[4] The Japanese auto industry has responded by setting up assembly plants or “transplants” in the United States (mainly in the southern states of the United States, where right-to-work laws exist as opposed to the Rust Belt states with established unions) to produce mass vehicles. Some examples of VER occurred in Japan`s automobile exports in the early 1980s and textile exports in the 1950s and 1960s. Typically, VER occurs when industries seek to protect themselves from competing imports from certain countries. REVs are then proposed by the exporting country to appease the importing country and prevent it from imposing explicit (and less flexible) trade barriers. .
