Bilateral Voluntary Export Restraints, or VERs, Circumvented GATT Agreements Because

question 16

Multiple Choice

Bilateral voluntary export restraints, or VERs, circumvented GATT agreements because

• A) these nations withdrew their membership to the GATT.
• B) the member nations had ceased to recognize GATT as a regulatory body for international trade.
• C) VERs were not a recognized trade barrier under the GATT constitution.
• D) neither the importing country nor the exporting country complained to the GATT bureaucracy for it to take action.
• E) member nations erected a wall of tariff barriers.

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Definitions:

Direct Material

Raw materials that can be directly associated with the production of a specific product.

Predetermined Overhead Rate

An estimated rate used to apply manufacturing overhead to products or cost objects, calculated before the period begins based on forecasted costs and activity levels.

Estimated Labor-Hours

An approximation of the total hours of labor that will be required for a specific project or production period.

Variable Manufacturing Overhead

Costs in manufacturing that vary directly with levels of production, such as materials and labor directly involved in production.