During this country's Operation Bootstrap, island leaders encouraged U. S. investment by offering cheap labor, local tax breaks, and, most importantly, federal tax exemptions.

The country is Puerto Rico

Explanation:

Operation Bootstrap was a name given to the strategy for modernizing the economy of Puerto Rico. The government was aware that for this to be successful, they needed investments from foreign investors. They provided tax exemption to companies from America who set up a base in Puerto Rico. These companies also enjoyed the low labor costs on the island of Puerto Rico, improving the bottom line and the country and making business attractive.