Concept:Processing agricultural produce locally reduces the need to import finished goods, which helps save the country's foreign exchange reserves.
Explanation:When a country establishes a tomato-processing factory, tomatoes grown locally are turned into paste, canned tomatoes, and other products.
These processed goods would otherwise have been bought from other countries.
By producing them at home, the country does not have to spend foreign currency on such imports.
Consequently, the nation retains more of its foreign exchange earnings.
This saving of foreign exchange is a major economic benefit of local processing.
Other options are not as strong because the primary aim is not to reduce local consumption, employ only unskilled labour, or attract tourists.
Answer:C. Foreign exchange will be conserved