Question

Why would a country impose a voluntary export restraint on products?

A. to eliminate excessive foreign competition in the country
B. to encourage exporters to work more productively
C. to reduce the chances that the importing country will set up trade barriers
D. to increase the chances that the importing country will reduce tariffs

Answer 1

C) to reduce the chances that the importing country will set up trade barriers

Step-by-step explanation:

Voluntary export restraints (VER) occur when a government restricts the quantity of exports that their country sends to another country or group of countries. VER differ from import quotas in the sense that import quotas are imposed by the importing country, while VERs are imposed by the exporting countries.

Usually governments impose VERs in response to another country's request in order to avoid the threat of import quotas or increased import tariffs.