Local content regulations provide protection for a domestic producer of parts in much the same way a(n)_____ does,by limiting foreign competition.

Question

Quizplus · Accepted Answer

Import quotas limit the amount of foreign competition and protect domestic producers. The other options do not directly limit foreign competition. Greenfield investment involves setting up new operations in a foreign country, international content requirements often require a certain amount of local production in order to sell in a foreign market, domestic sales requirements mandate a minimum amount of domestic sales before exporting, and subsidies provide financial assistance to domestic producers but do not limit foreign competition.

Local Content Regulations Provide Protection for a Domestic Producer of Parts