Foreign Producers Typically Agree to Voluntary Export Restrictions Because

question 77

Multiple Choice

Foreign producers typically agree to voluntary export restrictions because

• A) their manufacturing capacity is limited.
• B) they can divert their exports to other countries and charge more for their products.
• C) they fear far more damaging punitive tariffs or import quotas might follow if they do not.
• D) they are required to by the World Trade Organization.

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Definitions:

Agency Agreement

A contract where one party (the agent) agrees to act on behalf of another (the principal) in business transactions.

Operation Of Law

An operation of law is a legal change that occurs automatically due to existing legal rules, rather than actions taken by the parties themselves.

Employee Status

A classification that determines if an individual is employed by a company, affecting their entitlement to employee benefits and protections under labor laws.

Independent Contractors

Individuals or entities that provide services to another entity under terms specified in a contract, not classified as employees by the hiring company.