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:

Outlays

Expenditures or the amount of money expended in the course of conducting business or executing a project.

Collateral

Collateral refers to assets that a borrower offers to a lender to secure a loan. If the borrower defaults, the lender can seize the collateral to recover the loaned amount.

Fixed-Rate Mortgage

A mortgage with an interest rate that remains constant throughout the life of the loan.

Acceleration Clause

A contract provision that allows a lender to require a borrower to repay all of an outstanding loan if certain agreed upon conditions are not met.