Question

A system that makes it mandatory
for domestic producers to use some
proportion of domestic raw material
s known as यह सिस्टम दैट मेक इट मंदोदरी पर डोमेस्टिक प्रोड्यूसर ट्यूशन प्रमोशन ऑफ डोमेस्टिक रो मटेरियल इज नोन एस ​

Answer 1

The system is known as an indirect quota.

Explanation:

• The system under which It is mandatory for domestic producers to use some portion of domestic raw material is called an indirect quota.
• It is also known as a Mixing Quota.
• It is done to provide protection to the producers of raw materials.
• It involves the domestic processing of semi­-finished goods and the manufacturing of finished goods.
• This structure results in inefficiency and a higher cost structure caused due to deviation from the principle of comparative cost advantage and thus results in inefficiency and higher cost structure.