Political Views on FDI Essay Example | Topics and Well Written Essays - 250 words

Political Views on FDI - Essay Example Because of this, the MNE serves as a tool for exploiting the host countries to the exclusive benefits of capitalist and imperialist home countries. The free market view is attributed to Adam Smith and David Ricardo, and holds that international production is to be distributed among countries, in respect to the theory of comparative advantage (Gary, 2002). According to McKay and Seale (2000), MNE is therefore an instrument for dispersing the production of productions to the globe’s most efficient locations. Pragmatic nationalism has it that FDI hosts both costs and benefits. For instance, some of the benefits for the host country include the realization and accumulation of capital, technology, skills and jobs. According to pragmatic nationalism [the chosen perspective], the benefits to a host country are [increases in] capital, skills, technology and jobs. The drawbacks that a home country may incur are competition to local industries and a waning demand for local