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) None of the above is true.

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. VERs are a form of trade barrier and are used to protect domestic industries from foreign competition. VERs are voluntary because the exporting country agrees to limit exports, rather than being forced to do so by the importing country.

Voluntary Export Restraints (VERs) Are