Asked by Ruthny Bonnet on May 18, 2024
Verified
A voluntary export restraint (VER)is similar to an import quota, except that the former benefits the foreign producers while the latter benefits the domestic producers.
Import Quota
A governmental limit on the quantity of a certain type of good that can be imported into a country, used to protect domestic industries.
- Explore the ramifications of tariffs, quotas, and different trade impediments on domestic and worldwide markets.
Verified Answer
YO
Yesenia OrtegaMay 23, 2024
Final Answer :
True
Explanation :
A voluntary export restraint (VER) is an agreement by the exporting country to limit the amount of goods exported to another country, which can lead to higher prices for those goods, benefiting foreign producers. An import quota limits the quantity of goods that can be imported, protecting domestic industries from foreign competition and potentially benefiting domestic producers.
Learning Objectives
- Explore the ramifications of tariffs, quotas, and different trade impediments on domestic and worldwide markets.
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