Which of the Following Situations Is an Example of a Voluntary

question 87

Multiple Choice

Which of the following situations is an example of a voluntary export restraint?

• A) Japan agrees to limit the number of automobiles that it exports to the United States.
• B) The United States places a tax on textiles from China.
• C) Canada limits the amount of steel that can be imported.
• D) Sweden requires domestic firms to obtain a permit before they can export certain chemicals.

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Definitions:

Partnership Terminates

The process or event leading to the dissolution or ending of a partnership agreement between two or more business partners.

General Partnership

A business structure where two or more individuals share ownership, as well as the responsibilities and liabilities of the business.

Limited Partnership

A partnership structure where one or more partners have limited liabilities, not exceeding their investment, while at least one partner has unlimited liability.

Limited Partners

Investors in a partnership whose liability is limited to the amount of their investment in the partnership.