Tim Worstall

Bleedin’ Foreigners

Remember when Tom Bower raged all nationalistic about how foreigners were buying up British companies?


Over the last few days, Corus, Britain’s steel industry, was sold to a small Indian company,

(Describing Tata as small was a little odd of course.) It works both ways though:

Mobile telecoms giant Vodafone has won the $18.8bn (£9.6bn) battle for
control of India’s Hutchison Essar, and immediately faced the prospect
of a power-struggle with its new minority partner.

Now either, both or neither of those specific deals could turn out to be sensible or stupid. But trying to stop one side of such movements of capital will mean that others will stop the other side too. Is that actually what anyone wants? A reduction in my freedom to invest my money where I wish?

In

2 responses

  1. Rajesh Avatar
    Rajesh

    Interestingly, India is very nationalistic is these decisions with decisions on allowing overseas investment being done virtually on a sector by sector basis. For example, there’s a huge debate as to whether foreign food retailers should be allowed to set up shop in India.
    Also, there are often rules which insist that companies trading in India must have a certain percentage of Indian shareholders.
    The hypocrisy of having these rules whilst Indian companies increase their stakes overseas is rarely mentioned.

    Reply
  2. Martin Avatar
    Martin

    “A reduction in my freedom to invest my money where I wish”
    If it means your freedom to invest your money where you wish screws me, then yes.

    Reply

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