ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A quota is when a country limits the amount of a product that can be imported from another country. Example: A country might limit the amount of cars imported from other countries to 500, 000 per year. Trade embargoes forbid trade with another country. The government orders a complete ban on trade with another country.

Detailed explanation-2: -Terms in this set (15) Example: The U.S. president increased the amount of imported peanuts allowed into the country by 100 million pounds per year. Example: In 1963, President Kennedy issued sanctions, which prohibited all trade with Cuba.

Detailed explanation-3: -Key Points. A tariff is a tax on imported goods that is paid for by the importer. There are four types of tariffs – Ad valorem, Specific, Compound, and Tariff-rate quota. Tariffs main aims are to protect domestic industry, protect domestic jobs, national security, and in retaliation to other nations tariffs.

Detailed explanation-4: -An embargo is a trade restriction, typically adopted by a government, a group of countries or an international organization as an economic sanction. Embargoes can bar all trade, or may apply only to some of it, for example to arms imports.