What is the main difference between a tariff and an "equivalent" voluntary export restriction (VER) ? A tariff
A) allows the government of the importing country to appropriate the extra market value of the imported good,but with a VER the extra market value accrues to the good's foreign producers.
B) allows the extra market value of the good to accrue to the supplier,but a VER allows the extra market value to be appropriated by the government of the importing country.
C) restricts free trade between two countries and a VER does not.
D) keeps the price in the importing country higher than it would otherwise be; a VER does not.
E) allows the importing country to protect wages and other factor incomes in the affected industry,while a VER does not.
Correct Answer:
Verified
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