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One disadvantage of indigenization is that it

Commerce
WAEC 2008

One disadvantage of indigenization is that it

  • A. discourages foreign control of an economy
  • B. encourages local retention of profits
  • C. encourages the participation of indigenes in economic development
  • D. discourages foreign investment
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Correct Answer: Option D
Explanation

Indigenization discourages foreign investment in a way that foreign investors would not want to invest in the said country because of the possibility of their companies/ businesses being converted to the state's property.

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