POLITICAL AND LEGAL IMPACT OF THE MNE
POLITICAL AND LEGAL IMPACT OF THE MNE
Because of the size of many MNEs, there is much concern that they will undermine through political means the sovereignty of nation-states. The foremost concern is that the MNE will be used as a foreign policy instrument of its home government.15 Since the home countries for nearly all MNEs are industrial countries, it is understandable that this concern is taken most seriously in LDCs, although it is not restricted to them. Two other sovereignty questions are raised less frequently. One is that the MNE may become independent of both the home and the host country, thus making it difficult for either country to take actions considered to be in the best societal interest. The other is that the MNE might become so dependent on foreign operations that a host country can then use it as a foreign policy instrument against the home or another country.
Because of the size of many MNEs, there is much concern that they will undermine through political means the sovereignty of nation-states. The foremost concern is that the MNE will be used as a foreign policy instrument of its home government.15 Since the home countries for nearly all MNEs are industrial countries, it is understandable that this concern is taken most seriously in LDCs, although it is not restricted to them. Two other sovereignty questions are raised less frequently. One is that the MNE may become independent of both the home and the host country, thus making it difficult for either country to take actions considered to be in the best societal interest. The other is that the MNE might become so dependent on foreign operations that a host country can then use it as a foreign policy instrument against the home or another country.
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