To be effective, an import quota must

Question

Quizplus · Accepted Answer

An import quota is a type of trade barrier that limits the quantity of a specific product that can be imported into a country. The main purpose of an import quota is to restrict imports to less than would be imported under free trade. This allows domestic producers to compete more effectively with foreign producers and can lead to the development of domestic industries. Import quotas do not necessarily set a higher price for imported goods, nor do they need to be directed at the products of a particular country. Therefore, the best choice is C - restrict imports to less than would be imported under free trade.

To Be Effective, an Import Quota Must