ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -MEXICO CITY, Feb 7 (Reuters)-Mexico opened an additional sugar import quota of 250, 000 tonnes for 2010 to cover an expected shortfall in the domestic harvest, the economy ministry said on Sunday. The ministry said the quota would run until May 20. Our Standards: The Thomson Reuters Trust Principles.

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. Countries use quotas in international trade to help regulate the volume of trade between them and other countries.

Detailed explanation-3: -Tariff refers to the tax levied on import or export of goods. Quota refers to the restriction imposed on the quantity of goods imported.

Detailed explanation-4: -An import quota is a type of trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time. Quotas, like other trade restrictions, are typically used to benefit the producers of a good in that economy (protectionism).

Detailed explanation-5: -Answer & Explanation. Tariff quota is a policy whereby there is a specified number of goods that can be imported to a country at one tariff rate and a higher tariff rate is applied when imports exceeds this quantity of imports.