Choose the option which completes the blank part of the passage in coherent and logical manner.
FDI may actually be harmful to the recipient country if the economy is highly protected and foreign investment takes place behind high tariff walls. This type of investment is generally referred to as the tariff-jumping’ variety of foreign investment, whose primary objective is to take advantage of the protected markets in the host country. The longer the Government shields its home market with tariffs… and more acute will be the conflict between him and the domestic entrepreneur. In view of this, an appropriate policy framework must respond to two conflicting objective: the need to liberalizes rules governing such investment in view of the growing integration of the world economy, and the need to ensure that such investment has positive effects on the country’s economy and does not lead to negative welfare effects.