Question

The Uruguay Round of the GATT began a process of phasing out the use of voluntary export restraints. Why did they come into widespread use in the 1980s? For instance, given that VERs (voluntary export restraints) are a form of quotas, and that they create quota rents and a larger reduction in national welfare than tariffs, why did nations use them instead of tariffs?

Name: the uruguay round of the gatt began a process of phasing out the use of voluntary export restraints why did they come into widespread use in the 1980s for instance given that vers voluntary 30518
Uploaded: 2022-10-09T10:07:54-08:00
Duration: 1 min 46 s
Channel: Jennifer Stoner
Description: the uruguay round of the gatt began a process of phasing out the use of voluntary export restraints why did they come into widespread use in the 1980s for instance given that vers voluntary 30518

          The Uruguay Round of the GATT began a process of phasing out the use of voluntary export restraints. Why did they come into widespread use in the 1980s? For instance, given that VERs (voluntary export restraints) are a form of quotas, and that they create quota rents and a larger reduction in national welfare than tariffs, why did nations use them instead of tariffs?

Added by Jocelyn B.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Jennifer Stoner

10/09/2022

Step 1

Step 1: Voluntary export restraints (VERs) became widespread in the 1980s because they were a way for exporting countries to impose their own restrictions on the amount of goods they could export, rather than facing potentially higher tariffs imposed by importing Show more…

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The Uruguay Round of the GATT began a process of phasing out the use of voluntary export restraints. Why did they come into widespread use in the 1980s? For instance, given that VERs (voluntary export restraints) are a form of quotas, and that they create quota rents and a larger reduction in national welfare than tariffs, why did nations use them instead of tariffs?