In the 1980s, the United States negotiated a voluntary export agreement with Japan in which each Japanese auto producer voluntarily agreed to reduce the number of its automobiles exported to the United States. This voluntary export agreement caused each Japanese auto producer to:

Question

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The voluntary export agreement put a limit on the number of automobiles each Japanese auto producer could export to the United States. This reduced competition among Japanese automakers, allowing them to charge higher prices for their cars in the US market. Therefore, the Japanese auto producers raised the prices of their automobile exports to the United States.

In the 1980s, the United States Negotiated a Voluntary Export