Suppose japan agreed to a voluntary export restriction

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Reference no: EM131531190

Suppose Japan agreed to a Voluntary Export Restriction (VER) that reduced US imports of Japanese steel by 10%. Discuss what would be the likely short-run effects of that VER on the US and Japanese steel industries.

If the restriction were permanent, what would be its long-run effects in the two nations on the:

  • Allocation of resources
  • Volume of employment
  • Price level
  • Standard of living

Reference no: EM131531190

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