How can the country of Includia encourage foreign investment?
A) by requiring foreign investors to find a local partner who must be granted controlling interest
B) by setting different exchange rates for different categories of transactions
C) by restricting private international borrowing and lending
D) by reducing foreign investment barriers

Question

How can the country of Includia encourage foreign investment?  
A) by requiring foreign investors to find a local partner who must be granted controlling interest 
B) by setting different exchange rates for different categories of transactions 
C) by restricting private international borrowing and lending 
D) by reducing foreign investment barriers

Quizplus · Accepted Answer

The best choice is to reduce foreign investment barriers as it will attract foreign investors by making the investment process simpler and less complicated. Requiring foreign investors to find a local partner who must be granted controlling interest (Option A) may be perceived as a lack of trust in foreign investors, which may discourage investment. Setting different exchange rates for different categories of transactions (Option B) may create confusion and may be perceived as biased treatment for foreign investors. Similarly, restricting private international borrowing and lending (Option C) may limit investment opportunities for foreign investors, discouraging them from investing.

How Can the Country of Includia Encourage Foreign Investment