ECONOMICS (CBSE/UGC NET)

ECONOMICS

BARRIERS TO TRADE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The European Union limits the amount of imported aluminum from Canada.
A
tariff
B
quota
C
embargo
D
None of the above
Explanation: 

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.

There is 1 question to complete.