ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Import quotas control the amount or volume of various commodities that can be imported into the United States during a specified period of time. Quotas are established by legislation, Presidential Proclamations or Executive Orders.

Detailed explanation-2: -Import Quotas An import quota is a restriction placed on the amount of a particular good that can be imported. This sort of barrier is often associated with the issuance of licenses. For example, a country may place a quota on the volume of imported citrus fruit that is allowed.

Detailed explanation-3: -An import quota lowers consumer surplus in the import market and raises it in the export country market. An import quota raises producer surplus in the import market and lowers it in the export country market. National welfare may rise or fall when a large country implements an import quota.

Detailed explanation-4: -A quota is a type of trade restriction where a government imposes a limit on the number or the value of a product that another country can import. For example, a government may place a quota limiting a neighboring nation to importing no more than 10 tons of grain.