Question

A VER is generally imposed under the threat of stiffer quotas and tariffs being set by the importing country if a VER is not established.

A) True
B) False
C) Partially true
D) Not addressed in the passage

Answer 1

A Voluntary Export Restraint is generally established under the threat of higher quotas and tariffs from the importing country, making the answer to the question A) True.

Step-by-step explanation:

A Voluntary Export Restraint (VER) is an agreement between exporting and importing countries where the exporting country agrees to limit the quantity of goods exported to the importing country. The question asks if a VER is typically established under the threat of more severe trade restrictions like higher quotas and tariffs by the importing country if a VER is not agreed upon. The answer to the question is A) True. Although not explicitly stated in the passages provided, VERs are indeed often imposed under such threats, as it serves as an incentive for the exporting country to comply and avoid more stringent restrictions that might harm trade even further.