All of the following statements are true of local content requirements EXCEPT ________.

Question

Quizplus · Accepted Answer

Local content requirements typically benefit domestic producers by mandating the use of locally sourced materials, components, or labor in production processes. Option C is not true because local content requirements do not hurt domestic producers; rather, they protect them from competition by foreign producers who may have cost advantages due to lower wages, currency fluctuations or other factors. However, local content requirements may lead to higher prices for consumers, who have to pay more for goods and services that are subject to the restrictions.

All of the Following Statements Are True of Local Content