A attempts to limit outsourcing of jobs to foreigners by requiring that a minimum percentage of a product's value must be produced domestically if that good is to be sold in the domestic market ?
Correct answer: C. domestic content requirement
- A. domestic subsidy
- B. voluntary restraint agreement
- C. domestic content requirement
- D. tariff-rate quota
Explanation
A domestic content requirement obliges firms to produce a minimum share of a good's value within the country. It directly restricts the use of foreign inputs and therefore limits outsourcing.
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