If a country voluntarily agrees to restrict its exports to another country,the country is said to have
A)a voluntary export restraint (VER).
B)a voluntary restraint agreement (VRA).
C)a mandated tariff.
D)a mandated agreement.

Question

Quizplus · Accepted Answer

When a country voluntarily agrees to limit or restrict its exports to another country, it is called a voluntary export restraint (VER). This is often done to avoid trade conflicts and maintain a positive relationship between countries. The exporting country may agree to restrict its exports in order to address concerns over the impact of their exports on the importing country's domestic industry or to avoid the threat of trade sanctions by the importing country. A voluntary export restraint is different from a mandated tariff, which is an official tax imposed by a government on imported goods, and a mandated agreement, which is a legally binding agreement between two or more countries. The term "voluntary restraint agreement" (VRA) is sometimes used as a synonym for VER.

If a Country Voluntarily Agrees to Restrict Its Exports to Another