ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An import quota is a limit on the amount of imports that can be brought into a particular country. For example, the US may limit the number of Japanese car imports to 2 million per year. Quotas will reduce imports, and help domestic suppliers.

Detailed explanation-2: -A quota is a limit on trade, usually imports. They remain reasonably common in agricultural goods (for example, the US constrains imports of dairy goods, sugar, meats, and other foods).

Detailed explanation-3: -Tariff-Rate Quotas There is no limitation on the amount of merchandise that may be imported into the United States, however, quantities entered in excess of the quota limit during that period are subject to a higher duty rate.

Detailed explanation-4: -What Is a Quota? 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-5: -(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.