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Suppose that Japanese auto producers voluntarily restrict their exports to the US significantly. (For example, imagine all US imports come from Japan and that the Japanese producers restrict exports to the US to half the free-trade level).

How does this voluntary export restraint (VER) differ from a quota? Why would Japanese producers have agreed to the VER?

International Economics, Economics

  • Category:- International Economics
  • Reference No.:- M9482460

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