How does political ideology shape a government's attitudes toward FDI?
The three different political ideologies "The Radical View, The Free Market View & Pragmatic Nationalism" all have different approaches to FDI.
- The Radical View
Bad attitude towards FDI. The believe is that FDI should never be allowed, as foreign corporations undertaking production facilities in a country can never be viewed as instruments for economic development in that country.
- The Free Market View
Good attitude towards FDI. The believe is that international trade boosts the economic growth and development of all countries involved, according to the theories of Ricardo and Smith.
- Pragmatic Nationalism
An ok attitude towards FDI. As long as the benefits outweigh the costs, FDI should be allowed.
Learn More :
Foreign Direct Investment
- What are the implications for managers of the theory and government policies associated with FDI?
- What kinds of policy instruments exist for governments to use and influence FDI?
- What are the benefits and costs of FDI to home and host country?
- What are the different theories of FDI? Why is it a good idea?
- What are the current trends regarding FDI in the world economy?