Asked by Camila Ramirez on May 18, 2024
Verified
If a nation agrees to set an upper limit on the total amount of a product that it exports to another nation, then this situation would be an example of
A) an import quota.
B) a revenue tariff.
C) a protective tariff.
D) a voluntary export restriction.
Voluntary Export Restriction
An agreement by a country to limit the quantity of goods exported to another country to avoid tariffs or quotas.
Import Quota
A government-imposed limit on the quantity or value of a specific commodity that can be imported into a country.
Protective Tariff
A tax imposed on imported goods to shield domestic industries from foreign competition by making imported goods more expensive.
- Acknowledge the influence of tariffs, quotas, and non-tariff barriers in international commerce.
Verified Answer
LC
LePorsche CannonMay 19, 2024
Final Answer :
D
Explanation :
A voluntary export restriction is a self-imposed limit on the amount of a product that a nation exports to another nation. This is usually done as a response to pressure from the importing nation to reduce the volume of imports. It enables the exporting nation to maintain its access to the importing market while avoiding the imposition of trade barriers such as quotas or tariffs.
Learning Objectives
- Acknowledge the influence of tariffs, quotas, and non-tariff barriers in international commerce.