If quota rights accrue to foreigners,then _____.

Question

Quizplus · Accepted Answer

When quota rights accrue to foreigners, it means that a specific amount of the import quota is designated for foreign producers. This can lead to higher prices for domestic consumers, as there is less competition in the market. In contrast, a tariff on imported goods can still allow for competition in the market, while generating revenue for the domestic government. Therefore, the domestic economy is worse off with a quota than with a tariff.

If Quota Rights Accrue to Foreigners,then _____