Cotton Quota
Cotton growers in the nation of Zanzi export nearly 700,000 bales of cotton every year. Zanzi is the home country for a fabric manufacturing facility that exports high-quality cotton fabric around the world. The government imposed a quota of 1 million bales of cotton that can be imported into Zanzi every year. The local fabric manufacturer is lobbying the government to remove the quota on cotton.
-Which of the following would most likely appease both sides of the issue?

Question

Cotton Quota 
Cotton growers in the nation of Zanzi export nearly 700,000 bales of cotton every year. Zanzi is the home country for a fabric manufacturing facility that exports high-quality cotton fabric around the world. The government imposed a quota of 1 million bales of cotton that can be imported into Zanzi every year. The local fabric manufacturer is lobbying the government to remove the quota on cotton.
-Which of the following would most likely appease both sides of the issue?

Quizplus · Accepted Answer

A local content requirement, which mandates that a certain percentage of a product must be made from domestically sourced materials, could satisfy both the cotton growers and the fabric manufacturer. It would ensure a market for the local cotton growers while allowing the fabric manufacturer access to imported cotton if necessary, balancing the interests of both parties.

Cotton Quota Cotton Growers in the Nation of Zanzi Export Nearly 700,000