Italy currently has a limit on the number of motorcycles that can be imported from Japan. This restriction would be considered a(n)
A)tariff.
B)trade imbalance.
C)excise tax.
D)quota.
E)subsidy.

Question

Quizplus · Accepted Answer

The restriction on the number of motorcycles that can be imported from Japan is a quantity-based trade barrier known as a quota. This is a form of protectionism used by governments to limit the quantity of a certain good or service that can be imported into their country in order to protect domestic industries from foreign competition. Tariffs are taxes imposed on imported goods, excise taxes are taxes on specific goods or services, subsidies are financial incentives provided by governments to support domestic industries, and trade imbalance refers to a situation where a country imports more goods than it exports.

Italy Currently Has a Limit on the Number of Motorcycles