Question

Which of the following is true of voluntary export restraints? a. It is a government payment to domestic firms. b. It is an example of a tariff barrier. c. It is an extra tax imposed by a country on its exports. d. It is an export quota levied by a country on the quantity of its exports.

Answer 1

The answer is: D) It is an export quota levied by a country on the quantity of its exports.

Step-by-step explanation:

Voluntary export restraints (VER) are agreements between an exporting country E and an importing country I which limits the amount of specific goods that country E can export to country I. The difference between quotas and VERs is that quotas are imposed limits by the importing country while VERs are negotiated limits.