ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Import Quota Regulatory Agencies Tariff-rate quotas allow a country to import a certain quantity of a particular good at a reduced duty rate.

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: -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-4: -An import quota lowers consumer surplus in the import market and raises it in the export country market. An import quota raises producer surplus in the import market and lowers it in the export country market. National welfare may rise or fall when a large country implements an import quota.