U.S. Foreign Direct Investment in the London Legal Market: An Empirical Analysis
This article examines the nature and timing of U.S. foreign direct investment (FDI) in the London legal market. Evidence from a survey of thirty-eight U.S. subsidiaries suggests that FDI has taken place primarily to serve U.S. clients located within the United Kingdom. The evidence also suggests that early investors (pre-1990) belong to a core group of multinational companies with headquarters located in first-tier U.S. cities (New York, Chicago, Los Angeles). Later investors more typically hail from smaller cities. The evidence reveals a number of important differences between early versus late investors. Specifically, subsidiaries that were established prior to 1990 are more likely to enjoy local decision-making autonomy than are their counterparts that entered the London market more recently. The article concludes with a brief discussion of the implications of the survey findings for future research on FDI in professional services.
The Professional Geographer
© 2002 Blackwell Publishing. The definitive version is available at [www.blackwell-synergy.com.]