Local Content Requirements Refer to a Situation Where

question 71

Multiple Choice

Local content requirements refer to a situation where:

• A)governments limit the convertibility of one currency (usually its own)into others, usually in an effort to limit imports.
• B)governments provide financing to local companies to promote exports.
• C)companies sell a product below market price often in order to win market share and weaken a competitor.
• D)countries designate certain geographic areas as free trade zones.
• E)countries require that a certain percentage of a product or an item be manufactured or "assembled" locally.

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Definitions:

Carrying Value

Another term for book value; it's the value at which an asset is recognized on the balance sheet.

Straight-Line Method

A method of calculating depreciation of an asset where the asset's cost is reduced equally over its useful life.

Amortize Discount

The process of gradually reducing the discount on a bond over the life of the bond.

Bonds Payable

Bonds payable refers to the long-term debt a company owes to bondholders, representing the amount that is due to be paid back at the bond's maturity date along with periodic interest payments.