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Nimfa-mama [501]
2 years ago
5

How do the effects of voluntary restraint agreements differ from the effects of a tariff? Tariffs reduce trade by more than volu

ntary restraint agreements. Voluntary restraint agreements result in higher prices, which increase revenue for foreign firms, while the revenue raised from tariffs goes to the domestic government. Tariffs increase the prices of imports, helping domestic producers, while voluntary restraints do not. Voluntary restraint agreements are informal agreements that can be easily changed, while tariffs are not.
Business
1 answer:
Snezhnost [94]2 years ago
3 0

Answer:

Tariffs increase the prices of imports, helping domestic producers, while voluntary restraints do not.

Explanation:

A tarrif is defined as a tax that is imposed by government on goods and services that are imported from another country. Tarrifs are used to discourage imports by increasing their prices compared to locally produced goods and services.

Voluntary restraint agreements is is also called voluntary export restraint. It is a restriction on the amount of goods and services that exporters are allowed to export to other countries. It is also referred to as export visa.

Tarrifs results in increase in price of goods and services while voluntary restraint agreement does not.

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The country of Lilliput has low unemployment and high consumer spending, and small businesses are thriving. However, prices are
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Raise the income tax, which gives citizens less money to spend, and buy more services from civilian - owned businesses, which creates more jobs.

<u>Explanation:</u>

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Suppose the EPS (earnings per share) of Wal-Mart stock is $2 and the current price per earnings ratio is 10. What is the current
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