4.8.1 The radical view
This is the Marxist view which says that the MNE is an instrument of imperialist (colonial) domination. The rationale for this approach lies in a set of assumptions which include:
- Profits are repatriated to the home country and nothing is given to the host country in exchange.
- Technology is tightly controlled by the MNE and expertise is denied the host country.
- Senior jobs are held by expatriates.
- All of the above are devices to keep less-developed countries relatively backward and dependent on developed (capitalist) countries for investment, jobs and technology.
Therefore, MNEs should be kept out: they are not instruments of economic development, only instruments of economic domination; that is, imperialism.
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