Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman

Exercise 16

In 1981, the United States negotiated an agreement with the Japanese. The agreement called for Japanese auto firms to limit exports to the United States. The Japanese government was charged with helping make sure the agreement was met by Japanese firms. Were the Japanese firms necessarily hurt by this limited ability to export Explain.