In Vietnam,foreign electric component manufacturers are required by the Vietnamese government to prove that a minimum of 20 percent of the components must be made with local input products.This is an example of ____.

Question

Quizplus · Accepted Answer

The requirement imposed by the Vietnamese government on foreign electric component manufacturers to use a minimum of 20 percent of locally sourced input products is an example of operating conditions. Operating conditions are requirements or regulations that businesses are required to comply with in order to operate in a particular market or industry. In this case, the requirement is a condition for doing business in Vietnam, as foreign companies will need to use some locally sourced components to meet the minimum percentage requirement. This is not an indirect or direct subsidy, as the government is not providing any financial assistance or support to the businesses. Also, this is not an ownership restriction as the requirement does not involve restrictions on foreign ownership of businesses.

In Vietnam,foreign Electric Component Manufacturers Are Required by the Vietnamese