The restriction on the importing of garments made in Cambodia into the U.S. is lower for those manufacturers that allow their factories to be monitored by the International Labor Organization (ILO). These restrictions are examples of:
A)foreign excise taxes.
B)quotas.
C)blocked currencies.
D)GATT taxes.

Question

Quizplus · Accepted Answer

The restrictions described are quotas, which limit the amount of a certain product that can be imported into a country. The fact that the restrictions can be lifted for manufacturers who allow monitoring by the ILO makes them a specific type of quota known as a "voluntary export restraint" (VER).

The Restriction on the Importing of Garments Made in Cambodia