Which of the following is the best example of a voluntary export restraint?
A)a limit set by the Japanese government on the number of sports utility vehicles that the United States can import from Japan
B)a subsidy granted by the U.S.government to domestic sports utility vehicle manufacturers so they can compete more effectively with foreign sports utility vehicle manufacturers
C)a tax placed on all sports utility vehicles sold in the domestic market
D)a $5,000 per-car fee imposed on all sports utility vehicles imported into the United States

Question

Quizplus · Accepted Answer

A voluntary export restraint is a limit voluntarily placed by the exporting country on the quantity of goods it will export to another country, usually to avoid trade restrictions or higher tariffs. In this case, Japan is limiting the number of sports utility vehicles it exports to the United States. The other options do not fit the definition of a voluntary export restraint.

Which of the Following Is the Best Example of a Voluntary