Globalization and Employment Law Essay

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Employment Law and Globalization

MNEs are greatly aware of the political ideology of a host government in regards to how negotiations are plotted out. There are views that see MNEs as being imperialistic and exploitative to the host countries. In such cases, MNEs would need to show some leniency and regard for the host country's needs in order to ensure that nation there are no predatory intentions (Hill, 2010). With nations that see MNE's as simply free market opportunists, they can be more authoritative in the terms requested.

There are a number of reasons why a country might discourage FDI because of its ideology. One major reason would be the country attempting to invest has a political or economic system that conflicts with the ideology of the country denying the FDI. The country denying FDI may not want to cause a situation where there is a clear conflict of interest that could possibly place its people at some disadvantage or danger when working with another country that has such a vastly different ideology than its own (Hill, 2010).

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In many cases, countries are trying to avoid economic exploitation at the hands of an enemy. On the other hand, a country might encourage FDI based on an ideology leaning towards a more progressive platform. When a country wants to develop further in order to participate in beneficial economic organizations, like the European Union for example, it will tend to invite FDI to help boost its own economic strength.

Question 2

There are many benefits that are seen from a regional integration perspective. First, there is a diversion of trade to increase regional participation over foreign competitors (Kritinger-van Niekerk, 1996). This helps increase GDP of regional nations and keeps the area stable. From a political perspective, there are geographical alliances that help serve political goals of leading nations in particular regions. When a country is benefitting economically because of such integration, they will tend to favor major players' political agendas in order to keep in….....

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