Local content laws are consistent with the principle of import substitution, in which domestic production replaces the importation of goods from abroad.

Question

Quizplus · Accepted Answer

Local content laws promote domestic production and consumption of goods, with the aim of reducing reliance on imports. This is in line with the principle of import substitution, which seeks to replace foreign imports with domestic production. Therefore, local content laws are consistent with this principle.

Local Content Laws Are Consistent with the Principle of Import