Domestic content requirement not only protect the local industries, it also helps the supporting industries to prosper and gain a larger market share due to MNC has to obtain the supplies domestically and produce them. Other examples of domestic content requirement would be the automobile industry in Malaysia...
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While the tariffs for imported vehicles are high, foreign firms that assembly their vehicles locally would not have to pay for such high tariffs, if they meet the domestic content requirement that the government has imposed. Import licenses are other effective trade barriers. Instead of setting a quota, government would only have to control the number of licenses issued...
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