How do governments attempt to control foreign businesses operating within their borders?
Governments use a number of practices to control foreign businesses operating within their borders, most of which are violations of the provisions of the World Trade Organization. Some of these practices are legitimate efforts at regulating the foreign business consistent with regulations imposed on domestic companies, but others are devices used to protect domestic industry from foreign competition.
One method used by governments to control foreign businesses operating within their borders is to require that the foreign company employ a certain percentage of native workers, rather than importing workers from the foreign country. For example, China has a huge labor force, for which the task of finding employment is very difficult. It therefore likes to use Chinese laborers for projects it is performing in foreign countries, mainly in areas like Africa and the Middle East. It therefore insists, when concluding...
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