Foreign investments are generally supported (not banned or held back) by most of the countries without any local supplier requirements. What is a foreign investment? If you invest money abroad, first, you fund a company there (most of the times it is required and/or makes sense). So, it is not a foreign investment anymore.

Getting tax credits or other benefits from the government could have requirements. Are you asking about that?

Also, local supplier requirements established in the case of significant government purchases from foreign companies, like building infrastructure or buying high-value military equipment or an important service.

Thank you so much for your perspective. My question is in case of wholly owned subsidiary whether a country is imposing local supplier condition. Because under that condition wos becomes difficult and firms would have to go for jv

It happens in the case of multinational retailers (Tesco in Hungary) that a government requires a proportion of local suppliers. This won't cause any issue for an international investor because it is competition neutral. The key is the competition neutrality. Although protectionism is unhealthy and bad for the economy, restrictions do not matter for a venture capitalist if those are competition neutral and the same for all players. Sometimes the investor with more capital is glad for restrictions because they can adapt more easily than smaller players.

In the retail business, customers suck because they pay more for lower quality.

Many multinational retailers needs that the local goverment gives security. One of the big key is all make team if i go lucky everyhting got lucky if my buissness got down everybody goes bad we have to make team use just in time