Question:

The predominant attitude of the Canadian government over the years toward foreign investment has been:?

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a) Neutral; the government has neither sought to encourage or discourage it.

b) Favorable; the government has sought to encourage it.

c) Selective; the government has sought to encourage debt investment by foreigners but discourage equity investment.

d) Unfavourable; the government has sought to discourage it.

e) None of the above.

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  1. b) Favorable; the government has sought to encourage it.

    It must be noted hoever: Strong economic fundamentals, proximity to the U.S. market, highly skilled employees and abundant resources are key attractions for American investors in Canada. With few exceptions, Canada offers foreign investors full national treatment within the context of a developed open market economy operating with democratic principles and institutions. Canada is, however, one of the few OECD countries that still has a formal investment review process. Foreign investment is also prohibited or restricted in several sectors of the economy.

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