The objective of an import quota is to ______.
A) prevent dumping
B) raise revenue for the government
C) protect domestic industries
D) ban the importation of certain goods

Question

Quizplus · Accepted Answer

An import quota is designed to protect domestic industries by limiting the quantity of foreign goods that can be imported, which gives domestic producers an advantage in the market. Import quotas are often used to restrict competition from foreign manufacturers and suppliers. They are a form of trade protectionism that allows domestic producers to charge higher prices by limiting the supply of foreign goods.

The Objective of an Import Quota Is to ______