Nationalism As a Determinant of the Political Risk of Foreign Investment

Cover Nationalism As a Determinant of the Political Risk of Foreign Investment
Nationalism As a Determinant of the Political Risk of Foreign Investment
Stephen Jay Kobrin
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As vehicle for technological and/or cultural dependence 3. As a threat to law and order 4. As evidence of relative gap re industrialization 4. As vehicle for transfer of resources 11 Consolidation At the consolidation state, nationalism serves a nation building function, it attempts to create a sense of unity or "we'ness. " In an important sense, the objectives or goals of the country (relative to industrialization, for example) are less important than questions of national identity and the oft...en symbolic manifestations of national cohesiveness and national leadership. ) The nationalistic reaction to a foreign investor is thus likely to be a function of its foreignness per se. The foreign company, especially if it is large, important and visible, serves as a symbolic "they, " an undesirable foreign presence located within the host country. It is a clear and present "threat, " whose immediacy and reality does not have to be either conjured up or magnified. This situation, the immediate presence of visible foreignness, obviously presents opportunities for exploitation by national leaders interested in creating a sense of unity and cohesiveness.

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