To conform to local content regulations, a firm may have to locate more production activities in a given market than it would otherwise.

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To conform to local content regulations, a firm may have to locate more production activities in a given market than it would otherwise. From the firm's perspective, the consequence might be to raise costs above the level that could be achieved if each production activity was dispersed to the optimal location for that activity.

To Conform to Local Content Regulations, a Firm May Have