In Thailand, it is required that any milk sold in the country must contain at least 50 percent milk from Thai dairy farmers. This would be an illustration of which of the following economic risks faced by international producers of milk?
A) Exchange controls
B) Local-content laws
C) Import restrictions
D) Tax controls
E) Price controls

Question

Quizplus · Accepted Answer

In addition to restricting imports of essential supplies to force local purchase, countries often require a portion of any product sold within the country to have local content, that is, to contain locally made parts.

In Thailand, It Is Required That Any Milk Sold in the Country