The role of multinational enterprises in the United Kingdom

This study examines the role of Multinational enterprises (MNEs) in the United Kingdom (UK) using data from the OECD Analytical Activities of Multinational Enterprises (AAMNE) database, offering insights into ownership structures, supply chain integration, and internationalisation strategies. Additionally, the report provides recommendations to improve the quality and coverage of UK MNE statistics. The findings highlight the influential role of foreign affiliates in shaping the UK's output, trade, and employment. Foreign-owned firms are more embedded in global value chains, relying more on imported inputs and exporting a greater share of their output, often as intermediates. Moreover, UK-owned firms maintain a strong global presence through their outward affiliates. Predominantly engaged in service sectors, their activities tend to reflect a preference for market-seeking internationalisation strategies. As the UK’s trade and investment landscape continues to evolve, understanding MNE dynamics is essential for policymakers to accurately assess the country’s global economic position.