Abstract
John Knell, who is Lecturer in Industrial Relations in the School of Business and Economic Studies at the University of Leeds, draws on published material and the evidence of case studies in West Yorkshire to discuss the impact of foreign direct investment on human capital formation in Britain. He argues that the ‘transformative’ effects of such investment have been very limited and that the key to understanding this outcome lies in the position of the British economy within the evolving international division of labour.

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