This report shows that: UK manufacturing and services companies must be able quickly and effectively to anticipate and respond to new commercial, technological and geopolitical developments; UK companies must make their outbound global reach speedier, longer and firmer than it is today; British industry, services and government must be world class in their alertness, talent to learn, and talent to innovate.

"The UK is a major trading nation and the most attractive location for inward investment in Europe", says Trade Minister Mike O'Brien. "However, as this report makes clear, to maintain this position we need to stop seeing the outward and inward components of British business as separate."

The paper, written by James Woudhuysen, Professor of Forecasting and Innovation at De Montfort University, Leicester, is based on interviews with influential companies, both British and foreign, as well as the author's own research and opinions. It discusses how Britain can make the most of globalisation over the next 20 years.

It highlights the many benefits of embracing globalisation for the UK economy and recommends a number of ways in which the UK can build on its skills and characteristics to attract inward investment and develop its position as a major trading nation.

Last year the government brought together trade development and inward investment organisations under one identity as UK Trade & Investment. This approach was underlined by this month's Spending Review in which the Chancellor announced an increasing focus on attracting inward investment.

www.uktradeinvest.gov.uk