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

Local content regulations provide protection for a domestic producer of parts in the same way an import quota does: by limiting foreign competition.The aggregate economic effects are also the same;domestic producers benefit,but the restrictions on imports raise the prices of imported components.

Local Content Regulations Provide Protection for a Domestic Producer of Parts