- Local content rules states that if a product is – to a certain degree - made out of imported parts, it will be taxed.
- It is a barrier to entry because it puts tax on the finished products, increasing costs for the business.
- For example, even if a factory is built somewhere with cheap labor costs, the parts used in its production may still come from various locations; this makes it so the local content rule adds tax to the finished product. This means that the costs, in the end, will still be too high and so the businesses has no choice but to leave the country or not invest in the country in the first place, making the local content rule a barrier to entry.
- Local content rules states that if a product is – to a certain degree - made out of imported parts, it will be taxed.- It is a barrier to entry because it puts tax on the finished products, increasing costs for the business.- For example, even if a factory is built somewhere with cheap labor costs, the parts used in its production may still come from various locations; this makes it so the local content rule adds tax to the finished product. This means that the costs, in the end, will still be too high and so the businesses has no choice but to leave the country or not invest in the country in the first place, making the local content rule a barrier to entry.
การแปล กรุณารอสักครู่..