Comparative Advantage and Gains from Trade

Please watch this video  https://www.youtube.com/watch?v=3I9rj1xJjko https://www.youtube.com/watch?v=HWXke2ap1nc  – quota Make sure that you respond to both topics as comprehensibly as possible, include your sources. 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 instance, given that VERs (voluntary export restraints) 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? The GATT strongly favors tariffs as a protective measure over quotas or other non-tariff measures. It encourages new members to convert quotas to their tariff equivalents. One of the main reasons that tariffs are preferred is because they are more transparent, particularly by comparison to non-tariff measures. Explain the idea of transparency and how non-tariff measures may be non-transparent. Use examples to support your arguments.

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