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

Political Views on FDI - Essay ExampleBecause of this, the MNE serves as a tool for exploiting the host countries to the exclusive benefits of capitalist and imperialist category 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 and so an instrument for dispersing the production of productions to the globes 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 realisation 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 bugger off are competition to local industries and a wan ing demand for local