U.S.cola producers limit the number of beverages that they export to India each year.This is an example of
A)a quota.
B)direct investment.
C)a strategic alliance.
D)a licensing agreement.
E)an export restraint agreement.

Question

Quizplus · Accepted Answer

The situation described is an example of an export restraint agreement, in which the U.S. cola producers limit the number of beverages they export to India each year. A quota would be a specific limit on the quantity of a product that can be imported, while direct investment, strategic alliances, and licensing agreements all involve more long-term arrangements between companies.

USCola Producers Limit the Number of Beverages That They Export