The U.S.-Japaneses agreement in 1981 to limit imports of small Japanese cars to the U.S.

Question

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The agreement led to a voluntary export restraint (VER) program that limited Japanese automakers to exporting no more than 1.68 million vehicles to the U.S. annually. This resulted in limited supply, which led to higher prices for consumers. It is estimated that the VERs cost American consumers an extra $660 per imported Japanese car purchased.

The US-Japaneses Agreement in 1981 to Limit Imports of Small Japanese