Suppose the united states and japan enter into a voluntary export agreement in which japan imposes an export quota on its automakers. the largest share of the export quota's "revenue effect" would tend to be captured by: a. japanese automakers b. american auto consumers c. the u. s. government d. american autoworkers

a

Explanation:

The largest share of the export quota's "revenue effect" would tend to be captured Japanese automakers . Exports are the goods and services produced in one country and purchased by residents of another country. It doesn't matter what the good or service is. It doesn't matter how it is sent. It can be shipped, sent by email, or carried in personal luggage on a plane. If it is produced domestically and sold to someone in a foreign country, it is an export. international trade theory generally emphasizes the analysis of trade policies specifically. Trade policy includes any policy that directly affects the flow of goods and services between countries, including import tariffs, import quotas, voluntary export restraints, export taxes and export subsidies .If a small country is importing or exporting a commodity initially, a domestic policy will affect the quantity imported or exported; the prices faced by consumers or producers; and the welfare of consumers, producers, the government, and the nation. consider a production subsidy implemented by a small country that initially is importing the commodity from the rest of the world. The production subsidy stimulates domestic production by raising the producers’ price but has no effect on the world price or the domestic consumers’ price. Imports fall as domestic production rises. Producers receive more per unit of output by the amount of the subsidy, thus producer surplus (or welfare) rises.

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