The VER is not only a politically attractive way of offering protection to an import-competing industry, but is also economically much less inefficient than other trade barriers.

Question

Quizplus · Accepted Answer

Voluntary Export Restraints (VERs) can distort trade and are often not economically efficient because they can lead to higher prices for consumers and can encourage inefficiency in the protected domestic industries by reducing the incentive for firms to innovate and cut costs.

The VER Is Not Only a Politically Attractive Way of Offering