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

---

Definitions:

Shortage Costs

Shortage Costs are the costs incurred when demand exceeds supply, including lost sales, backorder costs, and potential deterioration of customer satisfaction.

Carrying Costs

Costs related to maintaining inventory that encompass storage fees, insurance, taxes, and the potential losses from not using the funds elsewhere.

Ideal Level

Ideal level often refers to the optimal state or condition for operations, efficiency, or functionality in various contexts.

Letter Of Credit

A written statement by a bank that money will be paid, provided conditions specified in the letter are met.