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Governments Choose to Use Voluntary Export Restraints Rather Than Tariffs

Question 39

Multiple Choice

Governments choose to use voluntary export restraints rather than tariffs because:


A) voluntary export restraints have the potential to generate higher revenue.
B) voluntary export restraints do not generate any welfare loss in the importing country.
C) tariffs more obviously violate the international rules of the WTO.
D) the increase in the price of the imported good in the domestic market is much lower in case of VERs than tariffs.

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