ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Quotas. Quotas are limits imposed by government on the physical quantity of either imports or exports. They can be unilaterally imposed by government or they can be negotiated with exporting or importing countries, which “voluntarily” agree to restrict exports or imports (see Box 3).

Detailed explanation-3: -Import quotas control the amount or volume of various commodities that can be imported into the United States during a specified period of time.

Detailed explanation-4: -Nontariff Barriers One type of nontariff barrier is the import quota, or limits on the quantity of a certain good that can be imported. The goal of setting quotas is to limit imports to the specific amount of a given product. The United States protects its shrinking textile industry with quotas.

Detailed explanation-5: -The main types of trade barriers used by countries seeking a protectionist policy or as a form of retaliatory trade barriers are subsidies, standardization, tariffs, quotas, and licenses.