ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Import quotas are a tool the government uses to target the quantity imported of a particular good. In other words, when import quotas are applied, there is only a certain amount of quantity of a good allowed to enter the domestic market.

Detailed explanation-2: -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.

Detailed explanation-3: -Tariff rate quotas permit a specified quantity of imported merchandise to be entered at a reduced rate of duty during the quota period. Once the tariff-rate quota limit is reached, goods may still be entered, but at a higher rate of duty.

Detailed explanation-4: -(i) Tariff or Custom Quota: In the case of tariff or custom quota, a certain specified quantity of a commodity is allowed to be imported by the government of the importing country either duty free or at a low rate of import duty.

Detailed explanation-5: -A nontariff barrier is a trade restriction–such as a quota, embargo or sanction–that countries use to further their political and economic goals. Countries usually opt for nontariff barriers (rather than traditional tariffs) in international trade. Nontariff barriers include quotas, embargoes, sanctions, and levies.