Question

For years, the world had used the country of Votnam as a place to assemble goods because of the country's availability of cheap labor. To shift its manufacturing base from simple assembly to full-fledged manufacture of components and finished goods, Votnam introduced a policy that 35 percent of the value of a product must be produced locally This is an example of a(n) a- Ad valorem portion requirement. b- Local content requirement. c- Interna d- Specific quota requirement. e- Domestic sales requirement.

Answer 1

The correct answer is letter B

Explanation: Local content requirement is a barrier for trade.

Trade barrier can be understood as any law, regulation, policy, measure or governmental practice that imposes restrictions on foreign trade.