For years, the world used a small nation in Central America as a place to assemble goods and benefit from cheap labor. To shift its manufacturing base from simple assembly to full-fledged manufacture of components and finished goods, the nation introduced a policy that stated 35 percent of the value of a product must be produced locally. This is an example of a(n)

Question

Quizplus · Accepted Answer

This is an example of a local content requirement, which mandates that a certain percentage of a product's value must be produced within the country.

For Years, the World Used a Small Nation in Central