Question

Unlike quotas, voluntary export restraints (VERs) are imposed by

A. the importing country's government.
B. the exporting country's government.
C. either the importing or exporting country's government; what matters is that they are voluntary.
D. the importing company.

Answer 1

Voluntary Export Restraints (VERs) are usually imposed by the exporting country's government as self-imposed limits to avoid stricter trade barriers from the importing country.

Step-by-step explanation:

Voluntary Export Restraints (VERs) are trade restrictions that limit the amount of goods that can be exported to a particular country. Unlike quotas, which are typically set by the importing country, Voluntary Export Restraints are typically imposed by the exporting country's government. These are self-imposed limits agreed upon by the exporting country in response to pressure or negotiation with the importing country, possibly to avoid more stringent trade barriers or quotas. An example of a VER was when the Japanese government agreed to limit the export of automobiles to the United States during the 1980s in response to American concerns about the auto industry's competitiveness.