Government policy in certain country traditionally favoured foreign investments. Leaders of all political parties were unanimous that foreign investments promote the country’s economic development. Of special interest to the Government were those industries that exported a significant proportion of their total production. Since the country had a relatively small population, there was a limit to the amount of goods that could be produced for the local market. One thing the Government did not want to do was to encourage foreign investors to complete with local industry. Even though new investment would alleviate the already high unemployment rate.

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