What Is a Voluntary Export Restraint? Why Do Exporting Countries

question 28

Essay

What is a voluntary export restraint? Why do exporting countries agree to VERs? Explain with an example.

---

Definitions:

Variable Cost

Costs that fluctuate directly with changes in production or sales volume.

Cost Driver

Any activity or factor that can cause a change in the cost of a product or service, used in activity-based costing to allocate costs accurately.

Support Department

Departments that do not directly participate in the primary activities of a business but provide essential services or support to those that do.

Payroll Checks

Payroll checks are written by an employer to pay employees for services rendered during a specific time period.