Assume that a VER (voluntary export restraint) is imposed on an imported product. The difference between the domestic price and the world price is captured by

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When a voluntary export restraint (VER) is imposed, the quantity of goods that can be imported is limited. This often leads to an increase in the domestic price of the imported product above the world price. The difference between these two prices, or the economic rent, is typically captured by foreign exporters because they can sell their products at a higher price in the market imposing the VER.

Assume That a VER (Voluntary Export Restraint) Is Imposed on an Imported