Which of the following is the best example of a voluntary export restraint?
A)a limit imposed by the U.S. government on the number of cell phones that the United States can import from Korea
B)a subsidy granted by the U.S. government to domestic cell phone manufacturers so they can compete more effectively with foreign cell phone manufacturers
C)a limit set by the Korean government on the number of cell phones that the United States can import from Korea
D)a $50 per-cell phone fee imposed on all cell phones imported into the United States

Question

Quizplus · Accepted Answer

A voluntary export restraint (VER) is a self-imposed limit on the quantity of goods that a country exports to another country. In this case, the example of a voluntary export restraint is the limit set by the Korean government on the number of cell phones that the United States can import from Korea. This is a form of trade barrier aimed at protecting the domestic cell phone industry in Korea by limiting foreign competition. Options A, B, and D do not fit the definition of a voluntary export restraint.

Which of the Following Is the Best Example of a Voluntary