Multinational firms have to decide how much of their product should be made locally when selling in foreign markets. A study looked at how these firms set prices and local content rates when competing with local firms. They found that multinational firms lower local content rates when facing tough competition, consumers care more about their product's quality, and consumer satisfaction is less affected. If there's a local content requirement, multinational firms might increase local content to benefit local firms, but setting the requirement too high can lead to lower demand and profits for both multinational and local firms.