ABSTRACT
In many countries, the sale of land or natural resources to foreigners was viewed as selling the country's heritage, which should be passed on to future generations. Furthermore, foreign investment in land was not seen as creating a new productive resource, unlike the case in which the foreign investor built a factory. Consequently, in many countries, foreigners were prohibited from owning land or natural resources. Prohibitions on land ownership can discourage foreign investment in other activities, especially in agriculture and mining. In 1986, Canada established a new Oil and Gas Acquisitions Policy. This policy prohibited the sale of financially-sound, Canadian-controlled oil and gas businesses to non-Canadians. Because a very high percentage of Indian labour was involved in agricultural activities, farming was considered to be an essential activity for many Indians, and so the government maintained restrictions which allowed only Indians to own a farm.
