6. 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 example, given that VERS 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?

6. 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 example, given that VERS 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?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Q6 solution needed

5. In addition to the production and consumption side deadweight losses, what are some of the other potential
costs of tariffs?
6. 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 example, given that VERS 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?

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