How is the quota rent enjoyed by foreign producer or foreign govt. in voluntary export restrain
Please help with example?
Mohit dagaPro
Trade restrictions
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The foreign govt. may impose quota on foreign exporters for exporting goods to countries with voluntary export restrain. For eg., if US has kept China on voluntary export restrain and China export its goods in US so US govt. may impose quota rent on Chinese exporters which in turn will reduce the export from China to US.
Hope this helps!
Got it ..thanks