A quota is a limit on the amount of a product that can be imported or exported from a country. This is done as a means of protecting domestic industries from foreign competition or to address issues such as overproduction or reliance on imports. Quotas are often used in trade agreements as a way to regulate the flow of goods and services.

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A Quota Refers to

Question 36

Multiple Choice

A quota refers to

A) a government tax on goods or services entering a country that primarily serves to raise prices on imports.
B) government payments to companies or industries that serve to lower costs and provide a competitive advantage to domestic industries.
C) a restriction placed on the amount of a product allowed to enter or leave a country.
D) a minimum requirement for the purchase of specific products or services between two nations.
E) a refusal to purchase or exchange goods or services with another nation unless certain financial or ideological requirements have been satisfied.

Correct Answer: