When a government creates 'strategic' or 'pillar' industries, what is the impact on foreign investors?
A) Foreign investors can benefit from preferential treatment if they operate in the same industry sector.
B) Foreign investors can be excluded from investing in these sectors because they are considered core and sensitive to the economy.
C) It is just a label and has not negative or positive impact on foreign investors.
D) The government seeks to develop these sectors and is courting foreign investors.

Question

Quizplus · Accepted Answer

Government are often declaring sensitive industries like defence and telecommunication as 'strategic' or a 'pillar' of the economy. Because these industries are regarded as critical for the development of the economy the access to foreign investment is often restricted and can be prohibited.

When a Government Creates 'Strategic' or 'Pillar' Industries, What Is