Local Content Requirements Can Force a Company to Do All

question 114

Multiple Choice

Local content requirements can force a company to do all of the following EXCEPT ________.

• A) bank with a non-local institution
• B) use locally available raw materials
• C) procure parts from local suppliers
• D) hire local workers

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Definitions:

Year 2

The second year in a given time frame or series, often referring to fiscal or calendar years.

Operating Cycle

The average period of time it takes for a company to purchase inventory, sell products, and collect cash from customers.

Total Asset Turnover

A financial ratio that measures a company's ability to use its assets to generate sales, calculated by dividing sales or revenue by the total assets.

Year 2

The second year in a given time frame, often referring to the second year of a company's operation or the second year in a dataset.