When Toyota Motor Company built automobile manufacturing plants in Tennessee and Ohio, it faced economic risks associated with ___. This occurred because the United States required that 50 percent of all parts used in an automobile constructed in the United States must contain parts that were manufactured in the United States. The United States wanted to promote it "Buy American" policy.
A) exchange controls
B) local-content laws
C) import restrictions
D) tax controls
E) price controls

Question

Quizplus · Accepted Answer

Selective restrictions on the import of raw materials, machines, and spare parts are fairly common strategies to force foreign industry to purchase more supplies within the host country and thereby create markets for local industry.

When Toyota Motor Company Built Automobile Manufacturing Plants in Tennessee