Import Quota and Voluntary Export Restraints

• Import Quota

  • Direct restriction on quantity of specific goods
    • cheese (through trading companies) and
    • sugar and textile (by nation)

• Voluntary Export Restraint

  • Is a quota imposed by the exporting country, typically at the request of the importing country
    • In 1986, Japan restricted exports of cars to 1.85 million.
  • Help local producers, and maybe foreign producers if they can raise prices.
  • Obviously, harm for the consumers

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