Which of the following is true of voluntary export restraints?
A) It is an extra tax imposed by a country on its exports.
B) It is an example of a tariff barrier.
C) It is a government payment to domestic firms.
D) It is an export quota levied by a country on the quantity of its exports.

Question

Which of the following is true of voluntary export restraints? 
A) It is an extra tax imposed by a country on its exports. 
B) It is an example of a tariff barrier. 
C) It is a government payment to domestic firms. 
D) It is an export quota levied by a country on the quantity of its exports.

Quizplus · Accepted Answer

Voluntary export restraints are export quotas that a country imposes on itself to limit the quantity of its exports to a specific country or region. This is typically done upon request from the importing country to address trade imbalances or to ease political tension. Unlike a tariff, a voluntary export restraint does not impose an extra tax on exports, and it is not a government payment to domestic firms.

Which of the Following Is True of Voluntary Export Restraints