Which of the following is true of a voluntary export restraint (VER)?

Question

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A voluntary export restraint is an agreement between two countries where one country agrees to limit its exports to the other country. It is voluntary because it is not imposed by the importing country. The exporting country may agree to a VER to avoid the imposition of more restrictive measures such as quotas or tariffs. In general, a VER requires the exporting firms to act like a cartel, restricting sales and raising prices, as they have limited access to the foreign market. This leads to increased prices for the importing country's consumers and increased profits for the exporting firms.

Which of the Following Is True of a Voluntary Export