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.