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 vehicles imported into the United States

Question

Quizplus · Accepted Answer

A voluntary export restraint is a limit on the quantity of goods that one country exports to another country, which is voluntarily imposed by the exporting country at the request of the importing country. In this case, the limit on the number of cell phones that the United States can import from Korea is voluntarily imposed by the Korean government at the request of the United States government, making option C the best example of a voluntary export restraint. The other options do not fit the definition of a voluntary export restraint.

Which of the Following Is the Best Example of a Voluntary