Establishment of government quotas on imports (e.g.cotton shirts or steel)to the U.S.has led to

Question

Quizplus · Accepted Answer

Government quotas on imports lead to a decrease in imports from a particular country, which results in a decrease in production in that country. As a result, production shifts to other countries in the periphery and semi-periphery where labor is cheaper. Hence, the establishment of government quotas on imports leads to a shifting of production from country to country in the periphery and semi-periphery.

Establishment of Government Quotas on Imports (E