San Diego Law Review


Clarke N. Ellis

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This Article first provides a definition of MNCs and gives an idea of the scope of foreign direct investment (FDI). Next, the economic and political impact of FDI on both the United States (home country) and the host countries is examined. National perceptions of the economic and political effects of FDI are, in turn, important determinants of the foreign investment policies of host countries and the United States, and these policies are briefly discussed. The interaction of these sometimes complementary, sometimes conflicting foreign investment policies demonstrates the impact of FDI and U.S. foreign relations. The conclusion suggests that the ability of MNCs to effect foreign policy through FDI may require some modification of specific U.S. policies affecting foreign investment.

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