Voluntary export and import restraint agreement quota
Voluntary export restraint agreement quota is both beneficial and disadvantageous to the involved countries. The trade ministries in both countries should therefore weigh its consequences to a country that imposes the quota before they come to such an agreement. Moreover, its resultant effect may not only affect the imposing country but also the citizens of the recipient country who might not buy the new product (Jones, 1984).
The restraint export quota has economic effects to a country’s development and in my opinion; it might immensely affect the importing quota country economic status. Raising the products costs to a foreign government ...