Why Did Japanese Auto Makers Accept the Voluntary Export Restraint

question 74

Essay

Why did Japanese auto makers accept the voluntary export restraint program that limited the number of cars that could be exported to the United States in the early 1980s? What role has domestic politics played in Toyota's U.S. strategy?

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Definitions:

Monetarists

Economists who believe that variations in the money supply are the main source of economic fluctuations.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in GDP, real income, employment, industrial production, and wholesale-retail sales.

Monetarists

Economists who posit that variability in the money supply critically impacts the short-term national economic output and the price level over longer spans.

Money Supply

This refers to the total amount of money (including cash, coins, and balances in bank accounts) in circulation within an economy at a given time.