A host country's local content requirements are primarily an attempt to avoid the presence of screwdriver plants.

Question

Quizplus · Accepted Answer

Local content requirements are regulations that require a certain percentage of the value or volume of goods and services to be sourced locally or domestically. This is done to promote domestic industry development and reduce reliance on imports. By implementing local content requirements, countries hope to attract foreign investment that will contribute to long-term economic development, rather than just setting up assembly plants that import all their components (known as "screwdriver plants").

A Host Country's Local Content Requirements Are Primarily an Attempt