The United States and Canada reach an agreement under which Canada volunteers to limit the number of automobile parts shipped to the U.S. This is an example of:

Question

Quizplus · Accepted Answer

This is an example of a voluntary export restraint, as Canada is voluntarily limiting the number of automobile parts it exports to the U.S. It is not a negotiated tariff or a limiting restraint, and while it is similar to a quota in that it limits the amount of goods that can be imported, it is specifically a voluntary export restraint.

The United States and Canada Reach an Agreement Under Which