ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Quotas and tariffs are trade policies followed by governments usually to protect their domestic industries from international competition. Quotas are limits on how much of a certain good or service can be imported-maybe a yearly quota of 500 on Japanese cars.

Detailed explanation-2: -Import quotas control the amount or volume of various commodities that can be imported into the United States during a specified period of time. Quotas are established by legislation, Presidential Proclamations or Executive Orders.

Detailed explanation-3: -Any one of a series of tariff and no-tariff barriers imposed by a importing nation to control the volume of goods coming into the country from other countries.

Detailed explanation-4: -Many countries restrict imports in order to shield domestic markets from foreign competition. Such behavior is known as protectionism. Countries do this mainly to satisfy political demands at home. There are many types of trade barriers.

Detailed explanation-5: -These include specific tariffs, ad valorem tariffs, compound tariffs, tariff-rate quotas, and retaliatory tariffs. A specific tariff is a tax imposed directly onto one imported good and does not depend on the value of that imported good.