China and India Require That When Foreign Firms Enter into Joint

question 43

Multiple Choice

China and India require that when foreign firms enter into joint ventures with local firms,the local partners must have the controlling ownership stake.What is this an example of?

• A) local content laws
• B) business practice laws
• C) fair trade agreements
• D) quotas
• E) subsidies

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Definitions:

Recognition Lag

Recognition Lag is the time it takes for policymakers to identify an economic problem.

Fiscal Policy

Government policies related to taxation and spending to influence the economy, including measures to adjust the level of aggregate demand in the pursuit of economic objectives.

Vice-President

An official or executive ranking below the president of a country or a company, often with delegated duties or powers and serving as a successor in case the president cannot serve.

Automatic Stabilizers

Economic policies and programs designed to balance fluctuations in a nation's economic activity without additional intervention, such as unemployment benefits and progressive taxes.