Who benefits from an import quota on a good?

Question

Quizplus · Accepted Answer

An import quota limits the amount of goods that can be brought in from foreign countries, which benefits domestic producers of the good because it reduces competition from foreign producers and allows them to potentially increase prices or gain a larger market share. Foreign governments and producers of the good are negatively impacted by an import quota because it limits their ability to sell their goods in the domestic market. Domestic consumers of the good may also be negatively impacted by an import quota as the reduced competition may lead to higher prices. However, the benefits to domestic producers may be seen as outweighing the potential negative impact on consumers.

Who Benefits from an Import Quota on a Good