Open economies with skilled workforces and good growth prospects tend to attract larger amounts of foreign direct investment than closed, highly regulated economies, and it can indirectly reflect the state of multinational corporations’ management states, Official statistics confirm that outward FDI did fall quite dramatically after the crisis- by fully 47 percent between 2007 and 2009, from more than US$2 trillion to just US$1.1 trillion. Furthermore, the fall was surprisingly asymmetrical, with developed countries experiencing an average decline of 53 percent, and developing countries experiencing an average decline of 15 percent.
Interestingly, outward FDI from China kept growing even through global recession, fueled by the massive reserves accumulated by the government and the bargain prices at which assets could be acquired aboard (Sauvant& Davies, 2010). The reason is worth discussing deeply. For the aspect of UK MNEs, the history of Europe should be taken into concern, which internationalized at the beginning of the 20th century, followed by US multinationals in the post- World War I periods, at present, many of the UK MNEs build its subsidiaries around the world, The Hong Kong & Shanghai Banking Corporation (HSBC) is one of the largest financial service organizations in the world, with over 9500 offices in 85 countries and territories in Europe, Asia Pacific, the Americas, the Middle East and Africa, it is an internationally active and dynamic organization. In addition, KINGFISHER PLC is a represented company as well, it owns a number of DIY and home improvement outlets. It began in 1983 as part of now dissolved holding company Woolworths. They run a total of seven brands including B&Q (United Kingdom, Ireland, China…), Castorama (France & Poland), Brico Depot (France, Poland & Spain), Screwfix (UK), Trade Depot (United Kingdom) and Hornbach (Austria, Czech Republic, Germany, Luxembourg, Netherlands, Romania, Slovakia, Sweden, Swizerland).