Voluntary export restraints (VERs) are
A) limits on the number of an item that can be imported.
B) regulations adopted when one country threatens restrictions on trade and an exporting country agrees to limit exports to avoid the imposition of more stringent limits.
C) restrictions that items to be sold as a domestic product must have a certain percentage of its final product components assembled domestically.
D) quotas that are agreed upon and sanctioned by the WTO.

Question

Quizplus · Accepted Answer

Voluntary export restraints (VERs) are regulations adopted when one country threatens restrictions on trade and an exporting country agrees to limit exports to avoid the imposition of more stringent limits. They are usually negotiated bilaterally and are viewed as a way to avoid trade wars or other forms of trade restrictions. VERs are often implemented in industries where there is significant political pressure to protect domestic producers, such as the automobile industry.

Voluntary Export Restraints (VERs) Are