(imagine how boring short distance running would be if they allowed Jamaica to bring unlimited people or equally if nations such as Ethiopia and Kenya were uncapped on attendees to long distances events)
Actually there is no limit, there is a threshold of skill (minimum times to compete). Countries do get an initial 'free pass' in the event someone doesn't make the threshold, but anyone worldwide who makes that threshold at a registered event will receive an invite. (though not all have the resources or capability to attend)
More foreigners doesn't instantly = more views. More GOOD foreigners most definitely would though.
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