In the past, Canada has agreed to set an upper limit on the total amount of softwood lumber sold to the United States. This is an example of a(n)

A) import quota.
B) export subsidy.
C) voluntary export restriction.
D) protective tariff.

Voluntary Export Restriction

A self-imposed limitation by exporting countries on the volume of their exports to another country, often to avoid stricter trade barriers.

Import Quota

A government-imposed limit on the quantity or value of goods that can be imported into a country, used to protect domestic industries from foreign competition.

Export Subsidy

A financial assistance given by the government to domestic companies to encourage them to sell their goods abroad.