Final answer:
A voluntary export restraint (VER) refers to a quota on trade imposed by the exporting country, typically at the request of the importing country's government. It is a trade restriction measure where the exporting country agrees to limit the quantity of a specific product it exports to the importing country.
Step-by-step explanation:
An import quota imposed by the exporting country, typically at the request of the importing country's government, is referred to as a Voluntary export restraint (VER). This is a trade restriction measure where the exporting country agrees to limit the quantity of a specific product it exports to the importing country. The VER is voluntarily implemented by the exporting country in response to the importing country's request, and it aims to protect domestic industries by reducing competition from foreign products.
A quota on trade imposed by the exporting country at the request of the importing country's government is termed a Voluntary Export Restraint (VER).
The quota on trade imposed by the exporting country, typically at the request of the importing country's government, is known as a Voluntary Export Restraint (VER). A VER is a form of protectionism whereby an exporting country agrees to limit the quantity of goods exported to a particular country. This self-imposed restraint is usually the result of negotiations between the importing and exporting countries. Exporting countries implement VERs to avoid more stringent trade barriers that the importing country might put in place.
For example, during the early 1980s, the United States faced a surge in the import of Japanese automobiles, leading to the imposition of a quota on Japanese car exports to the U.S. Similarly, many developed countries faced declining textile industries in the 1970s and adopted various forms of quotas and restrictions to protect domestic manufacturers.