When a certain portion of the end product must consist of domestically produced goods or that a certain portion of the final cost of a product must come from domestic sources, this is the result of .

Local Content Requirements

Explanation:

Local content requirements are policies used by both developing countries and developed countries aiming at promoting the use of local inputs and fostering growth of domestic industries. It requires that a certain agreed upon percentage of intermediate goods or inputs used in the production process be gotten from local or domestic manufacturers.

Government imposes these local content requirements in order for foreign companies to be able to operate in their economy. When it is done properly, there's usually increases in the aspect of local employment with industrial and technological growth of the local manufacturers.

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