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The very fact that there is only 1 team from each nation sets a cap on its potential growth. I feel that this competition is primarily for second and third world nations, so that they can work on amazing solutions for the future as well as introduce FIRST as a whole to their countries. Having a single national team makes it much easier for teams in poorer areas to receive funding. Hopefully when these people are introduced to our program they will increase the presence of other FIRST programs in their countries.
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I see it more as a marketing/PR type of thing that is intended to drive growth in the other FIRST programs, versus getting growth purely within itself. As noted, they won't be striving for team growth as much as visibility/exposure, both for the FIRST program tree as well as individual efforts to expand FIRST into areas in the developing world.