An import quota is different from a voluntary export restraint because:
A) the former is imposed by the exporting country and the latter by the home country.
B) the former is imposed by the home country and the latter by the exporting country.
C) the latter is specified by domestic importers.
D) the former results in less gain for the country.

Question

Quizplus · Accepted Answer

An import quota is a limit on the quantity of a particular good that can be imported into a country, and is imposed by the home country. A voluntary export restraint is a limit on the quantity of a particular good that an exporting country agrees to export, and is imposed by the exporting country. Therefore, the correct option is B. The other options are incorrect as they do not accurately describe the differences between an import quota and a voluntary export restraint.

An Import Quota Is Different from a Voluntary Export Restraint