4.10.3 Surrender of national sovereignty
The presence of an MNE in a host country often evokes an emotional reaction by the country's inhabitants to apparent economic domination and loss of national identity. Suffice to say that this is an emotional reaction. There is considerable British, New Zealand , US and Japanese FDI in Australia , but there is little evidence of Australia having lost its national identity and considerable evidence to support the contention that Australia 's material standard of living owes a great deal to this FDI. Your textbook deals with these three costs in more detail.
In your text
Hill 2005, Chapter 7, pp. 251-252.
In the next section we will begin our examination of benefits and costs of FDI to the home country, beginning with the benefits. Some different viewpoints on the benefits and costs of FDI will also be of value in understanding this topic.
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