Question

Q5. Which of the following steps have been taken by government to attract foreign investment?
1. Establishing Special Economic Zones (SEZs).
2. Making labour laws flexible.
3. Curbing trade barriers.
4. Granting compulsory licensing.

• A. (a) Only 1 and 2
• B. (b) Only 1, 2 and 3
• C. (c) Only 1, 3 and 4
• D. (d) All of the above

Answer 1

The correct option is B (b) Only 1, 2 and 3

Compulsory licensing is when a government allows someone else to produce the patented product or process without the consent of the patent owner. It may demotivate foreign companies from investing in the country since they may not be assured of protection of their patents.