Create quota rents and larger reduction in national welfare


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 1980's? For example, given that VERs are a form of quotas, and that they were create quota rents and a larger reduction in national welfare than tariffs, why did nations use them instead of tariffs?

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: Create quota rents and larger reduction in national welfare
Reference No:- TGS039859

Expected delivery within 24 Hours