In the 19th Century Britain invested in the US, providing both the money and technology to build railways and canals. From 1879 to 1914 we were a leading light in global investment and held global stock and foreign investments to the tune of twice the national income. This was brought to an abrupt end by changes in the world including two world wars, the Great Depression, decolonisation of our Empire and third world socialism.
After WWII the US was the only developing country not scarred by the conflict. It had turned from being the World’s greatest debtor to become the World’s factory for consumer goods. Britain was seen as a friendly nation, desperate for consumer goods in its own right and conveniently placed to access the Commonwealth and rest of the European markets. US investment in Britain grew from $542 million to $1.6 Billion between 1950 and 1959. In that decade 230 new subsidiaries of foreign companies were opened in Britain, of which 187 were American. In 1963 foreign companies accounted for about 10 per cent of net output of British manufacturing. Foreign firms dominated British supplies of products, from computers and photographic equipment to breakfast cereals and razors, while British industry was clinging onto domination of the worlds markets for coal, textiles and steel