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: -Trade protectionism is the attempt by the domestic government to limit imports from foreign competitors or promote domestic exports to other nations. Policymakers achieve these goals by creating protectionist policies that create barriers to international trade.

Detailed explanation-4: -Answer & Explanation. Tariff quota is a policy whereby there is a specified number of goods that can be imported to a country at one tariff rate and a higher tariff rate is applied when imports exceeds this quantity of imports.

Detailed explanation-5: -Tariffs. The taxes or duties imposed on imports are known as tariffs. Quotas. Quotas are restrictions on the volume of imports for a particular good or service over a period of time. Subsidies. Standardization.