A typical host government requirement that is not said to impact the operations of foreign companies is
A)establishing local content requirement on goods made inside their borders by foreign companies.
B)having rules and policies that protect local companies from foreign competition.
C)placing restrictions on exports to ensure adequate local supplies.
D)requiring foreign companies to use vertical integration to support operations of local companies.
E)imposing burdensome tax structures and regulatory requirements upon foreign companies doing business within their borders.

Question

Quizplus · Accepted Answer

Requiring foreign companies to use vertical integration to support operations of local companies is a host government requirement that may not directly impact the operations of foreign companies. This requirement encourages foreign companies to work closely with local companies and can help to enhance local economic development. However, the requirement may impact the cost structure and supply chain of foreign companies, resulting in potential operational changes. Options A, B, C, and E are all government requirements that could have a direct impact on the operations and competitiveness of foreign companies operating within the host country.

A Typical Host Government Requirement That Is Not Said to Impact