Quotas are

A) methods for reducing imports by limiting the quantity of goods from a specific country that can enter the country each year.
B) taxes on imports that raise their prices and reduce their attractiveness to domestic buyers.
C) voluntary agreements designed to reduce the harm to firms engaged in foreign trade.
D) subsidies to foreign producers to encourage them to trade.

Quotas are restrictions on the quantity of a specific good that can be imported into a country. They are used as a protectionist trade policy to reduce the imports of goods and protect domestic industries from competition. A country may limit the number of goods that can be imported from a particular country each year as a means of protecting domestic industries from foreign competitors. This is done by setting a limit on the amount or quantity of a particular good that can be imported from a specific place, which is known as a quota.