Serentia, a small nation, has a small automotive industry and is struggling to keep up with larger international automobile manufacturers. Other countries in Serentia's trading bloc have agreed on an import quota on other nations, which limits the number of cars that any country in the trading bloc can buy from other auto manufacturers. This strategy is necessary to help Serentia's auto manufacturer while it is in its infancy.

Question

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Import quotas are designed to limit the number of a particular product that a nation can import. This is usually a strategy enacted by a nation trying to protect a weak product or grow an industry that is in its infancy.

Serentia, a Small Nation, Has a Small Automotive Industry and Is