Local Content Regulations Are Primarily Intended to ________

question 84

Multiple Choice

Local content regulations are primarily intended to ________.

• A)address cultural differences between local employees and expatriates
• B)encourage MNEs to increase production activities in a country
• C)address contract negotiation difficulties
• D)assess local tax rates on MNEs

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Definitions:

Deregulation

The act of eliminating governmental controls and rules in a sector to promote increased competition and efficiency.

Regulation

Rules or directives made and maintained by an authority to control or manage activities, often within industry sectors, for public good.

Allocative Efficiency

A state of the economy where the distribution of resources among different uses is optimal, with no one able to be made better off without making someone else worse off.

Marginal Benefits

The bonus satisfaction or utility acquired from consuming an additional unit of a product or service.