China and India Require That When Foreign Firms Enter into Joint

question 167

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 does this illustrate?

• A) local content laws
• B) business ethics
• C) tariffs
• D) social responsibility

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Definitions:

Representation Clause

A contractual provision where one party guarantees certain facts or conditions to be true or to occur.

Exculpatory Clause

An exculpatory clause is a contract provision that absolves one party from liability for harm or damages incurred by the other party.

Liability Clause

A provision in a contract that outlines the responsibilities and liabilities of each party involved in the agreement.

Agent's Clause

A provision in a contract specifying the authority and scope of the relationship between an agent and the principal they represent.