ECONOMICS
BARRIERS TO TRADE
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
tariff
|
|
quota
|
|
embargo
|
|
None of the above
|
Detailed explanation-1: -An import quota is a restriction that limits the maximum quantity of a good that may be imported in a given period. For example, Canada imposes import quotas on food products such as meat, eggs, and dairy products and manufactures such as steel.
Detailed explanation-2: -1.1 Definition of tariff rate quota (TRQ) A TRQ is a quota that establishes a limit on the quantity of a product that may be imported at a lower (within access) rate of duty, but places no limit on the amount of product that may be imported at a higher (over access) rate of duty.
Detailed explanation-3: -Absolute quotas strictly limit the quantity of goods that may enter the commerce of the United States for a specific period. Tariff rate quotas permit a specified quantity of imported merchandise to be entered at a reduced rate of duty during the quota period.
Detailed explanation-4: -Since March 2018, when President Trump exercised his authority under Section 232 of the Trade Expansion Act of 1962 to impose a 25 percent tariff on steel imports and a 10 percent import on aluminum, trade partners of the United States have made efforts to receive exemptions from the steel and aluminum tariffs.