Asked by Mikaela Forcum on May 06, 2024
Verified
Limits on the quantity of a foreign good that can be imported into the domestic market are
A) import capacity limits.
B) import quotas.
C) tariffs.
D) export quotas.
Import Quotas
Import quotas are government-imposed limits on the quantity or value of goods that can be imported into a country, used to protect domestic industries and regulate international trade.
Tariffs
Taxes imposed by a government on imported goods, often to protect domestic industries from foreign competition.
- Examine the impact of tariffs, quotas, and various trade restrictions on worldwide commerce and local markets.
Verified Answer
PJ
Pinki JangirMay 10, 2024
Final Answer :
B
Explanation :
Import quotas are limits on the quantity of a foreign good that can be imported into the domestic market. These quotas are typically set by the government as a way to protect domestic industries, limit competition, and control the balance of trade. Tariffs are taxes imposed on imported goods and export quotas are limits on the quantity of a domestic good that can be exported to other countries. Import capacity limits are not a commonly used term in international trade.
Learning Objectives
- Examine the impact of tariffs, quotas, and various trade restrictions on worldwide commerce and local markets.