Local content requirements provide protection in the same way an import quota does _____________ for a domestic producer of component parts.

Question

Quizplus · Accepted Answer

Local content requirements limit the amount of foreign competition by mandating that a certain percentage of the product must be produced locally. This is similar to an import quota, which limits the amount of foreign goods that can be brought into the domestic market. Both of these measures aim to protect domestic producers from foreign competition.

Local Content Requirements Provide Protection in the Same Way an Import