THIS USER ASKED 👇
The primary difference between a quota and a voluntary export restraint (ver) is that a. the ver is unilaterally imposed by one nation on the other while the quota is the result of negotiations between nations. b. the ver affects import price while the quota works through quantity restrictions and does not influence the price of the good. c. the quota directly limits imports while the ver only indirectly influences the quantity traded between the nations. d. the quota is unilaterally imposed by one nation on the other while the ver is the result of negotiations between nations.
THIS IS THE BEST ANSWER 👇
The correct answer is option A.
A quota is a non – tariff restrictive barrier imposed unilaterally by the importing country. On the other hand, the exporting country has a voluntary self-imposed export restriction. Although it is generally the result of negotiations between importing and exporting countries.
Both of these measures are taken to protect the domestic producers in the importing country.