A(n)________ imposes a low tariff rate on a limited amount of imports of a specified good,but imposes a prohibitively high tariff on the good above that limited amount.
A) tariff rate quota
B) numerical export control
C) voluntary export restraint
D) ad valorem tariff

Question

Quizplus · Accepted Answer

A tariff rate quota is a trade policy that imposes a low tariff rate on a limited amount of imports of a specified good, but imposes a prohibitively high tariff on the good above that limited amount. This type of policy is often used to protect domestic industries by limiting competition from foreign producers, while still allowing a certain amount of imports to meet consumer demand. The limited quantity of imports is usually allocated among specific countries or producers through a quota system.

A(n)________ Imposes a Low Tariff Rate on a Limited Amount