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In the 1980s Japan agreed to limit the quantity of automobiles it would export to the United States.

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In the 1980s Japan agreed to limit the quantity of automobiles it would export to the United States.

In the 1980s Japan agreed to limit the quantity of automobiles it would export to the United States. Why did the Japanese government agree to this trade restriction?
A) Japanese automobile producers lobbied for the restrictions in order to increase the price of their exports to the United States.
B) The Japanese government wanted to limit sales to the United States in order to make more automobiles available for Japanese consumers.
C) The Japanese government feared that the alternative would be a tariff or quota on imports of Japanese automobiles imposed by the U.S. government.
D) The Japanese government wanted more automobiles to be available for export to countries other than the United States.

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Essentials of Economics

Edition: 4^th

Authors: Hubbard, O'Brien

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