USA HISTORY

Detailed explanation-1: -The quota system of the 1920’s was created to reduce tariffs. The Teapot Dome scandal involved the secret leasing of government-owned oil reserves for profitable use by private companies. Isolationism is a policy of abstaining from involvement in world affairs.

Detailed explanation-2: -No, a quota is not a tariff. In the international trade context, a quota is a limit on the quantity of a particular good or product that can be imported into a nation. Quotas can be country-specific or global in scope. Tariffs, on the other hand, are a tax on goods or products entering a country.

Detailed explanation-3: -First, for industries seeking protection, quotas arguably provide greater certainty than tariffs that imports will be limited. Under tariffs, if importers can bear the costs, or exporters can reduce their prices, imports will continue to flow in and competition will remain high.

Detailed explanation-4: -Quotas are a type of nontariff barrier governments enact to restrict trade. Other kinds of trade barriers include embargoes, levies, and sanctions.