Asked by Baily Shelor on May 03, 2024
Verified
A key difference between import quotas and voluntary export restraints (VERs) is that the
A) domestic government administers the former, whereas the foreign government administers the latter.
B) foreign government administers the former, whereas the domestic government administers the latter.
C) one is a tax, whereas the other is a quantity limit.
D) one raises the price of the imported product involved, whereas the other one does not.
Import Quotas
Limits set by a government on the amount or value of certain goods that can be imported into a country, usually to protect domestic industries.
Voluntary Export Restraints
These are self-imposed limits by exporting countries on the volume of their exports to a particular country, usually to avoid stricter trade barriers.
Administers
The act of managing, directing, or overseeing individuals or processes.
- Understand the function of tariffs, quotas, and non-tariff barriers in global commerce.
- Differentiate between various types of trade policies and their implications for domestic and international markets.
Verified Answer
EL
Emily LopezMay 07, 2024
Final Answer :
A
Explanation :
Import quotas are administered by the domestic government, whereas voluntary export restraints (VERs) are administered by the foreign government. The other options presented in the question are not accurate differences between these two trade restrictions.
Learning Objectives
- Understand the function of tariffs, quotas, and non-tariff barriers in global commerce.
- Differentiate between various types of trade policies and their implications for domestic and international markets.