In the 1980s,Japan Agreed to Limit the Quantity of Automobiles

question 155

Multiple Choice

In the 1980s,Japan agreed to limit the quantity of automobiles it would export to the United States.Why did the Japanese government agree to this trade restriction?

• A)Japanese automobile producers lobbied for the restrictions in order to increase the price of their exports to the United States.
• B)The Japanese government wanted to limit sales to the United States in order to make more automobiles available for Japanese consumers.
• C)The Japanese government feared that the alternative would be a tariff or quota on imports of Japanese automobiles imposed by the U.S.government.
• D)The Japanese government wanted more automobiles to be available for export to countries other than the United States.

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Definitions:

Allowances

Discounts or financial concessions given to customers, employees, or distributors as an incentive or for defective goods.

Cumulative Quantity Discounts

Price reductions applied to purchases based on the accumulated quantity bought over a specific time period, incentivizing larger orders.

Noncumulative Quantity Discounts

Price reductions given for a single purchase order rather than over a period of time, based on the quantity of goods purchased.

Noncumulative Quantity Discounts

Discounts that apply to a single order rather than the total volume of orders over a certain period, encouraging large individual purchases.