Pioneering Foreign Direct Investment in British Manufacturing

Abstract

This article analyzes all known cases of foreign direct investment in British manufacturing prior to 1890. From 1890 onwards the bulk of foreign entrants were industrial goods producers. Before 1890, the pioneering entrants were mostly consumer goods manufacturers. The article demonstrates that, with one monumental exception, these pioneers were narrowly focused, driven entirely by a concern about enhancing access to the British market. Typically they failed. The one exception was the Singer Manufacturing Company. This investment was of an entirely different nature. Singer's commitment was large and non-reversible from almost the very beginning, and was predicated on an awareness of the possibility of using Britain as an export platform. Its consequence was the emergence of Singer as the world's first modern multinational enterprise and as one of the world's largest firms by 1900.