ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Dumping in the GATT/WTO Dumping is, in general, a situation of international price discrimination, where the price of a product when sold in the importing country is less than the price of that product in the market of the exporting country.

Detailed explanation-3: -Tariffs raise the price of imported goods, but quotas rarely do. When countries engage in specialization and international trade, every individual person in those countries will gain. Countries that engage in specialization and trade can consume at a level beyond their production possibilities frontier.

Detailed explanation-4: -How Do Tariffs Affect Prices? Tariffs increase the prices of imported goods. Because of this, domestic producers are not forced to reduce their prices from increased competition, and domestic consumers are left paying higher prices as a result.