ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A quota is a government-imposed trade restriction that limits the number or monetary value of goods that a country can import or export during a particular period. Countries use quotas in international trade to help regulate the volume of trade between them and other countries.

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: -A quota is a type of trade restriction where a government imposes a limit on the number or the value of a product that another country can import. For example, a government may place a quota limiting a neighboring nation to importing no more than 10 tons of grain.

Detailed explanation-4: -An import quota is a limit on the total quantity of imports that can be brought into a country in a given time period. It is a non-tariff barrier. A quota restricts supply leading to higher prices. For example China has a quota on Cambodian rice exports of 300, 000 tonnes per year.

Detailed explanation-5: -Import Quotas-Key takeaways The point of an import quota is to limit how much of a foreign product can be imported into a country. The main objective of an import quota is to protect domestic industries and stabilize domestic prices. The two main types of import quotas are absolute quotas and tariff rate quotas.