In the example of the Falkland Island incident, why did the British spend enormous sums of money on such a small piece of Real Estate to keep it under British Rule? Solution FalkLand Island has become very crucial for British government. It is inhabited by the over 2500 people and army presence is over the 1300. This is the biggest question that why UK govt is spending too much to save this island. Agentina is disputing the British government control over the Falkland Island. Main reason behind the spending is the prospective energy resources in Island. global economy is going to face major challenge of engery in the near future. hence Falkland Island has become of utmost importance for UK government..