6. The Uruguay Round of the GATT began a process of phasing out the use of voluntary export restraints. Why did they come into widespread use in the 1980s? For example, given that VERS are a form of quotas, and that: they create quota rents and a larger reduction in national welfare than tariffs, why did nations use them instead of tariffs?

6. The Uruguay Round of the GATT began a process of phasing out the use of voluntary export restraints. Why did they come into widespread use in the 1980s? For example, given that VERS are a form of quotas, and that: they create quota rents and a larger reduction in national welfare than tariffs, why did nations use them instead of tariffs?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter34: Globalization And Protectionism

Section: Chapter Questions

Problem 14SCQ: Assume a perfectly competitive market and the exporting country is small. Using a demand and supply...

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