*Regulations, government policies, and requirements in host countries have a maj

Question

*Regulations, government policies, and requirements in host countries have a major effect on the operations of foreign companies. Which of the following does NOT reflect a typical regulation?

1.Providing low-interest loans to foreign companies

2.Implementing rules and policies that protect and prefer local companies over foreign firms

3.Placing restrictions on imports to support domestic production

4.Establishing local content requirement on goods sold inside their borders by foreign companies

5.Imposing tariffs on imported goods

Explanation / Answer

4. Establishing local content requirement on goods sold inside their borders by foreign companies. Correct option

Other options represent Regulations, government policies, and requirements in host countries. Establishing local content requirement on goods sold inside their borders by foreign companies represents more to boost employment and transfer technology to local country.

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