The United States requires that 50 percent of all parts used to construct an automobile in the United States be manufactured in the United States. As a result of this, when Toyota Motor Company built automobile manufacturing plants in Tennessee and Ohio, it faced economic risks associated with _____.

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. Therefore, the United States used local-content laws to force Toyota Motor Company to purchase locally made parts.

The United States Requires That 50 Percent of All Parts