alleryStart learning →What is an import quota?
AA tax charged on each unit of a good brought into a country
BA limit on the quantity of a certain good that can be imported
CA ban on exporting a product to a country that is not an ally
DA rule that public buyers must purchase from domestic firms
Answer & Solution
Correct answer: B. A limit on the quantity of a certain good that can be imported
1. An import quota is one type of nontariff barrier.
2. It sets a limit on the quantity of a certain good that can be imported.
3. The goal of setting a quota is to hold imports to a specific amount of a given product.
4. A per-unit tax is a tariff, a ban is an embargo and a purchasing rule is a buy-national regulation.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 3 "Competing in the Global Marketplace", section 3.3 Barriers to Trade_
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