing at 36.9 per cent of GDP.

3. Investment

This law evaluates the legal issues surrounding the activities of multinational

corporations operation overseas. An increasing number of bilateral investment

treaties provide standards of protection for foreign investment, preventing host states

from expropriating property and also require them to treat foreign investors the same

as local investors. This key feature of globalization, including notably the growing

phenomenon of investment arbitration in international tribunals, may conflict wit the

sovereign rights of host states to regulate economic matters. International investment

law therefore sits on the intersection of public international law and private

international law and engages some of the most compelling issues of our times, such

as environmental and human rights regulations instigated by the often less developed

countries that receive foreign investment.
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ECONOMIC INTEGRATION

United Kingdom proposes novel ideas for economic integration

Economic integration is the abolition of the various restraints of trade

between nations.

The European Free Trade Association(EFTA) is afree trade

organizationbetween four European countries that operates in parallel with and is

linked to theEuropean Union (EU). The EFTA was established on 3 May 1960 as

atrade bloc-alternative for European states who were either unable or unwilling to join

the then-European Economic Community (EEC) which has now become the EU. The

Stockholm Convention, establishing the EFTA, was signed on 4 January 1960 in the

Swedish capital by seven countries (known as the "outer seven").

Today's EFTA members areIceland,Liechtenstein andNorway andSwitzerland,

of which the latter two were founding members. The initial Stockholm Convention was

superseded by the Vaduz Convention, which enabled greater liberalization of trade

among the member states.

EFTA states have jointly concluded free trade agreement with a number of other

countries. Three of the EFTA countries are part of the European Union Internal Market

through the Agreement on aEuropean Economic Area (EEA), which took effect in 1994;

the fourth, Switzerland, opted to conclude bilateral agreements with the EU. In 1999,

Switzerland concluded a set of bilateral agreements with the European Union covering a

wide range of areas, including movement of people, transport, and technical barriers totrade. This development prompted the EFTA states to modernize their Convention to

ensure that it will continue to provide a successful framework for the expansion and

liberalization of trade among themselves and with the rest of the world.
http://en.wikipedia.org/wiki/Free_trade_areahttp://en.wikipedia.org/wiki/Free_trade_areahttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Trade_blochttp://en.wikipedia.org/wiki/European_Economic_Communityhttp://en.wikipedia.org/wiki/Outer_sevenhttp://en.wikipedia.org/wiki/Icelandhttp://en.wikipedia.org/wiki/Liechtensteinhttp://en.wikipedia.org/wiki/Norwayhttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/European_Economic_Areahttp://en.wikipedia.org/wiki/European_Economic_Areahttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Norwayhttp://en.wikipedia.org/wiki/Liechtensteinhttp://en.wikipedia.org/wiki/Icelandhttp://en.wikipedia.org/wiki/Outer_sevenhttp://en.wikipedia.org/wiki/European_Economic_Communityhttp://en.wikipedia.org/wiki/Trade_blochttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Free_trade_areahttp://en.wikipedia.org/wiki/Free_trade_area


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THE UK BUSINESS ENVIRONMENT

A Proven Investment Location

In 2011, the cumulative stock of foreign investment in the UK was more than

US$1.2 trillion, the second highest level of FDI stock globally.

The UK attracted 1,406 foreign direct investment projects in 2011/12, the highest

in Europe, creating over 52,741 jobs.

The UK is the second largest single destination globally for US investment and in

2011 accounted for 26 per cent of all US investment stock in the European Union.

The UK has attracted more US investment than the combined totals of Germany,

France, Spain, Italy and Ireland (Source: US Department of Commerce, 2012).

Economic Growth

Over the last ten years, GDP growth in the UK has regularly outpaced or matched

growth in the European Union. As with other major countries globally, the UK economy

contracted in 2009 before returning to growth in 2010.

The Government department in the UK with responsibility for the economy is HM

Treasury.

Exchange Rates

The UK Government has policies that encourage a stable and competitive pound,

consistent with the objective of price stability.
http://www.hm-treasury.gov.uk/data_index.htmhttp://www.hm-treasury.gov.uk/data_index.htmhttp://www.hm-treasury.gov.uk/data_index.htmhttp://www.hm-treasury.gov.uk/data_index.htm


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Interest Rates

The official Bank Rate in the UK which is set independently by the Bank of

England is 0.5% as of March 2013. The rate is subject to review on a monthly basis.

Inflation

The Bank of England has full operational independence in setting interest rates to

meet the Governments inflation target of two per cent for the annual increase in the

Consumer Price Index CPI. The CPI is based on the internationally comparable

Harmonised Index of Consumer Prices. In January 2013, the CPI stood at 2.7 per cent.

The UK as an Export Base

The UK is one of the leading trading nations in the world. It is the second largest

exporter and fourth largest importer of commercial services, and the eleventh largest

exporter and sixth largest importer of merchandise in the world. Leading destinations for

UK products and services include the US - 16.2 per cent of all exports, Germany (8.9 per

cent) and France (6.5 per cent). Exports of goods and services to the European Union as a

whole accounted for 47.5 per cent of all UK exports.

UKTI helps UK based companies tointernationalize their products and services overseas.
http://www.ukti.gov.uk/exporthttp://www.ukti.gov.uk/export


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Corporate Tax Rates

The UKs business-focused tax environment will become even more attractive

over the next two years. The current corporation tax rate of 24 per cent is being reduced

to 21 per cent by 2014 and then to 20% by 2015. Innovative companies will be able to

benefit further from an additional reduction in corporation tax through the

upcomingPatent Box initiativeand through recent enhancements to the UKs

generousR&D tax credit scheme.

Employer Social Security

UK companies pay National Insurance Contributions (NIC) on the earnings of

each individual employee earning over a threshold weekly salary. Employers pay less

social security contributions in the UK than in most other European countries

Indirect Taxation

Value added tax (VAT) is due on goods and services supplied in the UK and on

the importation and acquisition of goods and some services. A company has to charge

VAT when their taxable turnover is above, or expected to be above, the registration

threshold.
http://www.hmrc.gov.uk/ct/forms-rates/claims/patent-box.htmhttp://www.hmrc.gov.uk/ct/forms-rates/claims/patent-box.htmhttp://www.hmrc.gov.uk/ct/forms-rates/claims/patent-box.htmhttp://www.hmrc.gov.uk/ct/forms-rates/claims/randd.htmhttp://www.hmrc.gov.uk/ct/forms-rates/claims/randd.htmhttp://www.hmrc.gov.uk/ct/forms-rates/claims/patent-box.htm


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INTERNATIONAL STRATEGY OF UNITED KINGDOM

MAKING SUSTAINABLE DEVELOPMENT A PART OF ALL GOVERNMENT

POLICY AND OPERATIONS

ISSUE

Sustainable development means encouraging economic growth while protecting the

environment and improving our quality of life - all without affecting the ability of future

generations to do the same.

The government takes account of sustainable development as a part of how it develops its

policies, how it runs its buildings and how it buys its goods and services.

All departments are responsible for making sure that their own policies and activities

contribute to sustainable development. The Department for the Environment, Food and

Rural Affairs (Defra) has a role in overseeing sustainable development across central

government.

ACTIONS

BUSINESS PLANNING

We make sure that all departmental business plans contain actions that contribute to

sustainable development. Business plans for 2012 to 2013 were the first to do this.

Departments review their progress towards sustainable development every year and

report on it in their annual reports and accounts.


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SUSTAINABLE PROCUREMENT

Public sector spending is worth approximately 16% of the UKs Gross Domestic

Product (GDP). Central government alone buys the equivalent of 9% of GDP.

The public sector can use this buying power to encourage suppliers to make their

products and services sustainable. It can also use its buying power to make the way

contractors carry out works sustainable.

Sustainable procurement is also about reducing costs to the buyer over the lifetime

of a particular product. For example, the lifetime cost of a computer includes the initial

price the customer pays and also the price of the energy it uses in its lifetime. An

expensive, but energy-efficient, computer could be more cost-effective in the long run.

Taking factors such as energy use into account means sustainable procurement

also helps protect the environment, as well as reducing the risk of exposure to future rises

in energy costs.

Central government departments and agencies are expected to use the Government

Buying Standards to comply with the Greening Government Commitments. Theyre also

expected to collect and publish information about the impacts of their supply chain.

These can include the environmental impacts of businesses such as facilities management

companies, which provide them with services or products.


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BACKGROUND

They launched ourvision for sustainable development in April 2011. In it we said

that we wanted to make sustainable development central to the way we make policy, run

our buildings and purchase goods and services.

See more on government policy, action and support onsustainable development.

WHO WERE WORKING WITH

The Environmental Audit Committee reviews government progress towards sustainable

development. Defras ministers are sometimes invited to give evidence to the committee

on how the government is doing.
http://sd.defra.gov.uk/gov/vision/http://sd.defra.gov.uk/http://sd.defra.gov.uk/http://sd.defra.gov.uk/gov/vision/


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INTERNATIONALFINANCIAL MARKETS

OF

UNITED KINGDOM

Financial markets play an important role in the efficient allocation of financial

resources and diversifying risks in the economy. The government has given high priority

to develop financial markets that help lower the cost of raising liquidity and capital. Since

financial markets represent a key segment of the overall financial system, safety and

efficiency of financial markets are important to ensure its stability.

PRIMARY MARKETS

Issuer services help companies from around the world to join the London equity market

in order to gain access to capital. The LSE allows company to raise money, increase their

profile and obtain a market valuation through a variety of routes, thus following the firms

throughout the whole IPO process. The London Stock Exchange runs several markets for

listing, giving an opportunity for different sized companies to list. International

companies can list a number of products in London including shares, depositary receipts

and debt, offering different and cost-effective ways to raise capital. In 2004 the Exchange

opened a Hong Kong Office and has attracted more than 200 companies from the Asia-

Pacific region.

There are also two specialized markets:

Professional Securities MarketThis market facilitates the raising of capital through the

issue of specialist debt securities or depositary receipts (DRs) to professional investors.

The market operates under the status as a Recognized Investment Exchange, and by July

2011 it had 32 DRs, 108 Eurobonds and over 350 Medium Term Notes.


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Specialist Fund MarketIs the London Stock Exchange dedicated market, designed to

accept more sophisticated fund vehicles, governance models and security. It is suitable

only for institutional, professional and highly knowledgeable investors. The Specialist

Fund Market is an EU Regulated Market and thus securities admitted to the market are

eligible for most investor mandates providing a pool of liquidity for issuers admitted to

the market


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SECONDARY MARKETS

The securities available for trading on the London Stock Exchange are:

Ordinary Shares

Exchange-traded funds

Exchange Traded Commodities

Covered Warrants

Structured Products

Bonds

Retail Bonds

Global Depositary Receipts (GDRs)

There are two main markets on which companies trade on the LSE:

Main Market

The home to some of the most well-established, largest and recognized companies in the

world. Over 1,300 companies from 60 different countries enjoy the balanced and globally

respected standards of regulation and corporate governance that the London StockExchange offers. Over the past 10 years over 366 billion has been raised through new

and further issues by Main Market companies. TheFTSE 100 Index (footsie) is the

main share index of the 100 most highly capitalised UK companies listed on the Main

Market.
http://en.wikipedia.org/wiki/Ordinary_Shareshttp://en.wikipedia.org/wiki/Exchange-traded_fundhttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/FTSE_100_Indexhttp://en.wikipedia.org/wiki/FTSE_100_Indexhttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Exchange-traded_fundhttp://en.wikipedia.org/wiki/Ordinary_Shares


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Alternative Investment Market(AIM)

The London Stock Exchanges international market for smaller growing companies. A

wide range of businesses including early stage,venture capitalbacked as well as more

established companies join AIM seeking access to growth capital. The AIM falls within

the classification of a Multilateral Trading Facility (MTF) as defined under

theMiFID directive in 2004, and such is a flexible market with a simpler admission

process for companies wanting to be publicly listed.

Derivatives

The trading of derivatives products is also available on the Turquoiseplatform (ex EDX

London). The available products are Norwegian Futures and options on Norwegian single

stocks and indices, Russian futures and options on the most liquid IOB Depositary

Receipts, Futures and options on the FTSE RIOB index as well as futures on the FTSE

100. Futures and options on the most liquid European stock underlying as well as on

European benchmark indices are expected to be launched in Q4 2011 and Q1 2012

subject toFSA approve

Regulation of capital markets and money market in the United Kingdom

The FCA has continued the FSAs role in relation to the regulation of the capital

markets and as such the UK Listing Authority (UKLA) has become a department within

the traded on financial markets. The international capital markets in the UK are regulated

principally by the Financial Services and Markets Act 2000 (FSMA) and by the Listing

FSMA and the LPDT Rules implement into UK domestic legislation relevant

aspects of the Prospectus Directive, the Market Abuse Directive, the Transparency

Directive and the Markets in Financial Instruments Directive (and other EU-wide

regulation related to these directives). Where permitted by EU law and regulation, FSMA

and the LPDT Rules also include certain super equivalent standards that go beyond the
http://en.wikipedia.org/wiki/Alternative_Investment_Markethttp://en.wikipedia.org/wiki/Alternative_Investment_Markethttp://en.wikipedia.org/wiki/Venture_capitalhttp://en.wikipedia.org/wiki/MiFIDhttp://en.wikipedia.org/wiki/Financial_Services_Authorityhttp://en.wikipedia.org/wiki/Financial_Services_Authorityhttp://en.wikipedia.org/wiki/MiFIDhttp://en.wikipedia.org/wiki/Venture_capitalhttp://en.wikipedia.org/wiki/Alternative_Investment_Market


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EU-wide directive minimum standards (e.g., the additional eligibility for listing

requirements (LR 6), Listing Principles (LR 7), sponsor regime (LR 8) and continuing

obligations (LR 9 to 12) that apply to applicants for admission to the premium (rather

than standard) segment of the Official List and to premium listed companies

on an ongoing basis).

The Bank's operations in the sterling money markets have two objectives,

stemming from its monetary policy and financial stability responsibilities - to implement

the Monetary Policy Committee's decisions in order to meet the inflation target; and to

reduce the cost of disruption to the liquidity and payment services supplied by banks to

the UK economy.


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BALANCE OF PAYMENT OF UNITED KINGDOM

Released: 31 July 2013 (Latest)

The United Kingdoms (UK) current account deficit was 59.2 billion in

2012, up from a deficit of 22.5 billion in 2011. The deficit in 2012 equated

to 3.8% of GDP at current market prices, the highest since 1989 (4.6%).

The trade deficit widened to 33.9 billion in 2012, from 23.3 billion in

2011. The income balance switched to a deficit of 2.3 billion, from a surplus of

22.5 billion in 2011.

The financial account recorded net inward investment of 48.2 billion

during 2012, up from 11.5 billion in 2011.

The international investment position recorded UK net liabilities of 141.6

billion at the end of 2012.


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CONCLUSION

This project study has provided a broad overview of the workings of the UK

economy. Economic growth, fairness and opportunity go hand-in-hand. An

economy in which a significant proportion of the population is unable to fulfill its

potential will be poorer and less productive.

United Kingdom should develop an economic strategy which will enable the

Government to meet its key economic objective and provide a better climate for

British business which means a better life for individuals within the UK and build

a stronger economic future for Britain.

International Business of united kingdom

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