Governments allowed rigidity in the labour laws to attract foreign investment
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Governments do not allowed rigidity in the labor laws to attract foreign investment. Explanation: The Government has taken a number of steps to attract foreign investment in India. These are Industrial areas have been established, named the Special Industrial Areas (SEZs).
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Governments try to attract foreign investment because it helps to create more job opportunities in a country, directly as well as indirectly in service sector. We can gain additional taxes by taxing the profits made by foreign investments.
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