A voluntary export restraint (VER) is similar to an import quota, except that the former beneﬁts the
foreign producers while the latter beneﬁts the domestic producers.

Question

Quizplus · Accepted Answer

A voluntary export restraint (VER) is an agreement in which a foreign country voluntarily limits the quantity of its exports to a particular country. This benefits foreign producers by maintaining their access to a particular market, while benefiting domestic producers by reducing competition from foreign imports. In contrast, an import quota is a restriction on the quantity of a good that can be imported, usually designed to protect domestic producers from foreign competition.

A Voluntary Export Restraint (VER) Is Similar to an Import