Voluntary export restraints (VERs)
A) do not protect domestic producers.
B) raise revenue for the governments involved.
C) raise the prices paid by domestic consumers.
D) Both answers B and C are correct.

Question

Quizplus · Accepted Answer

Voluntary export restraints (VERs) lead to a reduction in the supply of imported goods, which can cause the prices of these goods to increase in the importing country, thus raising the prices paid by domestic consumers. They do not directly raise revenue for governments; that is more characteristic of tariffs.

Voluntary Export Restraints (VERs)