In Order to Avoid the Imposition of Other Types of Trade

question 187

Multiple Choice

In order to avoid the imposition of other types of trade barriers,foreign producers will sometimes agree to limit their exports to a country.What are these types of agreements called?

• A)involuntary export restraints
• B)voluntary export restraints
• C)implicit quotas
• D)sanctions

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Definitions:

Government Failure

A situation where government intervention in the economy creates inefficiency and leads to a misallocation of resources.

Federal Money

Funds provided by the federal government, often to support state or local projects, policies, or to provide social services.

Incentive-based Regulation

A regulatory approach that uses rewards or penalties to motivate entities to perform in ways that align with policy goals or regulatory standards.

Command-and-control Regulation

Regulatory approach where the government sets specific standards or limitations on the activities of businesses, often related to environmental or safety measures.