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: -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-3: -A specific restriction on the value or volume of exports of a specified good imposed by government of the exporting country. This restraint may be intended to protect domestic producers from temporary shortages of certain materials, or as means to moderate world prices of specified commodities.

Detailed explanation-4: -The main objective of tariffs and quotas is to protect the domestic industries and jobs from high foreign competition because most commodities imported into countries are usually cheaper because of their low production costs.